mREIT New York Mortgage Trust Releases Results

mREIT New York Mortgage Trust (NYMT) has released the results of their financials for the quarter ending 3/31/2020.

NYMT held residential mortgages and securities as well as multi family loans and other commercial mortgage backed securities.

The company took massive losses for the quarter, but it looks like maybe now they have the ‘ship righted’ (maybe).

The earnings announcement is here.

The company had previously suspended their preferred dividends and thus far has missed 1 dividend payment on the preferred which was due in April–no new announcement on the dividends has been made as of yet.

The company’s preferred issues can be seen here.

9 thoughts on “mREIT New York Mortgage Trust Releases Results”

  1. Doing my Sunday morning reading of Jeff Miller over on SA.
    Now a new term being used, a W shaped recovery. Makes me realize V , U and W shaped recovery doesn’t mean much. Think there will be more than just a few ups and downs so we need to keep a eye on them to profit or protect to our investments.

  2. Couple of thoughts.
    Have held and been in/out of NYMT Preferreds – all issues, for many years. Usually hold some core position.

    1) NYMT has been one of the more reliable REIT payers over many years.
    even when many other REITs in the same class have suffered more, somehow, NYMT has tended to remain stable.

    2) Their Preferreds have dropped on big general market drops and have tended to recover fairly quickly.

    3) Many REITs, as well as other asset-class firms have callable Preferreds that continue to pay for many years after 1st-call date. Even some since 2008/09! I do not believe that NYMT would be able to pay one Preferred-issue, say – pB, and not pay the other Prefs. They are in the same Cap-Stack position. would almost certainly lead to legal actions, JMHO.

    4) Will see what shakes out. Still – from my experience, if there are reliable survivors, I’d bet that NYMT will be among them.

    JMHO … of course..
    Steven

    1. Steven, here is how it goes…A company wont pay one equal standing preferred over another. They will dribble it out pro rata amongst all series until all the arrears are made whole…Here is text from Series E issuance for example…l
      When dividends are not paid in full (or a sum sufficient for such full payment is not so set apart) upon the Series E Preferred Stock and shares of any class or series of our Parity Stock, all dividends declared upon the Series E Preferred Stock and such Parity Stock must be declared pro rata so that the amount of dividends declared per share of Series E Preferred Stock and such Parity Stock will in all cases bear to each other the same ratio that accumulated dividends per share on the Series E Preferred Stock and such Parity Stock (which will not include any accrual in respect of unpaid dividends for prior Dividend Periods if such other Parity Stock do not have a cumulative dividend) bear to each other. No interest, or sum of money in lieu of interest, will be payable in respect of any dividend payment or payments on the Series E Preferred Stock which may be in arrears.
      As far as past call issues go, yes they can trade past call many years…In fact for example one issue I used to own has been past call since about 1930….

  3. There were scrambling to save the company and had to dump all kinds of paper at a loss. Book value was down by 33%! What is untold is what the paper they still hold really worth? With illiquid, one-off paper they can pretty much assign any value they want to it. You only know what it is really worth when you are forced to sale it. I suspect they are going to continue not paying their preferred dividends which would be smart on their part.

  4. I noticed yesterday their qtrly preferred divs came to over $40million, which on an annual basis was about the same as the ‘cash’ on hand. Now, if they can just make some more.

      1. Interesting – appreciate sharing and this site.

        Why this one NYMTO already due for call since April and not the other two NYMTM or NYMTN callable 2025 or 2027 with similar coupon even currently trading cheaper.

        Are you expecting them to pay dividend on this callable one and not the others? Can they do even do this (pay one and not other)?

      2. FYI, Steve Kennedy and Colorado Wealth Management Fund (REIT Forum) have Strong Buy ratings on the NYMT common and preferred shares, respectively, and from the conference call, it sounds as if the suspensions will be lifted early to mid summer absent some negative, intervening event(s) in the market. I picked up shares in two of the preferreds before the earnings announcement, and both have jumped. Here’s hoping…

    1. Gary, I’m not good at reading these reports but I did see this:”As of April 7, 2020, the Company had approximately $200 million in cash and cash equivalents, ..” I also calculated long hand their preferred liability (# shares issued + # shares overallotment x quarterly dividend for each preferred share = $ 9,977,860 which matches your annual number. So it seems there’s enough cash on hand to make a quarterly preferred payment, even if the current cash number is 40 million. Perhaps they want more time to firm up their situation before committing themselves to restarting dividends. Then there’s the matter of what I calculate to be 380 million shares of common. They might want to start them up together (common and preferred).

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