New York Mortgage Trust Inc. (NASDAQ:NYMT) Q3 2019 Earnings Conference Call Transcript

Nov 06, 2019 • 09:00 am ET

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New York Mortgage Trust Inc. (NASDAQ:NYMT) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the New York Mortgage Trust third quarter 2019 results conference call. During today's presentation all parties will be in a listen-only mode. Following the presentation the conference will be open for questions. [Operator Instructions] This conference is being recorded on Wednesday, November 6, 2019. A press release with New York Mortgage Trust's third quarter 2019 results was released yesterday.

The press release is available on the company's website at www.nymtrust.com. Additionally, we are hosting a live webcast of today's call, which you can access in the Events and Presentations section of the company's website. At the time, management would like me to inform you that certain statements made during the conference call, which are not historical may be deemed forward-looking statements within the meanings of the Private Securities Litigation Reform Act of 1995. Although New York Mortgage Trust believes the expectation reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained.

Factors and risks that could cause actual results to differ materially from expectations are detailed in yesterday's press release and from time to time in the company's filings with the Securities and Exchange Commission. Now, at this time, I would like to introduce Steve Mumma, Chairman and Chief Executive Officer. Steve, please go ahead.

Executive
Steven R. Mumma

Thank you, operator. Good morning everyone and thank you for being on the call. Jason Serrano, our President, will also be speaking on this call this morning. The company continued to deliver solid results. We generated GAAP earnings per share of $0.15 and comprehensive earnings per share of $0.20 for the quarter. Our book value per common share was $5.77 at September 30th, an increase of $0.02 from June 30th and resulted in a total economic return of 3.8% for the quarter. The company raised $311 million in common equity through two overnight offerings during the quarter.

In October, the company also completed a preferred equity offering raising additional $167 million, bringing our total stockholder capitalization to over $2 billion. Company generated annualized total economic return of 17% through the nine months ended September 30th, while maintaining our dividend at $0.20 per share for the quarter, it's a eleventh quarter in a row.

Our investment team remained very active sourcing and funding approximately $400 million in credit sensitive assets, bringing our total investment portfolio to $4.5 billion at September 30th. Our pipeline investments for the fourth quarter is strong as we expect to close over $275 million in credit investments in both our multifamily and residential assets. I'd now like to have Jason speak about market conditions and some thoughts on our core portfolio strategies. Good morning. Global and US equity markets had made modest gains during the third quarter of 2019 despite volatility, largely driven by investor uncertainty regarding global trade restrictions and alongside other geopolitical concerns, which is becoming increasingly harder to predict. While economic data remains mixed, data released