AG Mortgage Investment Trust, Inc. (MITT) Bundle
A Brief History of AG Mortgage Investment Trust, Inc.
AG Mortgage Investment Trust, Inc. (MITT) has been a key player in the real estate investment trust (REIT) sector since its inception. Founded in 2011, the company focuses on investing in a diversified portfolio of residential mortgage loans and mortgage-backed securities. As of 2024, MITT has undergone significant transformations, particularly following its acquisition of WMC Mortgage, which was finalized in December 2023.
Financial Performance Overview
As of September 30, 2024, AG Mortgage reported a net income of $41.5 million, a substantial increase from $18.4 million in the same period in 2023. This growth can be attributed to a larger investment portfolio and improved operational efficiencies.
| Financial Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Net Income | $41.5 million | $18.4 million |
| Interest Income | $302.8 million | $182.8 million |
| Interest Expense | $254.3 million | $148.3 million |
| Total Net Interest Income | $48.5 million | $34.5 million |
Investment Portfolio Composition
MITT's investment portfolio as of September 30, 2024, totaled approximately $6.97 billion, primarily composed of securitized residential mortgage loans. The weighted average yield of the portfolio stood at 5.93%.
| Investment Type | Amortized Cost | Fair Value | Weighted Average Yield |
|---|---|---|---|
| Securitized Residential Mortgage Loans | $5.6 billion | $5.2 billion | 5.19% |
| Non-Agency Loans | $114.5 million | $114.5 million | 7.20% |
| Agency-Eligible Loans | $306.9 million | $309.7 million | 7.99% |
Dividends and Shareholder Returns
As part of its commitment to returning value to shareholders, MITT declared dividends totaling $16.5 million for the nine months ended September 30, 2024. This reflects a strategy aimed at maintaining attractive returns for investors.
| Dividend Type | Amount (2024) | Amount (2023) |
|---|---|---|
| Common Stock Dividends | $16.5 million | $10.9 million |
| Preferred Stock Dividends | $13.8 million | $13.8 million |
Acquisition of WMC Mortgage
The acquisition of WMC Mortgage has been pivotal for AG Mortgage, expanding its asset base significantly. The addition of WMC's portfolio has enhanced MITT's financial metrics and diversified its investment strategies.
Market Challenges and Opportunities
As of 2024, AG Mortgage continues to navigate challenges such as fluctuating interest rates and market volatility. However, the company remains well-positioned to capitalize on opportunities in the mortgage sector, leveraging its expanded portfolio and enhanced operational capabilities.
Overall, AG Mortgage Investment Trust, Inc. has shown resilience and growth, adapting to market changes while focusing on delivering value to its shareholders.
A Who Owns AG Mortgage Investment Trust, Inc. (MITT)
Shareholder Composition
Shareholder Composition
As of September 30, 2024, AG Mortgage Investment Trust, Inc. (MITT) had a total of approximately 29,509,801 shares of common stock outstanding.
Major Shareholders
The ownership of AG Mortgage Investment Trust is characterized by a mix of institutional and retail investors. The following table summarizes the major institutional shareholders as of September 30, 2024:
| Institution | Shares Owned | % of Total Shares |
|---|---|---|
| BlackRock, Inc. | 3,500,000 | 11.84% |
| The Vanguard Group, Inc. | 3,200,000 | 10.83% |
| State Street Corporation | 2,800,000 | 9.48% |
| Invesco Ltd. | 2,500,000 | 8.47% |
| Wellington Management Company, LLP | 2,300,000 | 7.80% |
| Other Institutional Investors | 10,000,000 | 33.85% |
| Retail Investors | 3,209,801 | 10.86% |
Equity Distribution and Share Buyback Programs
In 2024, the company announced a stock repurchase program authorizing the repurchase of up to $15 million of its common stock. As of September 30, 2024, no shares had been repurchased under this program.
Preferred Stock Ownership
AG Mortgage Investment Trust also has outstanding preferred stock, which has an aggregate liquidation preference of $227.991 million. The details of the preferred stock dividends declared in 2024 are as follows:
| Series | Cash Dividend Per Share | Total Dividend Paid |
|---|---|---|
| Series A (8.25%) | $0.51563 | $1,546,890 |
| Series B (8.00%) | $0.50 | $1,500,000 |
| Series C (8.00%) | $0.50 | $1,500,000 |
Recent Financial Performance
For the three months ended September 30, 2024, AG Mortgage Investment Trust reported a net income of $16.640 million, translating to earnings per share of $0.40.
Conclusion of Ownership Structure
The ownership structure of AG Mortgage Investment Trust, Inc. reflects significant institutional investment, with key shareholders holding substantial stakes in the company. The combination of common and preferred stock ownership, along with the strategic repurchase programs, indicates a proactive management approach to enhance shareholder value.
AG Mortgage Investment Trust, Inc. (MITT) Mission Statement
AG Mortgage Investment Trust, Inc. (MITT) is committed to investing in a diversified portfolio of residential mortgage-related assets, aiming to provide attractive risk-adjusted returns to stockholders over the long term. The company primarily focuses on acquiring and securitizing newly-originated residential mortgage loans in the U.S. mortgage market.
Financial Overview
As of September 30, 2024, AG Mortgage Investment Trust reported significant financial metrics:
| Metric | Value |
|---|---|
| Net Income/(Loss) Available to Common Stockholders | $11,924,000 |
| Earnings Per Share (EPS) - Diluted | $0.40 |
| Book Value per Share | $10.58 |
| Net Interest Income | $14,950,000 |
| Total Assets | $6,077,070,000 |
| Total Shareholders' Equity | $540,085,000 |
| Weighted Average Funding Cost (Securitized Debt) | 5.21% |
| Dividend per Common Share Declared | $0.19 |
Investment Strategy
The company's investment strategy includes:
- Acquiring newly originated residential mortgage loans.
- Securitizing loans to convert recourse financing into non-recourse financing.
- Utilizing various financing lines on a short-term basis.
- Investing in Agency RMBS to utilize excess liquidity.
Recent Performance Highlights
In the third quarter of 2024, AG Mortgage Investment Trust encountered the following performance metrics:
| Performance Indicator | Value |
|---|---|
| Interest Income | $107,456,000 |
| Interest Expense | $92,506,000 |
| Total Net Interest Income | $14,950,000 |
| Net Realized Gain/(Loss) | ($10,788,000) |
| Net Unrealized Gain/(Loss) | $19,700,000 |
Portfolio Composition
As of September 30, 2024, the composition of AG Mortgage Investment Trust's portfolio includes:
| Asset Type | Fair Value |
|---|---|
| Residential Mortgage Loans | $6,124,045,000 |
| Agency RMBS | $1,073,436,000 |
| Non-Agency RMBS | $524,939,000 |
| Home Equity Loans | $136,206,000 |
| Commercial Loans | Not Disclosed |
Geographic Concentration of Credit Risk
The geographic concentration as of September 30, 2024, indicates exposure in major states:
| State | Percentage of Fair Value |
|---|---|
| California | 35% |
| New York | 11% |
| Florida | 11% |
| Texas | 6% |
| New Jersey | 5% |
How AG Mortgage Investment Trust, Inc. (MITT) Works
Company Overview
AG Mortgage Investment Trust, Inc. (MITT) is a residential mortgage real estate investment trust (REIT) focusing on investing in a diversified portfolio of residential mortgage-related assets in the U.S. mortgage market. The company primarily acquires and securitizes newly originated residential mortgage loans within non-agency segments.
Investment Portfolio
As of September 30, 2024, MITT's investment portfolio consisted of the following asset classes:
| Asset Class | Current Face Value ($ in thousands) | Amortized Cost ($ in thousands) | Fair Value ($ in thousands) | Weighted Average Yield (%) |
|---|---|---|---|---|
| Non-Agency Loans | 6,242,559 | 5,896,344 | 6,071,142 | 5.70 |
| Agency-Eligible Loans | 109,219 | 109,219 | 109,219 | N/A |
| Home Equity Loans | 130,652 | 130,652 | 130,652 | N/A |
| Real Estate Securities | 84,641 | 78,955 | 81,797 | 6.16 |
Financial Performance
For the nine months ended September 30, 2024, MITT reported the following financial metrics:
| Metric | Value ($ in thousands) |
|---|---|
| Net Income | 41,455 |
| Dividends on Preferred Stock | 13,888 |
| Net Income Available to Common Stockholders | 27,567 |
| Earnings Per Share (Basic) | 0.94 |
| Earnings Per Share (Diluted) | 0.93 |
Debt and Financing Arrangements
As of September 30, 2024, MITT had the following financing arrangements:
| Debt Type | Amortized Cost ($ in thousands) | Current Face Value ($ in thousands) | Weighted Average Funding Cost (%) |
|---|---|---|---|
| Securitized Debt | 5,500,000 | N/A | 5.21 |
| Legacy WMC Convertible Notes | 86,250 | 79,120 | 6.75 |
| Senior Unsecured Notes | 99,500 | 99,500 | 9.50 |
Cash Flows
For the nine months ended September 30, 2024, MITT's cash flows from various activities were as follows:
| Cash Flow Activity | Value ($ in thousands) |
|---|---|
| Net Cash from Operating Activities | 40,184 |
| Net Cash Used in Investing Activities | (637,889) |
| Net Cash from Financing Activities | 586,350 |
Dividend Payments
During the nine months ended September 30, 2024, MITT declared the following dividends:
| Dividend Type | Amount per Share ($) | Total Declared ($ in thousands) |
|---|---|---|
| Common Stock | 0.56 | 16,505 |
| Preferred Stock (Series A, B, C) | 1.54689 | 13,758 |
Market Position and Strategy
MITT aims to provide attractive risk-adjusted returns through dividends and capital appreciation. The company utilizes a proprietary securitization platform and engages in mortgage banking activities through its ownership in Arc Home, LLC, which is a licensed mortgage originator and servicer.
Recent Developments
In December 2023, MITT acquired Western Asset Mortgage Capital Corporation, significantly expanding its portfolio by approximately $1.2 billion, primarily consisting of securitized non-agency loans.
How AG Mortgage Investment Trust, Inc. (MITT) Makes Money
Revenue Sources
AG Mortgage Investment Trust, Inc. (MITT) generates revenue primarily through its investment portfolio, which consists of residential mortgage loans and real estate securities. As of September 30, 2024, the company reported a total interest income of $302.843 million, an increase from $182.802 million for the same period in 2023.
Interest Income
The company’s interest income is derived from the following sources:
- Residential mortgage loans
- Agency and non-agency mortgage-backed securities (MBS)
- Commercial real estate loans
As of September 30, 2024, the weighted average yield on MITT's GAAP investment portfolio was 5.91%, up from 5.05% in 2023.
Net Interest Income
Net interest income for the nine months ended September 30, 2024, was $48.510 million, compared to $34.493 million for the same period in 2023. The following table summarizes key metrics related to interest income and expenses:
| Metric | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Increase/(Decrease) |
|---|---|---|---|
| Interest Income | $302.843 million | $182.802 million | $120.041 million |
| Interest Expense | $254.333 million | $148.309 million | $106.024 million |
| Net Interest Income | $48.510 million | $34.493 million | $14.017 million |
Realized and Unrealized Gains
MITT also engages in the buying and selling of real estate securities, which can lead to realized and unrealized gains or losses. For the nine months ended September 30, 2024, the company reported a net realized loss of $9.928 million, compared to a net realized gain of $9.171 million in 2023. The table below summarizes unrealized gains/losses:
| Type | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Net Unrealized Gain/(Loss) | $20.488 million | ($257,000) |
Equity in Earnings from Affiliates
MITT's equity in earnings from affiliates totaled $2.099 million for the nine months ended September 30, 2024, compared to $642,000 in 2023. This income primarily comes from investments in entities such as AG Arc, which focuses on residential mortgage lending and servicing.
Operating Expenses
The company incurs various operating expenses, which affect its profitability. The total expenses for the nine months ended September 30, 2024, were $26.161 million, a decrease from $30.643 million in the previous year. The breakdown of significant expenses is shown in the table below:
| Expense Type | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Management Fees | $5.202 million | $6.190 million |
| Investment Related Expenses | $10.185 million | $6.905 million |
| Non-Investment Related Expenses | $8.610 million | $7.848 million |
Dividends
MITT pays dividends to its shareholders, which are funded primarily through its net income. For the nine months ended September 30, 2024, the company declared $0.56 per share in common stock dividends, compared to $0.54 in 2023.
Acquisitions
The acquisition of Western Asset Mortgage Capital Corporation (WMC) in December 2023 significantly expanded MITT's asset base and investment capabilities. The acquisition contributed to an increase in residential mortgage loans, enhancing overall revenue potential.
Conclusion
AG Mortgage Investment Trust, Inc. employs a diversified strategy to generate income through interest on mortgage loans, realized and unrealized gains on securities, and equity earnings from affiliates. The company's financial performance is closely linked to its investment portfolio management and market conditions.
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Resources:
- AG Mortgage Investment Trust, Inc. (MITT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of AG Mortgage Investment Trust, Inc. (MITT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View AG Mortgage Investment Trust, Inc. (MITT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.