New York Mortgage Trust posts Q2 net loss

Overview

• NYMT reports Q2 net loss of $3.5 mln, recurring earnings surpasses dividend

• Company acquires Constructive Loans, expanding into residential business purpose lending

• NYMT completes residential loan securitization, generating $345.9 mln in net proceeds

Outlook

• Company expects Constructive acquisition to boost residential business purpose lending

Result Drivers

• CONSTRUCTIVE LOANS ACQUISITION - Acquisition of Constructive Loans accelerates expansion into residential business purpose lending, per CEO Jason Serrano

• AGENCY INVESTMENTS - Acquired $503.7 mln in Agency investments with an average coupon of 5.29%

• RESIDENTIAL LOAN SECURITIZATION - Completed securitization of residential loans, generating $345.9 mln in net proceeds

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for New York Mortgage Trust Inc is $7.50, about 9.1% above its July 29 closing price of $6.82

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX2Qj03p