AG Mortgage Investment Trust, Inc. Reports Fourth Quarter Results
FOURTH QUARTER 2014 FINANCIAL HIGHLIGHTS
-
$0.40 of Net Income per diluted common share(6) -
$0.65 of Core Earnings per diluted common share(6)-
Includes
$0.07 of dollar roll income associated with the net position in agency mortgage-backed securities (“MBS”) in the “to-be-announced” (“TBA”) market
-
Includes
-
$0.60 per share common dividend declared -
$20.13 net book value per share as ofDecember 31, 2014 (1), net of the fourth quarter common dividend -
17.7% economic return on equity for the year (14)
- 2.0% economic return on equity for the quarter, 7.9% annualized (14)
- 34.1% total stock return for the year, including price appreciation and reinvestment of dividends
Q3 2014 | Q4 2014 | |||||
Summary of Operating Results: | ||||||
GAAP Net Income Available to Common Stockholders | $ | 19.0mm | $ | 11.3mm | ||
GAAP Net Income Available to Common Stockholders, |
$ | 0.67 | $ | 0.40 | ||
Non-GAAP-Results: | ||||||
Core Earnings | $ | 17.8mm | $ | 18.4mm | ||
Core Earnings, per diluted common share (6) | $ | 0.63 | $ | 0.65 | ||
* For a reconciliation of GAAP Income to Core Earnings, please refer to the Reconciliation of Core Earnings at the end of this press release. | ||||||
INVESTMENT HIGHLIGHTS
-
$3.7 billion investment portfolio value including net TBA position as ofDecember 31, 2014 (2) (4)- 55.4% Agency RMBS investment portfolio including net TBA position
- 44.6% credit investment portfolio, comprised of Non-Agency RMBS, ABS, CMBS, mortgage loans and excess mortgage servicing rights
-
Hedge ratio at quarter end of 91% of Agency RMBS repo notional, or 51%
of total financing (8)(15)
- Hedge ratio at quarter end including net TBA position was 79% of Agency RMBS repo notional and 47% of total financing (8)(15)
- In January, further reduced interest rate swap hedges in response to lower interest rate environment
-
8.8% constant prepayment rate (“CPR”) on the Agency RMBS investment
portfolio for the fourth quarter, excluding net TBA position (5)
- 7.4% CPR on the Agency RMBS investment portfolio in January, excluding net TBA position(5)
-
4.17x “at risk” leverage including net TBA position and 3.85x leverage
excluding net TBA position and 2.89% net interest margin excluding net
TBA position as of
December 31, 2014 (2) (3) (7) -
Invested approximately
$12 .0mm of equity for the purchase of two residential loan pools-
Together with
Angelo Gordon private funds, MITT purchased approximately$19.1 mm of Non-Performing loans held in security form with$14.2 mm of associated financing. -
Together with
Angelo Gordon private funds, MITT purchased approximately$28.4 mm of Non-Performing loans with$21.3 mm of associated financing.
-
Together with
- Completed a ReREMIC securitization, in which the senior tranche was sold to a third party while the Company retained the junior tranche; reduced short term recourse financing and simultaneously freed up capital.
“We are pleased with MITT’s performance during the fourth quarter,
producing another solid quarter for our shareholders,” commented
“Our deal flow and our capabilities continue to increase in the credit
sector. MITT’s investment team continues to work hard at balancing risk,
book value, and current earnings,” commented
KEY STATISTICS
|
|
|||||
($ in thousands) |
December 31, 2014 |
Weighted Average for the |
||||
Investment portfolio including net TBA position (2) (4) | $ | 3,692,590 | $ | 3,566,135 | ||
Investment portfolio excluding net TBA position | 3,455,869 | 3,407,444 | ||||
Repurchase agreements | 2,779,625 | 2,832,545 | ||||
Total financing (15) |
3,054,643 | 2,965,100 | ||||
Stockholders' equity | 732,675 | 730,592 | ||||
Leverage ratio (7) | 3.85x | 3.88x | ||||
Hedge ratio - Total financing (8)(15) |
51% | 56% | ||||
Hedge ratio - Agency repo (8) | 91% | 97% | ||||
"At Risk" Leverage including net TBA position (7) | 4.17x | 4.06x | ||||
Hedge ratio - Total financing including net TBA position (8)(15) |
47% | 53% | ||||
Hedge ratio - Agency repo including net TBA position (8) | 79% | 90% | ||||
Yield on investment portfolio (9) | 4.67% | 4.54% | ||||
Cost of funds (10) | 1.78% | 1.75% | ||||
Net interest margin (3) | 2.89% | 2.79% | ||||
Management fees (11) | 1.38% | 1.39% | ||||
Other operating expenses (12) | 1.83% | 1.83% | ||||
Book value, per share (1) | $ | 20.13 | ||||
Undistributed taxable income, per common share (13) | $ | 1.75 | ||||
Dividend, per share | $ | 0.60 | ||||
INVESTMENT PORTFOLIO
The following summarizes the Company’s investment portfolio as of
($ in thousands) | ||||||||||||||||
Current Face |
Premium |
Amortized Cost | Fair Value |
WA |
||||||||||||
Agency RMBS: | ||||||||||||||||
20-Year Fixed Rate | $ | 125,538 | $ | 6,010 | $ | 131,548 | $ | 133,743 | 2.8 | % | ||||||
30-Year Fixed Rate | 973,103 | 46,666 | 1,019,769 | 1,036,024 | 3.1 | % | ||||||||||
Fixed Rate CMO | 88,346 | 881 | 89,227 | 90,775 | 2.8 | % | ||||||||||
Hybrid ARM | 421,044 | (888 | ) | 420,156 | 427,537 | 2.7 | % | |||||||||
Inverse Interest Only | 359,129 | (293,501 | ) | 65,628 | 68,988 | 8.8 | % | |||||||||
Interest Only | 395,776 | (344,763 | ) | 51,013 | 51,247 | 6.4 | % | |||||||||
Fixed Rate 30 Year TBA | 225,000 | 10,240 | 235,240 | 236,721 | N/A | |||||||||||
Credit Investments: | ||||||||||||||||
Non-Agency RMBS | 1,439,269 | (194,381 | ) | 1,244,888 | 1,264,951 | 5.6 | % | |||||||||
ABS | 67,696 | (380 | ) | 67,316 | 66,693 | 5.6 | % | |||||||||
CMBS | 272,210 | (152,137 | ) | 120,073 | 122,860 | 7.7 | % | |||||||||
Interest Only | 52,358 | (46,425 | ) | 5,933 | 6,126 | 5.7 | % | |||||||||
Commercial Loans | 72,800 | (496 | ) | 72,304 | 72,800 | 8.6 | % | |||||||||
Residential Loans | 163,727 | (49,873 | ) | 113,854 | 113,497 | 9.4 | % | |||||||||
Excess Mortgage Servicing Rights | 94,317 | (93,679 | ) | 638 | 628 | 9.8 | % | |||||||||
Total | $ | 4,750,313 | $ | (1,112,726 | ) | $ | 3,637,587 | $ | 3,692,590 | 4.7 | % | |||||
* Fixed Rate 30 Year TBA are excluded from this calculation. | ||||||||||||||||
As of
The Company had net realized losses of
Premiums and discounts associated with purchases of the Company's
securities are amortized or accreted into interest income over the
estimated life of such securities, using the effective yield method. The
Company recorded a
FINANCING AND HEDGING ACTIVITIES
The Company, either directly or through its equity method investments in
affiliates, has entered into repurchase agreements with 35
counterparties, under which it had debt outstanding with 24
counterparties as of
($ in thousands) | |||||||||||
Repurchase Agreements |
Repo Outstanding | WA Funding Cost |
WA Days to |
% Repo |
|||||||
30 Days or Less | 2,067,279 | 0.80 | % | 13 | 74.37 | % | |||||
31-60 Days | 229,635 | 1.13 | % | 43 | 8.26 | % | |||||
61-90 Days | 58,366 | 1.34 | % | 68 | 2.10 | % | |||||
Greater than 90 Days | 424,345 | 2.10 | % | 473 | 15.27 | % | |||||
Total / Weighted Average | $ | 2,779,625 | 1.03 | % | 87 | 100.00 | % | ||||
*Numbers in table above do not include securitized debt of $39.8 million. |
|||||||||||
**Our weighted average original days to maturity is 131 days. |
|||||||||||
The Company has entered into interest rate swap agreements to hedge its
portfolio. The net TBA position is excluded from the derivative notional
amount show below. The Company’s interest rate swaps as of
($ in thousands) | |||||||||||
Maturity | Notional Amount |
Weighted Average |
Weighted |
Weighted |
|||||||
2017 | 80,000 | 0.86 | % | 0.27 | % | 2.68 | |||||
2018 | 210,000 | 1.05 | % | 0.23 | % | 3.26 | |||||
2019 | 350,000 | 1.39 | % | 0.23 | % | 4.59 | |||||
2020 | 440,000 | 1.61 | % | 0.23 | % | 5.24 | |||||
2022 | 50,000 | 1.69 | % | 0.23 | % | 7.68 | |||||
2023 | 278,000 | 2.43 | % | 0.23 | % | 8.52 | |||||
2024 | 38,000 | 2.75 | % | 0.23 | % | 9.18 | |||||
Total/Wtd Avg | $ | 1,446,000 | 1.62 | % | 0.24 | % | 5.47 | ||||
* 100% of our receive float interest rate swap notionals reset quarterly based on three-month LIBOR. | |||||||||||
As of
TAXABLE INCOME
The primary differences between taxable income and GAAP net income
include (i) unrealized gains and losses associated with investment and
derivative portfolios which are marked-to-market in current income for
GAAP purposes, but excluded from taxable income until realized or
settled, (ii) temporary differences related to amortization of premiums
and discounts paid on investments, (iii) the timing and amount of
deductions related to stock-based compensation, (iv) temporary
differences related to the recognition of certain terminated derivatives
and (v) taxes. As of
DIVIDEND
On
On
STOCKHOLDER CALL
The Company invites stockholders, prospective stockholders and analysts
to attend MITT’s fourth quarter earnings conference call on
A presentation will accompany the conference call and will be available on the Company’s website at www.agmit.com. Select the Q4 2014 Earnings Presentation link to download and print the presentation in advance of the stockholder call.
An audio replay of the stockholder call combined with the presentation
will be made available on our website after the call. The replay will be
available until midnight on
ABOUT
Additional information can be found on the Company's website at www.agmit.com.
ABOUT
FORWARD LOOKING STATEMENTS
This press release includes "forward-looking statements" within the
meaning of the safe harbor provisions of the United States Private
Securities Litigation Reform Act of 1995 related to future dividends,
the credit component of our portfolio book value, deploying capital, the
common and preferred stock offerings and repurchase agreements.
Forward-looking statements are based on estimates, projections, beliefs
and assumptions of management of the Company at the time of such
statements and are not guarantees of future performance. Forward-looking
statements involve risks and uncertainties in predicting future results
and conditions. Actual results could differ materially from those
projected in these forward-looking statements due to a variety of
factors, including, without limitation, changes in interest rates,
changes in the yield curve, changes in prepayment rates, the
availability and terms of financing, changes in the market value of our
assets, general economic conditions, market conditions, conditions in
the market for Agency RMBS, Non-Agency RMBS, ABS and CMBS securities and
loans, and legislative and regulatory changes that could adversely
affect the business of the Company. Additional information concerning
these and other risk factors are contained in the Company's filings with
the
AG Mortgage Investment Trust, Inc. and Subsidiaries | ||||||||
Consolidated Balance Sheets | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Assets | ||||||||
Real estate securities, at fair value: | ||||||||
Agency - $1,691,194,581 and $2,242,322,869 pledged as collateral, respectively | $ | 1,808,314,746 | $ | 2,423,002,768 | ||||
Non-Agency - $1,088,398,641 and $844,217,568 pledged as collateral, respectively | 1,140,077,928 | 844,217,568 | ||||||
ABS - $66,693,243 and $71,344,784 pledged as collateral, respectively | 66,693,243 | 71,344,784 | ||||||
CMBS - $96,920,646 and $93,251,470 pledged as collateral, respectively | 100,520,652 | 93,251,470 | ||||||
Residential mortgage loans, at fair value - $73,407,869 and $0 pledged as collateral, respectively | 85,089,859 | - | ||||||
Commercial loans, at fair value - $62,800,000 and $0 pledged as collateral, respectively | 72,800,000 | - | ||||||
Investment in affiliates | 20,345,131 | 16,411,314 | ||||||
Excess mortgage servicing rights, at fair value | 628,367 | - | ||||||
Linked transactions, net, at fair value | 26,695,091 | 49,501,897 | ||||||
Cash and cash equivalents | 64,363,514 | 86,190,011 | ||||||
Restricted cash | 34,477,975 | 3,575,006 | ||||||
Interest receivable | 11,886,019 | 12,018,919 | ||||||
Receivable under reverse repurchase agreements | - | 27,475,000 | ||||||
Derivative assets, at fair value | 11,382,622 | 55,060,075 | ||||||
Other assets | 10,543,072 | 1,246,842 | ||||||
Due from broker | 4,586,912 | 1,410,720 | ||||||
Total Assets | $ | 3,458,405,131 | $ | 3,684,706,374 | ||||
Liabilities | ||||||||
Repurchase agreements | $ | 2,644,955,948 | $ | 2,891,634,416 | ||||
Securitized debt | 39,777,914 | - | ||||||
Obligation to return securities borrowed under reverse repurchase agreements, at fair value | - | 27,477,188 | ||||||
Interest payable | 2,461,494 | 3,839,045 | ||||||
Derivative liabilities, at fair value | 8,608,209 | 2,206,289 | ||||||
Dividend payable | 17,031,609 | 17,020,893 | ||||||
Due to affiliates | 4,850,807 | 4,645,297 | ||||||
Accrued expenses | 2,285,339 | 1,395,183 | ||||||
Taxes payable | 1,743,516 | 1,490,329 | ||||||
Due to broker | 4,015,152 | 30,567,000 | ||||||
Total Liabilities | 2,725,729,988 | 2,980,275,640 | ||||||
Stockholders' Equity | ||||||||
Preferred stock - $0.01 par value; 50,000,000 shares authorized: | ||||||||
8.25% Series A Cumulative Redeemable Preferred Stock, 2,070,000
shares issued and outstanding |
49,920,772 | 49,920,772 | ||||||
8.00% Series B Cumulative Redeemable Preferred Stock, 4,600,000
shares issued and outstanding |
111,293,233 | 111,293,233 | ||||||
Common stock, par value $0.01 per share; 450,000,000 shares of
common stock authorized and |
283,861 | 283,657 | ||||||
Additional paid-in capital | 586,051,751 | 585,619,488 | ||||||
Retained earnings/(deficit) | (14,874,474 | ) | (42,686,416 | ) | ||||
Total Stockholders' Equity | 732,675,143 | 704,430,734 | ||||||
Total Liabilities & Stockholders' Equity | $ | 3,458,405,131 | $ | 3,684,706,374 | ||||
AG Mortgage Investment Trust, Inc. and Subsidiaries | ||||||||||||
Consolidated Statements of Operations | ||||||||||||
Three Months Ended | Three Months Ended | Year Ended | ||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2014 | ||||||||||
Net Interest Income | (Unaudited) | (Unaudited) | ||||||||||
Interest income | $ | 35,153,380 | $ | 36,836,926 | $ | 141,573,188 | ||||||
Interest expense | 6,747,312 | 5,803,681 | 26,497,398 | |||||||||
28,406,068 | 31,033,245 | 115,075,790 | ||||||||||
Other Income | ||||||||||||
Net realized gain/(loss) | (5,623,767 | ) | (3,367,951 | ) | 3,637,954 | |||||||
Income/(loss) from linked transactions, net | 1,485,473 | 3,314,068 | 12,503,516 | |||||||||
Realized loss on periodic interest settlements of derivative instruments, net | (4,919,237 | ) | (6,706,874 | ) | (22,261,187 | ) | ||||||
Unrealized gain/(loss) on real estate securities and loans, net | 19,916,461 | (23,526,713 | ) | 72,480,056 | ||||||||
Unrealized gain/(loss) on derivative and other instruments, net | (17,616,139 | ) | 21,764,006 | (51,255,430 | ) | |||||||
(6,757,209 | ) | (8,523,464 | ) | 15,104,909 | ||||||||
Expenses | ||||||||||||
Management fee to affiliate | 2,532,626 | 2,492,835 | 10,089,239 | |||||||||
Other operating expenses | 3,351,249 | 3,064,603 | 11,874,427 | |||||||||
Servicing fees | 191,786 | - | 511,519 | |||||||||
Equity based compensation to affiliate | 68,910 | 64,464 | 291,131 | |||||||||
Excise tax | 375,000 | 91,688 | 1,783,539 | |||||||||
6,519,571 | 5,713,590 | 24,549,855 | ||||||||||
Income/(loss) before income tax benefit/(expense) and equity in earnings/(loss) from affiliates | 15,129,288 | 16,796,191 | 105,630,844 | |||||||||
Income tax benefit/(expense) | - | (262,858 | ) | 79,914 | ||||||||
Equity in earnings/(loss) from affiliates | (474,857 | ) | 351,992 | 3,684,810 | ||||||||
Net Income/(Loss) | 14,654,431 | 16,885,325 | 109,395,568 | |||||||||
Dividends on preferred stock | 3,367,354 | 3,367,354 | 13,469,416 | |||||||||
Net Income/(Loss) Available to Common Stockholders | $ | 11,287,077 | $ | 13,517,971 | $ | 95,926,152 | ||||||
Earnings/(Loss) Per Share of Common Stock | ||||||||||||
Basic | $ | 0.40 | $ | 0.48 | $ | 3.38 | ||||||
Diluted | $ | 0.40 | $ | 0.48 | $ | 3.37 | ||||||
Weighted Average Number of Shares of Common Stock Outstanding | ||||||||||||
Basic | 28,386,015 | 28,365,655 | 28,379,782 | |||||||||
Diluted | 28,408,192 | 28,366,267 | 28,424,168 | |||||||||
NON-GAAP FINANCIAL MEASURE
This press release contains Core Earnings, a non-GAAP financial measure.
Core Earnings are defined by the Company as net income excluding both realized and unrealized gains/(losses) on the sale or termination of securities and the related tax expense/benefit or disposition expense, if any, on such, including securities underlying linked transactions, investments held in affiliated entities and derivatives. As defined, Core Earnings include the net interest earned on these transactions on a yield adjusted basis, including credit derivatives, linked transactions, investments in affiliates, inverse Agency securities, interest rate derivatives or any other investment activity that may earn or pay net interest. One of the objectives of the Company is to generate net income from net interest margin on the portfolio and management uses Core Earnings to measure this objective.
A reconciliation of GAAP net income to Core Earnings for the three
months ended
($ in thousands) | ||||||||||||
Three Months Ended | Three Months Ended | Year Ended | ||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2014 | ||||||||||
Net Income/(loss) available to common stockholders | $ | 11,287 | $ | 13,518 | $ | 95,926 | ||||||
Add (Deduct): | ||||||||||||
Net realized (gain)/loss | 5,624 | 3,368 | (3,638 | ) | ||||||||
Tax (benefit)/expense related to realized gain | - | 311 | (80 | ) | ||||||||
Drop income | 2,059 | - | 3,514 | |||||||||
(Income)/loss from linked transactions, net | (1,485 | ) | (3,314 | ) | (12,503 | ) | ||||||
Net interest income on linked transactions | 2,038 | 3,375 | 9,551 | |||||||||
Equity in (earnings)/loss from affiliates | 475 | (352 | ) | (3,685 | ) | |||||||
Net interest income from equity method investments | 725 | 400 | 1,897 | |||||||||
Unrealized (gain)/loss on real estate securities and loans, net | (19,916 | ) | 23,527 | (72,480 | ) | |||||||
Unrealized (gain)/loss on derivative and other instruments, net | 17,616 | (21,764 | ) | 51,255 | ||||||||
Core Earnings | $ | 18,423 | $ | 19,069 | $ | 69,757 | ||||||
Core Earnings, per Diluted Share | $ | 0.65 | $ | 0.67 | $ | 2.45 | ||||||
Footnotes
(1) Per share figures are calculated using a denominator of all outstanding common shares including all shares granted to our Manager and our independent directors under our equity incentive plans as of quarter end. Net book value uses stockholders’ equity less net proceeds of the Company’s 8.25% Series A and 8.00% Series B Cumulative Redeemable Preferred Stock as the numerator.
(2) Generally when we purchase a security and finance it with a repurchase agreement, the security is included in our assets and the repurchase agreement is separately reflected in our liabilities on the balance sheet. For securities with certain characteristics (including those which are not readily obtainable in the market place) that are purchased and then simultaneously sold back to the seller under a repurchase agreement, US GAAP requires these transactions be netted together and recorded as a forward purchase commitment. Throughout this press release where we disclose our investment portfolio and the repurchase agreements that finance it, including our leverage metrics, we have un-linked the transaction and used the gross presentation as used for all other securities. Additionally we invested in certain credit sensitive commercial real estate securities through affiliated entities, for which we have used the equity method of accounting. Throughout this press release where we disclose our investment portfolio, we have presented the underlying assets and repurchase financings consistently with all other investments and financings. Lastly, GAAP requires TBAs to be accounted for as derivatives, representing a forward purchase, or sale, of Agency RMBS. We have included net TBA positions as part of Agency RMBS in our portfolio composition unless otherwise stated. This presentation is consistent with how the Company’s management evaluates the business, and believes provides the most accurate depiction of the Company’s investment portfolio and financial condition.
(3) Net interest margin is calculated by subtracting the weighted average cost of funds from the weighted average yield for the Company’s investment portfolio, which excludes cash held by the Company. See footnotes (9) and (10) for further detail. NIM also excludes our net TBA position.
(4) The total investment portfolio is calculated by summing the fair market value of our Agency RMBS, net TBA position, Non-Agency RMBS, ABS, CMBS, mortgage loan assets, and excess mortgage servicing rights, including linked transactions, and assets owned through investments in affiliates. The percentage of Agency RMBS and credit investments is calculated by dividing the respective fair market value of each, including the net TBA positions as Agency RMBS and linked transactions and assets owned through investments in affiliates as credit investments, by the total investment portfolio. The weighted average investment portfolio for the quarter is calculated by weighting the cost of our investments during the quarter.
(5) This represents the weighted average monthly CPRs published during the quarter, or month, as applicable, for our in-place portfolio during the same period. Our net TBA position is excluded from CPR calculation.
(6) Diluted per share figures are calculated using weighted average outstanding shares in accordance with GAAP.
(7) The leverage ratio during the quarter was calculated by dividing our
daily weighted average financing, including repurchase agreements
accounted for as linked transactions and those through affiliated
entities for the quarter by the weighted average stockholders’ equity
for the quarter. The leverage ratio at quarter end was calculated by
dividing total financing, including repurchase agreements accounted for
as linked transactions and those through affiliated entities, plus or
minus the net payable or receivable, as applicable, on unsettled trades
on our GAAP balance sheet by our GAAP stockholders’ equity at quarter
end. “At Risk” Leverage includes the components of “leverage” plus our
net TBA position (at cost) of
(8) The hedge ratio during the quarter was calculated by dividing our
daily weighted average swap notionals, net short positions in U.S.
Treasury securities, IO Index notionals, and interest rate swaptions,
including receive fixed swap notionals and short positions in U.S.
Treasury securities as negative values, as applicable, for the period by
either our daily weighted average total financing or daily weighted
average repurchase agreements secured by Agency RMBS, as indicated. The
hedge ratio at quarter end was calculated by dividing the notional value
of our interest rate swaps, net short positions in U.S. Treasury
securities, IO Index notionals, and interest rate swaptions, including
receive fixed swap notionals and short positions in U.S. Treasury
securities as negative values as applicable, by either total financing
or repurchase agreements secured by Agency RMBS, as indicated, plus the
net payable/receivable on either all unsettled trades, or unsettled
Agency RMBS trades as indicated. The hedge ratios including the net TBA
position are calculated as previously stated plus an additional
(9) The yield on our investment portfolio represents an effective interest rate, which utilizes all estimates of future cash flows and adjusts for actual prepayment and cash flow activity as of quarter end. The yield on our investment portfolio during the quarter was calculated by annualizing interest income for the quarter and dividing by our daily weighted average investment portfolio. This calculation excludes cash held by the Company and our net TBA position.
(10) The cost of funds during the quarter was calculated by annualizing the sum of our interest expense and net interest settlements on all derivative instruments and dividing that sum by our daily weighted average financing for the period. The cost of funds at quarter end was calculated as the sum of the weighted average funding costs on financing outstanding at quarter end and the weighted average of the net pay rate on our interest rate swaps and net receivable rate on our IO index derivatives, if any. Both elements of the cost of funds at quarter end were weighted by the repurchase agreements and securitized debt outstanding at quarter end. The cost of funds excludes our net TBA position.
(11) The management fee percentage during the quarter was calculated by annualizing the management fees recorded during the quarter and dividing by the weighted average stockholders’ equity for the quarter. The management fee percentage at quarter end was calculated by annualizing management fees recorded during the quarter and dividing by quarter end stockholders’ equity.
(12) The other operating expenses percentage during the quarter was calculated by annualizing the other operating expenses recorded during the quarter and dividing by our weighted average stockholders’ equity for the quarter. The other operating expenses percentage at quarter end was calculated by annualizing other operating expenses recorded during the quarter and dividing by quarter end stockholders’ equity.
(13) Undistributed taxable income per common share represents total undistributed taxable income as of quarter end.
(14) The economic return on equity for the quarter represents the increase in net book value per share from prior period, plus the dividend declared in the current period, divided by prior period’s net book value per share.
(15) Total financing at quarter end, and when shown, daily weighted average, includes repurchase agreements inclusive of repurchase agreements accounted for as linked transactions and those through affiliated entities, plus or minus the net payable or receivable, as applicable, on unsettled trades on our GAAP balance sheet, securitized debt and our net TBA position.
Source:
AG Mortgage Investment Trust, Inc.
Karen Werbel, 212-692-2110
ir@agmit.com