NEW YORK–(COMMERCIAL THREAD) – AG Mortgage Investment Trust, Inc. (NYSE: MITT) (the âCompanyâ) today announced that Commercial Loan L, the only commercial investment inherited from the Company, has been repaid in full for gross proceeds of $ 54.0 million to the Company. The proceeds from the L business loan were well above the fair value of the Company at June 30, 2021 for the $ 43.9 million investment, allowing full recovery of principal and all unpaid deferred interest. Following the repayment of the associated financing, the repayment of the L business loan generated net proceeds of $ 28.1 million for the company and, with the repayment of the previously announced K business loan, generated total net proceeds of 48.1 million dollars. , $ 2 million for the company.
The repayment of the L business loan represents an additional amount of $ 0.63 per share (of which $ 0.17 represents the deferred interest received) to the book value per share of the Company as at June 30, 2021 of $ 15.18.
Completing the Company’s exit from its commercial investments advances the Company’s objectives to:
- Transition to a Pure Play Residential Mortgage REIT – During 2021, the Company sold or resolved commercial loans and CMBS with aggregate fair values ââas at December 31, 2020 of $ 125.5 million and $ 56.8 million, respectively, generating capital for reinvestment in residential investments, in particular residential mortgage loans not issued by agencies.
- Drive growth through the creation and securitization of residential mortgages – The income generated by the exit of all commercial investments, associated with excess capacity on existing financing lines, considerably strengthens the Company’s ability to continue to seek residential mortgage assets out of branch, either through its originator of vertically integrated mortgages, Arc Home, or through relationships with third-party principals. The Company has completed three non-QM securitizations through its proprietary GCAT shelf since May 2021 and plans to use available cash to continue accelerating the expansion of its residential investments, followed by securitization.
âThis transaction marks a turning point in MITT’s history,â said David N. Roberts, Chairman and CEO of the company. âLoan resolutions dramatically simplify our business and, with the full support and resources of Angelo Gordon and our strategic advantages, should enable us to accelerate MITT’s ability to capitalize on the exciting opportunities in the residential lending market outside agency and become a leader in the space.
âThe overwhelmingly positive resolution of the L Commercial Loan is a testament to Angelo Gordon’s long-standing reputation for investing on the basis of deep underwriting and prudent leverage,â said TJ Durkin, Chairman of the Company . “And now, with the legacy commercial loans from MITT in the rearview mirror and abundant liquidity, we remain committed to focusing all of our energy and resources on executing our mission of building a residential origination and securitization platform. first class. We anticipate that current market conditions, along with our stake in multi-channel mortgage lender, Arc Home, will provide MITT with a strong portfolio of residential mortgage investments, driving both portfolio growth and returns for our shareholders. ”
Mr. Durkin continued, âWhile growing the business is our primary focus, we will also continue to assess accretive ways to strengthen our capital structure, including using our existing share buyback programs. ”
About AG Mortgage Investment Trust, Inc.
AG Mortgage Investment Trust, Inc. is a mortgage REIT that invests opportunistically in a diversified risk-adjusted portfolio of residential investments and agency RMBS. AG Mortgage Investment Trust, Inc. is managed and externally advised by AG REIT Management, LLC, a subsidiary of Angelo, Gordon & Co., LP, a leading private alternative investment firm specializing in credit strategies and real estate.
Additional information is available on the Company’s website at www.agmit.com.
About Angelo, Gordon & Co., LP
Angelo, Gordon & Co., LP (“Angelo Gordon”) is a private limited partnership founded in November 1988. The company currently manages approximately $ 44 billion with a primary focus on credit and real estate strategies. Angelo Gordon has more than 550 employees, including more than 200 investment professionals, and is headquartered in New York City, with associated offices elsewhere in the United States, Europe and Asia. For more information, visit www.angelogordon.com.
This press release may contain forward-looking statements within the meaning of federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions regarding matters that are not historical facts. In some cases, you can identify forward-looking statements by using forward-looking terminology such as “may”, “will”, “should”, “expects”, “intends”, “expects”, “expects”. “,” “Believes”, “estimates”, “predicts” or “potential” or the negative of those words and expressions or similar words or expressions which are predictions or indicate future events or trends and which do not relate only to historical questions. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond our control, and may cause actual results to differ significantly from those expressed in any forward-looking statement. Factors that may cause such a difference include, but are not limited to, the ability of the Company to maintain or increase its book value per share, the ability of the Company to continue to generate or increase core earnings, if the Company will realize one of the anticipated benefits of its transition to a strategy focused on the origination and securitization of residential mortgage loans, the liquidity of the Company, the financing capacity of the Company, the pace of the Company’s securitizations out of branch , regulatory changes that may have an impact on the Company’s ability to seize opportunities in the off-branch residential lending market on expected terms or not at all, the Company’s ability to become a leader in residential lending out of branch and to build a leading platform for origination and residential securitization, demand on the non-branch securitization markets, management and resources of the Company, performance, including its ability to provide the Company with a strong portfolio of investment opportunities, the Company’s relationships with third party originators, the timing and rate of growth of the loan portfolio of the Company, including whether such growth will result in shareholder returns at expected levels or not at all, the strength of the Company’s capital structure, including its ability to repurchase shares, and other risks and uncertainties, including those detailed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and its other reports filed from time to time with the United States Securities and Exchange Commission. All forward-looking statements reflect the Company’s beliefs, assumptions and good faith expectations, but they are not guarantees of future performance. The Company cautions investors not to place undue reliance on forward-looking statements.
Forward-looking statements speak only as of the date of this press release. The Company has no obligation to update these forward-looking statements after the date of this press release, nor to comply with any statements made prior to actual results or revised expectations, and the Company does not intend to do so. to do.