New York Mortgage Trust posts loss in Q1 as fixed income market underperforms

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New York Mortgage Trust (NASDAQ:NYMT) stock is slipping 1.8% in Tuesday after-hours trading after the mortgage REIT posted a loss for the quarter in a challenging market environment.

Q1 non-GAAP EPS of -$0.17 trailed the average analyst estimate of $0.10 and compared with EPS of $0.08 in Q4 2021 and $0.11 in the year-ago quarter.

Market volatility, caused by the Federal Reserve’s moves to tame inflation, “combined with a rapidly rising interest rate environment caused the fixed income market to underperform, driving the company’s undepreciated book value down by 6%,” said CEO and President Jason Serrano. Still, the company was “able to strengthen our balance sheet by completing multiple loan securitizations, further protecting the company against abrupt changes in financing availability while lowering the company’s cost of funds,” he added.

Undepreciated book value per common share of $4.45 at March 31, 2022 slipped from $4.74 at Dec. 31, 2021.

Q1 net interest income of $29.9M fell from $30.8M in Q4 2021 and from $30.3M in Q1 2021.

Q1 total general, administrative, and operating expenses increased to $71.8M from $34.1M in the prior quarter and $19.2M in the year-ago quarter.

Net investment activity climbed to $644.8M from $324.7M in Q4 2021.

Acquisitions of $984.6M increased from $851.0M in the prior quarter. Sales of $24.7M declined from $193.8M, while prepayments and redemptions of $315.1M compared with $332.5M in Q4 2021.

Conference call on May 4 at 11:30 AM ET.

Earlier, New York Mortgage Trust non-GAAP EPS of -$0.17 misses by $0.27