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1. Company Snapshot

1.a. Company Description

New York Mortgage Trust, Inc.acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States.Its targeted investments include residential loans, second mortgages, and business purpose loans; structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties, as well as joint venture equity investments in multi-family properties; non-agency residential mortgage-backed securities (RMBS); agency RMBS; commercial mortgage-backed securities (CMBS); and other mortgage, residential housing, and credit-related assets.


The company qualifies as a real estate investment trust for federal income tax purposes.It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.The company was incorporated in 2003 and is headquartered in New York, New York.

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1.b. Last Insights on NYMT

New York Mortgage Trust, Inc.'s recent performance was positively driven by its Q2 earnings beat, with quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.20 per share. The company's acquisition of the remaining 50% ownership interest in Constructive Loans, LLC, a leading originator in business purpose loans, advanced its business purpose lending strategy. Additionally, the company successfully completed a consent solicitation process for its 5.75% Senior Notes due 2026. A quarterly cash dividend of $0.20 per share on its common stock was also declared. Recently, NYMT was listed as a Zacks Rank #1 (Strong Buy) income stock.

1.c. Company Highlights

2. NYMT Posts Strong Q2 Earnings, Driven by Robust Investment Momentum

New York Mortgage Trust (NYMT) reported a strong second quarter performance, with earnings per share (EPS) of $0.22, beating analyst estimates of $0.2. The company's adjusted net interest income per share rose 10% quarter-over-quarter and 47% year-over-year to $0.44 per share. The net interest spread also increased to 150 basis points from 132 basis points in the first quarter. The company's financial performance was driven by its robust investment momentum, with nearly $800 million deployed into single-family opportunities aligned with its core strategies of Agency RMBS and business purpose loans.

Publication Date: Aug -22

📋 Highlights
  • Earnings per Share Growth:: Adjusted net interest income rose 10% quarter-over-quarter and 47% year-over-year to $0.44 per share.
  • Capital Deployment:: NYMT acquired $915M in assets during Q2, with $2.8B in total acquisitions for the first half of 2025.
  • Portfolio Composition Shift:: Agency equity concentration increased to 38% (from 34%), with a target of 50% as the agency portfolio expands.
  • Net Interest Margin Expansion:: Net interest spread widened to 150 basis points from 132 basis points in Q1 2025.
  • Constructive Acquisition Impact:: Full acquisition of Constructive on July 15 accelerated BPL strategy, adding direct control over high-demand BPL assets.

Investment Portfolio Composition

NYMT's portfolio composition is well-positioned to benefit from lower short-term rates and a steepening yield curve in the months ahead. The company has allocated a significant portion of its capital into Agency RMBS, increasing its equity concentration from 34% in the prior quarter to 38%. According to Nicholas Mah, President, "NYMT continues to favor Agency RMBS for its superior liquidity, scalability, and historically wide spreads." The company expects the agency portfolio to trend towards 50% of total equity over time.

Business Purpose Lending (BPL) Performance

NYMT's BPL portfolio remained stable, with a continued decline in 60-plus day delinquent loans. The company has grown its BPL Rental portfolio, which is now its largest credit asset class. NYMT targets loans with high debt service coverage ratios or DSCRs, with strong FICOs and favorable LTVs. The acquisition of Constructive on July 15 is expected to accelerate NYMT's expansion into residential business purpose lending and further diversify its balance sheet.

Valuation and Dividend Yield

With a Price-to-Book (P/B) Ratio of 0.47 and a Dividend Yield of 11.2%, NYMT's valuation appears attractive. The company's ROE is currently at 4.42%, which is relatively low. However, the acquisition of Constructive is expected to contribute to the growth of NYMT's BPL portfolio and potentially improve its ROE. The company's leverage ratio is relatively conservative, with a recourse leverage ratio in residential credit of 0.5x and an agency book leverage ratio of 8.6x.

3. NewsRoom

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New York Mortgage Trust, Inc. Announces Corporate Rebrand to Adamas Trust, Inc.

Sep -02

Source: globenewswire.com

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Assessing New York Mortgage's Performance For Q2

Aug -28

Source: seekingalpha.com

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Best Income Stocks to Buy for August 4th

Aug -04

Source: zacks.com

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New York Mortgage Trust, Inc. (NYMT) Q2 2025 Earnings Call Transcript

Jul -31

Source: seekingalpha.com

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New York Mortgage Trust (NYMT) Tops Q2 Earnings Estimates

Jul -30

Source: zacks.com

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New York Mortgage Trust Reports Second Quarter 2025 Results

Jul -30

Source: globenewswire.com

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Preferreds Weekly Review: Bonds Vs. Preferreds

Jul -21

Source: seekingalpha.com

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High Yields, Weird Prices

Jul -15

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Real Estate Investment Trust

Expected Growth: 6.0%

New York Mortgage Trust's 6.0% growth is driven by increasing demand for mortgage-backed securities, expansion into new markets, and strategic investments in distressed debt. Additionally, the company's diversified portfolio, strong asset management, and efficient cost structure contribute to its growth. Furthermore, the low-interest-rate environment and government support for the housing market also boost the company's growth prospects.

7. Detailed Products

Residential Mortgage Loans

New York Mortgage Trust, Inc. originates and acquires residential mortgage loans, including non-qualified mortgage loans, and other mortgage-related assets.

Multi-Family Commercial Mortgage Loans

The company invests in multi-family commercial mortgage loans, which are secured by apartment buildings and other commercial properties.

Construction Loans

New York Mortgage Trust, Inc. provides construction loans for the development of residential and commercial properties.

Mezzanine Loans

The company offers mezzanine loans, which are a type of hybrid debt that combines features of debt and equity.

Preferred Equity

New York Mortgage Trust, Inc. invests in preferred equity, which is a type of hybrid security that combines features of debt and equity.

Non-Agency Residential Mortgage-Backed Securities

The company invests in non-agency residential mortgage-backed securities, which are backed by residential mortgage loans.

Other Mortgage-Related Assets

New York Mortgage Trust, Inc. invests in other mortgage-related assets, including mortgage servicing rights and mortgage-backed securities.

8. New York Mortgage Trust, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for New York Mortgage Trust, Inc. is medium due to the presence of alternative investment options for investors.

Bargaining Power Of Customers

The bargaining power of customers for New York Mortgage Trust, Inc. is low due to the company's diversified investor base and lack of concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for New York Mortgage Trust, Inc. is medium due to the company's dependence on a few large mortgage servicers.

Threat Of New Entrants

The threat of new entrants for New York Mortgage Trust, Inc. is high due to the relatively low barriers to entry in the mortgage REIT industry.

Intensity Of Rivalry

The intensity of rivalry for New York Mortgage Trust, Inc. is high due to the competitive nature of the mortgage REIT industry and the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 76.94%
Debt Cost 3.95%
Equity Weight 23.06%
Equity Cost 13.60%
WACC 6.17%
Leverage 333.57%

11. Quality Control: New York Mortgage Trust, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Chimera Investment

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Value: 7.7

Growth: 4.6

Quality: 7.8

Yield: 10.0

Momentum: 3.5

Volatility: 7.7

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TPG RE Finance Trust

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Growth: 5.2

Quality: 5.8

Yield: 10.0

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New York Mortgage Trust

A-Score: 6.6/10

Value: 6.3

Growth: 2.4

Quality: 6.2

Yield: 10.0

Momentum: 7.5

Volatility: 7.3

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A-Score: 4.9/10

Value: 7.4

Growth: 0.2

Quality: 2.7

Yield: 10.0

Momentum: 4.0

Volatility: 5.3

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Ares Commercial Real Estate

A-Score: 4.6/10

Value: 5.2

Growth: 1.4

Quality: 3.8

Yield: 10.0

Momentum: 1.5

Volatility: 5.7

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Claros Mortgage Trust

A-Score: 3.3/10

Value: 7.5

Growth: 1.2

Quality: 2.8

Yield: 5.0

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.11$

Current Price

7.11$

Potential

-0.00%

Expected Cash-Flows