AG Mortgage Investment Trust, Inc. Announces Full-Year and Q4 2024 Financial Results
AG Mortgage Investment Trust, Inc. (“MITT,” “we,” “the Company,” or “our”) (NYSE: MITT) has released its financial results for the full year and fourth quarter ending December 31, 2024. These results reflect the company’s performance over the past year, showcasing its resilience and strategic execution despite ongoing economic challenges.
Management Remarks
T.J. Durkin, Chief Executive Officer and President of MITT, expressed confidence in the company’s ability to deliver strong results amidst a fluctuating macroeconomic landscape. He stated, “MITT was able to deliver strong performance despite a challenging macro-economic environment, increasing book value and achieving a 2.4% quarterly economic return on equity, demonstrating its uniquely differentiated strategy.”
Mr. Durkin further highlighted the company’s partnership with its external manager, TPG, emphasizing the positive impact of this collaboration. “Our ability to leverage the support and power of our external manager, TPG, has not only been instrumental in the WMC acquisition, which AG Mortgage has been a resounding success for our shareholders, but has also enabled us to be nimble in AG Mortgage asset allocation, seamlessly AG Mortgage rotating in multiple flavors of non-agency credit in order to seize strategic market opportunities as they emerge.”
Looking ahead, Mr. Durkin remains optimistic about MITT’s growth initiatives. “I’m looking forward to another great year for MITT as we AG Mortgage remain committed to our growth initiatives, creating greater value for our shareholders.”
Financial Highlights for Full Year and Fourth Quarter 2024
MITT’s financial performance in 2024 reflected a solid return on equity, stable earnings, and a well-managed investment portfolio.
Full-Year 2024 Financial Performance:
- Book Value per Share: $10.64 as of December 31, 2024.
- Annual Economic Return on Equity: 11.7%.
- Net Income/(Loss) Available to Common Stockholders: $1.23 per diluted common share.
- Earnings Available for Distribution (“EAD”): $0.76 per diluted common share.
- Common Share Dividend: $0.75 per share declared in 2024.
Fourth Quarter 2024 Financial Performance:
- Quarterly Economic Return on Equity: 2.4%.
- Net Income/(Loss) Available to Common Stockholders: $0.30 per diluted common share.
- Earnings Available for Distribution (“EAD”): $0.18 per diluted common share.
- Common Share Dividend: $0.19 per share declared in Q4 2024.
These figures indicate a stable financial position and reinforce the company’s ability to provide returns to its shareholders despite economic headwinds.
Investing and Financing Highlights
MITT’s investment strategy focuses on a diversified portfolio, efficient capital management, and leveraging strategic financing options.
- Total Investment Portfolio: $6.7 billion as of December 31, 2024.
- Net Interest Margin: 0.8%, which includes a 0.05% benefit from the net interest component of interest rate swaps.
- Investment in Arc Home: $30.8 million as of December 31, 2024, determined using a valuation AG Mortgage multiple of 0.95x book value.
- Total Financing: $6.3 billion as of December 31, 2024, broken down as follows:
- Non-Recourse Financing: $5.5 billion.
- Recourse Financing: $0.8 billion.
- Leverage Ratios:
- GAAP Leverage Ratio: 11.6x.
- Economic Leverage Ratio: 1.4x.
The company also undertook significant capital management actions throughout the year:
- Debt Repurchase and Payoff: MITT repurchased $7.1 million of principal amount of the Legacy WMC Convertible Notes in Q1 2024 and paid off the remaining $79.1 million principal amount at maturity in September 2024.
- New Senior Unsecured Notes Issuance: Issued $99.5 million principal amount of 9.500% senior unsecured notes due 2029, generating net proceeds of approximately $95.2 million.
- Liquidity Position: The company reported total liquidity of $136.9 million as of December 31, 2024, ensuring ample flexibility for future investments and operations.
Dividend Announcements
MITT remains committed to delivering consistent returns to its shareholders through dividend distributions.
- On December 16, 2024, the company declared a fourth-quarter dividend of $0.19 per common share.
- Additionally, on February 14, 2025, the company announced quarterly cash dividends for its preferred shareholders:
- Series A Preferred Stock: $0.51563 per share.
- Series B Preferred Stock: $0.50 per share.
- Series C Preferred Stock: $0.693062 per share.
- These dividends will be payable on March 17, 2025, to preferred shareholders of record as of February 28, 2025.
As MITT looks forward to 2025, the company aims to build on its achievements and navigate the evolving financial landscape with a focus on:
- Portfolio Optimization: Continuing to rotate into non-agency credit and other strategic asset classes to maximize returns.
- Risk Management: Maintaining disciplined risk management practices to safeguard shareholder value.
- Operational Efficiency: Leveraging TPG’s expertise AG Mortgage to enhance operational efficiencies and drive long-term growth.
- Shareholder Value Creation: Prioritizing capital allocation strategies that yield strong economic returns and sustainable dividends.
