New York Mortgage Trust Inc (NYMT)

New York Mortgage Trust Inc.: A Detailed Overview

Company Profile

Background and History: New York Mortgage Trust (NYM), or New York Mortgages Trust, was founded in 1993 and was created in 1999 as a real estate investment Trust ( REIT). New York Mortgage has been listed in New York Stock Exchange since November 7 2006 under symbol NYM, with Headquarters based in New York. NYM focuses on investing, originating (both on their books and as a correspondent for other financial companies and institutions, with a focus of servicing these loans as they have a servicing portfolio of 75 Billion in the second quarter ending in June) and managing mortgage-based assets and financing real property through mortgage loans.

Business Areas: NYM specialization is in the multifamily market sector and on commercial mortgage loan originators as correspondents and mortgage loan servicers. The business focuses on agency lending, and their portfolio is primarily comprised of Multifamily loans (88% of the total), followed far by retail (7.7%) and office loans (4.3% ) in the second Quarter ending in June 30. Their portfolio consists mainly of fixed rates loans (92.4%) and floating-rate loans (7.6%), according the report from the second Quarter 2021.

Corporate structure and Management: NYM is structured under an Independent Board, comprised of ten directors whose primary focus is to look after and promote the long - term best of the company.

The current executive leadership team of New president in the United States has the following individuals. David Flaum as President and CEO, Barry M. Hurvits as Executive Vice Chairman, Michael R. Stolar as Chief InvestmentOfficer, and Thomas R. Einhorn as Chief Financial officer.

Top Products and Markets

Products & Offering:

• Agency loans: multi family properties backed up by government-agencies.
• Commercial mortgage loans
• Servicing Portfolio of over $147.1 billion

Market Share & Performance: NYM main competitors are other Real-Estate agencies such as MFA financial Incorporation (MFA), Chimera Mortgage RE (CIM). In the commercial sector New York Mortgage competitors are Annaly Capital Management (NLY) , AGNC (AGNC), STARWOOD Property (STWD). New York Mortgage Trust has a market share of around 5% the total agency lending,

The company has been consistently growing their loan originations and servicing portfolio over the years, demonstrating positive financial performance. However, their direct lending activities decreased by 39%, in 2021 compared to 219 in previous 2021.

Total Addressable Market

The US commercial mortgage-backed security (CMBS) market reached an expected size in 2030 of $373.2 billion. the total number of multi family units increased to 40.5 million in 3021 and was expected to grow to 127.5 billion in 2030.

Financials

Revenue & Profitability: NYM generated a total revenue of 840,519 million during the first 6 months of 2021 compared with 622,132 during the same period during 2021. The company has an operating income of 618,437 million for the same period compared the 477,027 million in of 2022. The net earnings in 2023 to-Date for the second Quorter was 338,448 million. The earnings per share in the second quorter in 2023 was $0.80 per diluted unit.

Cash Flows & Balance Sheet Health:

NYM’s cash flows from operations amounted 385.27M for the second quarter ending in June compared to 644 million in 2022, showing a decrease. NYM total cash at the end 2021 was 321.37 million, and it increased to $845,718 thousand by the end of the first quarter of this year. Total debt of the corporation at the end 2023 was $3,841,141 compared the $2,937,327 in 2023.

Dividends & Shareholder Returns

Dividend Payout: NYM has a history in making a dividend payout to their stockholders. the last dividend payout was on June 30 2023 with a value 61 cents, the dividend Yield for the 61-cent dividend per Common Share is 8% which is above the average REITS stocks that was 5,83.

Future Growth

The historical data from 2019, 2020 show that NYM Revenue is in a growing trajectory as it increased 8,01% and 21,33%. NYM is also planning to grow their business by expanding loan portfolio through new origination. This will help the company to increase in revenue.

Market Dynamics & Competitive Positioning

Competition

NYM’s main competitors in the multi family and commercial agency market are MFA Financial (MFA). Annaly Capital Management (M&Y). These competitorthave an average of $8 billion in assets under administration compared to NYM 17.1 Billion as per the second Quarter in 2030.

The competitive landscape in this industry is highly fragmented.

Market Dynamics & Technological Advancements New York Mortgage has to deal in a heavily fragmented market with high-competition, so they focus in niche market of multi family properties that are affordable in order to avoid too high interest rates or inflation, they have implemented new technologies in the company's platform and services, which has led to increased efficiency and productivity.

Recent Aquisitions

NewYork Mortgage has not had any known acquisition in the last 3 year as the company has been more focus in increasing the portfolio of commercial mortgage and in growing their loan portfolio, the company is not known to have had any significant acquisitions or mergers in the past. NY M was able to buy some mortgage-backed securities that were backed by the US government, during the Q3 of 2023 and their total market value was about $324 million.

Rating & Justification:

Based 2023 first half performance, New York Mortgage Trust has a fundamental AI based rating of 6.5 out of 10. This rating is justified by a strong market position, good financial health and potential future growth. the company is well positioned to capitalize in the growing multi family market, by expanding their loan portfolio and origination, the company can continue its growth trajectory but market and economic instability could negatively affect the company.

Sources & Disclaimer

The information used in this document has been gathered from NYMs public documents. However, this is not a guarantee of correct and the most updated information. You can visit their official site https:www.nymtrust.com/ to look for updated financial information,

This is not financial advice, and it should not be taken in consideration for taking financial decisions, always do you own research.

Conclusion

New York Mortgages Trust ( NYM) is a company in the real estate Agency sector of the market that has a high potential for growth, and with a dividend yield of 8%. They have a solid market position, good financials, and good growth outlook. However they must pay attention to the competition that is highly fragmented and to market economic and geopolitical instability which could affect in a negative way their profitability or business