New York Mortgage Trust prices $85 million senior notes offering

NEW YORK - New York Mortgage Trust, Inc. (NASDAQ:NYMT), a mortgage REIT with a market capitalization of $604 million and currently rated as slightly overvalued according to InvestingPro analysis, has priced an underwritten public offering of $85 million in 9.875% senior notes due 2030, the company announced Monday.

The mortgage real estate investment trust, which maintains a strong financial position with a current ratio of 24.28 and has consistently paid dividends for 22 consecutive years, has granted underwriters a 30-day option to purchase up to an additional $12.75 million in notes to cover over-allotments. The offering is expected to close on July 8, 2025, subject to customary closing conditions.

NYMT has applied to list the notes on the Nasdaq Global Select Market under the symbol "NYMTH" and expects trading to begin within 30 days after issuance if approved.

The notes will pay interest quarterly beginning October 1, 2025, and will mature on October 1, 2030. The company may redeem the notes in whole or in part at its option on or after October 1, 2027.

According to the press release, proceeds will be used for general corporate purposes, including acquiring targeted assets and various mortgage-related, residential housing and credit-related assets. The company has shown strong revenue growth of 14.89% over the last twelve months, and InvestingPro data reveals that analysts expect the company to return to profitability this year. For deeper insights into NYMT’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Morgan Stanley & Co. LLC, Keefe, Bruyette & Woods, Inc., Piper Sandler & Co., RBC Capital Markets, LLC, UBS Investment Bank and Wells Fargo Securities, LLC are serving as joint book-running managers for the offering.

The offering is being made under the company’s existing shelf registration statement that was declared effective by the Securities and Exchange Commission on August 5, 2024.

New York Mortgage Trust is an internally managed REIT that acquires, invests in, finances and manages primarily mortgage-related residential assets, currently offering investors an attractive dividend yield of 12.03%. Get access to more detailed financial metrics and exclusive insights with InvestingPro, which features additional ProTips and comprehensive analysis for informed investment decisions.

In other recent news, New York Mortgage Trust reported strong financial results for the first quarter of 2025. The company’s earnings available for distribution per share increased to $0.20, up from $0.16 in the previous quarter. Additionally, the quarterly earnings per share from adjusted net interest income rose by 11% quarter-over-quarter, reaching $0.40. This performance was supported by strategic investments, including the purchase of $1.5 billion in Agency RMBS, significantly more than the previous quarter. The company also maintained a dividend of $0.20 per share for the sixth consecutive quarter.

Analysts have noted that New York Mortgage Trust’s strategy includes focusing on Agency RMBS investments, with plans to preserve capital for potential opportunities amid market volatility. The firm expects strong payoff rates in its multifamily portfolio throughout 2025. Looking forward, future earnings per share projections suggest continued growth, with estimates of $0.72 for FY2025 and $1.0 for FY2026. Despite the positive developments, the company faces potential challenges, including economic volatility and changes in government-sponsored enterprise policies.

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