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New York Mortgage Trust, Inc. (NASDAQ:NYMT) reported strong first-quarter 2025 results, with significant portfolio growth and continued improvement in earnings as the company advances its strategic shift toward interest-earning investments. The internally-managed REIT, which focuses primarily on mortgage-related residential assets, saw its total investment portfolio increase by 12% quarter-over-quarter to $8.3 billion.
Quarterly Performance Highlights
NYMT reported basic earnings per share of $0.33 for Q1 2025, with Earnings Available for Distribution (EAD) per share of $0.20, representing a 25% increase from the previous quarter. This marks the fourth consecutive quarter of EAD growth. The company’s book value per share rose to $9.37 (up 0.97% quarter-over-quarter), while adjusted book value per share increased to $10.43 (up 0.77% quarter-over-quarter).
As shown in the following key developments summary, NYMT achieved a quarterly economic return of 3.13% and maintained its quarterly dividend of $0.20 per share, representing a yield of 12.33% based on the March 31, 2025 stock price:
The company’s investment portfolio has shown consistent growth over the past year, expanding from $5.4 billion in Q1 2024 to $8.3 billion in Q1 2025. This expansion has been accompanied by steady increases in adjusted interest income, which grew from $0.86 in Q1 2024 to $1.36 in Q1 2025, as illustrated in the following chart:
NYMT’s financial snapshot reveals improvements across several key metrics, with EAD per share increasing from $0.16 in Q4 2024 to $0.20 in Q1 2025, and available cash rising from $163 million to $173 million over the same period:
Strategic Initiatives and Portfolio Composition
CEO Jason Serrano highlighted the company’s strategic portfolio restructuring efforts, which focus on enhancing interest income through liquid assets. The company’s capital allocation strategy includes a diversified mix of Single-Family Credit/Other (19%), Single-Family Agency (47%), and Multi-Family (34%) investments.
NYMT’s investing activity in Q1 2025 was particularly robust, with the acquisition of $1.85 billion of new single-family residential investments, including $1.45 billion of Agency RMBS at an average coupon of 5.35% and $397 million of Residential Loans (99% BPL - Bridge/Rental).
The company’s strategy for 2025 centers on three key priorities: continuing to grow EAD through balance sheet expansion and operational efficiency; optimizing capital and liquidity to capitalize on market dislocations; and generating additional income from its operating platform through property management, third-party investment management, and loan origination partnerships.
Despite the positive performance, NYMT’s stock continues to trade at a significant discount to its adjusted book value. As of the presentation date, the stock price of $6.49 represented a 38% discount to the adjusted book value of $10.43 per share:
Detailed Financial Analysis
NYMT’s first quarter profit and loss statement shows interest income of $129.7 million and interest expense of $96.6 million, resulting in net interest income of $33.1 million ($0.36 EPS contribution). The company reported income from real estate of $20.7 million, offset by expenses related to real estate of $22.9 million, resulting in a net loss from real estate of $2.2 million. Net income attributable to common stockholders was $30.3 million, or $0.33 per share:
The company’s book value has shown stability in recent quarters, with GAAP book value per share at $9.37 as of Q1 2025, compared to $9.28 in Q4 2024. Adjusted book value per share stood at $10.43, up from $10.35 in the previous quarter:
Forward-Looking Statements and Market Context
Looking ahead, NYMT expects continued volatility in the market throughout 2025, with potential headwinds including federal spending and economic growth concerns. However, the company believes its diversified portfolio of credit and Agency RMBS will help stabilize returns amid this volatility.
The company has maintained a strong liquidity position, with excess liquidity capacity of $407 million, including available cash of $173 million and additional financing of $234 million available for unencumbered assets. This positions NYMT to capitalize on potential market dislocations and continue its growth strategy.
It’s worth noting that NYMT’s current stock price remains significantly below its adjusted book value. According to the latest fundamentals data, the stock closed at $5.87 on April 30, 2025, with after-market movement to $6.05, representing an even larger discount to the adjusted book value of $10.43 reported in the Q1 presentation.
The company’s strategic shift toward interest-earning investments appears to be yielding positive results, with improving financial metrics across multiple quarters. However, investors should be aware that the adjusted book value has declined from $10.87 in Q3 2024 (as reported in the previous earnings article) to $10.43 in Q1 2025, indicating some ongoing challenges despite the overall positive trajectory.
NYMT’s focus on growing its investment portfolio, particularly in Agency RMBS and business purpose loans, combined with its disciplined approach to leverage and liquidity management, suggests the company is well-positioned to continue generating attractive returns for shareholders in the current market environment.
Full presentation:
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