Angel Oak Mortgage REIT announces $40M notes offering

Angel Oak Mortgage REIT, Inc. (NYSE:AOMR), a $236 million market cap REIT with a strong current ratio of 2.64x, has entered into an underwriting agreement for a public offering of $40 million aggregate principal amount of its 9.750% Senior Notes due 2030, the company disclosed in a recent SEC filing. According to InvestingPro data, the company maintains a healthy dividend yield of 12.67% and trades at an attractive P/E ratio of 6.6x. The Maryland-based real estate investment trust, along with Angel Oak Mortgage Operating Partnership, LP and Falcons I, LLC, signed the agreement with a group of underwriters led by RBC Capital Markets, LLC, and UBS Securities LLC.

The underwriters have also been granted a 30-day option to purchase up to an additional $6 million in notes to cover over-allotments. The offering is expected to close on May 21, 2025, with the notes issued under an indenture dated July 25, 2024, and a second supplemental indenture to be filed later. InvestingPro analysis suggests the company’s financial health score is fair, with particularly strong metrics in growth and profitability.

Angel Oak Mortgage REIT estimates net proceeds of approximately $38.2 million, or $44.1 million if the over-allotment option is fully exercised. After deducting the underwriting discount and estimated offering expenses, the proceeds are intended for general corporate purposes, including the acquisition of non-qualified residential mortgage loans and other target assets.

The offering is made through an effective shelf registration statement filed on June 27, 2024, and declared effective on July 9, 2024. The prospectus supplement relating to the offering was filed on May 14, 2025.

The news comes as part of a Form 8-K filing with the SEC, providing investors with key information regarding the company’s financial activities and events. For deeper insights into AOMR’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.

In other recent news, Angel Oak Mortgage REIT reported impressive earnings for the first quarter of 2025, with earnings per share (EPS) reaching $0.87, significantly exceeding the projected $0.29. The company’s revenue grew by 30% year-over-year to $32.9 million, while net interest income increased by 18% to $10.1 million. Additionally, the company declared a dividend of $0.32 per share. Angel Oak Mortgage REIT also announced a strategic partnership with Brookfield Asset Management (TSX:BAM), highlighting its ongoing efforts to expand growth and innovation opportunities. The company recently launched a public offering of senior notes maturing in 2030, with proceeds aimed at general corporate purposes, including potential acquisitions. The offering is managed by firms such as RBC Capital Markets, UBS Investment Bank, and Wells Fargo (NYSE:WFC) Securities. Furthermore, Angel Oak Mortgage REIT’s book value per share increased by 5.2% to $10.70, reflecting strong operational performance and valuation gains.

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