AG Mortgage Investment Trust, Inc. Reports Third Quarter Results
THIRD QUARTER 2013 FINANCIAL HIGHLIGHTS
See footnotes at the end of this press release
-
Net income of
$0.09 per common share (6) -
Core Earnings of
$0.45 per share -
$0.60 per share common dividend declared -
$1.59 per common share of undistributed taxable income (1) (13) -
$19.26 net book value per share as ofSeptember 30, 2013 (1), net of the third quarter dividend
INVESTMENT HIGHLIGHTS
-
$3.9 billion investment portfolio value as ofSeptember 30, 2013 (2) (4)-
71% Agency RMBS investment portfolio
- Rotation within the Agency RMBS portfolio out of 30yrs and into shorter duration securities, including increasing our Hybrid ARMs to over 18% of the Agency portfolio
- 29% credit investment portfolio, comprised of Non-Agency RMBS, ABS, CMBS, and commercial loan assets
-
71% Agency RMBS investment portfolio
-
2.12% net interest margin as of
September 30, 2013 (3) -
4.53x leverage as of
September 30, 2013 (2) (7) -
$1.1 billion reduction in notional of pay-fixed swaps during the quarter- Hedge ratio at quarter end of 114% of Agency RMBS repo notional, or 84% of total repo notional (8)
-
10.5% constant prepayment rate (“CPR”) for the third quarter on the
Agency RMBS investment portfolio (5)
- 9.5% CPR for the month of September
“During the third quarter we continued to actively rotate and rebalance
our portfolio,” said
KEY STATISTICS (2)
|
|
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|
Weighted Average at |
Weighted Average for |
|||||||||||
| Investment portfolio | $ | 3,866,851,323 | $ | 3,920,850,871 | ||||||||
| Repurchase agreements | $ | 3,194,360,409 | $ | 3,376,163,761 | ||||||||
| Stockholders' equity | $ | 707,825,616 | $ | 711,402,491 | ||||||||
| Leverage ratio (7) |
4.53 |
x |
4.75 |
x |
||||||||
| Hedge Ratio - Total repo (8) | 84 | % |
95 |
% | ||||||||
| Hedge Ratio - Agency repo (8) | 114 | % | 127 | % | ||||||||
| Yield on investment portfolio (9) | 3.88 | % | 3.86 | % | ||||||||
| Cost of funds (10) | 1.76 | % | 1.89 | % | ||||||||
| Net interest margin (3) | 2.12 | % | 1.97 | % | ||||||||
| Management fees (11) | 1.43 | % | 1.42 | % | ||||||||
| Other operating expenses (12) | 1.59 | % | 1.59 | % | ||||||||
| Book value, per share (1) | $ | 19.26 | ||||||||||
| Dividend, per share | $ | 0.60 | ||||||||||
INVESTMENT PORTFOLIO
The following summarizes the Company’s investment portfolio as of
| Weighted Average | ||||||||||||||||||||||||||||||
|
Current Face |
Premium |
Amortized Cost |
Fair Value | Coupon* | Yield | |||||||||||||||||||||||||
| Agency RMBS: | ||||||||||||||||||||||||||||||
| 15-Year Fixed Rate | $ | 581,988,428 | $ | 17,501,848 | $ | 599,490,276 | $ | 605,801,659 | 3.13 | % | 2.49 | % | ||||||||||||||||||
| 20-Year Fixed Rate | 321,962,591 | 8,400,055 | 330,362,646 | 329,548,776 | 3.36 | % | 2.61 | % | ||||||||||||||||||||||
| 30-Year Fixed Rate | 1,121,864,732 | 64,647,503 | 1,186,512,235 | 1,175,209,555 | 4.01 | % | 3.24 | % | ||||||||||||||||||||||
| ARM | 505,107,796 | (2,166,104 | ) | 502,941,692 | 503,961,133 | 2.40 | % | 2.85 | % | |||||||||||||||||||||
| Interest Only | 723,052,361 | (587,290,862 | ) | 135,761,499 | 132,511,129 | 4.87 | % | 6.46 | % | |||||||||||||||||||||
| Credit Investments: | ||||||||||||||||||||||||||||||
| Non-Agency RMBS | 1,022,136,598 | (150,355,903 | ) | 871,780,695 | 888,199,289 | 3.87 | % | 5.80 | % | |||||||||||||||||||||
| ABS | 100,516,816 | (390,000 | ) | 100,126,816 | 99,344,323 | 3.80 | % | 3.91 | % | |||||||||||||||||||||
| CMBS | 116,350,513 | (24,308,622 | ) | 92,041,891 | 92,965,800 | 4.22 | % | 7.22 | % | |||||||||||||||||||||
| Interest Only | 490,038,560 | (480,501,290 | ) | 9,537,270 | 9,309,659 | 0.33 | % | 5.76 | % | |||||||||||||||||||||
| Commercial Loan | 30,000,000 | 176,568 | 30,176,568 | 30,000,000 | 9.00 | % | 9.87 | % | ||||||||||||||||||||||
| Total | $ | 5,013,018,395 |
(1,154,286,807 |
) |
$ | 3,858,731,588 | $ | 3,866,851,323 | 3.47 | % | 3.88 | % | ||||||||||||||||||
| * Principal only securities with a zero coupon rate are excluded from this calculation. | ||||||||||||||||||||||||||||||
As of
The Company had net realized losses of
The CPR for the Agency RMBS investment portfolio was 10.5% for the third
quarter, and 9.5% for the month of
The weighted average cost basis of the Agency RMBS investment portfolio,
excluding interest-only securities, was 103.5% as of
Premiums and discounts associated with purchases of the Company's
securities are amortized or accreted into interest income over the
estimated life of such securities, using the effective yield method. The
Company recorded a
We have also entered into “to-be-announced” (“TBA”) positions to
facilitate the future purchase or sale of Agency RMBS. Under the terms
of these TBAs, the Company agrees to purchase or sell, for future
receipt or delivery, Agency RMBS with certain principal and interest
specifications and certain types of underlying collateral, but the
particular Agency RMBS to be received or delivered are not identified
until shortly before (generally two days) the TBA settlement date. At
LEVERAGE AND HEDGING ACTIVITIES
The investment portfolio is financed with repurchase agreements as of
|
Repurchase Agreements |
Balance |
Weighted |
Weighted |
||||||||||||
| 30 Days or Less | $ | 1,549,683,000 | 0.99 | % | 17.8 | ||||||||||
| 31-60 Days | 858,497,000 | 0.46 | % | 46.9 | |||||||||||
| 61-90 Days | 217,044,000 | 0.50 | % | 70.0 | |||||||||||
| Greater than 90 Days | 569,136,409 | 0.77 | % | 145.9 | |||||||||||
| Total / Weighted Average | $ | 3,194,360,409 | 0.77 | % | 52.0 | ||||||||||
The Company has entered into repurchase agreements with 30
counterparties. We continue to rebalance our exposures to counterparties
and extend original maturities. The weighted average original maturity
increased from 94 days as of
We have entered into interest rate swap agreements to hedge our
portfolio. During the quarter, we reduced our interest rate swap
notional by approximately
| Interest Rate Swaps | ||||||||||||
| Maturity | Notional Amount |
Weighted Average |
Weighted |
Weighted |
||||||||
| 2016 | $ | 180,000,000 | 0.90 | % | 0.26 | % | 2.71 | |||||
| 2017 | 335,000,000 | 1.05 | % | 0.26 | % | 3.95 | ||||||
| 2018 | 818,000,000 | 1.28 | % | 0.26 | % | 4.67 | ||||||
| 2019 | 350,000,000 | 1.38 | % | 0.26 | % | 5.80 | ||||||
| 2020 | 665,000,000 | 1.70 | % | 0.26 | % | 6.56 | ||||||
| 2022 | 50,000,000 | 1.69 | % | 0.26 | % | 8.93 | ||||||
| 2023 |
* |
245,000,000 | 2.37 | % | 0.26 | % | 9.71 | |||||
| Total/Wtd Avg | $ | 2,643,000,000 | 1.45 | % | 0.26 | % | 5.62 | |||||
| * This figure includes a forward starting swap with a total notional of $25.0 million and a start date of October 1, 2013. Weighted average rates shown are inclusive of rates corresponding to the terms of the swap as if the swap were effective as of September 30, 2013. | ||||||||||||
| ** 100% of our receive float interest rate swap notionals reset quarterly based on three-month LIBOR. | ||||||||||||
The Company also utilizes short positions in U.S. Treasury securities to
mitigate exposure to increases in interest rates. As of September 30,
2013, the Company had a net short position of
TAXABLE INCOME
The primary differences between taxable income and GAAP net income
include (i) unrealized gains and losses associated with investment and
derivative portfolios which are marked-to-market in current income for
GAAP purposes, but excluded from taxable income until realized or
settled, (ii) temporary differences related to amortization of net
premiums paid on investments, (iii) the timing and amount of deductions
related to stock-based compensation, and (iv) taxes. As of
DIVIDEND
On
On
STOCKHOLDER CALL
The Company invites stockholders, prospective stockholders and analysts
to attend MITT’s third quarter earnings conference call on
A presentation will accompany the conference call and will be available on the Company’s website at www.agmit.com. Select the Q3 2013 Earnings Presentation link to download and print the presentation in advance of the stockholder call.
An audio replay of the stockholder call combined with the presentation
will be made available on our website after the call. The replay will be
available until midnight on
For further information or questions, please contact
ABOUT
Additional information can be found on the Company's website at www.agmit.com.
ABOUT
FORWARD LOOKING STATEMENTS
This press release includes "forward-looking statements" within the
meaning of the safe harbor provisions of the United States Private
Securities Litigation Reform Act of 1995 related to future dividends,
the credit component of our portfolio book valve, deploying capital, the
preferred stock offering and repurchase agreements. Forward-looking
statements are based on estimates, projections, beliefs and assumptions
of management of the Company at the time of such statements and are not
guarantees of future performance. Forward-looking statements involve
risks and uncertainties in predicting future results and conditions.
Actual results could differ materially from those projected in these
forward-looking statements due to a variety of factors, including,
without limitation, changes in interest rates, changes in the yield
curve, changes in prepayment rates, the availability and terms of
financing, changes in the market value of our assets, general economic
conditions, market conditions, conditions in the market for Agency RMBS,
Non-Agency RMBS, ABS and CMBS securities and loans, and legislative and
regulatory changes that could adversely affect the business of the
Company. Additional information concerning these and other risk factors
are contained in the Company's filings with the
| AG Mortgage Investment Trust, Inc. and Subsidiaries | |||||||||||||||||||||
| Consolidated Balance Sheets | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| September 30, 2013 | December 31, 2012 | ||||||||||||||||||||
| Assets | |||||||||||||||||||||
| Real estate securities, at fair value: | |||||||||||||||||||||
| Agency - $2,459,557,624 and $3,536,876,135 pledged as collateral, respectively | $ | 2,747,032,252 | $ | 3,785,867,151 | |||||||||||||||||
| Non-Agency - $620,674,314 and $529,455,020 pledged as collateral, respectively | 630,034,943 | 568,858,645 | |||||||||||||||||||
| ABS - $87,730,723 and $33,937,097 pledged as collateral, respectively | 99,344,323 | 33,937,097 | |||||||||||||||||||
| CMBS - $64,669,711 and $148,307,262 pledged as collateral, respectively | 64,669,711 | 148,365,887 | |||||||||||||||||||
| Commercial loans receivable, at fair value | 30,000,000 | 2,500,000 | |||||||||||||||||||
| Investment in affiliates | 16,114,596 | - | |||||||||||||||||||
| Linked transactions, net, at fair value | 51,085,912 | 45,122,824 | |||||||||||||||||||
| Cash and cash equivalents | 35,089,032 | 149,594,782 | |||||||||||||||||||
| Restricted cash | 15,431,616 | 9,130,000 | |||||||||||||||||||
| Interest receivable | 12,673,519 | 14,242,453 | |||||||||||||||||||
| Receivable on unsettled trades - $99,664,974 and $0 pledged as collateral, respectively | 106,233,394 | 96,310,999 | |||||||||||||||||||
| Receivable under reverse repurchase agreements | 50,125,000 | - | |||||||||||||||||||
| Derivative assets, at fair value | 31,970,483 | - | |||||||||||||||||||
| Other assets | 853,542 | 454,069 | |||||||||||||||||||
| Due from broker | 1,383,818 | 884,605 | |||||||||||||||||||
| Total Assets | $ | 3,892,042,141 | $ | 4,855,268,512 | |||||||||||||||||
| Liabilities | |||||||||||||||||||||
| Repurchase agreements | $ | 2,965,095,409 | $ | 3,911,419,818 | |||||||||||||||||
| Obligation to return securities borrowed under reverse repurchase agreements, at fair value | 50,025,781 | - | |||||||||||||||||||
| Payable on unsettled trades | 120,099,264 | 84,658,035 | |||||||||||||||||||
| Interest payable | 2,837,294 | 3,204,205 | |||||||||||||||||||
| Derivative liabilities, at fair value | 3,477,340 | 36,375,947 | |||||||||||||||||||
| Dividend payable | 17,017,528 | 18,540,667 | |||||||||||||||||||
| Due to affiliates | 4,168,756 | 3,910,065 | |||||||||||||||||||
| Accrued expenses | 1,100,043 | 806,853 | |||||||||||||||||||
| Taxes payable | 1,373,083 | 1,731,141 | |||||||||||||||||||
| Due to broker | 19,022,027 | - | |||||||||||||||||||
| Total Liabilities | 3,184,216,525 | 4,060,646,731 | |||||||||||||||||||
| Stockholders' Equity | |||||||||||||||||||||
| Preferred stock - $0.01 par value; 50,000,000 shares authorized: | |||||||||||||||||||||
| 8.25% Series A Cumulative Redeemable Preferred Stock, 2,070,000 shares issued and outstanding ($51,750,000 aggregate liquidation preference) at September 30, 2013 and December 31, 2012 | 49,920,772 | 49,920,772 | |||||||||||||||||||
| 8.00% Series B Cumulative Redeemable Preferred Stock, 4,600,000 shares issued and outstanding ($115,000,000 aggregate liquidation preference) at September 30, 2013 and December 31, 2012 | 111,293,233 | 111,293,233 | |||||||||||||||||||
| Common stock, par value $0.01 per share; 450,000,000 shares of common stock authorized and 28,360,046 and 26,961,936 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 283,601 | 269,620 | |||||||||||||||||||
| Additional paid-in capital | 585,511,504 | 552,067,681 | |||||||||||||||||||
| Retained earnings (deficit) | (39,183,494 | ) | 81,070,475 | ||||||||||||||||||
| 707,825,616 | 794,621,781 | ||||||||||||||||||||
| Total Liabilities & Equity | $ | 3,892,042,141 | $ | 4,855,268,512 | |||||||||||||||||
| AG Mortgage Investment Trust, Inc. and Subsidiaries | |||||||||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
|
Three Months Ended |
Three Months Ended |
Nine Months Ended |
Nine Months Ended |
||||||||||||||||||
| Net Interest Income | |||||||||||||||||||||
| Interest income | $ | 33,278,284 | $ | 28,285,116 | $ | 114,163,747 | $ | 60,164,752 | |||||||||||||
| Interest expense | 5,584,419 | 4,228,610 | 19,749,592 | 8,506,041 | |||||||||||||||||
| 27,693,865 | 24,056,506 | 94,414,155 | 51,658,711 | ||||||||||||||||||
| Other Income | |||||||||||||||||||||
| Net realized gain/(loss) | (45,247,890 | ) | 4,105,323 | (116,489,235 | ) | 14,087,123 | |||||||||||||||
| Gain on linked transactions, net | 2,060,270 | 6,688,111 | 6,558,879 | 13,492,268 | |||||||||||||||||
| Realized loss on periodic interest settlements of interest rate swaps, net | (9,123,233 | ) | (2,471,590 | ) | (21,205,353 | ) | (6,061,954 | ) | |||||||||||||
| Unrealized gain/(loss) on real estate securities and loans, net | 40,136,126 | 45,917,570 | (60,668,593 | ) | 78,755,229 | ||||||||||||||||
| Unrealized gain/(loss) on derivative and other instruments, net | (5,779,945 | ) | (13,371,486 | ) | 67,348,314 | (26,793,133 | ) | ||||||||||||||
| (17,954,672 | ) | 40,867,928 | (124,455,988 | ) | 73,479,533 | ||||||||||||||||
| Expenses | |||||||||||||||||||||
| Management fee to affiliate | 2,523,547 | 1,657,701 | 8,195,890 | 3,903,378 | |||||||||||||||||
| Other operating expenses | 2,819,431 | 1,653,547 | 7,780,385 | 3,227,786 | |||||||||||||||||
| Equity based compensation to affiliate | 55,105 | 120,612 | 186,983 | 312,712 | |||||||||||||||||
| Excise tax | 373,083 | 272,195 | 1,391,942 | 605,773 | |||||||||||||||||
| 5,771,166 | 3,704,055 | 17,555,200 | 8,049,649 | ||||||||||||||||||
| Income/(loss) before provision for income taxes and equity in earnings from affiliate | 3,968,027 | 61,220,379 | (47,597,033 | ) | 117,088,595 | ||||||||||||||||
| Provision for income taxes | (122,979 | ) | - | (2,778,758 | ) | - | |||||||||||||||
| Equity in earnings from affiliate | 2,155,471 | - | 1,911,830 | - | |||||||||||||||||
|
|
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| Net Income/(Loss) | 6,000,519 | 61,220,379 | (48,463,961 | ) | 117,088,595 | ||||||||||||||||
| Dividends on preferred stock | 3,367,354 | 790,100 | 10,102,062 | 790,100 | |||||||||||||||||
| Net Income/(Loss) Available to Common Stockholders | $ | 2,633,165 | $ | 60,430,279 | $ | (58,566,023 | ) | $ | 116,298,495 | ||||||||||||
| Earnings/(Loss) Per Share of Common Stock | |||||||||||||||||||||
| Basic | $ | 0.09 | $ | 3.13 | $ | (2.10 | ) | $ | 7.07 | ||||||||||||
| Diluted | $ | 0.09 | $ | 3.10 | $ | (2.10 | ) | $ | 7.07 | ||||||||||||
| Weighted Average Number of Shares of Common Stock Outstanding | |||||||||||||||||||||
| Basic | 28,359,937 | 19,336,154 | 27,906,946 | 16,439,100 | |||||||||||||||||
| Diluted | 28,359,943 | 19,462,984 | 27,906,946 | 16,449,450 | |||||||||||||||||
| Dividends Declared per Share of Common Stock | $ | 0.60 | $ | 0.77 | $ | 2.20 | $ | 2.17 | |||||||||||||
NON-GAAP FINANCIAL MEASURE
This press release contains Core Earnings, a non-GAAP financial measure.
Core Earnings are defined by the Company as net income excluding both realized and unrealized gains (losses) on the sale or termination of securities and the related tax provision, if any, on such, including underlying linked transactions and derivatives. As defined, Core Earnings include the net interest earned on these transactions, including credit derivatives, linked transactions, investments in affiliates, inverse Agency securities, interest rate derivatives or any other investment activity that may earn net interest. One of the objectives of the Company is to generate net income from net interest margin on the portfolio and management uses Core Earnings to measure this objective.
A reconciliation of GAAP net income to Core Earnings for the three and
nine months ended
|
Three Months Ended |
Three Months Ended |
Nine Months Ended |
Nine Months Ended |
|||||||||||||||||||
| Net Income/(loss) available to common stockholders | $ | 2,633,165 | $ | 60,430,279 | $ | (58,566,023 | ) | $ | 116,298,495 | |||||||||||||
| Add (Deduct): | ||||||||||||||||||||||
| Net realized gain/(loss) | 45,247,890 | (4,105,323 | ) | 116,489,235 | (14,087,123 | ) | ||||||||||||||||
| Tax provision related to realized gain | 95,055 | - | 2,634,847 | - | ||||||||||||||||||
| Gain on linked transactions, net | (2,060,270 | ) | (6,688,111 | ) | (6,558,879 | ) | (13,492,268 | ) | ||||||||||||||
| Net interest income on linked transactions | 2,912,942 | 2,917,262 | 10,457,764 | 6,861,434 | ||||||||||||||||||
| Equity in earnings from affiliate | (2,155,471 | ) | - | (1,911,830 | ) | - | ||||||||||||||||
| Net interest income from equity method investment | 312,873 | - | 625,793 | - | ||||||||||||||||||
| Unrealized gain/(loss) on real estate securities and loans, net | (40,136,126 | ) | (45,917,570 | ) | 60,668,593 | (78,755,229 | ) | |||||||||||||||
| Unrealized gain/(loss) on derivative and other instruments, net | 5,779,945 | 13,371,486 | (67,348,314 | ) | 26,793,133 | |||||||||||||||||
| Core Earnings | $ | 12,630,003 | $ | 20,008,023 | $ | 56,491,186 | $ | 43,618,442 | ||||||||||||||
| Core Earnings, per Diluted Share | $ | 0.45 | $ | 1.03 | $ | 2.02 | $ | 2.65 | ||||||||||||||
Footnotes
(1) Per share figures are calculated using a denominator of all outstanding common shares including all shares granted to our Manager and our independent directors under our equity incentive plans as of quarter end. Net book value uses stockholders’ equity less net proceeds of the Company’s 8.25% Series A and 8.00% Series B Cumulative Redeemable Preferred Stock as the numerator.
(2) Generally when we purchase a security and finance it with a repurchase agreement, the security is included in our assets and the repurchase agreement is separately reflected in our liabilities on our balance sheet. For securities with certain characteristics (including those which are not readily obtainable in the market place) that are purchased and then simultaneously sold back to the seller under a repurchase agreement, US GAAP requires these transactions be netted together and recorded as a forward purchase commitment. Throughout this press release where we disclose our investment portfolio and the repurchase agreements that finance it, including our leverage metrics, we have un-linked the transaction and used the gross presentation as used for all other securities. Additionally we invested in certain credit sensitive commercial real estate assets through an affiliated entity, for which we have used the equity method of accounting. Throughout this press release where we disclose our investment portfolio, we have presented the underlying assets consistently with all other investments. This presentation is consistent with how the Company’s management evaluates the business, and believes provides the most accurate depiction of the Company’s investment portfolio and financial condition.
(3) Net interest margin is calculated by subtracting the weighted average cost of funds from the weighted average yield for the Company’s investment portfolio, which excludes cash held by the Company. See footnotes (9) and (10) for further detail.
(4) The total investment portfolio is calculated by summing the fair market value of our Agency RMBS, Non-Agency RMBS, ABS, CMBS and commercial loan assets, including linked transactions and assets owned through investments in affiliates. The percentage of Agency RMBS and credit investments is calculated by dividing the respective fair market value of each, including linked transactions and assets owned through investments in affiliates, by the total investment portfolio.
(5) This represents the weighted average monthly CPRs published during the quarter for our in-place portfolio during the same period.
(6) Diluted per share figures are calculated using weighted average outstanding shares in accordance with GAAP.
(7) The leverage ratio during the quarter was calculated by dividing our daily weighted average repurchase agreements, including those included in linked transactions, for the quarter by the weighted average stockholders’ equity for the quarter. The leverage ratio at quarter end was calculated by dividing total repurchase agreements, including repurchase agreements accounted for as linked transactions, plus or minus the net payable or receivable, as applicable, on unsettled trades on our GAAP balance sheet by our GAAP stockholders’ equity at quarter end.
(8) The hedge ratio during the quarter was calculated by dividing our daily weighted average swap notionals and net short positions in U.S. Treasury securities, including receive fixed swap notionals and short positions in U.S. Treasury securities as negative values, as applicable, for the period by either our daily weighted average total repurchase agreements or daily weighted average repurchase agreements secured by Agency RMBS, as indicated. The hedge ratio at quarter end was calculated by dividing the notional value of our interest rate swaps and net short positions in U.S. Treasury securities, including receive fixed swap notionals and short positions in U.S. Treasury securities as negative values, as applicable, by either total repurchase agreements or repurchase agreements secured by Agency RMBS, as indicated, plus the net payable/receivable on either all unsettled trades, or unsettled Agency RMBS trades, as indicated.
(9) The yield on our investment portfolio represents an effective interest rate, which utilizes all estimates of future cash flows and adjusts for actual prepayment and cash flow activity as of quarter end. The yield on our investment portfolio during the quarter was calculated by annualizing interest income for the quarter and dividing by our daily weighted average securities held. This calculation excludes cash held by the Company.
(10) The cost of funds during the quarter was calculated by annualizing the sum of our interest expense and our net pay rate of our interest rate swaps, and dividing by our daily weighted average repurchase agreements for the period. The cost of funds at quarter end was calculated as the sum of the weighted average rate on the repurchase agreements outstanding at quarter end and the weighted average net pay rate on our interest rate swaps. Both elements of the cost of funds at quarter end were weighted by the repurchase agreements outstanding at quarter end.
(11) The management fee percentage during the quarter was calculated by annualizing the management fees recorded during the quarter and dividing by the weighted average stockholders’ equity for the quarter. The management fee percentage at quarter end was calculated by annualizing management fees recorded during the quarter and dividing by quarter end stockholders’ equity.
(12) The other operating expenses percentage during the quarter was calculated by annualizing the other operating expenses recorded during the quarter and dividing by our weighted average stockholders’ equity for the quarter. The other operating expenses percentage at quarter end was calculated by annualizing other operating expenses recorded during the quarter and dividing by quarter end stockholders’ equity.
(13) Undistributed taxable income per common share represents total
undistributed taxable income less an adjustment for the amount of
distributions that will accrue on our preferred shares through
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Source:
AG Mortgage Investment Trust, Inc.
Lisa Yahr, 212-692-2282
Investor
Relations
lyahr@angelogordon.com