Great Ajax: Q4 2021 Earnings Conference Call – Presentation







Fourth Quarter and Year-End 2021 Investor Presentation

  • We do forward-looking statements contained in this presentation are subject to risks and uncertainties. These forward-looking statements include information about possible or expected future results of our business, financial condition, liquidity, results of operations, cash flows, and plans and objectives. When we use the words “believe”, “expect”, “anticipate”, “estimate”, “plan”, “continue”, “intend”, “should”, “may” or similar expressions, we mean identify statements to search.
  • Statements regarding the following matters, among others, may be forward-looking: market trends in our industry, interest rates, real estate values, debt financing markets or the economy generally or the demand for and availability of low balance residential and commercial real estate loans; our business and investment strategy; our projected operating results; US government actions and initiatives and changes in US government policies and the execution and impact of such actions, initiatives and policies; the state of the US economy generally or in specific geographic regions; economic trends and economic recoveries; our ability to obtain and maintain financing agreements; changes in the value of our mortgage portfolio; changes to our property portfolio; the impact of and changes in government regulations, tax laws and rates, accounting guidelines and other similar matters; our ability to meet the qualification requirements of real estate investment trusts for US federal income tax purposes; availability of qualified personnel; estimates regarding our ability to make distributions to our shareholders in the future; general financial market volatility and the market price of our common stock; and the degree and nature of our competition.
  • the the forward-looking statements included in this presentation are based on our current beliefs, assumptions and expectations about our future performance. Forward-looking statements are not predictions of future events. Our beliefs, assumptions and expectations may change due to many possible events or factors, all of which we do not currently know about or cannot reasonably predict will occur at the time. If a change in our beliefs, assumptions or expectations occurs, our business, financial condition, liquidity and results of operations may differ materially from the forward-looking statements included in this presentation. Forward-looking statements are subject to risks and uncertainties, including, among others, those resulting from the pandemic caused by Covid-19 or any of its variants and those described in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021, accessible via the link to our filings with the Securities and Exchange Commission (“SEC”) on our website (www.greatajax.com) or on the SEC website (www.sec.gov). Additional risks, uncertainties and factors that could cause actual results to differ materially from the forward-looking statements included in this presentation may be described from time to time in our filings with the SEC. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict these events or how they may affect us. Except as required by law, we are under no obligation and do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Unless otherwise indicated, the financial information included in this presentation is as of December 31, 2021.

2

Company overview

  • Leverage long-standing relationships to acquire mortgages through privately negotiated transactions from a diverse group of clients and through joint venture investments with institutional investors
    • Acquisitions made in 352 transactions since inception. Seven transactions closed in the fourth quarter of 2021
  • Use our manager’s proprietary analytics to price each group of mortgages on a active by active
    • We own 19.8% of our manager
    • Adjust the price of the individual loan offer to accumulate loan clusters in attractive demographic metropolitan areas
  • Our affiliate manager takes care of loans asset by asset and borrower by borrower
    • We own 8% and hold warrants to purchase up to an additional 12% from our affiliate repairer
    • Our manager and service analytics and processes allow us to expand our reach through joint ventures with third-party institutional investors
  • We use modest mark-to-market leverage to fund our debt investments and primarily non-mark-to-market leverage to fund our mortgage loan portfolio
  • Since January 2022, we have held a 22.2% stake in Gaea Real Estate Corp. (“GAEA”), an equity REIT that invests in multi-family properties with an emphasis on property appreciation and triple net lease veterinary clinics.

3

Highlights – Quarter ended December 31, 2021

  • Interest income of $23.2 million; net interest income of $14.2 million
  • Net income attributable to common shareholders of $7.4 million
  • Basic earnings per common share (“EPS”) of $0.32
  • Book value per common share of $15.92 as of December 31, 2021
  • Taxable income of $0.40 per common share
  • Formed a joint venture that acquired $329.8 million in outstanding principal balance (“UPB”) of mortgages with collateral values ​​of $716.7 million and retained $55.3 million of different related categories of securities issued by the joint venture to end the quarter with $494.8 million in debt and beneficial interest investments
  • Purchased $148.8 million from reproductive mortgages (“RPLs”), with a UPB of $149.5 million at 54.1% of the property value, $3.5 million of non-performing loans (“NPLs”), with a UPB of $3.3 million at 56.5% of the property value, and $5.4 million in low balance commercial loans (“SBC loans”), with a UPB of $5.3 million at 43 .7% off property value to end quarter with $1.1 billion in net mortgages
  • Total cash inflow of $86.6 million from loan repayments, sales of real estate properties (“REO”) and recoveries of debt securities investments and beneficial interests
  • Held $84.4 million in cash and cash equivalents as of December 31, 2021; the average daily cash balance for the quarter was $79.3 million
  • As of December 31, 2021, approximately 72.3% of the UPB-based portfolio has made at least 12 of the last 12 payments

4

Portfolio overview – as of December 31, 2021

Outstanding principal balance

Property value

10.7%

0.4%

11%

RPL

NPL

88.9%

89%

$1,165.8 million

$2,199.8 million

RPL1: $1,035.6 million

RPL:

$1,982.5 million

NPL: $130.2 million

NPL:

$

210.6MM

REO & Rental2:$

6.6MM

1 Includes $1.32 million UPB in joint ventures with third party accredited institutional investors which must be consolidated for GAAP 2 The value of the REO and rental property is presented at the estimated fair value of the property less expected liquidation costs

5

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Great Ajax Corp. published this content on March 03, 2022 and is solely responsible for the information contained therein. Distributed by publicunedited and unmodified, on March 03, 2022 22:27:58 UTC.

Public now 2022

All the news from GREAT AJAX CORP.

GREAT AJAX CORP analyst recommendations.

Sales 2021 76.8 million

Net income 2021 34.1M

Net debt 2021

PER 2021 ratio 8.03x
2021 performance 6.96%
Capitalization 269M
269M
capi. / Sales 2021 3.51x
capi. / Sales 2022 3.25x
# of employees 1
Floating 89.0%


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Great Ajax Corp Technical Analysis Chart.  |  MarketScreener

Trends Technical Analysis GREAT AJAX CORP.

Short term Middle term Long term
Tendencies Bearish Bearish Neutral



Evolution of the income statement

To sell

To buy

Medium consensus SURPASS
Number of analysts 6
Last closing price

$11.63

Average target price

$16.60

Average Spread / Target 42.7%


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