Full Commercial Loan Portfolio Exit Generates
The repayment of Commercial Loan L represents an additional
The completion of the Company’s exit from its Commercial Investments advances the Company’s goals to:
Transition to a Pure-Play Residential Mortgage Credit REIT – During 2021, the Company sold or resolved Commercial loans and CMBS with aggregate fair values at
December 31, 2020of $125.5 millionand $56.8 million, respectively, generating capital for reinvestment in Residential Investments, specifically newly originated Non-Agency residential mortgage loans.
Drive Growth through Residential Mortgage Origination and Securitization - The proceeds generated through exiting all Commercial Investments, coupled with excess capacity on existing financing lines, provide a significant boost to the Company’s ability to continue sourcing Non-Agency residential mortgage assets either through its vertically integrated mortgage originator, Arc Home, or through existing relationships with third-party originators. The Company has completed three Non-QM securitizations through its proprietary GCAT shelf since
May 2021and expects to utilize available liquidity to continue ramping up its Residential Investments expansion followed by securitization.
“This transaction marks a pivotal point in MITT’s history,” said
“The extremely positive resolution of Commercial Loan L is a testament to Angelo Gordon’s long-standing reputation of investing based on in-depth underwriting and employing prudent leverage,” said
Additional information can be found on the Company’s website at www.agmit.com.
Forward Looking Statements
This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond our control, and may cause actual results to differ significantly from those expressed in any forward-looking statement. Factors that may cause such a difference, include, without limitation, the Company’s ability to maintain or increase its book value per share, the Company’s ability to continue to generate or grow Core Earnings, whether the Company will realize any of the anticipated benefits of its transition to a residential mortgage origination and securitization focused strategy, the Company’s liquidity, the Company’s financing capacity, the pace of the Company’s Non-Agency securitizations, regulatory changes that may impact the Company’s ability to execute on opportunities within the Non-Agency residential loan market on the terms anticipated or at all, the Company’s ability to become a leader in the Non-Agency residential loan space and build a premier residential origination and securitization platform, demand in the Non-Agency securitization markets, the Company’s management and resources, Arc Home’s performance, including its ability to provide the Company with a robust pipeline of investment opportunities, the Company’s relationships with third-party originators, the timing and pace of growth in the Company’s loan portfolio, including whether such growth will result in returns to stockholders at the levels anticipated or at all, the strength of the Company’s capital structure, including its ability to repurchase stock, and other risks and uncertainties, including those detailed in the Company’s Annual Report on Form 10-K for the year ended
The forward-looking statements speak only as of the date of this press release. The Company is under no duty to update any of these forward-looking statements after the date of this press release, nor to conform prior statements to actual results or revised expectations, and the Company does not intend to do so.