NEW YORK - AG Mortgage (NYSE:MITT) Investment Trust, Inc. (NYSE: MITT) announced its fourth-quarter financial results, surpassing analyst expectations with an adjusted earnings per share (EPS) of $0.17, which was $0.04 higher than the consensus estimate of $0.13. The company's stock saw a modest increase of 0.7% following the earnings release, indicating a slightly positive market response.
Chief Executive Officer and President TJ Durkin commented on the company's performance, stating, "The past year has been transformational for MITT. We completed an M&A transaction to increase our market capitalization by nearly 50% and consistently executed on our business strategy." Durkin expressed confidence in the company's ability to build on this momentum, focusing on driving earnings power and enhancing G&A efficiencies to make MITT a more scaled and profitable investment vehicle for stockholders.
The company's financial highlights for the fourth quarter included a decrease in adjusted book value per share of approximately 7.2% from the end of the third quarter. The quarterly economic return on equity was reported at (5.6)%. Additionally, MITT declared a $0.18 dividend per common share for the fourth quarter of 2023.
AG Mortgage Investment Trust's acquisition of Western Asset Mortgage (NYSE:WMC) Capital Corporation, completed on December 6, 2023, was a significant move that increased the company's market capitalization by approximately 46% and added $1.2 billion of assets, primarily consisting of securitized residential mortgage loans. The acquisition is expected to result in annual expense savings of $5 million to $7 million and be accretive to earnings in 2024.
The company's investment portfolio was valued at $5.9 billion as of December 31, 2023, with purchases of $1.2 billion in Non-Agency and Agency-Eligible Loans during the year. MITT's financing profile included $5.6 billion of financing, with $4.8 billion of non-recourse financing and $0.8 billion of recourse financing.
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