Angel Oak Mortgage REIT (AOMR) 6 Aug 24 2024 Q2 Earnings call transcript

Angel Oak Mortgage REIT's second-quarter earnings call highlighted the company's continued upward trajectory, with notable achievements in net interest income growth, securitization activities, and capital management. The REIT's leadership team, including Sreeni Prabhu, Brandon Filson, and Namit Sinha, provided insights into the company's performance and future plans, signaling a strong outlook for the company.

Financial Highlights and Performance

In the second quarter of 2024, Angel Oak Mortgage REIT reported a GAAP net loss of $0.3 million and distributable earnings of $2.3 million, reflecting the company's strategic focus on increasing net interest income and managing operating costs. The company's net interest income grew by nearly 50% compared to the second quarter of 2023, demonstrating a return to growth after a defensive stance in 2022 and the first half of 2023. The company's average daily net interest income reached $2.2 million, a significant improvement from the previous quarter.

Securitization and Capital Management

Angel Oak Mortgage REIT's strategic securitization efforts were a highlight of the earnings call, with the company leading a $300 million securitization deal and participating in another $23 million deal. These securitizations enabled the company to reduce funding costs and free up capital for higher-yielding assets. The company also filed a $750 million shelf to support future capital raises, immediately utilizing it to issue $50 million in senior unsecured notes.

Looking Ahead

Angel Oak Mortgage REIT's leadership team expressed optimism about the company's future, projecting continued growth in net interest income and earnings. The company remains committed to its disciplined approach to loan acquisition and securitization, with a focus on high-quality loans and efficient capital management.

Investor and Analyst Interactions

During the earnings call, key shareholders and analysts posed questions about the company's dividend sustainability, growth prospects, and prepayment activity. Management provided reassuring responses, emphasizing the company's strong financial position and strategic growth plans.

Conclusion

Angel Oak Mortgage REIT's second-quarter earnings call underscored the company's robust performance and strategic focus on growth. With a strong capital position and strategic securitization efforts, the company is well-positioned for continued growth in the second half of 2024 and beyond.