New York Mortgage Trust Provides Business Update as of March 27, 2020
NEW YORK, March 30, 2020 (GLOBE NEWSWIRE) -- New York Mortgage Trust, Inc. (Nasdaq: NYMT) (the “Company”) previously announced on March 23, 2020 that, in response to the turmoil in the financial
markets resulting from the global pandemic of the COVID-19 virus, the Company is engaging in discussions with its repurchase agreement financing counterparties with regard to entering into
forbearance agreements pursuant to which each counterparty would agree to forbear from exercising its rights and remedies with respect to an event of default under the applicable financing
arrangement for an agreed-upon period. As of March 27, 2020, each of the Company’s repurchase agreement counterparties is continuing to engage in these discussions with the Company. The Company is
also exploring additional financing options. The Company cannot predict whether its financing counterparties will enter into forbearance agreements, the timing of any such agreements, or the terms
thereof, nor can the Company predict whether it will receive additional notices of events or alleged events of default under its repurchase agreement financing arrangements or other financing
arrangements or the availability of other financing options.
The Company also announced that in an effort to manage the Company’s portfolio through this unprecedented turmoil in the financial markets and improve its liquidity, since March 16, 2020, the Company has sold mortgage-backed securities receiving proceeds of approximately $1.7 billion and has reduced its outstanding repurchase agreement financing by $1.6 billion since December 31, 2019. In addition, based on information available to the Company as of March 27, 2020, the Company estimates that its book value per common share as of the quarter ending March 31, 2020 will decline by approximately 33% from book value per common share as of December 31, 2019.
The Company cautions that persons should not place undue reliance on the Company’s preliminary estimate of book value per common share as of the quarter ending March 31, 2020 because it may prove to be materially inaccurate. The preliminary estimate has not been compiled or examined by the Company’s independent auditors, and is subject to revision upon completion of the Company’s internal closing process and normal review and the preparation of its unaudited consolidated financial statements as of and for the quarter ending March 31, 2020, including all disclosures required by U.S. generally accepted accounting principles, and as the Company’s independent auditors conduct their review of the Company’s financial statements. Additionally, the Company's preliminary estimate is based solely on information available to it as of March 27, 2020. There can be no assurance that the Company's estimated book value per common share as of the quarter ending March 31, 2020 is indicative of what the Company's results are likely to be for the quarter ending March 31, 2020 or in future periods, and the Company undertakes no obligation to update or revise its estimated book value per common share prior to issuance of financial statements for such periods. While the Company believes that such preliminary estimate is based on reasonable assumptions and information available to it as of March 27, 2020, actual results may vary, and such variations may be material. Furthermore, the extreme volatility and turmoil that currently riles the financial markets makes estimates of asset values even less reliable than usual.