AG Mortgage Investment Trust, Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>AG Mortgage Investment Trust, Inc. (MITT) has filed its 2023 10-K, detailing its financial position and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

AG Mortgage Investment Trust, Inc. (MITP) filed a Annual Report (10-K) with the SEC on March 11, 2024. AG Mortgage Investment Trust, Inc. filed its 2023 10-K report on March 11, 2024. The company's fiscal year ends on December 31st. AG Mortgage Investment Trust, Inc. is incorporated in Maryland. The company's business and mailing address is 245 Park Avenue, 26th Floor, New York, NY 10167. The filing includes data related to various mortgage-backed securities and loans.

Why It Matters

For investors and stakeholders tracking AG Mortgage Investment Trust, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of AG Mortgage Investment Trust's assets, liabilities, and equity as of year-end 2023, crucial for investors assessing the company's financial health and risk exposure. The detailed breakdown of mortgage assets, including residential and commercial loans, and real estate securities, offers insights into the company's investment strategy and its performance in the current market environment.

Risk Assessment

Risk Level: medium — AG Mortgage Investment Trust, Inc. shows moderate risk based on this filing. The company operates in the real estate investment trust sector, which is sensitive to interest rate fluctuations and economic downturns, as indicated by the nature of its mortgage-backed securities portfolio.

Analyst Insight

Investors should review the detailed asset and liability breakdown in the 10-K to understand the company's exposure to interest rate risk and credit risk within its mortgage portfolio.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-03-11 — Filing Date (Filed as of date)
• 6798 — SIC Code (Standard Industrial Classification)
• 001-35151 — SEC File Number (SEC file number)

Key Players & Entities

• AG Mortgage Investment Trust, Inc. (company) — Filer name
• 2023 (date) — Fiscal year end
• March 11, 2024 (date) — Filing date
• 245 Park Avenue, 26th Floor, New York, NY 10167 (address) — Business and mailing address
• Maryland (location) — State of incorporation
• Alexander Mortgage REIT, Inc. (company) — Former company name

FAQ

Risk Factors

• Interest Rate Risk [high — financial]: The company's financial performance is highly sensitive to changes in interest rates, which can affect the value of its mortgage-backed securities and its borrowing costs.
• Credit Risk [medium — financial]: The company is exposed to credit risk associated with the underlying mortgages in its portfolio, which could lead to losses if borrowers default.
• Market Volatility [medium — market]: The value of the company's investments can be significantly impacted by volatility in the broader financial markets.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2024-03-11: 10-K Filing Date — Date the annual report was officially submitted to the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary document detailing the company's financial status for the fiscal year.)

Key Financial Figures

• $0.01 — nge on which registered: Common Stock, $0.01 par value per share MITT New York Stock
• $1.2 b — e increased our investment portfolio by $1.2 billion, which primarily consisted of Sec
• $0.92 — rom our Manager, a cash amount equal to $0.92 (the "Per Share Additional Manager Cons
• $0.6 million — base management fee will be reduced by $0.6 million for the first four quarters following t
• $2.4 million — occurs (i.e., resulting in an aggregate $2.4 million waiver of base management fees), and (i
• $1.3 m — ent in an amount equal to approximately $1.3 million, which is the excess of $7.0 mill
• $7.0 million — ly $1.3 million, which is the excess of $7.0 million over the aggregate Per Share Additional
• $86.25 million — es assumed, and the Company guaranteed, $86.25 million aggregate principal amount of senior un
• $34.5 million — January 2024, we issued an aggregate of $34.5 million in 9.500% Senior Notes due 2029 and, as
• $7.1 million — nual Report, we have used approximately $7.1 million of the proceeds from such issuance to r

Filing Documents

• mitt-20231231.htm (10-K) — 4319KB
• a12312023exhibit45.htm (EX-4.5) — 388KB
• a12312023exhibit211.htm (EX-21.1) — 7KB
• a12312023exhibit231.htm (EX-23.1) — 3KB
• a12312023exhibit311.htm (EX-31.1) — 11KB
• a12312023exhibit312.htm (EX-31.2) — 11KB
• a12312023exhibit321.htm (EX-32.1) — 6KB
• a12312023exhibit322.htm (EX-32.2) — 6KB
• exhibit971-clawbackpolicy.htm (EX-97.1) — 25KB
• 0001514281-24-000033.txt (&nbsp;) — 20591KB
• mitt-20231231.xsd (EX-101.SCH) — 115KB
• mitt-20231231_cal.xml (EX-101.CAL) — 91KB
• mitt-20231231_def.xml (EX-101.DEF) — 833KB
• mitt-20231231_lab.xml (EX-101.LAB) — 985KB
• mitt-20231231_pre.xml (EX-101.PRE) — 954KB
• mitt-20231231_htm.xml (XML) — 4375KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 12 Item 1B. Unresolved Staff Comments 49 Item 1C. Cybersecurity 49 Item 2.

Properties

Properties 50 Item 3.

Legal Proceedings

Legal Proceedings 50 Item 4. Mine Safety Disclosures 51 PART II. Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 52 Item 6. Reserved 53 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 53 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 81 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 86 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 139 Item 9A.

Controls and Procedures

Controls and Procedures 139 Item 9B. Other Information 139 Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 139 PART III. Item 10. Directors, Executive Officers and Corporate Governance 140 Item 11.

Executive Compensation

Executive Compensation 140 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 140 Item 13. Certain Relationships and Related Transactions, and Director Independence 141 Item 14. Principal Accountant Fees and Services 141 PART IV. Item 15. Exhibits and Financial Statement Schedules 142 Item 16. Form 10-K Summary 145

Forward-Looking Statements

Forward-Looking Statements We make forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), in this report that are subject to substantial known and unknown risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, returns, results of operations, plans, yields, objectives, the composition of our portfolio, actions by governmental entities, including the Federal Reserve, and the potential effects of actual and proposed legislation on us, and our views on certain macroeconomic trends. When we use the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions, we intend to identify forward-looking statements. These forward-looking statements are based upon information presently available to our management and are inherently subjective, uncertain and subject to change. There can be no assurance that actual results will not differ materially from our expectations. Some, but not all, of the factors that might cause such a difference include, without limitation: the persistence of labor shortages, supply chain imbalances, the Israel-Hamas conflict, the Russia-Ukraine conflict, inflation, and the potential for an economic recession; changes in our business and investment strategy; our ability to predict and control costs; changes in interest rates and the fair value of our assets, including negative changes resulting in margin calls relating to the financing of our assets; changes in the yield curve; changes in prepayment rates on the loans we own or that underlie our investment securities; regulatory and structural changes in the residential loan market and its impact on non-agency mortgage markets; increased rates of default or delin

BUSINESS

ITEM 1. BUSINESS Our company AG Mortgage Investment Trust, Inc. (the "Company," "MITT," "we," "us," and "our") is a residential mortgage REIT with a focus on investing in a diversified risk-adjusted portfolio of residential mortgage-related assets in the U.S. mortgage market. Our objective is to provide attractive risk-adjusted returns to our stockholders over the long-term, primarily through dividends and capital appreciation. We focus our investment activities primarily on acquiring and securitizing newly-originated residential mortgage loans within the non-agency segment of the housing market. We obtain our assets through Arc Home, LLC ("Arc Home"), our residential mortgage loan originator in which we own an approximate 44.6% interest, and through other third-party origination partners. We finance our acquired loans through various financing lines on a short-term basis and utilize Angelo, Gordon & Co., L.P.'s ("TPG Angelo Gordon") proprietary securitization platform to secure long-term, non-recourse, non-mark-to-market financing as market conditions permit. Through our ownership in Arc Home, we also have exposure to mortgage banking activities. Arc Home is a multi-channel licensed mortgage originator and servicer primarily engaged in the business of originating and selling residential mortgage loans while retaining the mortgage servicing rights associated with certain loans that it originates. In December 2023, we acquired Western Asset Mortgage Capital Corporation ("WMC"), an externally managed mortgage REIT that focused on investing in, financing and managing a portfolio of residential mortgage loans, real estate related securities, and commercial real estate loans. Through this acquisition, we increased our investment portfolio by $1.2 billion, which primarily consisted of Securitized Non-Agency Loans. For more information, refer to the "WMC Acquisition" section below. Our investment portfolio (which excludes our ownership in Arc Home) primarily incl

View Full Filing

View this 10-K filing on SEC EDGAR