New York Mortgage to Offer Shares - Analyst Blog

By Zacks | October 03, 2012 AAA

New York Mortgage Trust, Inc. (NYMT), a real estate investment trust (REIT), recently  announced an underwritten public offering of 13.5 million shares to increase its liquidity. To cover up over allotments, New York Mortgage also plans to offer an option to underwriters for purchase of an additional tranche in excess of 2 million shares.

Deutsche Bank Securities Inc, part of Deutsche Bank AG (DB), is the sole  book running manager for the offering.

New York Mortgage expects to utilize the proceeds to acquire certain assets of the company including agency residential mortgage-backed securities (RMBS) and certain commercial mortgage-backed securities collateralized by multi-family loans. The remaining proceeds, if any, is intended to  be used for general working capital purposes, including purchase of residential mortgage loans, commercial real estate-related debt investments and repayment of debt.

Earlier in May and July 2012, New York Mortgage received net proceeds of approximately $20.0 million and $33.1 million respectively from two follow-up stock offerings. As of June 30, 2012, cash and cash equivalents stood at $8.6 million.

New York Mortgage acquires, invests, finances, and manages mortgage-related and financial assets in the Untied States. These include agency and non-agency mortgage-backed securities, high credit quality residential adjustable rate mortgage loans, commercial mortgage loans and other financial assets. The company intends to generate attractive returns by managing a diversified investment portfolio which consists of a broad class of mortgage-related and financial assets.

New York Mortgage currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We also have a long-term Neutral recommendation on the stock. One of its competitors, MFA Financial, Inc. (MFA) currently retains a Zacks #4 Rank, which implies a Sell rating.

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