Angel Oak Mortgage REIT, Inc. (NYSE: AOMR), a leading real estate finance company specializing in first-lien non-QM loans and other U.S. mortgage-related assets, announced the completion of a $317 million securitization, AOMT 2024-10. This securitization is backed by a pool of residential mortgage loans, with the senior tranche receiving an AAA rating from Fitch Ratings.
CEO and President Sreeni Prabhu stated, “The successful execution of AOMT 2024-10 highlights our business model and demonstrates the strength of our Angel Oak platform. The loans involved were largely purchased with capital from our July senior unsecured notes issuance, allowing us to quickly deploy capital into profitable investments. This deal covers the cost of the July offering and sets the stage for growth in the fourth quarter and beyond. We plan to reinvest the capital from this securitization into high-quality non-QM loans, enhancing balance sheet growth and future securitization potential.”
Key Highlights:
- The securitization includes 661 non-QM loans with a total principal balance of $316.8 million, a 7.79% weighted average loan coupon, a 70.3% average loan-to-value ratio, and an average FICO score of 754.
- The A1 to B1 tranches, along with part of the B2 tranche, were sold, with the Company retaining the economics of the remaining tranches.
- This deal reduces the average funding cost by 110 basis points, in addition to the 50 basis points reduction from the Federal Reserve’s recent rate cut.
- It also decreases the Company’s warehouse debt by $260 million, lowering the total debt-to-equity ratio.
Forward Looking Statements
This press release contains certain forward-looking statements that are subject to various risks and uncertainties, including, without limitation, statements relating to the performance of the Company’s investments. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “believe,” “could,” “project,” “predict,” “continue,” or by the negative of these words and phrases or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe existing or future plans and strategies, contain projections of results of operations, liquidity and/or financial condition, or state other forward-looking information. The Company’s ability to predict future events or conditions, their impact or the actual effect of existing or future plans or strategies is inherently uncertain. Although the Company believes that such forward-looking statements are based on reasonable assumptions, actual results and performance in the future could differ materially from those set forth in or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward‐looking statements, which reflect the Company’s views only as of the date of this press release. Additional information concerning factors that could cause actual results and performance to differ materially from these forward-looking statements is contained from time to time in the Company’s filings with the Securities and Exchange Commission. Except as required by applicable law, neither the Company nor any other person assumes responsibility for the accuracy and completeness of the forward‐looking statements. The Company does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.
About Angel Oak Mortgage REIT, Inc.
Angel Oak Mortgage REIT, Inc. is a real estate finance company focused on acquiring and investing in first lien non-QM loans and other mortgage-related assets in the U.S. mortgage market. The Company’s objective is to generate attractive risk-adjusted returns for its stockholders through cash distributions and capital appreciation across interest rate and credit cycles. The Company is externally managed and advised by an affiliate of Angel Oak Capital Advisors, LLC, which, collectively with its affiliates, is a leading alternative credit manager with market leadership in mortgage credit that includes asset management, lending, and capital markets.
