AG Mortgage Investment Trust Inc., New York, generated $13.2 million in GAAP net income, or $1.41 per share, during the third quarter -- its first reporting period after its initial public offering and private placement in July.
Core earnings results, which REITs sometimes stress because they exclude often-volatile market-related adjustments on derivatives and investments, came in at $5.9 million or $0.63 per share.
“During the quarter we substantially completed deployment of our proceeds,” said CEO David Roberts, during the company's conference call.
The REIT, a subsidiary of private equity group Angelo, Gordon & Co., held $1.3 billion of investments at Sept. 30 with 90% of it allocated toward agency MBS.
Chief investment officer Jonathan Lieberman said during the call that with prepayment risk increasing – thanks to lower rates – the firm selectively invested in securities backed by loans with more favorable prepayment characteristics such as new production or low loan balances.
