Angel Oak Mortgage REIT, Inc. (AOMR) reported a net income of $28.75 million for the fiscal year ending December 31, 2024, compared to $33.71 million in 2023. Net interest income increased by 28% year-over-year, reaching $36.925 million, driven by higher weighted average coupons on the investment portfolio, new loan purchases, and reduced funding costs. However, a net realized loss of $9.2 million, primarily due to participation in co-mingled securitizations, offset some of this gain. A net unrealized gain of $23.761 million was largely attributed to a more stable macroeconomic environment in 2024.
The company's portfolio of target assets totaled approximately $2.2 billion as of December 31, 2024, consisting mainly of directly owned residential mortgage loans, loans held in securitization trusts, and RMBS. During 2024, AOMR purchased $683.7 million in newly originated non-QM residential mortgage loans, a significant increase from the $222.7 million purchased in 2023. The company participated in five securitization transactions in 2024, contributing a total of $855 million in scheduled unpaid principal balance of residential mortgage loans. Two of these securitizations were solely undertaken by AOMR, resulting in consolidation of the related assets and liabilities onto the company's balance sheet.
AOMR's operating expenses decreased to $6 million in 2024 from $7.5 million in 2023, primarily due to cost-saving measures. However, due diligence and transaction costs increased to $0.8 million from $0.3 million, reflecting the increased volume of loan purchases. The company's management fee incurred with its affiliate decreased to $5 million from $5.8 million due to a decline in average equity. The company had approximately $230.1 million in debt outstanding as of December 31, 2024, including various loan financing lines and senior unsecured notes issued in July 2024. The company also utilized short-term repurchase facilities to borrow against U.S. Treasury Securities and other securities.
AOMR's key financial metrics included Distributable Earnings of $7.03 million in 2024 (compared to a loss of $28.086 million in 2023), a Distributable Earnings Return on Average Equity of 2.75% (compared to -11.68% in 2023), and a book value per share of $10.17 as of December 31, 2024. The company's liquidity and capital resources included unused borrowing capacity under loan financing lines and repurchase facilities, along with proceeds from securitizations and a recently completed notes offering. The company also utilized an ATM Program to sell shares of its common stock. The company's risk factors included dependence on its manager, conflicts of interest, market risks, and regulatory considerations. The company's outlook is contingent upon various factors, including market conditions and the continued success of its investment strategies. The company's financial statements are included in the filing and were audited by KPMG LLP.
About Angel Oak Mortgage REIT, Inc.
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