Great Ajax Corp. Reports Q3 2024 Financial Highlights
Great Ajax Corp. (NYSE: AJX) announced its financial results for the third quarter ended September 30, revealing a dynamic shift in its operational strategy. This period marks a challenging yet transformative phase for the company as it steers toward becoming a leader in opportunistic real estate investments.
Financial Overview
In the recently concluded quarter, the company reported a GAAP net loss attributable to common stockholders amounting to $(8.0) million, translating to $(0.18) per diluted share. The earnings available for distribution were $(5.4) million, or $(0.12) per diluted common share. As of September 30, 2024, the book value per common share stood at $5.47, and the company declared a common dividend of $2.7 million, equating to $0.06 per share.
Operational Highlights
During Q3, Great Ajax made significant strides in its operational goals. The key highlights from the quarter include:
- Loan and Security Sales: The company successfully sold residential loans and securities approximating $148 million in unpaid principal balance (“UPB”), generating net proceeds of about $31.7 million.
- Commercial Real Estate Investments: An acquisition of $81.9 million in UPB of commercial mortgage-backed securities (“CMBS”) was completed, enhancing its commitment to the commercial real estate sector, now totaling $101.9 million.
- Capital Activity: The company filed a shelf registration with the U.S. Securities and Exchange Commission to increase the offering price of its securities to $400 million, preparing for future growth and expansion.
- Dividend Announcement: A cash dividend of $0.06 per common share was declared by the board, to be paid to stockholders of record.
Rebranding Strategy
In conjunction with its evolving strategy, Great Ajax Corp. is set to undergo a rebranding, transitioning to Rithm Property Trust Inc. This initiative aligns with its strategic transaction with Rithm Capital Corp., emphasizing its dedication to becoming an opportunistic real estate investment platform. The name change is anticipated to be implemented in the fourth quarter of 2024.
Earnings Call and Future Outlook
Great Ajax will host an earnings conference call on October 21, 2024, at 8:00 AM ET, to delve into its financial outcomes for Q3. Investors and stakeholders are encouraged to participate and gain insights into the future direction of the company, especially its focus on commercial real estate investment.
About Great Ajax Corp.
Great Ajax Corp. operates as a real estate investment platform that acquires, invests in, and manages both re-performing and non-performing loans secured by residential and commercial properties. With plans to transition toward a flexible commercial real estate-focused investment strategy, the company aims to enhance its market position and create value for its shareholders. As part of its commitment, Great Ajax is organized as a real estate investment trust (REIT) and strives to maintain compliance with federal income tax obligations.
Frequently Asked Questions
What were Great Ajax Corp.'s financial results for Q3 2024?
The company reported a GAAP net loss of $(8.0) million, or $(0.18) per diluted share.
How much did Great Ajax Corp. declare in dividends?
The board declared a cash dividend of $0.06 per common share, totaling $2.7 million.
What is the significance of the rebranding?
The rebranding to Rithm Property Trust Inc. signals a strategic shift to become an opportunistic real estate investment platform.
When is the earnings conference call scheduled?
The earnings conference call is scheduled for October 21, 2024, at 8:00 AM ET.
What are the main focuses of Great Ajax Corp. moving forward?
The company aims to enhance its investments in the commercial real estate sector while continuing to manage re-performing loans.
