AG Mortgage Investment Trust Inc. (MITT) is a real estate investment trust (REIT) that focuses on investing in residential mortgage-related assets in the U.S. mortgage market. The company is externally managed by AG REIT Management, LLC, an affiliate of Angelo, Gordon & Co., L.P., a leading alternative investment firm. MITT primarily acquires and securitizes newly-originated residential mortgage loans within the Non-Agency segment of the housing market.
The Symbol of MITT
The symbol of AG Mortgage Investment Trust Inc. is MITT. This is the ticker symbol that is used to identify the company’s common stock on the New York Stock Exchange (NYSE). Investors can use this symbol to buy or sell shares of MITT through various platforms and brokers.
The History of MITT
MITT was founded in 2011 as a subsidiary of Angelo, Gordon & Co., L.P. The company completed its initial public offering (IPO) in June 2011 and raised $100 million by selling 5 million shares at $20 per share. Since then, MITT has grown its portfolio and diversified its sources of income by investing in various types of residential mortgage-related assets, such as Non-Agency residential mortgage-backed securities (RMBS), Agency RMBS, credit risk transfer securities, residential mortgage loans, and other mortgage-related assets.
The Business Model of MITT
MITT’s business model is to generate attractive risk-adjusted returns for its stockholders over the long-term through dividends and capital appreciation. The company uses leverage to finance the acquisition of its residential mortgage loans in order to increase potential returns. When acquiring residential mortgage loans, MITT initially finances the acquisition using warehouse facilities or repurchase agreements on a short-term basis. Upon accumulating a targeted amount of residential mortgage loans, MITT then seeks to transition its financing to long-term, non-recourse, non-mark-to-market financing though securitizations as market conditions permit.
MITT has a proprietary, best-in-class securitization platform that enables it to secure long-term, non-recourse, non-mark-to-market financing for its residential mortgage loans. Upon securitization, MITT contributes residential mortgage loans into a securitization trust which issues various classes of bonds backed by the cashflows from the underlying mortgage loans. MITT typically sells the senior classes of bonds to unrelated third parties and retains at least 5% of the fair value of the bonds issued as required by the risk retention rules. MITT also purchases the most subordinated classes of bonds and the excess cash flow bonds, which include the bonds exposed to the first loss of the securitizations. MITT also purchases the bonds entitled to excess servicing fees and may purchase other bonds issued by the securitization trust.
As the sponsor and depositor of these securitizations, MITT may retain a call option which enables it to acquire the loans from the securitization trust. This gives MITT flexibility and optionality to manage its portfolio and optimize its returns.
The Performance of MITT
MITT has delivered consistent and strong performance since its inception. As of June 30, 2023, MITT had a total equity of $1.2 billion and a book value per share of $17.64. The company paid a quarterly dividend of $0.45 per share in July 2023, representing an annualized dividend yield of 10.2% based on the closing price of $17.66 per share on June 30, 2023. The company also reported a net income of $32.4 million and a core earnings of $28.9 million for the second quarter of 2023.
MITT has also demonstrated resilience and adaptability in the face of market challenges and opportunities. During the COVID-19 pandemic, MITT took proactive measures to preserve liquidity, reduce leverage, and enhance portfolio quality by selling certain assets, repaying debt, and acquiring new loans with attractive risk-return profiles. The company also capitalized on favorable market conditions to issue four securitizations totaling $1.8 billion in 2023.
AG Mortgage Investment Trust Inc. is a REIT that invests in residential mortgage-related assets in the U.S. mortgage market. The company is externally managed by an affiliate of Angelo, Gordon & Co., L.P., a leading alternative investment firm. The symbol of MITT is MITT, which is used to identify the company’s common stock on the NYSE. MITT has a proven track record of generating attractive risk-adjusted returns for its stockholders through dividends and capital appreciation. MITT has a proprietary securitization platform that provides long-term, non-recourse, non-mark-to-market financing for its residential mortgage loans. MITT has also shown resilience and adaptability in the face of market challenges and opportunities. MITT is a compelling investment opportunity for investors who are looking for exposure to the Non-Agency residential mortgage loan market.