# New York Mortgage Trust Inc. (NYMT)

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Report type:** Primer (steps 1–3 of 19)  
**API endpoint:** GET /api/v1/research/NYMT/primer

## Business Model

---
source: coverage-next-full
ticker: NYMT
company: New York Mortgage Trust, Inc.
step: "01"
title: Business Overview
created: 2026-05-29
---

### Step 01 — Business Overview
#### New York Mortgage Trust, Inc. (NYMT)

---

#### 1. Company Snapshot

| Field | Detail |
|-------|--------|
| Legal Name | New York Mortgage Trust, Inc. |
| Rebranding | Adamas Trust, Inc. (ADAM) — effective ~September 2025 |
| Ticker | NYMT (NASDAQ) |
| CIK | 0001273685 |
| HQ | New York, NY |
| Structure | Internally managed REIT |
| Founded | 2003 |
| Fiscal Year End | December 31 |
| SIC | 6726 — Investment Offices, NEC |
| Market Cap (est. May 2025) | ~$640M |
| Total Assets (Q1 2025) | ~$10.0B |
| Employees (est.) | ~100 |

---

#### 2. Business Model

NYMT is a hybrid mortgage REIT. Its core business model is a leveraged net interest spread: the company borrows short-term capital — primarily via repurchase agreements (repo) — at floating market rates, and invests those proceeds in longer-duration, higher-yielding residential mortgage assets. The profit is the net interest margin (NIM) between asset yields and funding costs, magnified by ~3–4x leverage.

Unlike agency-only peers (AGNC, NLY), NYMT takes on credit exposure through its non-QM and BPL loan portfolios, which earn substantially higher yields in exchange for bearing first-loss credit risk. The agency MBS sleeve hedges some of the rate duration risk on the credit sleeve and provides liquidity.

**Value Creation Formula:**
```
Net Interest Income = Portfolio Yield × Assets − Repo Rate × Borrowings
Earnings Available for Distribution (EAD) = NII − Management/Operating Costs
Return = EAD / Common Equity
```

---

#### 3. Portfolio Segments (as of Q4 2024)

| Segment | Approx. % of Portfolio | Key Asset Types | Yield (est.) |
|---------|----------------------|----------------|--------------|
| Single-Family Agency | ~42% | Agency RMBS (Fannie, Freddie, Ginnie) | 5.0–5.5% |
| Single-Family Credit | ~43% | Non-QM loans, BPL-Bridge, BPL-Rental | 8.5–9.5% |
| Multi-Family | ~7% | Preferred equity, mezz loans, CLO interests | 8–12% (mixed) |
| Other/Unallocated | ~8% | Cash, derivatives, other | N/A |

**Key Terms:**
- **Non-QM:** Non-Qualified Mortgage — loans to self-employed, investor, or non-standard borrowers; higher yield than agency but with first-loss credit exposure
- **BPL (Business Purpose Loans):** Short-term bridge and term rental loans to real estate investors; collateralized by residential properties
- **Agency RMBS:** Mortgage-backed securities with U.S. government/GSE guarantee — zero credit risk but meaningful rate/duration risk

---

#### 4. Internal Management — Structural Differentiator

NYMT is **internally managed**, which sets it apart from most mREIT peers (NLY, AGNC, TWO, ARR, MFA are externally managed). Key implications:

- **No management fee:** Avoids the ~1.5% of equity (or 1–2% of assets) annual fee paid to external managers — saves an estimated $15–20M+ per year in fee drag
- **Alignment of interests:** Management compensation is linked to stock performance and book value; no conflict of interest between growing AUM and generating returns for shareholders
- **Transparency:** Less complexity in related-party transactions
- **Precedent:** Internally managed mREITs historically have traded at a higher P/BV premium vs. externally managed peers

**CEO:** Jason T. Serrano (CEO since January 2023; President since 2019). Career background in structured credit and residential mortgage investing. Executed the 2022–2024 portfolio rotation from legacy assets to high-coupon non-QM/BPL.

---

#### 5. Scale Comparison — Hybrid mREIT Peer Group

| Company | Ticker | Total Assets | Structure | Market Cap |
|---------|--------|-------------|-----------|-----------|
| Annaly Capital | NLY | ~$75B | External | ~$11B |
| AGNC Investment | AGNC | ~$60B | External | ~$9B |
| MFA Financial | MFA | ~$10B | External | ~$1.2B |
| Two Harbors | TWO | ~$12B | External | ~$1.5B |
| ARMOUR Residential | ARR | ~$12B | External | ~$1.0B |
| **New York Mortgage Trust** | **NYMT** | **~$10B** | **Internal** | **~$640M** |

NYMT is a **sub-$1B market cap hybrid mREIT** — smaller scale than NLY/AGNC/TWO but comparable to MFA and ARR. The internal management structure is a genuine differentiator at this scale.

---

#### 6. Revenue Profile

NYMT earns revenue entirely through net interest income — no fee income, no origination income, no servicing revenue. As a leveraged portfolio investor, revenues fluctuate with:
1. Portfolio size (assets under management)
2. Asset yields (fixed-rate assets + new deployment yields)
3. Funding costs (repo rates, which are floating and Fed-rate-linked)
4. Mark-to-market gains/losses on the MBS portfolio (GAAP only; non-cash)

FY2024 Interest Income: $401.3M | Interest Expense: ~$317M | Net Interest Income: $83.9M

---

#### 7. Investment Thesis Summary

**Bull case elements:**
- EAD finally reached dividend coverage ($0.20/share/quarter) in Q1 2025
- High-coupon credit asset portfolio (BPL, non-QM) positioned for above-market returns
- Internal management = structural cost advantage over peers
- Significant asset deployment ($4.1B in 2024) scaling NII base
- Stock trading at ~0.75x book value — discount to NAV provides margin of safety

**Bear case elements:**
- Book value eroded 62% from $24.58 (2021) to $9.37 (Q1 2025)
- GAAP net losses persist due to mark-to-market; earnings quality question
- Dividend cut twice in 2022–2023; limited buffer at 1.0x EAD coverage
- Credit risk concentrated in non-QM/BPL segment sensitive to recession/credit cycle

---

#### 8. Sources

| Code | Source |
|------|--------|
| [S1] | NYMT Form 10-K FY2024 |
| [S2] | StockAnalysis.com |
| [S3] | Q1 2025 press release |
| [S4] | Step 00 data foundation |

## Financial Snapshot

---
source: coverage-next-full
ticker: NYMT
company: New York Mortgage Trust, Inc.
step: "04"
title: Financial Snapshot
created: 2026-05-29
---

### Step 04 — Financial Snapshot
#### New York Mortgage Trust, Inc. (NYMT)

---

#### 1. Annual Income Statement Summary

| Metric | FY2021 | FY2022 | FY2023 | FY2024 |
|--------|--------|--------|--------|--------|
| Interest Income | ~$207M | ~$247M | ~$207M | $401.3M |
| Interest Expense | ~$79M | ~$118M | ~$141M | ~$317M |
| **Net Interest Income** | **$127.6M** | **$129.0M** | **$66.5M** | **$83.9M** |
| Non-Interest Income (loss) | ~$82M | (~$450M) | (~$87M) | (~$143M) |
| Operating Expenses | ~$65M | ~$59M | ~$48M | ~$44M |
| **GAAP Net Income (Loss)** | **$144.2M** | **($340.7M)** | **($90.0M)** | **($103.8M)** |
| **GAAP EPS (Diluted)** | **$1.51** | **($3.61)** | **($0.99)** | **($1.14)** |
| Dividends Per Share | $1.60 | $1.60 | $1.20 | $0.80 |

*Source: [S1] NYMT 10-K FY2024; [S2] StockAnalysis.com*

**Key observation:** FY2022–2024 GAAP net losses were driven by unrealized mark-to-market losses on the agency MBS portfolio as interest rates rose 525bps. These are non-cash losses. EAD (distributable earnings) is the economically meaningful metric.

---

#### 2. Balance Sheet Summary (Annual)

| Metric | FY2021 | FY2022 | FY2023 | FY2024 |
|--------|--------|--------|--------|--------|
| Total Assets | $5,658M | $6,241M | $7,401M | $9,217M |
| Agency RMBS | ~$2.4B | ~$2.6B | ~$3.1B | ~$3.9B |
| Credit Assets (est.) | ~$2.0B | ~$2.3B | ~$2.7B | ~$3.6B |
| Total Repo / Debt | $2,511M | $2,640M | $2,798M | $3,549M |
| Total Equity | $2,365M | $1,800M | $1,600M | $1,399M |
| **BVPS (common)** | **$24.58** | **$18.74** | **$17.35** | **$9.28** |
| Recourse Leverage | ~2.2x | ~2.8x | ~2.7x | ~3.0x |

*Note: BVPS common uses Q4 2024 press release figure of $9.28 reflecting common equity only (excl. preferred). Annual balance sheet BVPS of $15.36 includes preferred equity.*

---

#### 3. Book Value Per Share (BVPS) — Primary Valuation Metric

For mREITs, BVPS is the primary intrinsic value anchor. Track record:

| Period | Common BVPS | QoQ Change | Catalyst |
|--------|------------|------------|---------|
| Q4 2021 | $24.58 | — | Peak pre-rate-hike |
| Q4 2022 | ~$18.74 | −$5.84 | Fed rate hike; agency MBS markdown |
| Q4 2023 | ~$17.35 | −$1.39 | Continued rate pressure |
| Q3 2024 | ~$9.35 | — | Portfolio rotation complete |
| Q4 2024 | $9.28 | −$0.07 | Stable; small mark decline |
| Q1 2025 | $9.37 | +$0.09 | First QoQ increase; stabilization signal |

**BVPS erosion summary:** $24.58 → $9.37 = loss of $15.21/share (−62%) over 2021–2025. This was driven overwhelmingly by unrealized agency MBS losses, not credit losses or operating deficits. However, the market appropriately prices in this history.

**Adjusted (Economic) BVPS:** NYMT also reports "adjusted book value" of $10.43 (Q1 2025), which adds back the mark-to-market on liabilities at fair value — providing a more stable economic view of book value.

---

#### 4. EPS and EAD Bridge

| Metric | FY2022 | FY2023 | FY2024 | Q1 2025 (qtrly) |
|--------|--------|--------|--------|-----------------|
| GAAP EPS | ($3.61) | ($0.99) | ($1.14) | $0.33 |
| EAD per share (est.) | ~$0.60 | ~$0.40 | ~$0.60–$0.70 | $0.20 |
| Dividend per share | $1.60 | $1.20 | $0.80 | $0.20 |
| EAD Coverage | <1.0x | <1.0x | <1.0x | **1.0x** |

Q1 2025 marks the first quarter of full EAD dividend coverage since 2021.

---

#### 5. Dividend History — Multiple Cuts

NYMT dividend history reflects the severe rate shock of 2022–2023:

| Period | Dividend/Quarter | Annual Rate | Change |
|--------|-----------------|------------|--------|
| 2019–2021 | $0.20–$0.25 | $0.80–$1.00 | Peak |
| Q1–Q4 2022 | $0.40 (declared as special+reg) | $1.60 | — |
| Q1 2023 | $0.30 | $1.20 annualized | **CUT #1: −25%** |
| Q2–Q4 2023 | $0.30 | $1.20 | Maintained |
| Q1 2024 | $0.20 | $0.80 annualized | **CUT #2: −33%** |
| Q2 2024–Q1 2025 | $0.20 | $0.80 | 5 consecutive quarters stable |

*Two dividend cuts in 3 years (2023 and 2024). However, 5 consecutive quarters at $0.20/quarter suggests stabilization. Q1 2025 EAD coverage of 1.0x is the critical near-term indicator of dividend sustainability.*

**Preferred dividends:** Preferred Series D, E, F pay fixed annual dividends; these are senior to common and must be paid before common distributions.

---

#### 6. Quarterly Income Statement (Recent)

| Metric | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 |
|--------|---------|---------|---------|---------|
| Interest Income | ~$91M | ~$101M | ~$110M | $129.7M |
| Net Interest Income | ~$19M | ~$23M | ~$25M | $33.1M |
| GAAP Net Income (Loss) | ($26M) | $27M | ($41.8M) | $30.3M |
| EPS (Basic) | (~$0.29) | $0.30 | ($0.46) | $0.33 |
| EAD | ~$14M | ~$16M | ~$17M | $18.2M |
| EAD/share | ~$0.15 | ~$0.18 | ~$0.19 | $0.20 |

*GAAP income volatile quarter to quarter due to mark-to-market; NII trend is consistently positive.*

---

#### 7. Capital Raises and Dilution

NYMT has conducted equity raises that dilute existing shareholders:

| Year | Action | Approx. Shares Issued | Purpose |
|------|--------|----------------------|---------|
| 2021 | Common equity offering | ~15M shares | Portfolio expansion |
| 2022 | None (capital preservation) | — | — |
| 2023 | At-the-market (ATM) | ~5M shares | Incremental deployment |
| 2024 | ATM + follow-on | ~10M shares | $4.1B deployment funding |
| Q1 2025 | Buyback | (231K shares repurchased) | BV accretion |

Current diluted shares outstanding: ~91M common shares

The Q1 2025 buyback (231K shares at ~$6.50 vs. BVPS $9.37) is BV-accretive and signals management confidence. However, the scale is modest relative to total shares.

---

#### 8. Financial Quality Scorecard

| Dimension | Rating | Notes |
|-----------|--------|-------|
| Revenue quality | Moderate | NII is contractual but rate-sensitive |
| Earnings reliability | Low–Moderate | GAAP distorted; EAD more stable |
| Book value stability | Poor (historical) | 62% BV erosion 2021–2024; stabilizing |
| Dividend sustainability | Improving | 1.0x EAD coverage in Q1 2025 |
| Balance sheet risk | Moderate | 3.4x recourse leverage; conservative for sector |
| Transparency | Good | Internally managed; detailed press release data |
| GAAP vs. economic gap | High | Mark-to-market losses are non-cash and material |

---

#### 9. Valuation Summary (May 2025)

| Metric | Value |
|--------|-------|
| Stock price (est.) | ~$7.00 |
| BVPS (common, Q1 2025) | $9.37 |
| Price/Book | ~0.75x |
| Adjusted BVPS | $10.43 |
| Price/Adjusted Book | ~0.67x |
| Dividend yield (annualized) | ~11.4% |
| EAD yield (Q1 2025 annualized) | ~$0.80/$7.00 = ~11.4% |
| Analyst avg. price target | $7.61 |
| Analyst consensus | Buy (5–11 analysts) |

---

#### 10. Sources

| Code | Source |
|------|--------|
| [S1] | NYMT Form 10-K FY2024 |
| [S2] | StockAnalysis.com — Annual IS/BS |
| [S3] | Q4 2024 earnings press release |
| [S4] | Q1 2025 earnings press release (StockTitan) |
| [S5] | Analyst consensus (Benzinga, MarketBeat, B. Riley) |

## Recent Catalysts

---
source: coverage-next-full
ticker: NYMT
company: New York Mortgage Trust, Inc.
step: "12"
title: Catalysts
created: 2026-05-29
---

### Step 12 — Catalysts
#### New York Mortgage Trust, Inc. (NYMT)

---

#### 1. Positive Catalysts (Near-Term, 6–18 Months)

##### 1.1 Continued NII Acceleration
Q1 2025 annualized NII of ~$132M vs. FY2024 $83.9M represents a 57% step-up. If the high-coupon portfolio continues to season and repo costs decline with further Fed cuts, NII could reach $150–175M annualized by end-2025. This would expand EAD well above the $0.20/quarter dividend → dividend increase optionality or capital redeployment.

**Timeline:** Continuous; Q2 2025 results (August 2025) will be first validation point.

##### 1.2 Federal Reserve Rate Cuts
Each 25bps Fed rate cut reduces NYMT's floating-rate funding costs on ~$4.1B of repo by approximately $10M annualized. Market consensus expects 1–3 additional cuts in 2025. Three cuts → ~$30M NIM benefit annualized → material EAD uplift.

**Timeline:** Each FOMC meeting (8x/year); current pause until data justifies cuts.

##### 1.3 Book Value Recovery / Appreciation
Q1 2025 BVPS of $9.37 is the first positive quarterly move. If agency MBS spreads tighten as the Fed cuts (typical relationship), BVPS could recover toward $10.00–10.50 (adjusted BVPS currently $10.43). Stock re-rating from 0.75x → 0.85x book value would imply $8.50–9.00/share — meaningful upside from ~$7.00.

**Timeline:** Dependent on rate/spread environment; ongoing.

##### 1.4 EAD Dividend Coverage Surplus Enables Dividend Increase
If Q2–Q4 2025 EAD exceeds $0.20/share consistently, management has room to announce a dividend increase to $0.22–0.25/quarter. An mREIT dividend increase is a powerful catalyst — income-focused investors rotate in, and the higher yield attracts new capital.

**Timeline:** Q3 2025 earnings announcement (November 2025) would be the earliest opportunity.

##### 1.5 Portfolio Growth to $12–15B
NYMT deployed $4.1B in 2024 and $800M net in Q1 2025. If the same pace continues, total assets could reach $12B+ by end-2025. Greater portfolio scale increases NII dollar value even at similar NIM, amplifying EAD per share.

**Timeline:** Continuous; each earnings release shows deployment progress.

---

#### 2. Negative Catalysts (Potential Threats)

##### 2.1 Interest Rate Spike Restarts BV Destruction
If inflation data forces the Fed to pause or reverse cuts (returning to 5%+ rates), the 10-year Treasury could spike to 5.0–5.5%. Agency MBS marks would decline, BVPS would fall back below $9.00, and the recovery narrative would be interrupted. This is the primary tail risk.

**Trigger:** Inflation resurgence; labor market re-acceleration; Fed hawkish pivot.

##### 2.2 Credit Deterioration in Non-QM / BPL Book
A recession with unemployment rising to 6%+ would increase non-QM defaults (self-employed borrowers) and slow residential property sales (BPL bridge exits). Credit losses of $100–200M would reduce BVPS by $1.10–$2.20 — potentially requiring another dividend cut.

**Trigger:** Labor market deterioration; housing price correction; consumer credit stress.

##### 2.3 Repo Market Disruption
A systemic liquidity event (geopolitical shock, large financial institution failure, Treasury market dysfunction) could cause repo market seizure. NYMT would face margin calls on its $4.1B repo book, potentially forcing asset sales at distressed prices.

**Trigger:** Financial system stress; NYMT counterparty failure; Treasury market dislocation.

##### 2.4 Third Dividend Cut
If Q2 2025 EAD falls below $0.18/share for any reason (credit losses, NIM compression, one-time expenses), management may be forced to cut the dividend again. A third dividend cut would severely damage NYMT's credibility with income-focused investors and could cause significant stock price decline.

**Trigger:** EAD misses $0.20/share threshold; any combination of NII weakness + credit losses.

##### 2.5 Rebranding Disruption (NYMT → ADAM)
The planned rebranding to Adamas Trust (ticker ADAM) in ~September 2025 may cause index fund mechanical selling if NYMT is removed from the S&P MidCap 400 and not immediately re-included as ADAM. This would be a temporary technical pressure but could overshoot fundamentals.

**Trigger:** Ticker change execution; index committee decisions.

---

#### 3. Upcoming Catalyst Calendar

| Date (est.) | Event | Potential Impact |
|-------------|-------|----------------|
| May 2025 | Q1 2025 earnings release | Already reported — positive |
| August 2025 | Q2 2025 earnings release | Key validation of NII trajectory |
| September 2025 | NYMT → ADAM rebranding | Index/technical disruption |
| November 2025 | Q3 2025 earnings release | Potential dividend increase announcement |
| December 2025 | Fed December FOMC | Rate cut decision |
| February 2026 | Q4 2025 / FY2025 earnings | Full-year EAD vs. $0.80 dividend; trajectory for 2026 |

---

#### 4. Catalyst Priority Matrix

| Catalyst | Probability | Magnitude | Priority |
|---------|------------|----------|---------|
| Continued NII growth | High | Medium | P1 — Ongoing |
| Fed rate cuts | Medium | Medium | P1 — Ongoing |
| BV recovery toward $10.43 | Medium | Medium | P2 |
| Dividend increase | Low–Medium | High | P2 |
| Portfolio growth to $12B | High | Medium | P1 — Ongoing |
| Rate spike (negative) | Medium | High | P1 RISK |
| Credit deterioration (negative) | Low | High | P2 RISK |
| Repo disruption (negative) | Low | Very High | Tail RISK |
| Third dividend cut (negative) | Low–Medium | Medium | P2 RISK |

---

**Bull Case**
- Federal Reserve delivers 3+ rate cuts in 2025, reducing repo costs by ~$30M annualized, pushing quarterly EAD to $0.25+ per share and enabling a dividend increase to $0.25/quarter (10%+ yield on a higher base); management announces dividend hike at Q3 2025 earnings
- Agency MBS spreads tighten as the Fed signals accommodation, recovering book value per share toward $10.50 (adjusted book); stock re-rates from 0.75x to 0.85x book, implying ~$8.50–9.00 per share from current ~$7.00
- Non-QM and BPL credit performance remains pristine (delinquency below 2%) through 2025-2026, enabling continued aggressive deployment at 9–10% yields and validating the hybrid credit-heavy portfolio strategy

**Bear Case**
- Inflation re-accelerates above 3.5%, forcing the Fed to hold rates at 4.25%+ or raise again; 10-year Treasury spikes to 5.0–5.5%, marking agency MBS book down by $150–250M and pushing BVPS below $8.00, triggering renewed investor skepticism and potential third dividend cut
- Residential credit cycle turns: unemployment rises to 6%+, home prices fall 10–15%, BPL bridge loan extension risk materializes with losses of $100–150M on the credit book, compounding the rate-driven BV destruction and forcing a dividend cut to $0.10–0.15/quarter
- Repo market dislocation event — whether geopolitical shock, major financial institution failure, or Treasury market dysfunction — triggers margin calls on $4.1B of repo, forcing NYMT to sell illiquid non-QM and BPL whole loans at distressed prices, crystallizing $200–400M in losses and cutting common equity by 25–40%

---

#### 5. Sources

| Code | Source |
|------|--------|
| [S1] | NYMT Q1 2025 earnings press release |
| [S2] | NYMT Form 10-K FY2024 |
| [S3] | Analyst consensus (B. Riley, Benzinga, MarketBeat) |
| [S4] | Step 05 quarterly momentum; Step 11 external risk overlay |

## Full Research Available

This primer covers steps 1–3 of 19. The full deep dive (moat analysis, DCF, bull/bear,
management quality, earnings transcript analysis) is available via:

- Investment memo: /memo/nymt
- Full research API: GET /api/v1/research/NYMT/memo
- Coverage universe: /stocks