Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 03, 2021 | Jun. 30, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-36844 | ||
Entity Registrant Name | GREAT AJAX CORP | ||
Entity Central Index Key | 0001614806 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Current Reporting Status | Yes | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 47-1271842 | ||
Entity Address, Address Line One | 13190 SW 68th Parkway | ||
Entity Address, Address Line Two | Suite 201 | ||
Entity Address, City or Town | Tigard | ||
Entity Address, State or Province | OR | ||
Entity Address, Postal Zip Code | 97223 | ||
City Area Code | 503 | ||
Local Phone Number | 505-5670 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Public Float | $ 197,051,291 | ||
Entity Common Stock, Shares Outstanding (in shares) | 22,978,339 | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement with respect to its 2021 Annual Meeting of Stockholders are incorporated by reference into this Annual Report on Form 10-K in response to Part III, Items 10, 11, 12, 13 and 14. | ||
Common Stock | |||
Entity Information [Line Items] | |||
Trading Symbol | AJX | ||
Security Exchange Name | NYSE | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
AJXA | |||
Entity Information [Line Items] | |||
Trading Symbol | AJXA | ||
Security Exchange Name | NYSE | ||
Title of 12(b) Security | 7.25% Convertible Senior Notes due 2024 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
ASSETS | |||
Cash and cash equivalents | $ 107,147 | $ 64,343 | |
Cash held in trust | 188 | 20 | |
Mortgage loans, net | [1],[2] | 1,119,372 | 1,151,469 |
Property held-for-sale, net | [3] | 7,807 | 13,537 |
Rental property, net | 719 | 1,534 | |
Investments in securities at fair value | [4] | 273,834 | 231,685 |
Investments in beneficial interests | [5] | 91,418 | 57,954 |
Receivable from servicer | 15,755 | 17,013 | |
Investment in affiliates | 28,616 | 30,441 | |
Prepaid expenses and other assets | 8,876 | 8,845 | |
Total assets | 1,653,732 | 1,576,841 | |
Liabilities: | |||
Secured borrowings, net | [1],[2],[6] | 585,403 | 652,747 |
Borrowings under repurchase transactions | 421,132 | 414,114 | |
Convertible senior notes, net | [6] | 110,057 | 118,784 |
Management fee payable | 2,247 | 1,634 | |
Accrued expenses and other liabilities | 20,402 | 5,478 | |
Total liabilities | 1,139,241 | 1,192,757 | |
Commitments and contingencies – see Note 8 | |||
Equity: | |||
Common Stock, Shares, Outstanding | 22,978,339 | 22,142,143 | |
Common Stock, Shares, Issued | 22,978,339 | 22,142,143 | |
Common stock $0.01 par value; 125,000,000 shares authorized, 22,978,339 issued and outstanding at December 31, 2020 and 22,142,143 shares issued and outstanding at December 31, 2019 | $ 231 | $ 222 | |
Additional paid-in capital | 317,424 | 309,395 | |
Treasury stock | (1,159) | (458) | |
Retained earnings | 53,346 | 49,446 | |
Accumulated other comprehensive income | 375 | 1,277 | |
Equity attributable to stockholders | 485,361 | 359,882 | |
Non-controlling interests | [7] | 29,130 | 24,202 |
Total equity | 514,491 | 384,084 | |
Total liabilities and equity | 1,653,732 | 1,576,841 | |
Series A Preferred Stock | |||
Equity: | |||
Preferred stock $0.01 par value; 25,000,000 shares authorized | 51,100 | 0 | |
Series B Preferred Stock | |||
Equity: | |||
Preferred stock $0.01 par value; 25,000,000 shares authorized | $ 64,044 | $ 0 | |
[1] | As of December 31, 2020, balances for Mortgage loans, net includes $307.1 million and Secured borrowings, net of deferred costs includes $250.6 million from the 50.0% and 63.0% owned joint ventures, respectively. As of December 31, 2019, balances for Mortgage loans, net include $341.8 million and Secured borrowings, net of deferred costs includes $284.8 million from the 50.0% and 63.0% owned joint ventures, all of which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). | ||
[2] | Mortgage loans, net include $842.2 million and $908.6 million of loans at December 31, 2020 and December 31, 2019, respectively, transferred to securitization trusts that are variable interest entities (“VIEs”); these loans can only be used to settle obligations of the VIEs. Secured borrowings consist of notes issued by VIEs that can only be settled with the assets and cash flows of the VIEs. The creditors do not have recourse to the primary beneficiary (Great Ajax Corp.). See Note 9 — Debt. Mortgage loans, net include $13.7 million and $2.0 million of allowance for loan losses at December 31, 2020 and December 31, 2019, respectively. (2) As of December 31, 2020, balances for Mortgage loans, net includes $307.1 million and Secured borrowings, net of deferred costs includes $250.6 million from the 50.0% and 63.0% owned joint ventures, respectively. As of December 31, 2019, balances for Mortgage loans, net include $341.8 million and Secured borrowings, net of deferred costs includes $284.8 million from the 50.0% and 63.0% owned joint ventures, all of which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). | ||
[3] | Property held-for-sale, net, includes valuation allowances of $1.4 million and $1.8 million at December 31, 2020 and December 31, 2019, respectively. | ||
[4] | As of December 31, 2020 and December 31, 2019 Investments in securities at fair value include amortized cost basis of $273.4 million and $230.4 million, respectively, and net unrealized gains of $0.4 million and $1.3 million, respectively. | ||
[5] | Investments in beneficial interests includes allowance for credit losses of $4.5 million at December 31, 2020. No allowance for credit losses was recorded as of December 31, 2019. | ||
[6] | Secured borrowings and Convertible senior notes are presented net of deferred issuance costs. | ||
[7] | As of December 31, 2020 and December 31, 2019 non-controlling interests includes $27.4 million and $22.4 million, respectively, from the 50.0% and 63.0% owned VIEs all of which the Company consolidates under U.S. GAAP. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Preferred stock par value per share (in dollars per share) | $ 0.01 | ||
Preferred stock shares authorized (in shares) | 25,000,000 | 25,000,000 | |
Common stock par value per share (in dollars per share) | $ 0.01 | ||
Common stock shares authorized (in shares) | 125,000,000 | ||
Common stock shares issued (in shares) | 22,978,339 | 22,142,143 | |
Common stock shares outstanding (in shares) | 22,978,339 | 22,142,143 | |
Carrying value of mortgage loans | [1],[2] | $ 1,119,372,000 | $ 1,151,469,000 |
Financing Receivable, Allowance for Credit Losses | 13,712,000 | 1,960,000 | |
Secured borrowings, net | [1],[2],[3] | 585,403,000 | 652,747,000 |
Property held-for-sale, valuation allowances | 1,400,000 | 1,800,000 | |
Non-controlling interests | [4] | 29,130,000 | 24,202,000 |
Debt securities accumulated unrealized gain (loss) | 400,000 | 1,300,000 | |
Available-for-sale Debt Securities, Amortized Cost Basis | 273,400,000 | 230,400,000 | |
Beneficial interests in securitization trusts | |||
Financing Receivable, Allowance for Credit Losses | $ (4,500,000) | $ 0 | |
Series A Preferred Stock | |||
Preferred Stock, Shares Issued | 2,307,400 | 0 | |
Preferred stock shares outstanding (in shares) | 2,307,400 | 0 | |
Series B Preferred Stock | |||
Preferred Stock, Shares Issued | 2,892,600 | 0 | |
Preferred stock shares outstanding (in shares) | 2,892,600 | 0 | |
Consolidated Entities | |||
Mortgage loans | $ 307,100,000 | $ 341,800,000 | |
Secured borrowings, net | 250,600,000 | 284,800,000 | |
Non-controlling interests | $ 27,400,000 | 22,400,000 | |
2017-D | Great Ajax Corp | |||
Noncontrolling Interest, Ownership Percentage by Parent | 50.00% | ||
2018-C | Great Ajax Corp | |||
Noncontrolling Interest, Ownership Percentage by Parent | 63.00% | ||
Mortgage loans | |||
Carrying value of mortgage loans | $ 842,177,000 | $ 908,562,000 | |
[1] | As of December 31, 2020, balances for Mortgage loans, net includes $307.1 million and Secured borrowings, net of deferred costs includes $250.6 million from the 50.0% and 63.0% owned joint ventures, respectively. As of December 31, 2019, balances for Mortgage loans, net include $341.8 million and Secured borrowings, net of deferred costs includes $284.8 million from the 50.0% and 63.0% owned joint ventures, all of which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). | ||
[2] | Mortgage loans, net include $842.2 million and $908.6 million of loans at December 31, 2020 and December 31, 2019, respectively, transferred to securitization trusts that are variable interest entities (“VIEs”); these loans can only be used to settle obligations of the VIEs. Secured borrowings consist of notes issued by VIEs that can only be settled with the assets and cash flows of the VIEs. The creditors do not have recourse to the primary beneficiary (Great Ajax Corp.). See Note 9 — Debt. Mortgage loans, net include $13.7 million and $2.0 million of allowance for loan losses at December 31, 2020 and December 31, 2019, respectively. (2) As of December 31, 2020, balances for Mortgage loans, net includes $307.1 million and Secured borrowings, net of deferred costs includes $250.6 million from the 50.0% and 63.0% owned joint ventures, respectively. As of December 31, 2019, balances for Mortgage loans, net include $341.8 million and Secured borrowings, net of deferred costs includes $284.8 million from the 50.0% and 63.0% owned joint ventures, all of which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). | ||
[3] | Secured borrowings and Convertible senior notes are presented net of deferred issuance costs. | ||
[4] | As of December 31, 2020 and December 31, 2019 non-controlling interests includes $27.4 million and $22.4 million, respectively, from the 50.0% and 63.0% owned VIEs all of which the Company consolidates under U.S. GAAP. |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
INCOME | ||||
Interest income | $ 100,071 | $ 112,416 | $ 108,181 | |
Interest expense | (48,692) | (59,325) | (53,335) | |
Net interest income | 51,379 | 53,091 | 54,846 | |
Provision for credit benefit/(losses) | 10,820 | (803) | (1,164) | |
Net interest income after provision for credit benefit/(losses) | 62,199 | 52,288 | 53,682 | |
(Loss)/income from investment in affiliates | (155) | 1,332 | 762 | |
(Loss)/income on sale of mortgage loans(1) | [1] | (705) | 7,123 | 0 |
Other Income | 2,272 | 4,176 | 3,720 | |
Total revenue, net | 63,611 | 64,919 | 58,164 | |
EXPENSE | ||||
Related party expense – loan servicing fees | 7,678 | 9,133 | 10,148 | |
Related party expense – management fee | 8,456 | 7,356 | 6,025 | |
Loan transaction expense | (211) | 328 | 389 | |
Professional fees | 2,834 | 2,550 | 2,179 | |
Real estate operating expenses | 1,482 | 3,685 | 3,252 | |
Other expense | 9,228 | 4,225 | 3,934 | |
Total expense | 29,467 | 27,277 | 25,927 | |
Loss on debt extinguishment | 661 | 429 | 836 | |
Income before provision for income taxes | 33,483 | 37,213 | 31,401 | |
Provision for income taxes (benefit) | (125) | 124 | 64 | |
Consolidated net income | 33,608 | 37,089 | 31,337 | |
Less: consolidated net income attributable to the non-controlling interest | 5,112 | 2,384 | 2,997 | |
Consolidated net income attributable to Company | 28,496 | 34,705 | 28,340 | |
Less: dividends on preferred stock | 5,740 | 0 | 0 | |
Consolidated net income attributable to common stockholders | $ 22,756 | $ 34,705 | $ 28,340 | |
Basic earnings per common share (in dollars per share) | $ 1 | $ 1.74 | $ 1.50 | |
Diluted earnings per common share (in dollars per share) | $ 1 | $ 1.59 | $ 1.43 | |
Weighted average shares - basic (in shares) | 22,641,636 | 19,710,482 | 18,642,526 | |
Weighted average shares - diluted (in shares) | 22,641,636 | 28,173,217 | 25,830,546 | |
[1] | During the year ended December 31, 2020, the Company sold 26 small balance commercial loans (“SBC loans”) with a carrying value of $26.1 million and UPB of $26.2 million for a loss of $0.7 million. Comparatively, during the year ended December 31, 2019, the Company sold 965 loans with a carrying value of $178.8 million and UPB of $202.1 million for a gain of $7.1 million. The Company sold no mortgage loans during the year ended December 31, 2018. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPRHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Consolidated net income attributable to common stockholders | $ 22,756 | $ 34,705 | $ 28,340 |
Other comprehensive (loss)/income: | |||
Net unrealized (loss)/income on investments, net of non-controlling interest | (902) | 1,852 | (152) |
Cumulative reversal of accumulated other comprehensive income due to sale of securities | 0 | 0 | (190) |
Income tax expense related to items of other comprehensive income | 0 | 0 | 0 |
Comprehensive income | $ 21,854 | $ 36,557 | $ 27,998 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Consolidated net income | $ 33,608 | $ 37,089 | $ 31,337 | |
Adjustments to reconcile net income to net cash from operating activities | ||||
Stock-based management fee and compensation expense | 879 | 3,604 | 3,989 | |
Non-cash interest income accretion | (29,040) | (39,113) | (43,749) | |
Interest and discount accretion on investment in debt securities | (9,852) | (6,655) | (783) | |
Discount accretion on investment in beneficial interests | (11,754) | (6,426) | 0 | |
(Loss)/income on sale of mortgage loans(1) | [1] | 705 | (7,123) | 0 |
Loss on debt extinguishment | 661 | 429 | 836 | |
Gain on sale of property held-for-sale | (1,011) | (629) | (380) | |
Gain on sale of securities | (145) | (8) | (347) | |
Depreciation of property | 29 | 499 | 155 | |
Impairment of real estate owned | 1,359 | 2,104 | 2,700 | |
Provision for credit benefit/(losses) | (8,274) | (803) | (1,164) | |
Reversal of provision for credit losses on beneficial interests | (2,547) | 0 | 0 | |
Amortization of debt discount and prepaid financing costs | 5,176 | 5,716 | 6,378 | |
Undistributed loss/(income) from investment in affiliates | 155 | (1,332) | (762) | |
Accretion Expense, Including Asset Retirement Obligations | 4,733 | 0 | 0 | |
Net change in operating assets and liabilities | ||||
Prepaid expenses and other assets | (845) | (2,555) | (2,747) | |
Receivable from Servicer | 1,311 | (2,231) | 2,071 | |
Accrued expenses, management fee payable, and other liabilities | 963 | 830 | 1,171 | |
Net cash from operating activities | (13,889) | (14,998) | 1,033 | |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchase of mortgage loans and related balances | (88,965) | (129,186) | (171,311) | |
Principal paydowns on mortgage loans | 127,505 | 134,696 | 142,107 | |
Proceeds from sale of mortgage loans | 25,412 | 212,648 | 0 | |
Draws on small balance commercial loans | (56) | (912) | (267) | |
Purchase of securities | (144,682) | (187,825) | (176,363) | |
Principal and interest collection on investments in debt securities | 53,517 | 42,386 | 6,496 | |
Proceeds on sale of securities | 38,944 | 39,635 | 8,073 | |
Purchase of rental property | 0 | (27,524) | (15,385) | |
Proceeds from sale of property held-for-sale | 11,100 | 17,436 | 17,632 | |
Renovations and recovery costs of rental property and property held-for-sale | (28) | (171) | (456) | |
Investment in Great Ajax FS LLC, including warrants | 0 | 0 | (1,750) | |
Investment in equity method investee | 0 | (2,502) | 0 | |
Distribution from affiliates | 1,418 | 1,144 | 827 | |
Net cash from investing activities | 24,165 | 100,167 | (190,397) | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from repurchase transactions | 315,364 | 322,561 | 311,128 | |
Repayments on repurchase transactions | (308,346) | (444,372) | (53,424) | |
Proceeds from sale of secured borrowings | 114,534 | 283,914 | 167,074 | |
Repayments on secured borrowings | (183,487) | (241,134) | (254,177) | |
Deferred financing costs | (1,876) | (4,559) | (2,635) | |
Proceeds from sale of convertible senior notes | 0 | 0 | 15,184 | |
Repurchase of the Company's senior convertible notes | (10,481) | 0 | 0 | |
Proceeds from issuance of preferred stock and warrants, net of offering costs | 124,976 | 0 | 0 | |
Sale of common stock, net of offering costs | 0 | 34,301 | 0 | |
Sale of common stock pursuant to dividend reinvestment plan | 131 | 280 | 199 | |
Repurchase of the Company's common stock | (436) | 0 | 0 | |
Distribution to non-controlling interest | (329) | (789) | (3,343) | |
Issuance of non-controlling interest in subsidiaries | 145 | 144 | 6,709 | |
Dividends paid on common stock | (17,499) | (26,322) | (22,943) | |
Net cash from financing activities | 32,696 | (75,976) | 163,772 | |
NET CHANGE IN CASH, CASH EQUIVALENTS, AND CASH HELD IN TRUST | 42,972 | 9,193 | (25,592) | |
CASH, CASH EQUIVALENTS AND CASH HELD IN TRUST, beginning of period | 64,363 | 55,170 | 80,762 | |
CASH, CASH EQUIVALENTS AND CASH HELD IN TRUST, end of period | 107,335 | 64,363 | 55,170 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||
Cash paid for interest | 42,301 | 53,324 | 50,753 | |
Cash paid for income taxes | 94 | 71 | 266 | |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||||
Issuance of common stock for dividends | 7,097 | 0 | 0 | |
Transfer of loans and loan advances to rental property or property held-for-sale | 4,903 | 12,104 | 15,072 | |
Unrealized loss/(gain) on available for sale securities, net of non-controlling interest and tax | 902 | (1,852) | 342 | |
Issuance of common stock for management fee and compensation expense | 879 | 3,604 | 3,989 | |
Treasury stock received through distributions from investment in Manager | 253 | 188 | 270 | |
Transfer Of Prepaids To Rental Property Or Property Held For Sale | 139 | 0 | 0 | |
Non-cash adjustments to basis in mortgage loans | 32 | (20) | 347 | |
Non-cash transfer of rental property to Gaea | 0 | 41,997 | 0 | |
Non-cash equity investment in Gaea resulting from deconsolidation | 0 | 18,494 | 0 | |
Conversion of Operating Partnership Units | 0 | 10,816 | 0 | |
Non-cash transfer of loans to Gaea | 0 | 2,215 | 0 | |
Issuance of shares for investment in Great Ajax FS LLC | 0 | 0 | 1,011 | |
Convertible senior notes conversion premium recognized in equity | 0 | 0 | 494 | |
Cumulative effect of change in accounting principle | 0 | 0 | 110 | |
Total cash and cash equivalents and restricted cash shown on the consolidated Statements of Cash Flows | $ 64,363 | $ 64,363 | $ 55,170 | |
[1] | During the year ended December 31, 2020, the Company sold 26 small balance commercial loans (“SBC loans”) with a carrying value of $26.1 million and UPB of $26.2 million for a loss of $0.7 million. Comparatively, during the year ended December 31, 2019, the Company sold 965 loans with a carrying value of $178.8 million and UPB of $202.1 million for a gain of $7.1 million. The Company sold no mortgage loans during the year ended December 31, 2018. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Series A Preferred Stock | Series B Preferred Stock | Common Stock | Treasury stock | Additional Paid-in Capital | Retained Earnings | Accumulated other comprehensive (loss)/gain | Total Stockholders’ Equity | Non-controlling interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Preferred Stock, Value, Issued | $ 0 | $ 0 | ||||||||
Preferred Stock, Shares Outstanding | 0 | 0 | ||||||||
Beginning balance (in shares) at Dec. 31, 2017 | 18,588,228 | |||||||||
Beginning balance at Dec. 31, 2017 | $ 317,438 | $ 186 | $ 0 | $ 254,847 | $ 35,556 | $ (233) | $ 290,356 | $ 27,082 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Consolidated net income attributable to common stockholders | 28,340 | 28,340 | 28,340 | |||||||
Net income | 31,337 | 2,997 | ||||||||
Issuance of shares to Great Ajax FS LLC | 75,001 | |||||||||
Issuance of shares for investment in Great Ajax FS LLC | 1,011 | $ 1 | 1,010 | 1,011 | ||||||
Issuance of non-controlling interest in subsidiaries | 6,709 | 6,709 | ||||||||
Issuance of shares under dividend reinvestment (in shares) | 14,953 | |||||||||
Issuance of shares under dividend reinvestment | 199 | 199 | 199 | |||||||
Stock-based management fee expense (in shares) | 196,503 | |||||||||
Stock-based management fee expense | 2,786 | $ 2 | 2,784 | 2,786 | ||||||
Stock-based compensation expense (in shares) | 55,466 | |||||||||
Stock-based compensation expense | 1,203 | 1,203 | 1,203 | |||||||
Dividends and distributions | (26,286) | (22,943) | ||||||||
Conversion premium - Convertible senior notes | 494 | 494 | 494 | |||||||
Other comprehensive loss | (342) | (342) | (342) | |||||||
Cumulative effect of accounting change | 0 | (110) | 110 | |||||||
Treasury stock (in shares) | (20,277) | |||||||||
Treasury stock | (270) | (270) | (270) | |||||||
Ending balance (in shares) at Dec. 31, 2018 | 18,909,874 | |||||||||
Ending balance at Dec. 31, 2018 | $ 334,279 | $ 189 | (270) | 260,427 | 41,063 | (575) | 300,834 | 33,445 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Dividends Payable, Amount Per Share | $ 0.32 | |||||||||
Preferred Stock, Value, Issued | $ 0 | $ 0 | ||||||||
Preferred Stock, Shares Outstanding | 0 | 0 | ||||||||
Consolidated net income attributable to common stockholders | $ 34,705 | 34,705 | 34,705 | |||||||
Net income | 37,089 | 2,384 | ||||||||
Sale of shares (in shares) | 2,278,518 | |||||||||
Sale of shares | 34,301 | $ 23 | 34,278 | 34,301 | ||||||
Stock Issued During Period, Shares, Conversion of Units | 624,106 | |||||||||
Conversion of Operating Partnership Units | 0 | $ 6 | 10,810 | 10,816 | (10,816) | |||||
Issuance of non-controlling interest in subsidiaries | 22 | 22 | ||||||||
Issuance of shares under dividend reinvestment (in shares) | 20,107 | |||||||||
Issuance of shares under dividend reinvestment | 280 | 280 | 280 | |||||||
Stock-based management fee expense (in shares) | 237,237 | |||||||||
Stock-based management fee expense | 2,593 | $ 3 | 2,590 | 2,593 | ||||||
Stock-based compensation expense (in shares) | 85,272 | |||||||||
Stock-based compensation expense | 1,011 | $ 1 | 1,010 | 1,011 | ||||||
Dividends and distributions | (27,111) | (26,322) | (26,322) | (789) | ||||||
Other comprehensive loss | 1,852 | 1,852 | 1,852 | |||||||
Treasury stock (in shares) | (12,971) | |||||||||
Treasury stock | $ (188) | (188) | (188) | |||||||
Ending balance (in shares) at Dec. 31, 2019 | 22,142,143 | 22,142,143 | ||||||||
Ending balance at Dec. 31, 2019 | $ 384,084 | $ 222 | (458) | 309,395 | 49,446 | 1,277 | 359,882 | 24,202 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Dividends Payable, Amount Per Share | $ 0.32 | |||||||||
Preferred Stock, Value, Issued | $ 0 | $ 0 | ||||||||
Preferred Stock, Shares Outstanding | 0 | 0 | ||||||||
Conversion of Operating Partnership Units | $ 10,800 | |||||||||
Convertible Senior Note Repurchase | $ (100) | |||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 22,142,143 | 22,142,143 | ||||||||
Beginning balance at Dec. 31, 2019 | $ 384,084 | $ 222 | (458) | 309,395 | 49,446 | 1,277 | 359,882 | 24,202 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Consolidated net income attributable to common stockholders | 28,496 | 28,496 | 28,496 | |||||||
Net income | 33,608 | 5,112 | ||||||||
Issuance of shares under dividend reinvestment (in shares) | 14,502 | |||||||||
Issuance of shares under dividend reinvestment | 131 | 131 | 131 | |||||||
Stock-based compensation expense (in shares) | 114,467 | |||||||||
Stock-based compensation expense | $ 879 | $ 1 | 878 | 879 | ||||||
Stock Dividends, Shares | 781,222 | 781,222 | ||||||||
Dividends and distributions | $ (17,828) | $ (8) | (7,089) | (24,596) | (17,499) | (329) | ||||
Convertible Senior Note Repurchase | (81) | (81) | (81) | |||||||
Other comprehensive loss | (902) | (902) | (902) | |||||||
Treasury stock (in shares) | (73,995) | |||||||||
Treasury stock | $ (689) | (701) | 12 | (689) | ||||||
Ending balance (in shares) at Dec. 31, 2020 | 22,978,339 | |||||||||
Ending balance at Dec. 31, 2020 | $ 514,491 | $ 231 | $ (1,159) | $ 317,424 | $ 53,346 | $ 375 | 485,361 | 29,130 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | 115,144 | $ 51,100 | $ 64,044 | $ 115,144 | ||||||
Preferred Stock Dividends, Shares | 2,307,400 | 2,892,600 | ||||||||
Issuance of subsidiary shares | $ 145 | $ 145 | ||||||||
Dividends Payable, Amount Per Share | $ 0.32 | |||||||||
Dividends Payable, Amount Per Share | $ 0.17 | |||||||||
Preferred Stock, Value, Issued | $ 51,100 | $ 64,044 | ||||||||
Preferred Stock, Shares Outstanding | 2,307,400 | 2,892,600 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Great Ajax Corp., a Maryland corporation (the “Company”), is an externally managed real estate company formed on January 30, 2014, and capitalized on March 28, 2014, by its then sole stockholder, Aspen Yo (“Aspen”), a company affiliated with Aspen Capital, the trade name for the Aspen group of companies. The Company was formed to facilitate capital raising activities and to operate as a mortgage real estate investment trust (“REIT”). The Company primarily targets acquisitions of re-performing loans (“RPLs”), which are residential mortgage loans on which at least five of the seven most recent payments have been made, or the most recent payment has been made and accepted pursuant to an agreement, or the full dollar amount, to cover at least five payments has been paid in the last seven months. The Company also acquires and originates small balance commercial loans ("SBC loans"). The SBC loans that the Company opportunistically targets, through acquisitions, or originations, generally have a principal balance of up to $5.0 million and are secured by multi-family residential and commercial mixed use retail/residential properties on which at least five of the seven most recent payments have been made, or the most recent payment has been made and accepted pursuant to an agreement, or the full dollar amount, to cover at least five payments has been paid in the last seven months. Additionally, the Company may invest in single-family and smaller commercial properties directly either through a foreclosure event of a loan in its mortgage portfolio or, less frequently, through a direct acquisition. Historically, the Company has also targeted investments in non-performing loans (“NPL”). NPLs are loans on which the most recent three payments have not been made. The Company may acquire NPLs from time to time, either directly or with joint venture partners. The Company’s manager is Thetis Asset Management LLC (the “Manager” or “Thetis”), an affiliated company. The Company owns 19.8% of the Manager and 8.0% of Great Ajax FS LLC ("GAFS" or "The Parent of our Servicer") which owns substantially all of the interest in Gregory Funding LLC ("Gregory" or the "Servicer"), the Company's loan and real property servicer also an affiliated company. The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). The Company conducts substantially all of its business through its operating partnership, Great Ajax Operating Partnership L.P., a Delaware limited partnership (the “Operating Partnership”), and its subsidiaries. The Company, through a wholly owned subsidiary, is the sole general partner of the Operating Partnership. GA-TRS LLC ("GA-TRS") is a wholly owned subsidiary of the Operating Partnership that owns the equity interest in the Manager and the Parent of the Servicer. The Company elected to treat GA-TRS as a taxable REIT subsidiary (“TRS”) under the Code. Great Ajax Funding LLC is a wholly owned subsidiary of the Operating Partnership formed to act as the depositor of mortgage loans into securitization trusts and to hold the subordinated securities issued by such trusts and any additional trusts the Company may form for additional secured borrowings. The Company generally securitizes its mortgage loans through securitization trusts and retains subordinated securities from the secured borrowings. These trusts are considered to be variable interest entities ("VIEs"), and the Company has determined that it is the primary beneficiary of many of these VIEs. AJX Mortgage Trust I and AJX Mortgage Trust II are wholly owned subsidiaries of the Operating Partnership formed to hold mortgage loans used as collateral for financings under the Company’s repurchase agreements. In addition, the Company, through its Operating Partnership, holds real estate owned properties (“REO”) acquired upon the foreclosure or other settlement of its owned NPLs, as well as through outright purchases. GAJX Real Estate Corp. is a wholly owned subsidiary of the Operating Partnership formed to own, maintain, improve and sell REO properties purchased by the Company. The Company has elected to treat GAJX Real Estate Corp. as a TRS under the Code. The Company’s Operating Partnership, through interests in certain entities, as of December 31, 2020 and December 31, 2019, held 99.9% and 99.8%, respectively, of Great Ajax II REIT Inc. which holds an interest in Great Ajax II Depositor LLC which was formed to act as the depositor of mortgage loans into securitization trusts and to hold the subordinated securities issued by such trusts and any additional trusts the Company may form for additional secured borrowings. The Company has securitized mortgage loans through a securitization trust and retained subordinated securities from the secured borrowings. This trust is considered to be a VIE, and the Company has determined that it is the primary beneficiary of this VIE. In 2018, the Company formed Gaea Real Estate Corp. ("Gaea"), a wholly owned subsidiary of the Operating Partnership to hold investments in multi-family, mixed use commercial real estate. The Company elected to treat Gaea Real Estate Corp. as a TRS under the Code in 2018 and elected to treat Gaea as a REIT under the Code in 2019 and thereafter. Also during 2018, the Company formed Gaea Real Estate Operating Partnership, a wholly owned subsidiary of Gaea, to hold investments in commercial real estate assets. The Company also formed BFLD Holdings LLC, Gaea Commercial Properties LLC, Gaea Commercial Finance LLC and Gaea RE LLC as subsidiaries of Gaea Real Estate Operating Partnership. In 2019, the Company formed DG Brooklyn Holdings, LLC also as a subsidiary of Gaea Real Estate Operating Partnership, to hold investments in multi-family properties. On November 22, 2019, Gaea completed a private capital raise transaction through which it raised $66.3 million from the issuance of 4,419,641 shares of common stock to third parties to allow Gaea to continue to advance its investment strategy. The purchase price per share was $15.00. Upon completion of the private placement, the Company retained ownership of approximately 23.2% of Gaea with third party investors owning the remaining approximately 76.8%. At December 31, 2020 the Company owned approximately 23.0% of Gaea. From the date of the capital raise forward, the Company accounts for its investment in Gaea under the equity method. Basis of Presentation and Use of Estimates The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"), as contained within the Accounting Standards Codification (“ASC”) of the Financial Accounting Standards Board (“FASB”) and the rules and regulations of the SEC, as applied to financial statements. The Company consolidates the results and balances of four subsidiaries with non-controlling ownership interests held by third parties. AS Ajax E II LLC ("AS Ajax E II") holds a 5.0% interest in a Delaware trust that was formed to own residential mortgage loans and residential real estate assets; AS Ajax E II is 53.1% owned by the Company. Ajax Mortgage Loan Trust 2017-D ("2017-D") and Ajax Mortgage Loan Trust 2018-C (“2018-C”) are securitization trusts which holds mortgage loans, REO property and secured debt; 2017-D is 50.0% owned by the Company, and 2018-C is 63.0% owned by the Company. Great Ajax II REIT Inc. which holds an interest in Great Ajax II Depositor LLC which was formed to act as the depositor of mortgage loans into securitization trusts and to hold the subordinated securities issued by such trusts and any additional trusts the Company may form for additional secured borrowings and is 99.9% and 99.8%, respectively, owned by the Company as of December 31, 2020 and December 31, 2019. The Company recognizes non-controlling interests in its consolidated financial statements for the amounts of the investments and income due to the third-party investors for its consolidated subsidiaries. Due to the Company completing the sale of shares of common stock in its Gaea subsidiary in 2019, the non-controlling ownership interests previously held by third parties are no longer consolidated on the Company's financial statements for BFLD Holdings LLC and DG Brooklyn Holdings, LLC. At inception, the Company's Operating Partnership was a majority owned partnership that had a non-controlling ownership interest held by an unaffiliated third party included in non-controlling interests on the Company's consolidated balance sheet. At December 31, 2018, the Company owned 96.8% of the outstanding operating partnership units ("OP Units") and the remaining 3.2% of the OP Units were owned by an unaffiliated holder. The OP units were exchangeable on a 1-for-1 basis with shares of the Company's common stock. During the second quarter of 2019, all 624,106 OP units held by the unaffiliated holder were exchanged for shares of the Company's common stock. As a result, at both December 31, 2019 and December 31, 2020, the Operating Partnership was 100% owned by the Company. All controlled subsidiaries are included in the Company's consolidated financial statements and all intercompany accounts and transactions have been eliminated in consolidation. The Company’s 19.8% investment in the Manager and 8.0% investment in GAFS are accounted for using the equity method because the Company can exercise influence on the operations of these entities through common officers and directors. There is no traded or quoted price for the interests in the Manager or GAFS since each is privately held. The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company considers significant estimates to include expected cash flows from its holdings of mortgage loans and beneficial interests in trusts, and their resolution methods and timelines, including foreclosure costs, eviction costs and property rehabilitation costs. Other significant estimates are fair value measurements, and the net realizable value of REO properties held-for-sale. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Mortgage loans Purchased Credit Deteriorated Loans ("PCD Loans") As of their acquisition date, the loans acquired by the Company have generally suffered some credit deterioration subsequent to origination. As a result, prior to the adoption of ASU 2016-13, Financial Instruments - Credit Losses, otherwise known as CECL, on January 1, 2020 , the Company was required to account for the mortgage loans pursuant to ASC 310-30, Accounting for Loans with Deterioration in Credit Quality . Under both standards, the Company’s recognition of interest income for loans with deteriorated credit quality is based upon its having a reasonable expectation of the amount and timing of the cash flows expected to be collected. When the timing and amount of cash flows expected to be collected are reasonably estimable, the Company uses expected cash flows to apply the effective interest method of income recognition. Under both CECL and ASC 310-30, acquired loans may be aggregated and accounted for as a pool of loans if the loans have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. However, CECL allows more flexibility to the Company to adjust its loan pools as the underlying risk factors change over time. Under ASC 310-30, RPLs were determined by the Company to have common risk characteristics and were accounted for as a single loan pool for loans acquired within each three-month calendar quarter. Similarly, NPLs were determined to have common risk characteristics and were accounted for as a single non-performing pool for loans acquired within each three-month calendar quarter. The result was generally two additional pools (RPLs and NPLs) each quarter. Under CECL, the Company has re-aggregated its loan pools around similar risk factors, while eliminating the previous distinction for the quarter in which loans were acquired. This resulted in a reduction of the number of loan pools to four as of March 31, 2020. The number of pools was then re-evaluated and increased to six as of June 30, 2020 and remains at six loan pools as of December 31, 2020. Each loan pool is oriented around similar risk factors. Excluded from the aggregate pools are loans that pay in full subsequent to the acquisition closing date but prior to pooling. Any gain or loss on these loans is recognized as Interest income in the period the loan pays in full. The Company’s accounting for PCD loans gives rise to an accretable yield and an allowance for credit losses. Under CECL, upon the acquisition of PCD loans the Company records the acquisition as three separate elements for 1) the amount of purchase discount which the Company expects to recover through eventual repayment by the borrower, 2) an allowance for future expected credit loss and 3) the UPB of the loan. The purchase price discount which the Company expects at the time of acquisition to collect over the life of the loans is the accretable yield. Cash flows expected at acquisition include all cash flows directly related to the acquired loan, including those expected from the underlying collateral. The Company recognizes the accretable yield as Interest income on a prospective level yield basis over the life of the pool. The Company’s expectation of the amount of undiscounted cash flows to be collected is evaluated at the end of each calendar quarter. If the Company expects to collect greater cash flows over the life of the pool, any prior allowance is reversed to the extent of the increase and the expected yield to maturity is adjusted on a prospective basis. The allowance for credit losses is increased when the Company estimates it will not collect all amounts previously estimated to be collectible. Reduction to the allowance, or recovery, may occur if there is an increase in expected future cash flows that were previously subject to a provision for loss. Management assesses the credit quality of the portfolio and the adequacy of loan loss reserves on a quarterly basis, or more frequently as necessary. Significant judgment is required in this analysis. Depending on the expected recovery of its investment, the Company considers the estimated net recoverable value of the loan pools as well as other factors, such as the fair value of the underlying collateral. Because these determinations are based upon projections of future economic events, which are inherently subjective, the amounts ultimately realized may differ materially from the carrying value as of the reporting date. The Company’s mortgage loans are secured by real estate. The Company monitors the credit quality of the mortgage loans in its portfolio on an ongoing basis, principally by considering loan payment activity or delinquency status. In addition, the Company assesses the expected cash flows from the mortgage loans, the fair value of the underlying collateral and other factors, and evaluates whether and when it becomes probable that all amounts contractually due will not be collected. Borrower payments on the Company’s mortgage loans are classified as principal, interest, payments of fees, or escrow deposits. Amounts applied as interest on the borrower account are similarly classified as interest for accounting purposes and are classified as operating cash flows in the Company’s consolidated Statement of Cash Flows. Amounts applied as principal on the borrower account including amounts contractually due from borrowers that exceed the Company’s basis in loans purchased at a discount, are similarly classified as principal for accounting purposes and are classified as investing cash flows in the consolidated Statement of Cash Flows as required under U.S. GAAP. Amounts received as payments of fees are recorded in Other income and classified as operating cash flows in the consolidated Statement of Cash Flows. Escrow deposits are recorded on the Servicer’s balance sheet and do not impact the Company’s cash flow. Non PCD Loans While the Company generally acquires loans that have experienced deterioration in credit quality, it also acquires loans that have not experienced a deterioration in credit quality and originates SBC loans which are also subject to the provisions of CECL as discussed above. The Company estimates any allowance for credit losses for its non-PCD loans based on historical experience and the risk characteristics of the individual loans. Impaired loans are carried at the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s market price, or the fair value of the collateral if the loan is collateral dependent. For individual loans, a troubled debt restructuring is a formal restructuring of a loan where, for economic or legal reasons related to the borrower’s financial difficulties, a concession that would not otherwise be considered is granted to the borrower. The concession may be granted in various forms, including providing a below-market interest rate, a reduction in the loan balance or accrued interest, an extension of the maturity date, or a combination of these. An individual loan that has had a troubled debt restructuring is considered to be impaired and is subject to the relevant accounting for impaired loans. If necessary, an allowance for loan losses is established through a provision for loan losses charged to expenses. The allowance is the difference between the present value of the expected future cash flows from the loan and the contractual balance due. Investments in Securities at Fair Value The Company’s Investments at Fair Value as of December 31, 2020 and December 31, 2019 consist of investments in senior and subordinate notes issued by joint ventures which the Company forms with third party institutional accredited investors. The Company recognizes income on the debt securities using the effective interest method. Additionally, the notes are classified as available for sale and are carried at fair value with changes in fair value reflected in the Company's consolidated statements of comprehensive income. The Company marks its investments to fair value using prices received from its financing counterparties and believes any unrealized losses on its debt securities to be temporary. Any other-than-temporary losses, which represent the excess of the amortized cost basis over the present value of expected future cash flows, are recognized in the period identified in the Company’s consolidated statements of income. Risks inherent in the Company's debt securities portfolio, affecting both the valuation of its securities as well as the portfolio's interest income and recovery of principal include the risk of default, delays and inconsistency in the frequency and amount of payments, risks affecting borrowers such as man-made or natural disasters and damage to or delay in realizing the value of the underlying collateral. The Company monitors the credit quality of the mortgage loans underlying its debt securities on an ongoing basis, principally by considering loan payment activity or delinquency status. In addition, the Company assesses the expected cash flows from the mortgage loans, the fair value of the underlying collateral and other factors, and evaluates whether and when it becomes probable that all amounts contractually due will not be collected. Investments in Beneficial Interests The Company’s Investments in Beneficial Interests as of December 31, 2020 and December 31, 2019 consist of investments in the trust certificates issued by joint ventures which the Company forms with third party institutional accredited investors. The trust certificates represent the residual interest of any special purpose entity formed to facilitate certain investments. The Company adopted CECL with respect to its Investment in beneficial interests on January 1, 2020. The methodology is similar to that described in "Mortgage Loans" except that the Company only recognizes its ratable share of gain, loss, income or expense. Real Estate The Company acquires real estate properties directly through purchases, when it forecloses on the borrower and takes title to the underlying property, or the borrower surrenders the deed in lieu of foreclosure. Property is recorded at cost if purchased, or at the present value of future cash flows if obtained through foreclosure by the Company. Property that the Company expects to actively market for sale is classified as held-for-sale. Property held-for-sale is carried at the lower of its acquisition basis or net realizable value (fair market value less expected selling costs, and any additional costs necessary to prepare the property for sale). Fair market value is determined based on broker price opinions (“BPOs”), appraisals, or other market indicators of fair value including list price or contract price, if listed or under contract for sale at the balance sheet date. Net unrealized losses due to changes in market value are recognized through a valuation allowance by charges to income through real estate operating expenses. No depreciation or amortization expense is recognized on properties held-for-sale. Holding costs are generally incurred by the Servicer and are subtracted from the Servicer’s remittance of sale proceeds upon ultimate disposition of properties held-for-sale. Rental property is property not held-for-sale. Rental properties are intended to be held as long-term investments but may eventually be reclassified as held-for-sale. Property that arose through conversions of mortgage loans in the Company's portfolio such as when a mortgage loan is foreclosed upon and the Company takes title to the property or the borrower surrenders the deed in lieu of foreclosure is generally held for investment as rental property if the cash flows from use as a rental exceed the present value of expected cash flows from a sale. The Company also acquires rental properties through direct purchases of properties for its rental portfolio. Depreciation is provided for using the straight-line method over the estimated useful lives of the assets of 27.5 years. The Company performs an impairment analysis for rental property using estimated cash flows if events or changes in circumstances indicate that the carrying value may be impaired, such as prolonged vacancy, identification of materially adverse legal or environmental factors, changes in expected ownership period or a decline in market value to an amount less than cost. This analysis is performed at the property level. The cash flows are estimated based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for rental properties, competition for customers, changes in market rental rates, costs to operate each property and expected ownership periods. Renovations are performed by the Servicer, and those costs are then reimbursed to the Servicer. Any renovations on properties which the Company elects to hold as rental properties are capitalized as part of the property’s basis and depreciated over the remaining estimated useful life of the property. The Company may perform property renovations to maximize the value of a property for either its rental strategy or for resale. Preferred Stock During the quarter ended June 30, 2020, the Company issued an aggregate of $125.0 million, net of offering costs, of preferred stock in two series and warrants to institutional accredited investors in a series of private placements. The Company issued 2,307,400 shares of 7.25% Series A Fixed-to-Floating Rate Preferred Stock and 2,892,600 shares of 5.00% Series B Fixed-to-Floating Rate Preferred Stock, each at a purchase price per share of $25.00. The shares have a liquidation preference of $25.00 per share. Put Option Liability As part of the Company’s capital raise transactions during the quarter ended June 30, 2020, the Company issued two series of five-year warrants to purchase an aggregate of 6,500,000 shares of the Company's common stock at an exercise price of $10.00 per share. Each series of warrants includes a put option that allows the holder to sell the warrants to the Company at a specified put price on or after July 6, 2023. U.S. GAAP requires the Company to account for the outstanding warrants as if the put option will be exercised by the holders. The put option was recorded as a liability in the Company's consolidated balance sheet within accrued expenses and other liabilities with an original basis of $9.5 million. The Company is accreting the amount of the liability under the effective interest method to its expected future put value of $50.7 million and marks the obligation to market through earnings. Secured Borrowings The Company, through securitization trusts which are VIEs, issues callable debt secured by its mortgage loans in the ordinary course of business. The secured borrowings facilitated by the trusts are structured as debt financings, and the mortgage loans used as collateral remain on the Company’s consolidated balance sheet as the Company is the primary beneficiary of the securitization trusts. These secured borrowing VIEs are structured as pass through entities that receive principal and interest on the underlying mortgages and distribute those payments to the holders of the notes. The Company’s exposure to the obligations of the VIEs is generally limited to its investments in the entities; the creditors do not have recourse to the primary beneficiary. Coupon interest expense on the debt is recognized using the accrual method of accounting. Deferred issuance costs, including original issue discount and debt issuance costs, are carried on the Company’s consolidated balance sheets as a deduction from Secured borrowings, and are amortized to interest expense on an effective yield basis based on the underlying cash flow of the mortgage loans serving as collateral. The Company assumes the debt will be called at the specified call date for purposes of amortizing discount and issuance costs because the Company believes it will have the intent and ability to call the debt on the call date. Changes in the actual or projected underlying cash flows are reflected in the timing and amount of deferred issuance cost amortization. See Note 8 — Commitments and Contingencies. Repurchase Facilities The Company enters into repurchase financing facilities under which it nominally sells assets to a counterparty and simultaneously enters into an agreement to repurchase the sold assets at a price equal to the sold amount plus an interest factor. Despite being legally structured as sales and subsequent repurchases, repurchase transactions are generally accounted for as debt secured by the underlying assets. At the maturity of a repurchase financing, unless the repurchase financing is renewed, the Company is required to repay the borrowing including any accrued interest and concurrently receives back its pledged collateral from the lender. The repurchase financings are treated as collateralized financing transactions; pledged assets are recorded as assets in the Company’s consolidated balance sheets, and the debt is recognized at the contractual amount. Interest is recorded at the contractual amount on an accrual basis. Costs associated with the set-up of a repurchasing contract are recorded as deferred issuance cost at inception and amortized over the contractual life of the agreement. Any draw fees associated with individual transactions and any facility fees assessed on the amounts outstanding are recorded as deferred costs when incurred and amortized over the contractual life of the related borrowing. Convertible Senior Notes On April 25, 2017, the Company completed the public offer and sale of $87.5 million in aggregate principal amount of its convertible senior notes (the “notes”) due 2024, with follow-on offerings of an additional $20.5 million and $15.9 million, respectively, in aggregate principal amount completed on August 18, 2017 and November 19, 2018, respectively, which, combined with the notes from the April offering, form a single series of securities. The notes bear interest at a rate of 7.25% per annum, payable quarterly in arrears on January 15, April 15, July 15 and October 15 of each year. The notes will mature on April 30, 2024, unless earlier repurchased, converted or redeemed. During certain periods and subject to certain conditions the notes will be convertible by their holders into shares of the Company’s common stock at a conversion rate of 1.7279 shares of common stock per $25.00 principal amount of the notes, which represents a conversion price of approximately $14.47 per share of common stock. The conversion rate, and thus the conversion price, may be subject to adjustment under certain circumstances. Coupon interest on the notes is recognized using the accrual method of accounting. Discount and deferred issuance costs are carried on the Company’s consolidated balance sheets as a deduction from the notes, and are amortized to interest expense on an effective yield basis through April 30, 2023, the date at which the notes can be converted. The Company assumes the debt will be converted at the specified conversion date for purposes of amortizing issuance costs because the Company believes such conversion will be in the economic interest of the holders. A cumulative discount at issuance of $3.2 million, representing the fair value of the embedded conversion feature, was recorded to stockholders’ equity. No sinking fund has been established for redemption of the principal. During the first and third quarter of 2020, the Company completed a series of convertible note repurchases for aggregate principal amounts of $8.0 million and $2.5 million, respectively, for total purchase prices of $8.2 million and $2.3 million, respectively. The carrying amounts of the equity component representing the embedded conversion feature reversed from Additional paid-in capital due to the first and third quarter of 2020 transactions were $0.1 million and zero, respectively. Management Fee and Expense Reimbursement The Company is a party to the Third Amended and Restated Management Agreement with the Manager (the "Management Agreement") by and between the Company and the Manager, dated as of May 1, 2020, expiring on March 5, 2034. Under the Management Agreement, the Manager implements the Company’s business strategy and manages the Company’s business and investment activities and day-to-day operations, subject to oversight by the Company’s Board of Directors. Among other services, the Manager provides the Company with a management team and necessary administrative and support personnel. Additionally, the Company pays directly for the internal audit function that reports directly to the Audit Committee and the Board of Directors. The Company does not currently have any employees that it pays directly and does not expect to have any employees that it pays directly in the foreseeable future. Each of the Company’s executive officers is an employee or officer, or both, of the Manager or the Servicer. Under the Management Agreement the Company pays a quarterly base management fee based on its stockholders’ equity, including equity equivalents such as the Company's issuance of convertible senior notes, and may be required to pay a quarterly incentive management fee based on its cash distributions to its stockholders, and has the option to pay up to 100% of the base and incentive fees in cash rather than in half cash and half shares of its common stock. Manager fees are expensed in the quarter incurred and the portion payable in common stock is included in stockholders’ equity at quarter end. See Note 10 — Related party transactions. Servicing Fees The Company is also a party to a Servicing Agreement (the "Servicing Agreement"), expiring July 8, 2029, with the Servicer. Under the Servicing Agreement by and between the Company and the Servicer, the Servicer receives an annual servicing fee ranging from 0.65% annually of the unpaid principal balance (“UPB”) to 1.25% annually of UPB for loans that are non-performing at acquisition. For certain of the Company’s joint ventures, the Servicing fee rate for RPLs is reduced to an annual servicing fee rate of 0.42% to 0.20% annually on a loan-by-loan basis for any loan that makes seven consecutive payments. Servicing fees are paid monthly. The total fees incurred by the Company for these services depend upon the UPB and type of mortgage loans that the Servicer services pursuant to the terms of the servicing agreement. The fees do not change if a RPL becomes non-performing or vice versa. Servicing fees for the Company’s real property assets are the greater of (i) the servicing fee applicable to the underlying mortgage loan prior to foreclosure, or (ii) 1.00% annually of the fair market value of the REO as reasonably determined by the Manager or 1.00% annually of the purchase price of any REO otherwise purchased by the Company. The Servicer is reimbursed for all customary, reasonable and necessary out-of-pocket costs and expenses incurred in the performance of its obligations, including the actual cost of any repairs and renovations undertaken on the Company’s behalf. The total fees incurred by the Company for these services will be dependent upon the UPB and type of mortgage loans that the Servicer services, property values, previous UPB of the relevant loan, and the number of REO properties. The Servicing Agreement will automatically renew for successive one-year terms, subject to prior written notice of non-renewal. In certain cases, the Company may be obligated to pay a termination fee. The Management Agreement will automatically terminate at the same time as the Servicing Agreement if the Servicing Agreement is terminated for any reason. See Note 10 — Related party transactions. Stock-based Payments At least a portion of the management fee is payable in cash, and a portion of the management fee may be payable (at the Company's discretion) in shares of the Company’s common stock which are issued to the Manager in a private placement and are restricted securities under the Securities Act of 1933, as amended (the “Securities Act”). The number of shares issued to the Manager (if any) is determined based on the higher of the most recently reported book value or the average of the closing prices of the Company's common stock on the New York Stock Exchange ("NYSE") on the five business days after the date on which the most recent regular quarterly dividend to holders of the common stock is paid. Any management fees paid in common stock are recognized as an expense in the quarter incurred and recorded in stockholders' equity at quarter end. The shares vest immediately upon issuance. The Manager has agreed to hold any shares of common stock received by it as payment of the base management fee for at least three years from the date such shares of common stock are received. Under the Company’s 2014 Director Equity Plan (the “Director Plan”), the Company may make stock-based awards to its directors. The Director Plan is designed to promote the Company’s interests by attracting and retaining qualified and experienced individuals for service as non-employee directors. The Director Plan is administered by the Company’s Board of Directors. The total number of shares of common stock or other stock-based award, including grants of long-term incentive plan units (“LTIP Units”) from the Operating Partnership, available for issuance under the Director Plan is 78,000 shares. The Company has issued to each of its independent directors restricted stock awards of 2,000 shares of its common stock upon joining the Board of Directors, which are subject to a one-year vesting period. The Company also periodically issues additional restricted stock awards to its independent directors under the Director Plan. In addition, through March 31, 2019, each of the Company’s independent directors received an annual fee of $75,000, payable quarterly, 50% in shares of the Company’s common stock and 50% in cash. The annual fee was increased to $100,000, 40% of which is payable in shares of the Company's common stock and 60% in cash, which was effective as of April 1, 2019. Stock-based expense for the directors’ annual fee is expensed as earned, in equal quarterly amounts during the year, and recorded in stockholders' equity at quarter end. On June 7, 2016, the Company’s stockholders approved the 2016 Equity Incentive Plan (the “2016 Plan”) to attract and retain non-employee directors, executive officers, key employees and service providers, including officers and employees of the Company’s affiliates. The 2016 Plan authorized the issuance of up to 5% of the Company’s outstanding shares from time to time on a fully diluted basis (assuming, if applicable, the exercise of all outstanding options and the conversion of all warrants and convertible senior notes, including OP Units and any LTIP Units, into shares of common stock). Grants of restricted stock under the 2016 Plan use grant date fair value of the stock as the basis for measuring the cost of the grant. Forfeitures of granted shares are accounted for in the period in which they occur. The share grants vest over three years, with one third of the shares vesting on each of the first, second and third anniversaries of the grant date. The shares may not be sold until the third anniversary of the grant date. Directors’ Fees The expense related to directors’ fees is accrued, and the portion payable in common stock is reflected in consolidated Stockholders’ equity in the period in which it is incurred. Variable Interest Entities In the normal course of business, the Company enters into various types of transactions with special purpose entities, which have primarily consisted of trusts established for the Company’s secured borrowings (See “Secured Borrowings” above and Note 9 to the consolidated Financial Statements). Additionally, from time to time, the Company may enter into joint ventures with unrelated entities, which also generally involves the formation of a special purpose entity. The Company evaluates each transaction and its resulting beneficial interest to determine if the entity formed pursuant to the transaction should be classified as a VIE. If an entity created in a transaction meets the definition of a VIE and the Company determines that it or a consolidated subsidiary is the primary beneficiary, the Company will include the entity in its consolidated financial statements. Cash and Cash Equivalents Highly liquid investments with an original maturity of three months or less when purchased are considered cash equivalents. The Company generally maintains cash and cash equivalents at insured banking institutions with minimum assets of $1 billion. Certain account balances exceed Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. Cash Held in Trust Cash held in trust consists of restricted cash balances either legally due to lenders or held in trust for the benefit of the Company's secured borrowers, and is segregated from the Company’s other cash deposits. Cash held in trust is not available to the Company for any purposes other than the settlement of existing obligations. Earnings per Share The Company grants restricted shares which entitle the recipients to receive dividend equivalents during the vesting period on a basis equivalent to the dividends paid to holders of common shares. Unvested share-based compensation awards containing non-forfeitable rights to receive dividends or dividend equivalents (collectively, “dividends”) are classified as “participating securities” and are included in the basic earnings per share calculation using the two-class method. Under the two-class method, all of the Company’s Consolidated net income attributable to common stockholders, consisting of Consolidated net income, less dividends on the Company’s Series A and Series B preferred stock, is allocated to common shares and participating securities, based on their respective rights to receive dividends. Basic earnings per share is determined by dividing net income available to common shareholders, reduced by income attributable to the participating securities, by the weighted-average common shares outstanding during the period. Diluted earnings per share is determined by dividing Consolidated net income attributable to diluted shareholders, which adds back to Consolidated net income attributable to common stockholders the interest expense and applicable portion of management fee expense, net of applicable income taxes, on the Company’s convertible senior notes, by the weighted-average common shares outstanding, assuming all dilutive securities, including stock grants, shares that would be issued in the event that warrants were redeemed for shares of common stock of the Company, shares issued in respect of the stock-based portion of the base fee payable to the Manager and independent directors, and shares that would be issued in the event of conversion of the Company’s outstanding convertible senior notes, were issued. In the event the Company were to record a net loss, potentially dilutive securities would be excluded from the diluted loss per share calculation, as their effect on loss per share would be anti-dilutive. The Company uses the Treasury Stock method of accounting for the outstanding warrants. Under the Treasury Stock method, the exercise of the warrants is assumed at the beginning of the period, and shares of common stock are assumed to have been issued. The proceeds from the exercise are assumed to be used by the Company to repurchase treasury stock, thereby reducing the assumed dilution from the warrant exercise. In applying the Treasury Stock method, all dilutive potential common shares, regardless of whether they are exercisable, are treated as if they had been exercised. In the event that any of the adjustments normally included to arrive at diluted earnings per share were to produce an anti-dilutive result, one that either increased earnings or reduced the quantity of shares used in the calculation, the anti-dilutive adjustment would not be included in the diluted earnings per share calculation. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy has been established |
Mortgage Loans
Mortgage Loans | 12 Months Ended |
Dec. 31, 2020 | |
Mortgage Loans [Abstract] | |
Mortgage Loans | Mortgage Loans The following table presents information regarding the carrying value for the Mortgage loan categories of RPL, NPL, SBC and originated as of December 31, 2020 and 2019 ($ in thousands): As of December 31, Loan portfolio basis by asset type 2020 2019 Residential RPLs $ 1,057,454 $ 1,085,514 Residential NPLs 38,724 30,869 SBC loans 23,194 35,086 Total $ 1,119,372 $ 1,151,469 Included on the Company’s consolidated balance sheets as of December 31, 2020 and December 31, 2019 are approximately $1.1 billion and $1.2 billion, respectively, of RPLs, NPLs, and SBCs. RPLs, NPLs and SBCs are categorized at acquisition. The carrying value of RPLs and NPLs reflects the original investment amount, plus accretion of interest income and credit and non-credit discount, less principal and interest cash flows received; while the carrying value of SBCs reflects the original investment amount, credit and non-credit discount, less principal cash flows received. The carrying values at December 31, 2020 and December 31, 2019 for the Company's loans in the table above are presented net of a cumulative allowance for loan losses of $13.7 million and $2.0 million, respectively, reflected in the appropriate lines in the table by loan type. For the year ended December 31, 2020, the Company recognized a recovery of $8.3 million of provision for credit losses. For the years ended December 31, 2019 and 2018, the Company recognized a provision for credit losses of $0.8 million and $1.2 million, respectively. For the years ended December 31, 2020, 2019 and 2018, the Company accreted $85.4 million, $95.1 million and $102.5 million, respectively, into interest income with respect to its RPL, NPL and SBC loan pools. Loss estimates are determined based on the net present value of the difference between the contractual cash flows and the expected cash flows over the expected life of the loans. Contractual cash flows are calculated based on the stated terms of the loans, and incorporate any prepayment assumptions utilized in the expected cash flows. Expected cash flows are based on the Manager's proprietary model, which includes factors such as resolution method, resolution timeline, foreclosure costs, rehabilitation costs and eviction costs. Additional variables include the specific location of the underlying property, loan-to-value ratio, property age and condition, change and rate of change of borrower credit rating, servicing notes, interest rate, monthly payment amount and neighborhood rents. The Company's mortgage loans are secured by real estate. Risks inherent in the Company's mortgage loan portfolio, affecting both the valuation of its mortgage loans as well as the portfolio's interest income include the risk of default, delays and inconsistency in the frequency and amount of payments, risks affecting borrowers such as man-made or natural disasters, or the pandemic caused by the novel coronavirus ("COVID-19") outbreak, and damage to or delay in realizing the value of the underlying collateral. The Company monitors the credit quality of the mortgage loans in its portfolio on an ongoing basis, principally by considering loan payment activity or delinquency status. In addition, the Company assesses the expected cash flows from the mortgage loans, the fair value of the underlying collateral and other factors, and evaluates whether and when it becomes probable that all amounts contractually due will not be collected. During the years ended December 31, 2020 and 2019, the Company purchased 304 and 573 RPLs with UPB of $61.7 million and $122.5 million, respectively. During the years ended December 31, 2020 and 2019, 65 and 35 NPLs were purchased with UPB of $16.0 million and $6.7 million, respectively. During the years ended December 31, 2020 and 2019, the Company acquired 14 and 22 SBC loans with UPB of $20.3 million and $19.0 million, respectively. During the year ended December 31, 2020 the Company sold 26 commercial loans to Gaea, an affiliated entity, with a carrying value of $26.1 million and UPB of $26.2 million and a collateral value of $44.2 million. Comparatively, during the year ended December 31, 2019 the Company sold 965 loans with a carrying value of $178.8 million and UPB of $202.1 million and collateral values of $323.7 million. See Note 10 — Related Party Transactions. The Company adopted CECL using the prospective transition approach for PCD assets on January 1, 2020. At the time, $10.2 million of loan discount was reclassified to the allowance for credit losses with no net impact on the amortized cost basis of the portfolio. The Company views its mortgage loan portfolio based on loan performance and uses six pools to aggregate its portfolio of PCD loans, and one pool for its non-PCD loans. Among the PCD loans, separate pools exist for loans that have been securitized in rated secured borrowings during 2019 and 2020 ("Great Ajax II REIT"), loans held by securitization trusts 2018-C, and 2017-D, loans with collateral in California which are not included in the Great Ajax II REIT, 2018-C or 2017-D pools, and the remaining loans which are pooled between those which have made seven of the most recent seven payments ("7f7 and better") and those which have made between four and six of the most recent payments or worse ("4f4-6f6 and below"). The following table presents information regarding the year of origination of the Company's mortgage loan portfolio by basis ($ in thousands): December 31, 2020 2020 2019 2018 2017 2016 2009-2015 2006-2008 2005 and prior Total Great Ajax II REIT $ — $ — $ 257 $ 488 $ 1,991 $ 41,746 $ 280,606 $ 99,909 $ 424,997 2018-C — — — — — 14,100 119,343 39,778 173,221 2017-D — — — 121 — 6,826 94,711 32,238 133,896 California 2,221 952 1,484 362 — 5,292 60,393 18,084 88,788 7f7 and better — 911 434 — 2,125 17,520 88,414 32,831 142,235 4f4-6f6 and below 872 1,397 2,054 336 305 13,409 78,202 30,239 126,814 Non-PCD 21,387 4,738 64 2,493 99 611 20 9 29,421 Total $ 24,480 $ 7,998 $ 4,293 $ 3,800 $ 4,520 $ 99,504 $ 721,689 $ 253,088 $ 1,119,372 The following table presents a reconciliation between the purchase price and par value for the Company's loan acquisitions and originations for the year ended December 31, 2020 ($ in thousands): For the year ended December 31, 2020 PCD Loans Non PCD Loans Par $ 70,811 $ 27,191 Discount (6,457) (701) Allowance (1,879) — Purchase Price $ 62,475 $ 26,490 The Company performs an analysis of its expectation of the amount of undiscounted cash flows expected to be collected from its mortgage loan pools at the end of each calendar quarter. Under CECL, the Company adjusts its allowance for loan credit losses when there are changes in its expectation of future cash flows. An increase to the allowance for losses will occur when there is a reduction in the Company's expected future cash flows. Reduction to the allowance, or recovery, may occur if there is an increase in expected future cash flows that were previously subject to a provision for loss. Management assesses the credit quality of the portfolio and the adequacy of loan loss reserves on a quarterly basis, or more frequently as necessary. During the year ended December 31, 2020, the Company recorded a recovery of the provision for credit losses of $8.3 million on its mortgage loan portfolio primarily as a result of improved cash flow expectations despite the pandemic caused by COVID-19 that began during the first quarter of 2020. During the years ended December 31, 2019 and 2018, the Company recorded a provision for credit losses of $0.8 million and $1.2 million, respectively, on its mortgage loan portfolio. An analysis of the balance in the allowance for loan losses account follows ($ in thousands): For the year ended December 31, 2020 2019 2018 Allowance for loan credit losses, beginning of period $ (1,960) $ (1,164) $ — Beginning period adjustment for CECL (10,156) — — Reversal of / (increase in) provision for credit losses on mortgage loans 8,274 (803) (1,164) Incremental (increase in) / reversal of allowance for loan credit losses (7,991) 7 — Increase in allowance for loan credit losses for loan acquisitions (1,879) — — Allowance for loan credit losses, end of period $ (13,712) $ (1,960) $ (1,164) The following table sets forth the carrying value of the Company’s mortgage loans by delinquency status as of December 31, 2020 and 2019 ($ in thousands): As of December 31, 2020 Current 30 60 90 Foreclosure Total Great Ajax II REIT $ 311,941 $ 48,266 $ 19,559 $ 43,364 $ 1,867 $ 424,997 2018-C 70,034 20,541 15,300 57,538 9,808 173,221 2017-D 58,198 24,906 12,437 36,106 2,249 133,896 California 42,214 7,660 5,519 29,343 4,052 88,788 7f7 and better 72,613 14,003 12,447 41,383 1,789 142,235 4f4- 6f6 and below 13,976 10,773 7,157 68,677 26,231 126,814 Non-PCD 22,562 6,099 56 704 — 29,421 Total $ 591,538 $ 132,248 $ 72,475 $ 277,115 $ 45,996 $ 1,119,372 As of December 31, 2019 Current 30 60 90 Foreclosure Total Great Ajax II REIT $ 265,677 $ 37,553 $ 14,034 $ 4,597 $ — $ 321,861 2018-C 75,253 33,904 19,756 42,315 8,074 179,302 2017-D 68,996 28,318 14,452 33,166 3,188 148,120 California 90,658 12,733 9,123 20,737 1,173 134,424 7f7 and better 147,722 29,371 22,645 28,864 1,829 230,431 4f4-6f6 and below 6,412 4,329 12,946 66,177 24,033 113,897 Non-PCD 21,425 — 850 1,159 — 23,434 Total $ 676,143 $ 146,208 $ 93,806 $ 197,015 $ 38,297 $ 1,151,469 |
Real Estate Assets, Net
Real Estate Assets, Net | 12 Months Ended |
Dec. 31, 2020 | |
Real Estate [Abstract] | |
Real Estate Assets, Net | Real Estate Assets, Net The Company acquires real estate assets either through direct purchases of properties for its rental portfolio or through conversions of mortgage loans in its portfolio such as when a mortgage loan is foreclosed upon and the Company takes title to the property on the foreclosure date or the borrower surrenders the deed in lieu of foreclosure. Rental Property As of December 31, 2020, the Company owned six rental properties with an aggregate carrying value of $0.7 million held for investment as rentals, at which time five were rented. One property was acquired as an RPL but transitioned to foreclosure prior to boarding by the Servicer, one was acquired through foreclosure and three were transferred from Property held-for-sale, where all three were acquired through foreclosures. The remaining rental property was directly purchased. As of December 31, 2019, the Company owned 10 rental properties with an aggregate carrying value of $1.5 million held for investment as rentals, at which time six were rented. Two properties were acquired as RPLs but transitioned to foreclosure prior to boarding by the Servicer, one was acquired through foreclosure, and six were transferred from Property held-for-sale, where all six were acquired through foreclosures. The remaining rental property was directly purchased. Property Held-for-Sale The Company classifies REO as held-for-sale if the REO is expected to be actively marketed for sale. As of December 31, 2020 and 2019, the Company’s net investments in REO held-for-sale were $7.8 million and $13.5 million, respectively, which include balances of $0.3 million and $2.2 million, respectively, for properties undergoing renovation or which are otherwise in the process of being brought to market. For the years ended December 31, 2020 and 2019, all of the additions to REO held-for-sale were acquired through foreclosure or deed in lieu of foreclosure, and reclassified out of the mortgage loan portfolio or were transfers from rental property. The following table presents the activity in the Company’s carrying value of property held-for-sale for the years ended December 31, 2020 and 2019 ($ in thousands): For the year ended December 31, 2020 2019 Count Amount Count Amount Balance at beginning of year 58 $ 13,537 102 $ 19,402 Net transfers from mortgage loans and prepaids 20 4,903 61 12,104 Adjustments to record at lower of cost or fair value — (1,359) — (2,104) Disposals (50) (10,089) (109) (16,819) Transfer from rental property 4 795 6 1,613 Transfer to rental property — — (2) (414) Other — 20 — (245) Balance at end of year 32 $ 7,807 58 $ 13,537 Dispositions |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The Company holds investments in various debt securities and beneficial interests which are the net residual interest of the Company’s investments in securitization trusts holding pools of mortgage loans. The Company's debt securities and beneficial interests are issued by securitization trusts, which are VIEs, that the Company has sponsored but which the Company does not consolidate since it has determined it is not the primary beneficiary. See Note 10 — Related party transactions. The Company marks its debt securities to fair value using prices provided by financing counterparties, and believes any unrealized losses to be temporary. Risks inherent in the Company's debt securities portfolio, affecting both the valuation of its securities as well as the portfolio's interest income include the risk of default, delays and inconsistency in the frequency and amount of payments, risks affecting borrowers such as man-made or natural disasters, or the COVID-19 pandemic, and damage to or delay in realizing the value of the underlying collateral. The Company monitors the credit quality of the mortgage loans underlying its debt securities on an ongoing basis, principally by considering loan payment activity or delinquency status. In addition, the Company assesses the expected cash flows from the mortgage loans, the fair value of the underlying collateral and other factors, and evaluates whether and when it becomes probable that all amounts contractually due will not be collected. The following table presents information regarding the Company's investments in debt securities and investments in beneficial interests ($ in thousands): As of December 31, 2020 Basis (1) Gross unrealized gains Gross unrealized losses Carrying value (fair value) Debt securities $ 273,459 $ 1,152 $ (777) $ 273,834 Beneficial interests in securitization trusts 91,418 — — 91,418 Total investments at fair value $ 364,877 $ 1,152 $ (777) $ 365,252 (1) Basis amount is net of any realized amortized costs, principal paydowns and interest receivable on securities of $0.2 million. As of December 31, 2019 Basis (1) Gross unrealized gains Gross unrealized losses Carrying value (fair value) Debt securities $ 230,408 $ 1,643 $ (366) $ 231,685 Beneficial interests in securitization trusts 57,954 — — 57,954 Total investments at fair value $ 288,362 $ 1,643 $ (366) $ 289,639 (1) Basis amount is net of any realized amortized costs and principal paydowns and interest receivable on securities of $0.3 million. The following table presents a breakdown of the Company's gross unrealized losses ($ in thousands): As of December 31, 2020 Step-up date (1) Basis (2) Gross unrealized losses Carrying value (fair value) Debt securities due September 2059 (3) February 2023/April 2023 $ 22,216 $ (238) $ 21,978 Debt securities due November 2059 (4) April 2023 14,738 (61) 14,677 Debt securities due December 2059 (4) July 2023 47,270 (315) 46,955 Debt securities due September 2060 (4) March 2024 34,970 (44) 34,926 Debt Securities due June 2060 (4) March 2024 35,127 (119) 35,008 Total $ 154,321 $ (777) $ 153,544 (1) Step-up date is the date at which the coupon interest rate on the security increases. The Company expects the security to be called before the step-up date. (2) Basis amount is net of any realized amortized costs and principal paydowns. (3) This line is comprised of two securities that are both due September 2059. One security with a balance of $0.2 million has been in an unrealized loss position for less than 12 months and has a step-up date in April 2023 and the other security of $0.1 million has been in a loss position for 12 months or longer and has a step-up date in February 2023. (4) This security has been in an unrealized loss position for less than 12 months. As of December 31, 2019 Step-up date (1) Basis (2) Gross unrealized losses Carrying value (fair value) Debt securities due April 2058 (3) None $ 6,855 $ (9) $ 6,846 Debt securities due February 2057 (3) October 2021 7,324 (1) 7,323 Debt securities due September 2059 (4) February 2023 37,843 (356) 37,487 Total $ 52,022 $ (366) $ 51,656 (1) Step-up date is the date at which the coupon interest rate on the security increases. The Company expects the security to be called before the step-up date. (2) Basis amount is net of any realized amortized costs and principal paydowns. (3) These securities have been in an unrealized loss position for 12 months or longer. (4) This security has been in an unrealized loss position for less than 12 months. As of December 31, 2020, the Company recorded $1.2 million gross unrealized gains and a gross unrealized loss of $0.8 million in fair valuation adjustments in accumulated other comprehensive income on the consolidated balance sheet at a fair value of $273.8 million, which includes $0.2 million in interest receivable. As of December 31, 2019, the Company recorded a gross unrealized gain of $1.6 million and a gross unrealized loss of $0.4 million in fair valuation adjustments in accumulated other comprehensive income on the Company's consolidated balance sheet at fair value of $231.7 million, which includes $0.3 million in interest receivable. During 2020 and 2019, the Company acquired $144.7 million and $187.8 million, respectively, in debt securities and beneficial interests issued by joint ventures between the Company and third party institutional accredited investors. Each joint venture issued senior notes and beneficial interests, which are trust certificates representing the residual investment in the trust. In certain transactions, the joint ventures also issued subordinated notes. Of the $144.7 million of debt securities acquired in 2020, the Company acquired $115.6 million in senior notes and $9.8 million in subordinate notes. The debt securities are carried at fair value. Comparatively, of the $187.8 million of debt securities acquired in 2019, the Company acquired $139.6 million in senior notes and $16.8 million in subordinate notes. During the year ended December 31, 2020, the Company sold senior notes issued by certain joint ventures for total proceeds of $38.9 million and recognized a gain of $0.1 million, net of transaction fees. Comparatively, during the year ended December 31, 2019, the Company sold senior notes issued by certain joint ventures for total proceeds of $39.6 million and recognized a gain of $8 thousand, net of transaction fees. The Company also acquired $19.3 million and $31.4 million in beneficial interests issued by joint ventures in 2020 and 2019. As of December 31, 2020, the investments in beneficial interests were carried on the Company's consolidated balance sheet at $91.4 million. For the year ended December 31, 2019, the investments in beneficial interests were carried on the Company's consolidated balance sheet at $58.0 million. As of December 31, 2020 and December 31, 2019, the Company owned no securities that were past due. The following table presents a reconciliation between the purchase price and par value for the Company's beneficial interests acquisitions for the year ended December 31, 2020 ($ in thousands): For the year ended December 31, 2020 Beneficial Interest Par $ 27,319 Discount (5,233) Allowance (2,779) Purchase Price $ 19,307 The Company adopted CECL using the prospective transition approach for PCD assets for its beneficial interests on January 1, 2020, at the time $4.2 million was reclassified from discount to allowance for credit losses for its Investments in beneficial interests. Under CECL, the Company adjusts its allowance for loan losses when there are changes in its expectation of future cash flows. An increase to the allowance for losses will occur when there is a reduction in the Company’s expected future cash flows. A reduction to the allowance, or recovery, may occur if there is an increase in expected future cash flows that were previously subject to a provision for losses. Management assesses the credit quality of the portfolio and the adequacy of loss reserves on a quarterly basis, or more frequently as necessary. During 2020, the Company recorded a reversal of the provision for credit losses of $2.5 million on its beneficial interest portfolio, primarily as a result of increased cash flow expectations despite the pandemic caused by COVID-19 that began during the first quarter of 2020. During 2019, the Company recorded no impairment on its beneficial interests. An analysis of the balance in the allowance for beneficial interest losses account follows ($ in thousands): For the year ended December 31, 2020 2019 Allowance for beneficial interests credit losses, beginning balance $ — $ — Beginning period adjustment for CECL (4,221) — Reversal of provision for credit losses on beneficial interests 2,547 — Increase in allowance for beneficial interest credit losses for acquisitions (2,779) — Allowance for beneficial interests credit losses, end balance $ (4,453) $ — |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Recurring financial assets and liabilities measured and carried at fair value by level within the fair value hierarchy as of December 31, 2020 and 2019 ($ in thousands): Level 1 Level 2 Level 3 December 31, 2020 Carrying Value Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Recurring financial assets Investment in debt securities at fair value $ 273,834 $ — $ 273,834 $ — Recurring financial liabilities Put option liability $ 14,205 $ — $ — $ 14,205 Level 1 Level 2 Level 3 December 31, 2019 Carrying Value Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Recurring financial assets Investments in debt securities at fair value $ 231,685 $ — $ 231,685 $ — The following tables set forth the fair value of financial instruments by level within the fair value hierarchy as of December 31, 2020 and 2019 ($ in thousands): Level 1 Level 2 Level 3 December 31, 2020 Carrying Value Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Financial assets Mortgage loans, net $ 1,119,372 $ — $ — $ 1,232,081 Investment in beneficial interests $ 91,418 $ — $ — $ 91,418 Investment in Manager $ 1,366 $ — $ — $ 11,709 Investment in AS Ajax E LLC $ 776 $ — $ 934 $ — Investment in AS Ajax E II LLC $ 3,381 $ — $ 3,484 $ — Investment in GAFS, including warrants $ 2,711 $ — $ — $ 3,320 Investment in Gaea $ 20,001 $ — $ — $ 19,150 Investment in Loan pool LLCs $ 381 $ — $ — $ 701 Financial liabilities Secured borrowings, net $ 585,403 $ — $ — $ 586,419 Borrowings under repurchase agreement $ 421,132 $ — $ 421,132 $ — Convertible senior notes, net $ 110,057 $ 110,675 $ — $ — Level 1 Level 2 Level 3 December 31, 2019 Carrying Value Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Financial assets Mortgage loans, net $ 1,151,469 $ — $ — $ 1,260,385 Investment in beneficial interests $ 57,954 $ — $ 57,954 $ — Investment in Manager $ 1,755 $ — $ — $ 7,721 Investment in AS Ajax E LLC $ 931 $ — $ 1,012 $ — Investment in AS Ajax E II LLC $ 3,977 $ — $ 3,895 $ — Investment in GAFS, including warrants $ 3,023 $ — $ — $ 3,320 Investment in Gaea $ 19,995 $ — $ — $ 19,995 Investment in Loan pool LLCs $ 760 $ — $ — $ 760 Financial liabilities Secured borrowings, net $ 652,747 $ — $ — $ 657,918 Borrowings under repurchase transactions $ 414,114 $ — $ 414,114 $ — Convertible senior notes, net $ 118,784 $ 132,173 $ — $ — The fair value of mortgage loans is estimated using the Manager’s proprietary pricing model which estimates expected cash flows with the discount rate used in the present value calculation representing the estimated effective yield of the loan. The value of transfers of mortgage loans to REO is based upon the present value of future expected cash flows of the loans being transferred. The Company values its investments in debt securities using estimates provided by its financing counterparties. The Company also relies on its Manager's proprietary pricing model to estimate the underlying cash flows expected to be collected on these investments as a comparison to the estimates received from financing counterparties. The Company also relies on its Manager's proprietary pricing model to estimate the underlying cash flows expected to be collected on its investments in beneficial interests. During the quarter ended September 30, 2020, the Company transferred its beneficial interests from level 2 to level 3 due to the Company's increased reliance on its Manager’s pricing model for these valuations. See Note 5 — Investments. The Company's investment in the Manager is valued by applying an earnings multiple to base fee revenue. The Company’s investments in AS Ajax E LLC and AS Ajax E II LLC are valued using estimates provided by financing counterparties or other publicly available information. The fair value of the Company's investment in GAFS, including warrants, is determined by applying an earnings multiple to expected earnings. The Company's investment in Gaea is estimated using a projected net operating income for its property portfolio. The Company's fair value of its investment in the loan pool LLCs is determined by using estimates of underlying assets and liabilities taken from the Manager's pricing model. Previously through September 30, 2020 the Company's investment in the loan pool LLCs was presented as the carrying value due to the recent nature of the acquisition transactions. The fair value of secured borrowings is estimated using estimates provided by the Company's financing counterparties, which are compared for reasonableness to the Manager’s proprietary pricing model which estimates expected cash flows of the underlying mortgage loans collateralizing the debt. During the quarter ended June 30, 2020, the Company transferred its secured borrowings from level 3 to level 2 due to the Company's increased reliance on the use of estimates provided by its financing counterparties in the determination of secured borrowings fair values. The Company's put option liability is adjusted to approximate market value through earnings. Fair value is determined by using the greater of the expected call or put prices based on the call price, the carry cost discount and the interest discount. The Company’s borrowings under repurchase agreements are short-term in nature, and the Company’s management believes it can renew the current borrowing arrangements on similar terms in the future. Accordingly, the carrying value of these borrowings approximates fair value. The Company’s convertible senior notes are traded on the NYSE; the debt’s fair value is determined from the NYSE closing price on the balance sheet date. The carrying values of its Cash and cash equivalents, Cash held in trust, Receivable from Servicer, Prepaid expenses and other assets, Management fee payable and Accrued expenses and other liabilities are equal to or approximate fair value. Non-financial assets Property held-for-sale is carried at the lower of its acquisition cost (cost) or net realizable value. Net realizable value is determined based on appraisals, broker price opinions, or other market indicators of fair value less expected liquidation costs. The lower of cost or net realizable value for the Company’s REO Property is stated as its carrying value. The following tables set forth the fair value of non-financial assets by level within the fair value hierarchy as of December 31, 2020 and 2019 ($ in thousands): Level 1 Level 2 Level 3 December 31, 2020 Carrying Value Fair value adjustment recognized in the consolidated statements of income Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Non-financial assets Property held-for-sale $ 7,807 $ (1,359) $ — $ — $ 7,807 Level 1 Level 2 Level 3 December 31, 2019 Carrying Value Fair value adjustment recognized in the consolidated statements of income Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Non-financial assets Property held-for-sale $ 13,537 $ (2,104) $ — $ — $ 13,537 |
Affiliates
Affiliates | 12 Months Ended |
Dec. 31, 2020 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Affiliates | Affiliates Unconsolidated Affiliates On November 22, 2019, Gaea completed a private capital raise transaction in which it raised $66.3 million from the issuance of 4,419,641 shares of its common stock to third parties to allow it to continue to advance its investment strategy. Upon completion of the capital raise, the Company retained ownership of approximately 23.2% of Gaea with third party investors owning the remaining approximately 76.8%. The Company recognized no gain or loss on the transaction as Gaea's fair value at the date of the deconsolidation did not represent a material change from the fair values of its recently acquired assets and liabilities due to the limited lapse of time since their acquisitions. At December 31, 2020 the Company owned approximately 23.0% of Gaea with third party investors owning the remaining approximately 77.0%. The Company accounts for its investment in Gaea using the equity method. During the year ended December 31, 2019, the Company acquired a cumulative 40.4% average ownership interest in three loan pool LLCs managed by the Servicer for $1.0 million, which hold investments in RPLs and NPLs. The Company accounts for its investment using the equity method. During 2018, the Company acquired an 8.0% ownership interest in GAFS. The acquisition was completed in two transactions. On January 26, 2018, the Company in an initial closing acquired a 4.9% interest in GAFS and three warrants, each exercisable for a 2.45% interest in GAFS upon payment of additional consideration, in exchange for consideration of $1.1 million of cash and 45,938 shares of the Company’s common stock with a value of approximately $0.6 million. On May 29, 2018 the additional closing was completed wherein the Company acquired an additional 3.1% interest in GAFS and three warrants, each exercisable for a 1.55% interest in GAFS, in exchange for consideration of $0.7 million of cash and 29,063 shares of the Company's common stock with a value of approximately $0.4 million. The Company accounts for its investment in GAFS using the equity method. On March 14, 2016, the Company formed AS Ajax E LLC to hold an equity interest in a Delaware trust formed to own residential mortgage loans and residential real estate assets. AS Ajax E LLC owns a 5% equity interest in Ajax E Master Trust which holds a portfolio of RPLs. At the time of the original investment, the Company held a 24.2% interest in AS Ajax E LLC. In October 2016, additional capital contributions were made by third parties, and the Company’s ownership interest in AS Ajax E was reduced to a lower percentage of the total. As of December 31, 2020 and 2019, the Company’s interest in AS Ajax E LLC was approximately 16.5%. The Company accounts for its investment using the equity method. Upon the closing of the Company’s original private placement in July 2014, the Company received a 19.8% equity interest in the Manager, a privately held company for which there is no public market for its securities. The Company accounts for its investment in the Manager using the equity method. The table below shows the net income, assets and liabilities for the Company’s unconsolidated affiliates at 100%, and at the Company’s share ($ in thousands): Net income/(loss), assets and liabilities of unconsolidated affiliates at 100% For the year ended December 31, Net income/(loss) at 100% 2020 2019 2018 Gaea Real Estate Corp. $ 720 $ (20) $ — AS Ajax E LLC $ 209 $ 299 $ 324 Loan pool LLCs $ (133) $ (9) $ — Thetis Asset Management LLC $ (693) $ 4,685 $ 2,202 Great Ajax FS LLC (1) $ (3,901) $ 2,233 $ 1,257 December 31, 2020 December 31, 2019 Assets and Liabilities at 100% Assets Liabilities Assets Liabilities Gaea Real Estate Corp. $ 94,639 $ 11,886 $ 83,068 $ 768 AS Ajax E LLC $ 4,808 $ 2 $ 5,747 $ 2 Loan pool LLCs $ 2,423 $ 3,961 $ 1,592 $ 3,095 Thetis Asset Management LLC $ 9,531 $ 2,122 $ 12,277 $ 2,265 Great Ajax FS LLC $ 56,532 $ 36,101 $ 61,432 $ 37,142 Net income/(loss), assets and liabilities of unconsolidated affiliates at the Company's share For the year ended December 31, Net income/(loss) at the Company's share 2020 2019 2018 Gaea Real Estate Corp. $ 165 $ (5) $ — AS Ajax E LLC $ 34 $ 49 $ 53 Loan pool LLCs $ (54) $ (4) $ — Thetis Asset Management LLC $ (137) $ 928 $ 436 Great Ajax FS LLC (1) $ (312) $ 179 $ 90 December 31, 2020 December 31, 2019 Assets and Liabilities at the Company's share Assets Liabilities Assets Liabilities Gaea Real Estate Corp. $ 21,729 $ 2,729 $ 19,252 $ 178 AS Ajax E LLC $ 791 $ — $ 948 $ — Loan pool LLCs $ 973 $ 1,595 $ 637 $ 1,247 Thetis Asset Management LLC $ 1,887 $ 420 $ 2,431 $ 448 Great Ajax FS LLC $ 4,523 $ 2,888 $ 4,915 $ 2,971 (1) Net income at the Company's share is not directly proportionate to Net income at 100% due to the timing of the Company's acquisition during the year ended December 31, 2018. Consolidated affiliates The Company consolidates the results and balances of certain securitization trusts which are established to provide debt financing to the Company by securitizing pools of mortgage loans. These trusts are considered to be VIE’s, and the Company has determined that it is the primary beneficiary of certain of these VIE’s. See Note 9 — Debt. The Company also consolidates the activities and balances of its controlled affiliates, which include AS Ajax E II LLC, which was established to hold an equity interest in a Delaware trust formed to own residential mortgage loans and residential real estate assets. As of December 31, 2020, AS Ajax E II was 53.1% owned by the Company, with the remainder held by third-parties. 2017-D and 2018-C are securitization trusts formed to hold mortgage loans, REO property and secured |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company regularly enters into agreements to acquire additional mortgage loans and mortgage-related assets, subject to continuing diligence on such assets and other customary closing conditions. There can be no assurance that the Company will acquire any or all of the mortgage loans identified in any acquisition agreement as of the date of these consolidated financial statements, and it is possible that the terms of such acquisitions may change. At December 31, 2020, the Company had commitments to purchase, subject to due diligence, 40 RPLs and NPLs secured by single-family residences with aggregated UPB of $6.0 million. The Company will only acquire loans that meet the acquisition criteria for its own portfolios, or those of its third party institutional accredited co-investors. See Note 16 — Subsequent Events, for remaining open acquisitions as of the filing date. During the quarter ended June 30, 2020, the Company issued an aggregate of $125.0 million, net of offering costs, of preferred stock in two series and warrants to institutional accredited investors in a series of private placements. The Company issued 2,307,400 shares of 7.25% Series A Fixed-to-Floating Rate Preferred Stock and 2,892,600 shares of 5.00% Series B Fixed-to-Floating Rate Preferred Stock, each at a purchase price per share of $25.00 and two series of five-year warrants to purchase an aggregate of 6,500,000 shares of the Company's common stock at an exercise price of $10.00 per share. Each series of warrants includes a put option that allows the holder to sell the warrants to the Company at a specified put price on or after July 6, 2023. U.S. GAAP requires the Company to account for the outstanding warrants as if the put option will be exercised by the holders. Accordingly, the Company has recognized a liability on its consolidated balance sheet within accrued expenses and other liabilities at December 31, 2020 for the present value of the put liability of $14.2 million. The Company is accreting the amount of the liability under the effective interest method to its expected future put value of $50.7 million and marks the obligation to market through earnings. The expense is recognized in the other expense line of the Company's consolidated statements of income. The following table sets forth the details of the Company's put option liability ($ in thousands): For the year ended December 31, 2020 2019 2018 Beginning balance $ — $ — $ — Basis of put option liability 9,482 — — Amortization of put option expense 4,475 — — Mark to market adjustment 248 — — Ending balance $ 14,205 $ — $ — The full extent of the impact of COVID-19 on the global economy generally, and the Company's business in particular, is uncertain. As of December 31, 2020, no contingencies have been recorded on the Company's consolidated balance sheet as a result of COVID-19, however as the global pandemic continues, it may have long-term adverse impacts on the Company's financial condition, results of operations, and cash flows. Litigation, Claims and Assessments From time to time, the Company may be involved in various claims and legal actions arising in the ordinary course of business. As of December 31, 2020, the Company was not a party to, and its properties were not subject to, any pending or threatened legal proceedings that individually or in the aggregate, are expected to have a material impact on its financial condition, results of operations or cash flows. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | DebtRepurchase Agreement The Company has entered into two repurchase facilities whereby the Company, through two wholly owned Delaware trusts (the “Trusts”) acquires pools of mortgage loans which are then sold by the Trusts, as “Seller” to two separate counterparties, the “buyer” or “buyers.” One facility has a ceiling of $250.0 million and the other $400.0 million at any one time. Upon the time of the initial sale to the buyer, the Trust, with a simultaneous agreement, also agrees to repurchase the pools of mortgage loans from the buyer. Mortgage loans sold under these facilities carry interest calculated based on a spread to one-month LIBOR, which is fixed for the term of the borrowing. The purchase price that the Trust realizes upon the initial sale of the mortgage loans to the buyer can vary between 70% and 85% of the asset’s acquisition price, depending upon the facility being utilized and/or the quality of the underlying collateral. The obligations of a Trust to repurchase these mortgage loans at a future date are guaranteed by the Company's Operating Partnership. The difference between the market value of the asset and the amount of the repurchase agreement is generally the amount of equity in the position and is intended to provide the buyer with some protection against fluctuations in the value of the collateral, and/or a failure by the Company to repurchase the asset and repay the borrowing at maturity. The Company has also entered into four repurchase facilities substantially similar to the mortgage loan repurchase facilities, but where the pledged assets are the class B bonds and certificates from the Company's secured borrowing transactions. These facilities have no effective ceilings. Each repurchase transaction represents its own borrowing. As such, the ceilings associated with these transactions are the amounts currently borrowed at any one time. The Company has effective control over the assets subject to all of these transactions; therefore, the Company’s repurchase transactions are accounted for as financing arrangements. The Servicer services these mortgage loans pursuant to the terms of a Servicing Agreement by and between the Servicer and each Buyer. Each Servicing Agreement has the same fees and expenses terms as the Company’s Servicing Agreement described under Note 10 — Related party transactions. The Operating Partnership, as guarantor, will provide to the buyers a limited guaranty of certain losses incurred by the buyers in connection with certain events and/or the Seller’s obligations under the mortgage loan purchase agreement, following the breach of certain covenants by the Seller, the occurrence of certain bad acts by the Seller, the occurrence of certain insolvency events of the Seller or other events specified in the Guaranty. As security for its obligations under the Guaranty, the guarantor will pledge the Trust Certificate representing the Guarantor’s 100% beneficial interest in the Seller. The following table sets forth the details of the Company’s repurchase transactions and facilities ($ in thousands): December 31, 2020 Maturity Date Origination date Maximum Borrowing Capacity Amount Outstanding Amount of Collateral Percentage of Collateral Coverage Interest Rate January 6, 2021 October 9, 2020 $ 35,635 $ 35,635 $ 46,120 129 % 2.33 % January 6, 2021 September 28, 2020 7,697 7,697 10,075 131 % 2.33 % January 6, 2021 September 28, 2020 6,311 6,311 9,038 143 % 2.48 % January 6, 2021 September 28, 2020 4,755 4,755 6,114 129 % 2.33 % January 6, 2021 September 28, 2020 4,666 4,666 6,044 130 % 2.33 % January 6, 2021 September 28, 2020 3,213 3,213 4,667 145 % 2.48 % January 11, 2021 September 29, 2020 5,879 5,879 7,575 129 % 2.32 % January 14, 2021 October 29, 2020 6,991 6,991 8,738 125 % 2.35 % January 20, 2021 October 20, 2020 13,263 13,263 16,582 125 % 2.22 % January 29, 2021 October 30, 2020 7,762 7,762 9,702 125 % 2.21 % January 29, 2021 October 30, 2020 7,153 7,153 9,537 133 % 2.21 % February 1, 2021 December 1, 2020 12,258 12,258 16,052 131 % 1.88 % February 1, 2021 December 1, 2020 12,015 12,015 15,794 131 % 1.88 % February 1, 2021 December 1, 2020 5,298 5,298 6,895 130 % 1.88 % February 1, 2021 December 1, 2020 3,985 3,985 5,136 129 % 1.88 % February 1, 2021 December 1, 2020 2,887 2,887 3,790 131 % 1.88 % February 1, 2021 December 1, 2020 2,332 2,332 3,360 144 % 2.03 % February 1, 2021 December 1, 2020 1,132 1,132 1,607 142 % 2.03 % February 12, 2021 November 13, 2020 2,945 2,945 4,428 150 % 2.02 % March 5, 2021 December 7, 2020 24,946 24,946 33,348 134 % 1.78 % March 5, 2021 December 7, 2020 24,312 24,312 32,571 134 % 1.78 % March 17, 2021 December 17, 2020 10,219 10,219 13,172 129 % 1.78 % March 17, 2021 December 17, 2020 8,381 8,381 10,872 130 % 1.78 % March 17, 2021 December 17, 2020 3,894 3,894 5,193 133 % 1.78 % March 17, 2021 December 17, 2020 1,145 1,145 1,687 147 % 1.93 % March 24, 2021 December 24, 2020 7,016 7,016 10,024 143 % 1.94 % March 24, 2021 December 24, 2020 5,008 5,008 6,637 133 % 1.79 % March 24, 2021 December 24, 2020 2,577 2,577 3,367 131 % 1.79 % April 9, 2021 October 13, 2020 33,084 33,084 43,069 130 % 2.35 % July 9, 2021 July 10, 2020 250,000 53,256 84,337 158 % 2.64 % September 23, 2021 September 24, 2020 400,000 101,117 160,068 158 % 2.65 % Totals/weighted averages $ 916,759 $ 421,132 $ 595,599 141 % 2.29 % December 31, 2019 Maturity Date Origination date Maximum Borrowing Capacity Amount Outstanding Amount of Collateral Percentage of Collateral Coverage Interest Rate January 3, 2020 November 26, 2019 $ 8,411 $ 8,411 $ 11,098 132 % 3.45 % January 3, 2020 November 26, 2019 6,093 6,093 9,038 148 % 3.45 % January 3, 2020 November 26, 2019 5,175 5,175 6,855 132 % 3.45 % January 3, 2020 December 2, 2019 11,966 11,966 15,742 132 % 3.45 % January 3, 2020 December 2, 2019 10,648 10,648 14,058 132 % 3.45 % January 3, 2020 December 2, 2019 5,485 5,485 7,050 129 % 3.45 % January 3, 2020 December 2, 2019 4,096 4,096 5,261 128 % 3.45 % January 3, 2020 December 2, 2019 1,644 1,644 2,388 145 % 3.55 % January 3, 2020 December 2, 2019 1,576 1,576 2,287 145 % 3.55 % January 10, 2020 December 11, 2019 21,088 21,088 28,284 134 % 3.47 % January 10, 2020 December 11, 2019 1,808 1,808 2,640 146 % 3.57 % January 13, 2020 July 11, 2019 8,956 8,956 13,016 145 % 4.16 % January 21, 2020 December 20, 2019 15,718 15,718 20,623 131 % 3.41 % January 21, 2020 December 20, 2019 10,305 10,305 13,521 131 % 3.41 % January 21, 2020 December 20, 2019 5,840 5,840 7,324 125 % 3.41 % January 21, 2020 December 20, 2019 2,784 2,784 4,050 145 % 3.51 % January 28, 2020 October 30, 2019 5,318 5,318 7,464 140 % 3.19 % January 28, 2020 October 30, 2019 2,520 2,520 3,381 134 % 2.99 % February 3, 2020 August 1, 2019 7,568 7,568 9,702 128 % 4.19 % February 3, 2020 August 1, 2019 6,664 6,664 9,537 143 % 4.19 % February 24, 2020 November 26, 2019 41,412 41,412 54,828 132 % 2.92 % March 25, 2020 September 25, 2019 7,075 7,075 10,024 142 % 3.96 % March 25, 2020 September 25, 2019 5,851 5,851 7,423 127 % 3.81 % March 26, 2020 September 26, 2019 27,075 27,075 34,591 128 % 3.81 % March 27, 2020 September 27, 2019 2,915 2,915 3,709 127 % 3.79 % June 3, 2020 December 6, 2019 6,097 6,097 7,891 129 % 3.64 % June 3, 2020 December 6, 2019 4,704 4,704 6,106 130 % 3.64 % June 3, 2020 December 6, 2019 3,053 3,053 4,035 132 % 3.64 % June 3, 2020 December 6, 2019 2,332 2,332 3,360 144 % 3.79 % June 3, 2020 December 6, 2019 1,132 1,132 1,607 142 % 3.79 % June 19, 2020 December 19, 2019 13,447 13,447 18,076 134 % 3.55 % June 19, 2020 December 19, 2019 1,155 1,155 1,687 146 % 3.70 % June 30, 2020 December 30, 2019 5,286 5,286 7,044 133 % 3.57 % June 30, 2020 December 30, 2019 3,324 3,324 4,667 140 % 3.72 % July 10, 2020 July 12, 2019 250,000 28,931 57,397 198 % 4.28 % September 24, 2020 September 25, 2019 400,000 116,662 164,403 141 % 4.24 % Totals/weighted averages $ 918,521 $ 414,114 $ 580,167 140 % 3.77 % The Guaranty establishes a master netting arrangement; however, the arrangement does not meet the criteria for offsetting within the Company’s consolidated balance sheets. A master netting arrangement derives from contractual agreements entered into by two parties to multiple contracts that provides for the net settlement of all contracts covered by the agreements in the event of default under any one contract. During the last two weeks in March 2020, the Company received margin calls from its financing counterparties in the amount of $28.2 million due to the turmoil in the financial markets resulting from COVID-19. The Company ended the first quarter of 2020 with $32.4 million of cash collateral on deposit with its financing counterparties. However, subsequent to March 31, 2020, the Company's required cash collateral position has declined as security prices increased and its financing counterparties returned a portion of the cash collateral. As of December 31, 2020, the Company had $4.7 million of cash collateral on deposit with financing counterparties. Comparatively, as of December 31, 2019, the Company had $4.1 million of cash collateral on deposit with financing counterparties. This cash is included in Prepaid expenses and other assets on its consolidated balance sheet at December 31, 2020 and is not netted against its Borrowings under repurchase agreements. The amount outstanding on the Company’s repurchase facilities and the carrying value of the Company’s loans pledged as collateral are presented as gross amounts in the Company’s consolidated balance sheets at December 31, 2020 and 2019 in the table below ($ in thousands): Gross amounts not offset in balance sheet December 31, 2020 December 31, 2019 Gross amount of recognized liabilities $ 421,132 $ 414,114 Gross amount of loans and securities pledged as collateral 595,599 580,167 Other prepaid collateral 4,653 4,117 Net collateral amount $ 179,120 $ 170,170 Secured Borrowings From inception (January 30, 2014) to December 31, 2020, the Company has completed 16 secured borrowings for its own balance sheet, not including its off-balance sheet joint ventures in which it holds investments in various classes of securities, pursuant to Rule 144A under the Securities Act, six of which were outstanding at December 31, 2020. The secured borrowings are structured as debt financings and not sales through a real estate investment conduit (“REMIC”), and the loans included in the secured borrowings remain on the Company’s consolidated balance sheet as the Company is the primary beneficiary of the securitization trusts, which are VIEs. The securitization VIEs are structured as pass through entities that receive principal and interest on the underlying mortgages and distribute those payments to the holders of the notes. The Company’s exposure to the obligations of the VIEs is generally limited to its investments in the entities. The notes that are issued by the securitization trusts are secured solely by the mortgages held by the applicable trusts and not by any of the Company’s other assets. The mortgage loans of the applicable trusts are the only source of repayment and interest on the notes issued by such trusts. The Company does not guarantee any of the obligations of the trusts under the terms of the agreement governing the notes or otherwise. The Company’s secured borrowings are generally structured with Class A notes, subordinated notes, and trust certificates, which have rights to the residual interests in the mortgages once the notes are repaid. With the exception of the Company’s 2017-D securitization, from which the Company sold a 50% interest in the Class B certificates to third parties and 2018-C securitization, from which the Company sold a 95% interest in the Class A notes and 37% in the Class B notes and trust certificates, the Company has retained the subordinate notes and the applicable trust certificates from the other six secured borrowings outstanding at December 31, 2020. The Company's 2017-D secured borrowing contains Class A notes and Class B certificates representing the residual interests in the mortgages held within the securitization trusts subsequent to repayment of the Class A debt. The Company has retained 50% of both the Class A notes and Class B certificates from 2017-D. The Company's 2018-C secured borrowing contains Class A notes, Class B notes and trust certificates representing the residual interest in the mortgages held within the securitization trusts subsequent to repayment of the Class A debt. The Company has retained 5% of the Class A notes and 63% of the Class B notes and trust certificates. The Company's 2017-B, 2019-D, 2019-F and 2020-B secured borrowings carry no provision for a step-up in interest rate on any of the Class A, Class B or Class M notes. For all of the Company's secured borrowings, the Class A notes are senior, sequential pay, fixed rate notes with the exception of 2019-D, 2019-F and 2020-B, which are subordinate, sequential pay, fixed rate notes for Class B-1 and variable rate notes for Class B-2 and Class B-3. The interest rate is effectively the rate equal to the spread between the gross average rate of interest the trust collects on its mortgage loan portfolio minus the rate derived from the sum of the servicing fee and other expenses of the trust. The Class M notes issued under 2017-B, 2019-D, 2019-F and 2020-B are also mezzanine, sequential pay, fixed rate notes. For all of the Company's secured borrowings, except 2017-B, 2019-D, 2019-F and 2020-B, which contains no interest rate step-up, if the Class A notes have not been redeemed by the payment date or otherwise paid in full 36 months after issue an interest rate step-up of 300 basis points is triggered. Twelve months after the 300 basis points step up is triggered, an additional 100 basis point step up will be triggered, and an amount equal to the aggregate interest payment amount that accrued and would otherwise be paid to the subordinate notes will be paid as principal to the Class A notes on that date and each subsequent payment date until the Class A notes are paid in full. After the Class A notes are paid in full, the subordinate notes will resume receiving their respective interest payment amounts and any interest that accrued but was not paid while the Class A notes were outstanding. As the holder of the trust certificates, the Company is entitled to receive any remaining amounts in the trusts after the Class A notes and subordinate notes have been paid in full. The following table sets forth the original terms of all securitization notes outstanding at December 31, 2020 at their respective cutoff dates: Issuing Trust/Issue Date Interest Rate Step-up Date Security Original Principal Interest Rate Ajax Mortgage Loan Trust 2017-B/ December 2017 None Class A notes due 2056 $115.8 million 3.16 % None Class M-1 notes due 2056 (3) $9.7 million 3.50 % None Class M-2 notes due 2056 (3) $9.5 million 3.50 % None Class B-1 notes due 2056 (1) $9.0 million 3.75 % None Class B-2 notes due 2056 (1) $7.5 million 3.75 % Trust certificates (2) $14.3 million — % Deferred issuance costs $(1.8) million — % Ajax Mortgage Loan Trust 2017-D/ December 2017 April 25, 2021 Class A notes due 2057 (4) $177.8 million 3.75 % None Class B certificates (4) $44.5 million — % Deferred issuance costs $(1.1) million — % Ajax Mortgage Loan Trust 2018-C/ September 2018 October 25, 2021 Class A notes due 2065 (5) $170.5 million 4.36 % April 25, 2022 Class B notes due 2065 (5) $15.9 million 5.25 % Trust certificates (5) $40.9 million — % Deferred issuance costs $(2.0) million — % Ajax Mortgage Loan Trust 2019-D/ July 2019 None Class A-1 notes due 2065 $140.4 million 2.96 % None Class A-2 notes due 2065 $6.1 million 3.50 % None Class A-3 notes due 2065 $10.1 million 3.50 % None Class M-1 notes due 2065 (3) $9.3 million 3.50 % None Class B-1 notes due 2065 (6) $7.5 million 3.50 % None Class B-2 notes due 2065 (6) $7.1 million variable (7) None Class B-3 notes due 2065 (6) $12.8 million variable (7) Deferred issuance costs $(2.7) million — % Ajax Mortgage Loan Trust 2019-F/ November 2019 None Class A-1 notes due 2059 $110.1 million 2.86 % None Class A-2 notes due 2059 $12.5 million 3.50 % None Class A-3 notes due 2059 $5.1 million 3.50 % None Class M-1 notes due 2059 (3) $6.1 million 3.50 % None Class B-1 notes due 2059 (6) $11.5 million 3.50 % None Class B-2 notes due 2059 (6) $10.4 million variable (7) None Class B-3 notes due 2059 (6) $15.1 million variable (7) Deferred issuance costs $(1.8) million — % Ajax Mortgage Loan Trust 2020-B/ August 2020 None Class A-1 notes due 2059 $97.2 million 1.70 % None Class A-2 notes due 2059 $17.3 million 2.86 % None Class M-1 notes due 2059 (3) $7.3 million 3.70 % None Class B-1 notes due 2059 (6) $5.9 million 3.70 % None Class B-2 notes due 2059 (6) $5.1 million variable (7) None Class B-3 notes due 2059 (6) $23.6 million variable (7) Deferred issuance costs $(1.8) million — % (1) The Class B notes are subordinated, sequential pay, fixed rate notes with Class B-2 notes subordinate to the Class B-1 notes. The Company has retained the Class B notes. (2) The trust certificates issued by the trusts and the beneficial ownership of the trusts are retained by Great Ajax Funding LLC as the depositor. As the holder of the trust certificates, the Company is entitled to receive any remaining amounts in the trusts after the Class A notes, Class M notes, where present, and Class B notes have been paid in full. (3) The Class M notes are subordinated, sequential pay, fixed rate notes with Class M-2 notes subordinate to the Class M-1 notes. The Company has retained the Class M notes. (4) Ajax Mortgage Loan Trust ("AJAXM") 2017-D is a joint venture in which a third party owns 50% of the Class A notes and 50% of the Class B certificates. The Company is required to consolidate 2017-D under GAAP and is reflecting 100% of the mortgage loans, in Mortgage loans, net. 50% of the Class A notes, which are held by the third party, are included in Secured borrowings, net and 50% of the Class B-1 certificates are recognized as Non-controlling interest. (5) AJAXM 2018-C is a joint venture in which a third party owns 95% of the Class A notes and 37% of the Class B notes and certificates. The Company is required to consolidate 2018-C under GAAP and is reflecting 100% of the mortgage loans, in Mortgage loans, net. 95% of the Class A notes and 37% of the Class B notes, which are held by the third party, are included in Secured borrowings, net. The 5% portion of the Class A notes retained by the Company have been encumbered under a repurchase agreement. 37% of the Class C certificates are recognized as Non-controlling interest. (6) The Class B notes are subordinate, sequential pay, with B-2 and B-3 notes having variable interest rates and are subordinate to the Class B-1 notes. The Class B-1 notes are fixed rate notes. The Company has retained the Class B notes. (7) The interest rate is effectively the rate equal to the spread between the gross average rate of interest the trust collects on its mortgage loan portfolio minus the rate derived from the sum of the servicing fee and other expenses of the trust. Servicing for the mortgage loans in the Company’s secured borrowings is provided by the Servicer at a servicing fee rate between 0.65% of outstanding UPB and 1.25% of outstanding UPB at acquisition, and is paid monthly. The determination of RPL or NPL status, which determines the servicing fee rates, is based on the status of the loan at acquisition and does not change regardless of the loan's subsequent performance. The following table sets forth the status of the notes held by others at December 31, 2020 and 2019, and the securitization cutoff date ($ in thousands): Balances at December 31, 2020 Balances at December 31, 2019 Original balances at Class of Notes Carrying value of mortgages Bond principal balance Percentage of collateral coverage Carrying value of mortgages Bond principal balance Percentage of collateral coverage Mortgage UPB Bond principal balance 2017-B $ 110,062 $ 68,729 160 % $ 121,909 $ 84,624 144 % $ 165,850 $ 115,846 2017-C — — — % 137,369 94,126 146 % 185,942 130,159 2017-D 133,897 51,256 (1) 261 % 148,119 60,934 (1) 243 % 203,870 (2) 88,903 2018-C 173,221 131,983 (3) 131 % 179,303 146,925 (3) 122 % 222,181 (4) 167,910 2019-D 148,641 125,008 119 % 165,963 146,383 113 % 193,301 156,670 2019-F 139,996 108,184 129 % 155,899 126,723 123 % 170,876 127,673 2020-B 136,360 105,601 129 % — — — % 156,468 114,534 $ 842,177 $ 590,761 (5) 143 % $ 908,562 $ 659,715 (5) 138 % $ 1,298,488 $ 901,695 (1) The gross amounts of senior bonds at December 31, 2020 and December 31, 2019 were $102.6 million and $121.9 million, however, only $51.3 million and $60.9 million, respectively, are reflected in Secured borrowings as the remainders were owned by the Company at the respective balance sheet dates. (2) Includes $26.7 million of cash collateral intended for use in the acquisition of additional mortgage loans. (3) 2018-C contains notes held by third party institutional investors for senior bonds and class B bonds. The gross amount of senior and class B bonds at December 31, 2020 were $132.7 million and $15.9 million, however, only $126.1 million and $5.9 million, respectively, are reflected in Secured borrowings as the remainders were owned by the Company. The gross amount of the senior and class B bonds at December 31, 2019 were $148.5 million and $15.9 million, however, only $141.0 million and $5.9 million, respectively, are reflected in Secured borrowings as the remainders were owned by the Company. (4) Includes $45.5 million of cash collateral intended for use in the acquisition of additional mortgage loans. (5) This represents the gross amount of Secured borrowings and excludes the impact of deferred issuance costs of $5.4 million and $7.0 million as of December 31, 2020 and December 31, 2019, respectively. The Company’s obligations under its secured borrowings are not fixed, and the payments on these borrowings are predicated upon cash flows received on the underlying mortgage loans. Convertible Senior Notes On April 25, 2017, the Company completed the public offer and sale of $87.5 million in aggregate principal amount of its convertible senior notes (the "notes") due 2024, with follow-on offerings of an additional $20.5 million and $15.9 million, respectively, in aggregate principal amount completed on August 18, 2017 and November 19, 2018, respectively, which, combined with the notes from the April offering form a single series of fungible securities. The notes bear interest at a rate of 7.25% per annum, payable quarterly in arrears on January 15, April 15, July 15 and October 15 of each year. The notes will mature on April 30, 2024, unless earlier repurchased, converted or redeemed. During certain periods and subject to certain conditions the notes will be convertible by their holders into shares of our common stock at a conversion rate of 1.7279 shares of common stock per $25.00 principal amount of the notes, which represents a conversion price of approximately $14.47 per share of common stock. The conversion rate, and thus the conversion price, may be subject to adjustment under certain circumstances. Coupon interest on the notes is recognized using the accrual method of accounting. Discount and deferred issuance costs are carried on the Company’s consolidated balance sheets as a deduction from the notes, and are amortized to interest expense on an effective yield basis through April 30, 2023, the date at which the notes can be converted. The Company assumes the debt will be converted at the specified conversion date for purposes of amortizing issuance costs because the Company believes such conversion will be in the economic interest of the holders. A cumulative discount at issuance of $3.2 million, representing the fair value of the embedded conversion feature, was recorded to stockholder equity. No sinking fund has been established for redemption of the principal. During the first and third quarter of 2020, the Company completed a series of convertible note repurchases for aggregate principal amounts of $8.0 million and $2.5 million, respectively, for total purchase prices of $8.2 million and $2.3 million, respectively. The carrying amounts of the equity component representing the embedded conversion feature reversed from Additional paid-in capital due to the first and third quarter of 2020 transactions were $0.1 million and zero, respectively. Holders may convert their notes at their option prior to April 30, 2023 only under certain circumstances. In addition, the notes will be convertible irrespective of those circumstances from, and including, April 30, 2023 to, and including, the business day immediately preceding the maturity date. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at the Company's election. The conversion rate as of December 31, 2020 equaled 1.7279 shares of the Company's common stock per $25.00 principal amount of notes, which is equivalent to a conversion price of approximately $14.47 per share of common stock. The conversion rate, and thus the conversion price, may be subject to adjustment under certain circumstances. As of December 31, 2020, the amount by which the if-converted value fell short of the principal value for the entire series was $31.4 million. The Company may not redeem the notes prior to April 30, 2022, and may redeem for cash all or any portion of the notes, at its option, on or after April 30, 2022 if the last reported sale price of its common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No "sinking fund" will be provided for the notes. At December 31, 2020, the outstanding aggregate principal amount of the notes was $113.4 million, and discount and deferred expenses were $3.3 million. During the year ended December 31, 2020, the Company recognized interest expense of $9.7 million, which includes $1.4 million of amortization of discount and deferred expenses. Comparatively at December 31, 2019, the outstanding aggregate principal amount of the notes was $123.9 million, and discount and deferred expenses were $5.1 million. During the year ended December 31, 2019, the Company recognized interest expense of $10.2 million, which includes $1.3 million of amortization of discount and deferred expenses. The effective interest rates of the notes for the years ended December 31, 2020 and December 31, 2019 were 9.04% and 8.94%, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company’s consolidated statements of income included the following significant related party transactions ($ in thousands): For the year ended December 31, 2020 Transaction Consolidated Statement of Income location Counterparty Amount Interest income on securities and beneficial interests and recovery of provision for credit losses on beneficial interests Net interest income after provision for credit benefit/(losses) Various non-consolidated joint ventures $ 24,153 Management fee Related party expense - management fee Thetis $ 8,456 Loan servicing fees Related party expense - loan servicing fees Gregory $ 7,678 Income from equity investment Income from investments in affiliates Gaea $ 165 Gain on sale of securities Other income Various non-consolidated joint ventures $ 145 Income from equity investment Income from investments in affiliates AS Ajax E LLC $ 34 Loss from equity investment Income from investments in affiliates Loan pool LLCs $ (54) Loss from equity investment Income from investments in affiliates Thetis $ (137) Loss from equity investment Income from investments in affiliates Great Ajax FS $ (312) Loss on sale of mortgage loans Loss on sale of mortgage loans Gaea $ (705) For the year ended December 31, 2019 Transaction Consolidated Statement of Income location Counterparty Amount Interest income on securities and recovery of provision for credit losses on beneficial interests Net interest income after provision for credit benefit/(losses) Various non-consolidated joint ventures $ 13,081 Loan servicing fees Related party expense - loan servicing fee Gregory $ 9,133 Management fee Related party expense - management fee Thetis $ 7,356 Gain on sale of mortgage loans Gain on sale of mortgage loans 2019-C $ 7,014 Income from equity investment Income from investments in affiliates Thetis $ 928 Income from equity investment Income from investments in affiliates Great Ajax FS $ 179 Income from equity investment Income from investments in affiliates AS Ajax E LLC $ 49 Gain on sale of securities Other income Various non-consolidated joint ventures $ 8 Loss from equity investment Income from investments in affiliates Loan pool LLCs $ (4) Loss from equity investment Income from investments in affiliates Gaea $ (5) For the year ended December 31, 2018 Transaction Consolidated Statement of Income location Counterparty Amount Loan servicing fees Related party expense - loan servicing fees Gregory $ 10,148 Management fee Related party expense - management fee Thetis $ 6,025 Interest income on securities and recovery of provision for credit losses on beneficial interests Net interest income after provision for credit benefit/(losses) Various non-consolidated joint ventures $ 1,967 Income from equity investment Income from investments in affiliates Thetis $ 436 Gain on sale of securities Other income Various non-consolidated joint ventures $ 347 Due diligence and related loan acquisition costs Loan transaction expense Gregory $ 99 Income from equity investment Income from investments in affiliates Great Ajax FS $ 90 Income from equity investment Income from investments in affiliates AS Ajax E LLC $ 53 Expense reimbursements Other fees and expenses Gregory $ 40 The Company’s consolidated balance sheets included the following significant related party balances ($ in thousands): As of December 31, 2020 Transaction Consolidated Balance Sheet location Counterparty Amount Investment in beneficial interests Investments in beneficial interests Various non-consolidated joint ventures $ 91,418 Receivables from Servicer Receivable from Servicer Gregory $ 15,755 Affiliate loan receivable Mortgage loans, net Gaea $ 11,000 Management fee payable Management fee payable Thetis $ 2,247 Affiliate loan purchase Mortgage loans, net Great Ajax FS $ 1,838 Expense reimbursement receivable Prepaid expenses and other assets Various non-consolidated joint ventures $ 876 Expense reimbursement receivable Prepaid expenses and other assets Thetis $ 18 Expense reimbursements Accrued expenses and other assets Gregory $ (44) As of December 31, 2019 Transaction Consolidated Balance Sheet location Counterparty Amount Investment in beneficial interests Investments in beneficial interests Various non-consolidated joint ventures $ 57,954 Receivables from Servicer Receivable from Servicer Gregory $ 17,013 Management fee payable Management fee payable Thetis $ 1,634 Expense reimbursements receivable Prepaid expenses and other assets Gregory $ 687 Advances to Servicer Prepaid expenses and other assets Gregory $ 585 Expense reimbursement receivable Prepaid expenses and other assets Various non-consolidated joint ventures $ 241 Expense reimbursements receivable Prepaid expenses and other assets Thetis $ 87 Expense reimbursements Accrued expenses and other liabilities Gaea $ 68 Expense reimbursements Accrued expenses and other liabilities Various non-consolidated joint ventures $ 10 During the year ended December 31, 2020, the Company purchased 15 RPLs from GAFS, a related party, for $1.8 million with UPB of $2.1 million and collateral value of $3.7 million. Also, during the year ended December 31, 2020, the Company originated an $11.0 million SBC loan to Gaea, a related party. The loan is secured by 20 of Gaea's SBC loans. The loan carries an interest rate of 4.25% and matures on March 31, 2021. The loans acquired from GAFS, and the Gaea loan are all included in Mortgage loans, net on the Company's consolidated balance sheet. During the year ended December 31, 2020, the Company sold 26 SBC mortgage loans with a carrying value of $26.1 million and UPB of $26.2 million, for a loss of $0.7 million to Gaea, a related party. Comparatively, during the year ended December 31, 2019, the Company sold 965 mortgage loans to third parties with a carrying value of $178.8 million and UPB of $202.1 million for a gain of $7.1 million. Of these, 962 of the loans sold during 2019 were sold to a related party joint venture, 2019-C, with a carrying value of $176.9 million and UPB of $200.1 million for a gain of $7.0 million and retained 34% or $8.0 million of the trust certificates and $12.1 million in debt securities. The retained securities are included in the notes and beneficial interests discussed in the paragraph below. During 2020 and 2019, the Company acquired $144.7 million and $187.8 million, respectively, in debt securities and beneficial interests issued by joint ventures between the Company and third party institutional accredited investors. Each joint venture issued senior notes and beneficial interests, which are trust certificates representing the residual balance of the trust after the outstanding debt obligations have been settled. In certain transactions, the joint venture also issued subordinate notes. Of the $144.7 million and $187.8 million, respectively, acquired in years 2020 and 2019, the Company retained $115.6 million and $139.6 million, respectively, in senior notes and $9.8 million and $16.8 million, respectively, in subordinate notes. The debt securities are carried at fair value. During the years 2020 and 2019, the Company sold senior notes issued by certain joint ventures for total proceeds of $38.9 million and $39.6 million, respectively, and recognized a gain of $0.1 million and $8 thousand, respectively. As of December 31, 2020 and December 31, 2019, the debt securities were carried on the Company’s consolidated balance sheet at a fair values of $273.8 million and $231.7 million, respectively. The Company also acquired $19.3 million and $31.4 million in beneficial interests issued by joint ventures in 2020 and 2019, respectively. As of December 31, 2020 and December 31, 2019, the Investments in beneficial interests were carried on the Company's consolidated balance sheet at $91.4 million and $58.0 million, respectively. In June 2019, the Company entered into an arrangement with the Servicer as the borrower and the Company as the lender to advance funds secured by real property to facilitate the purchase of real estate from certain of the Company's joint ventures. Such funds are repaid no later than the liquidation of the real estate. The maximum amount available to the Servicer is $12.0 million. At December 31, 2020 and December 31, 2019, the Company had advances of zero and $0.6 million, respectively, outstanding to the Servicer. Interest on the arrangement accrues at 7.2% annually. On November 22, 2019, Gaea completed a private capital raise transaction in which it raised $66.3 million from the issuance of 4,419,641 shares of its common stock to third parties to allow it to continue to advance its investment strategy. Upon completion of the capital raise, the Company retained ownership of approximately 23.2% of Gaea with third party investors owning the remaining approximately 76.8%. The Company recognized no gain or loss on the transaction as Gaea's fair value at the date of the deconsolidation did not represent a material change from the fair values of its recently acquired assets and liabilities due to the limited lapse of time since their acquisitions. At December 31, 2020 the Company owned approximately 23.0% of Gaea with third party investors owning the remaining approximately 77.0%. The Company accounts for its investment in Gaea using the equity method. During the year ended December 31, 2019, the Company acquired a cumulative 40.4% average ownership interest in three loan pool LLCs managed by the Servicer for $1.0 million, which hold investments in RPLs and NPLs. The Company accounts for its investment using the equity method. On March 14, 2016, the Company formed AS Ajax E LLC to hold an equity interest in a Delaware trust formed to own residential mortgage loans and residential real estate assets. AS Ajax E LLC owns a 5.0% equity interest in Ajax E Master Trust which holds a portfolio of RPLs. At the time of the original investment, the Company held a 24.2% interest in AS Ajax E LLC. In October 2016, additional capital contributions were made by third parties, and the Company’s ownership interest in AS Ajax E was reduced to a lower percentage of the total. As of December 31, 2020 and December 31, 2019, the Company’s interest in AS Ajax E LLC was approximately 16.5%. The Company accounts for its investment using the equity method. Management Agreement The Company is a party to the Amended and Restated Management Agreement with the Manager, which expires on March 5, 2034. Under the Management Agreement, the Manager implements the Company’s business strategy and manages the Company’s business and investment activities and day-to-day operations, subject to oversight by the Company’s Board of Directors. Among other services, the Manager, directly or through affiliates, provides the Company with a management team and necessary administrative and support personnel. The Company does not currently have any employees that it pays directly and does not expect to have any employees that it pays directly in the foreseeable future. Each of the Company’s executive officers is an employee or officer, or both, of the Manager or the Servicer. Under the Management Agreement, the Company pays both a base management fee and an incentive fee to the Manager. The base management fee equals 1.5% of the Company's stockholders’ equity, including equity equivalents such as the Company's issuance of convertible senior notes, per annum and calculated and payable quarterly in arrears. The Company has the option to pay its management fee with between 50% to 100% cash at its discretion, and pay the remainder in shares of its common stock. In the event the Company elects to pay its Manager in shares of its common stock, the calculation to determine the number of shares of the Company's common stock to be issued to the Manager is outlined below. The initial $1.0 million of the quarterly base management fee will be payable at least 75% in cash and up to 25% in shares of the Company’s common stock (allocated at the Company's discretion). Any amount of the base management fee in excess of $1.0 million may be payable in shares of the Company’s common stock (at the Company's discretion) until payment is at least 50% in cash and up to 50% in shares (the “50/50 split”). Any remaining amount of the quarterly base management fee after the 50/50 split threshold is reached may be payable in equal amounts of cash and shares (at the Company's discretion). The base management fee currently exceeds the 50/50 split threshold. The Manager has agreed to hold any shares of common stock received by it as payment of the base management fee for at least three years from the date such shares of common stock are received. The Manager is also entitled to an incentive fee, payable quarterly and calculated in arrears, which, through the end of 2018, was calculated as 20% of the amount by which total dividends on common stock and distributions on OP units exceeded 8% of book value on a per share basis. Effective as of March 5, 2019, the incentive fee was restructured into both a quarterly and annual component. A quarterly incentive fee is payable to the Manager if the sum of the Company’s dividends on its common stock, its distributions on its externally-held operating partnership units and its increase in book value, all relative to the applicable quarter and calculated per-share on an annualized basis, exceed 8%. The Manager will also be entitled to an annual incentive fee if the sum of the Company’s quarterly cash dividends on its common stock, special cash dividends on its common stock and distributions on its externally-held operating partnership units within the applicable calendar year exceed 8% of the Company’s book value per share as of the end of the calendar year. However, no incentive fee will be payable to the Manager with respect to any calendar quarter unless the Company’s cumulative core earnings, defined as U.S. GAAP net income or loss less non-cash equity compensation, unrealized gains or losses from mark to market adjustments, one-time adjustments to earnings resulting from changes to U.S. GAAP, and certain other non-cash items, is greater than zero for the most recently completed eight calendar quarters. In the event that the payment of the quarterly base management fee has not reached the 50/50 split, up to 100% of the incentive fee will be payable in shares of the Company’s common stock, at the Company's discretion, until the 50/50 split occurs. In the event that the total payment of the quarterly base management fee and the incentive fee has reached the 50/50 split, up to 20% of the remaining incentive fee is payable in shares of the Company’s common stock at the Company's discretion and the remaining incentive fee is payable in cash. For the year ended December 31, 2020, 2019 and 2018 the Company recorded an expense of zero, $0.7 million and $0.1 million, respectively, for an incentive fee payable to the Manager. The Company also reimburses the Manager for all third-party, out-of-pocket costs incurred by the Manager for managing its business, including third-party due diligence and valuation consultants, legal expenses, auditors and other financial services. The reimbursement obligation is not subject to any dollar limitation. Expenses are reimbursed in cash on a monthly basis. The Company will be required to pay the Manager a termination fee in the event that the Management Agreement is terminated as a result of (i) a termination by the Company without cause, (ii) its decision not to renew the Management Agreement upon the determination of at least two-thirds of the Company’s independent directors for reasons including the failure to agree on revised compensation, (iii) a termination by the Manager as a result of the Company becoming regulated as an “investment company” under the Investment Company Act of 1940, as amended (the “Investment Company Act”) (other than as a result of the acts or omissions of the Manager in violation of investment guidelines approved by the Company’s Board of Directors), or (iv) a termination by the Manager if the Company defaults in the performance of any material term of the Management Agreement (subject to a notice and cure period). The termination fee will be equal to twice the combined base fee and incentive fees payable to the Manager during the 12-month period ended as of the end of the most recently completed fiscal quarter prior to the date of termination. Servicing Agreement The Company is also a party to the Servicing Agreement, expiring July 8, 2029, with the Servicer. The Company’s overall servicing costs under the Servicing Agreement will vary based on the types of assets serviced. Servicing fees range from 0.65% to 1.25% annually UPB at acquisition (or the fair market value or purchase price of REO), and are paid monthly. For certain of the Company's securitization trusts, the servicing fee rate for RPLs is reduced to an annual servicing fee rate of 0.42% to 0.20% annually on a loan-by-loan basis for any loan that makes seven consecutive payments. The servicing fee is based upon the status of the loan at acquisition. A change in status from RPL to NPL does not cause a change in the servicing fee rate. Servicing fees for the Company’s real property assets that were previously RPLs that are not held in joint ventures are the greater of (i) the servicing fee applicable to the underlying mortgage loan prior to foreclosure, or (ii) 1.00% annually of the fair market value of the REO as reasonably determined by the Manager or 1.00% annually of the purchase price of any REO otherwise purchased by the Company. The servicing fee for NPLs that convert to real property assets does not change. For the joint ventures, a conversion from a loan to a real property asset does not cause a change in servicing fee rate. The Servicer is reimbursed for all customary, reasonable and necessary out-of-pocket costs and expenses incurred in the performance of its obligations, including the actual cost of any repairs and renovations undertaken on the Company’s behalf. The total fees incurred by the Company for these services will be dependent upon the UPB and the type of mortgage loans that the Servicer services, property values, previous UPB of the relevant loan, and the number of REO properties. If the Servicing Agreement has been terminated other than for cause and/or the Servicer terminates the servicing agreement, the Company will be required to pay a termination fee equal to the aggregate servicing fees payable under the servicing agreement for the immediate preceding 12-month period. Trademark Licenses Aspen has granted the Company a non-exclusive, non-transferable, non-sublicensable, royalty-free license to use the name “Great Ajax” and the related logo. The Company also has a similar license to use the name “Thetis.” The agreement has no specified term. If the Management Agreement expires or is terminated, the trademark license agreement will terminate within 30 days. In the event that this agreement is terminated, all rights and licenses granted thereunder, including, but not limited to, the right to use “Great Ajax” in its name will terminate. Aspen also granted to the Manager a substantially identical non-exclusive, non-transferable, non-sublicensable, royalty-free license use of the name “Thetis.” |
Stock-based Payments and Direct
Stock-based Payments and Director Fees | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Payments and Director Fees | Stock-based Payments and Director Fees Pursuant to the terms of the Management Agreement, the Company may pay a portion of the base fee to the Manager in shares of its common stock with the number of shares determined based on the average of the closing prices of its common stock on the NYSE on the five business days preceding the date on which the most recent regular quarterly dividend to holders of its common stock is paid. The Company recognized a base management fee to the Manager for the year ended December 31, 2020 of $8.4 million, of which none was payable in shares of its common stock as the Board of Directors approved the management fee to be paid in all cash. Comparatively, for the years ended December 31, 2019 and 2018 the Company recognized a base management fee of $6.7 million and $6.0 million, respectively, of which $2.5 million and $2.8 million was payable in 175,211 shares and 198,856 shares, respectively, of its common stock. For the years ended December 31, 2019 and 2018 the Company also recognized an incentive fee of $0.7 million and $0.1 million, respectively, of which $0.1 million and $24 thousand, respectively, was payable in 9,470 shares and 1,549 shares, respectively, of its common stock. The shares issued to the Manager are restricted securities subject to transfer restrictions, and were issued in private placement transactions. See Note 10 — Related party transactions. In addition, through the first quarter of 2019, each of the Company’s independent directors received an annual retainer of $75,000, payable quarterly, half of which was paid in shares of the Company’s common stock on the same basis as the stock portion of the management fee payable to the Manager and half in cash. The annual fee was increased to $100,000, 40% of which is payable in shares of the Company's common stock and 60% in cash, which became effective as of April 1, 2019. The following table sets forth the Company’s stock-based management fees and independent director fees ($ in thousands): Stock-based Management Fees and Director Fees For the year ended December 31, 2020 2019 2018 Number of shares Amount of expense recognized (1) Number of shares Amount of expense recognized (1) Number of shares Amount of expense recognized (1) Independent director fees 17,064 $ 152 10,948 $ 158 9,628 $ 150 Management fees — — 184,681 2,600 200,405 2,813 Total 17,064 $ 152 195,629 $ 2,758 210,033 $ 2,963 (1) All management fees and independent director fees are fully expensed in the period in which the underlying expense is incurred. Restricted Stock The Company occasionally grants shares of its common stock to employees of its Manager and Servicer. The shares vest over three years, with one third of the shares vesting on each of the first, second and third anniversaries of the grant date. The shares may not be sold until the third anniversary of the grant date. Grants of restricted stock use grant date fair value of the stock as the basis for measuring the cost of the grant. Each independent member of the Company's Board of Directors is issued a restricted stock award of 2,000 shares of the Company’s common stock subject to a one-year vesting period upon initial appointment to the Company’s Board. Additionally, the Company may issue grants of its shares of common stock from time to time to its directors. Under the Company’s 2014 Director Equity Plan and 2016 Equity Incentive Plan the Company made grants of restricted stock to its Directors and to employees of its Manager and Servicer as set forth the table below: Employee and Service Provider Grants Director Grants Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value December 31, 2020 outstanding unvested share grants 163,083 $ 11.07 — $ — Shares vested (50,334) 13.86 — — Shares forfeited (9,667) 12.06 — — Shares granted 108,750 9.55 — — December 31, 2019 outstanding unvested share grants 114,334 $ 13.83 — $ — Shares vested (70,555) 13.60 (6,000) 13.48 Shares forfeited (4,500) 13.58 — — Shares granted 79,000 13.94 — — December 31, 2018 outstanding unvested share grants 110,389 $ 13.59 6,000 $ 13.48 Shares vested (61,778) 13.59 (6,000) 13.48 Shares forfeited (2,666) 13.50 — — Shares granted 36,500 13.58 12,000 13.48 December 31, 2017 outstanding unvested share grants 138,333 $ 13.59 — $ — The following table presents the expenses for the Company's restricted stock plan for the years ended ($ in thousands): For the year ended December 31, 2020 2019 2018 Restricted stock grants $ 728 $ 839 $ 878 Director grants — 13 148 Total expenses for plan grants $ 728 $ 852 $ 1,026 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes As a REIT, the Company must meet certain organizational and operational requirements including the requirement to distribute at least 90% of its annual REIT taxable income to its stockholders. And as a REIT, the Company generally will not be subject to U.S. federal income tax to the extent the Company distributes its REIT taxable income to its stockholders and provided the Company satisfies the REIT requirements including certain asset, income, distribution and stock ownership tests. If the Company fails to qualify as a REIT, and does not qualify for certain statutory relief provisions, it will be subject to U.S. federal, state and local income taxes and may be precluded from qualifying as a REIT for the subsequent four taxable years following the year in which it lost its REIT qualification. The Company’s consolidated Financial Statements include the operations of two TRS entities, GA-TRS and GAJX Real Estate Corp., which are subject to U.S. federal, state and local income taxes on their taxable income. For the year ended December 31, 2020, the Company’s consolidated taxable income was $12.4 million; and income tax benefit of $0.1 million. For the year ended December 31, 2019, the Company’s consolidated taxable income was $23.3 million; and provisions for income taxes of $0.1 million. For the year ended December 31, 2018, the Company’s taxable income was $24.1 million; and provisions for income taxes of $0.1 million. The Company recognized no deferred income tax assets or liabilities on its consolidated balance sheets at December 31, 2020 or 2019. The Company also recorded no interest or penalties for the years ended December 31, 2020, 2019 and 2018. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following table sets forth the components of basic and diluted EPS ($ in thousands, except per share): For the year ended December 31, 2020 Income Shares Per Share Basic EPS Consolidated net income attributable to common stockholders $ 22,756 22,641,636 Allocation of earnings to participating restricted shares (140) — Consolidated net income attributable to unrestricted common stockholders $ 22,616 22,641,636 $ 1.00 Effect of dilutive securities (1)(2) Diluted EPS Consolidated net income attributable to common stockholders and dilutive securities $ 22,616 22,641,636 $ 1.00 (1) The Company's outstanding warrants for an additional 6,500,000 shares of common stock and effect of the put option share settlement would have an anti-dilutive effect on diluted earnings per share for the year ended December 31, 2020, and have not been included in the calculation. (2) The effect of restricted stock grants and manager and director fee shares and interest expense and assumed conversion of shares from convertible notes on the Company's diluted EPS calculation for the year ended December 31, 2020 would have been anti-dilutive and have been removed from the calculation. For the year ended December 31, 2019 Income (Numerator) Shares (Denominator) Per Share Amount Basic EPS Consolidated net income attributable to common stockholders $ 34,705 19,710,482 Allocation of earnings to participating restricted shares (336) — Consolidated net income attributable to unrestricted common stockholders $ 34,369 19,710,482 $ 1.74 Effect of dilutive securities (1) Operating Partnership units 346 241,093 Interest expense (add back) and assumed conversion of shares from convertible senior notes 10,200 8,221,642 Diluted EPS Consolidated net income attributable to common stockholders and dilutive securities $ 44,915 28,173,217 $ 1.59 (1) The effect of the restricted stock grants and Manager and director fee shares on the Company's Diluted EPS calculation for 2019 would have been anti-dilutive, accordingly the effect of these securities have been removed from the Diluted EPS calculation for the year ended December 31, 2019. For the year ended December 31, 2018 Income (Numerator) Shares (Denominator) Per Share Amount Basic EPS Consolidated net income attributable to common stockholders $ 28,340 18,642,526 Allocation of earnings to participating restricted shares (307) — Consolidated net income attributable to unrestricted common stockholders $ 28,033 18,642,526 $ 1.50 Effect of dilutive securities (1) Interest expense (add back) and assumed conversion of shares from convertible senior notes 8,786 7,188,020 Diluted EPS Consolidated net income attributable to common stockholders and dilutive securities $ 36,819 25,830,546 $ 1.43 (1) The effect of operating partnership units, restricted stock grants and Manager and director fee shares on the Company's Diluted EPS calculation for 2018 would have been anti-dilutive, accordingly the effect of these securities have been removed from the Diluted EPS calculation for the year ended December 31, 2018. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Equity | Equity Common stock As of December 31, 2020 and 2019, the Company had 22,978,339 and 22,142,143 shares, respectively, of $0.01 par value common stock outstanding with 125,000,000 shares authorized at each year end. Preferred stock During the quarter ended June 30, 2020, the Company issued an aggregate of $130.0 million of preferred stock in two series and warrants to institutional accredited investors in a series of private placements. The Company issued 2,307,400 shares of 7.25% Series A Fixed-to-Floating Rate Preferred Stock and 2,892,600 shares of 5.00% Series B Fixed-to-Floating Rate Preferred Stock, each at a purchase price per share of $25.00 and two series of five-year warrants to purchase an aggregate of 6,500,000 shares of the Company's common stock at an exercise price of $10.00 per share. Each series of warrants includes a put option that allows the holder to sell the warrants to the Company at a specified put price on or after July 6, 2023. The Company expects to use the net proceeds from the private placement to acquire mortgage loans and mortgage-related assets consistent with the Company's investment strategy. The Company had 2,307,400 shares of Series A preferred stock and 2,892,600 shares of Series B preferred stock outstanding at December 31, 2020 and no shares of either series outstanding at December 31, 2019. There were 25,000,000 shares, cumulative for all series, authorized as of both December 31, 2020 and 2019. Treasury stock and Stock Repurchase Plan On February 28, 2020, the Company's Board of Directors approved a stock buyback of up to $25.0 million of its common shares. The amount and timing of any repurchases will depend on a number of factors, including but not limited to the price and availability of the common shares, trading volume and general circumstances and market conditions. As of December 31, 2020 the Company held 107,243 shares of treasury stock consisting of 58,779 shares received through distributions of the Company's shares previously held by its Manager and 48,464 shares acquired through open market purchases in the fourth quarter of 2020 under the Company's approved stock buyback plan. As of December 31, 2019 the Company held 33,248 shares of treasury stock received through distributions of the Company's shares previously held by its Manager. Dividend Reinvestment Plan The Company sponsors a dividend reinvestment plan through which stockholders may purchase additional shares of the Company’s common stock by reinvesting some or all of the cash dividends received on shares of the Company’s common stock. During the years ended December 31, 2020 and 2019, 14,502 and 20,107 shares, respectively, were issued under the plan for total proceeds of approximately $0.1 million and $0.3 million, respectively. Stock Dividend On March 24, 2020, the Company announced that it would pay its previously declared dividend of $0.32 per share in shares of the Company's common stock (value based upon the $9.14 per share closing price on the record date of March 17, 2020). The dividend was paid on March 27, 2020 through the issuance of 781,222 shares of common stock. With the exception of shares issued under the existing dividend reinvestment plan the remainder of the Company’s dividends paid in 2020 were paid in cash. Comparatively, during the year ended December 31, 2019, with the exception of shares issued under the existing dividend reinvestment plan, all the Company’s dividends paid on its outstanding shares of common stock were paid in cash. At the Market Offering The Company has entered into an equity distribution agreement under which it may sell shares of its common stock with an aggregate offering price of up to $50.0 million from time to time in any method permitted by law deemed to be an “at the market” offering as defined in Rule 415 under the Securities Act of 1933, as amended, or the Securities Act. During the year ended December 31, 2020, no shares of common stock were sold under the at the market program. During the year ended December 31, 2019, 2,278,518 shares were sold under the at the market program for total proceeds of approximately $34.3 million. Accumulated Other Comprehensive Income (Loss) The Company recognizes unrealized gains or losses on its investment in debt securities as components of other comprehensive income. Total accumulated other comprehensive gain (loss) on the Company’s balance sheet at December 31, 2020, 2019 and 2018 was as follows ($ in thousands): For the year ended December 31, Investment in securities: 2020 2019 2018 Unrealized gains $ 1,152 $ 1,643 $ 250 Unrealized losses (777) (366) (825) Accumulated other comprehensive income/(loss) $ 375 $ 1,277 $ (575) Non-controlling Interest At December 31, 2020 and December 31, 2019, the Company had non-controlling interests attributable to ownership interests by the following four legal entities. AS Ajax E II LLC was formed by the Company during 2017 to purchase and hold an investment in a Delaware trust which holds single family residential real estate loans, SBC loans and other real estate assets. AS Ajax E II LLC is 46.9% held by third parties. As of December 31, 2020 and December 31, 2019, the Company had retained 53.1% of AS Ajax E II LLC and consolidates the assets, liabilities, revenues and expenses of the entity. 2017-D, a securitization trust, was formed by the Company during 2017. It is 50.00% held by an accredited institutional investor. As of December 31, 2020 and December 31, 2019, the Company had retained 50.0% of 2017-D and consolidates the assets, liabilities, revenues and expenses of the trust. 2018-C, a securitization trust, was formed by the Company during 2018. It is 37.0% held by an accredited institutional investor. As of December 31, 2020 and December 31, 2019 the Company had retained 63.0% of 2018-C and consolidates the assets, liabilities, revenues and expenses of the trust. Great Ajax II REIT was formed by the Company during 2019 to hold an interest in Great Ajax II Depositor LLC, which was formed to act as the depositor of mortgage loans into securitization trusts and to hold the subordinated securities issued by such trusts and any additional trusts the Company may form for additional secured borrowings. As of December 31, 2020 and December 31, 2019, Great Ajax II REIT was 0.1% and 0.2%, respectively, held by third parties. As of December 31, 2020 and December 31, 2019, the Company had retained 99.9% and 99.8%, respectively, of Great Ajax II REIT and consolidates the assets, liabilities, revenues and expenses of the entity. During the second quarter of 2019, all 624,106 of the outstanding OP units in the Company's operating partnership held by an unaffiliated holder were exchanged for shares of the Company’s common stock, resulting in a reclassification within the Company's consolidated Statement of Changes in Equity of $10.8 million from non-controlling interest to the Additional paid-in capital and Common Stock accounts. As a result, at December 31, 2020 and December 31, 2019, the Company’s Operating Partnership was 100% owned by the Company. The Company consolidates the assets, liabilities, revenues and expenses of the Operating Partnership. The following table sets forth the effects of changes in the Company's ownership interest due to transfers to or from non-controlling interest ($ in thousands): For the year ended December 31, 2020 2019 2018 Increase from establishment of 2018-C $ — $ — $ 6,685 Increase from establishment of BFLD — — 24 Decrease from redemption of OP units by third party investor — (10,816) — Decrease due to deconsolidation of Gaea — (22) — Change in non-controlling interest $ — $ (10,838) $ 6,709 |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information (unaudited) | Quarterly Financial Information (unaudited): The following table sets forth our quarterly financial information ($ in thousands): For the year ended December 31, 2020 First quarter Second quarter Third quarter Fourth quarter Total revenue, net $ 8,037 $ 16,327 $ 16,742 $ 22,505 Income before provision for income taxes $ 1,177 $ 8,938 $ 8,876 $ 14,492 Consolidated net income attributable to common stockholders $ 400 $ 6,242 $ 5,280 $ 10,834 Basic earnings common share $ 0.02 $ 0.27 $ 0.23 $ 0.47 Diluted earnings per common share $ 0.02 $ 0.27 $ 0.23 $ 0.41 For the year ended December 31, 2019 First quarter Second quarter Third quarter Fourth quarter Total revenue, net $ 15,184 $ 20,703 $ 15,316 $ 13,716 Income before provision for income taxes $ 8,192 $ 13,664 $ 8,250 $ 7,107 Consolidated net income attributable to common stockholders $ 7,330 $ 13,027 $ 7,691 $ 6,657 Basic earnings common share $ 0.39 $ 0.67 $ 0.39 $ 0.31 Diluted earnings per common share $ 0.36 $ 0.56 $ 0.36 $ 0.31 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent Events Since year end, the Company acquired two residential RPLs with aggregate UPB of $0.2 million in two transactions from two sellers. The RPLs were acquired at 89.7% of UPB and 67.1% of the estimated market value of the underlying collateral of $0.3 million. The Company also acquired one SBC loan for $3.6 million, which equals 100.0% of UPB and 36.4% of the underlying collateral value of $9.9 million. The Company has also agreed to acquire, subject to due diligence, 322 residential RPLs and four NPLs with aggregate UPB of $53.8 million and $0.8 million, respectively, in six transactions and two transactions, respectively, from six sellers and two sellers, respectively. The purchase price of the residential RPLs equals 86.1% of UPB and 56.9% of the estimated market value of the underlying collateral value of $81.4 million. The purchase price of the NPLs equals 84.8% of UPB and 60.8% of the estimated market value of the underlying collateral of $1.1 million. On January 5, 2021, the Company repurchased an aggregate principal amount of $2.5 million of its convertible senior notes for a total purchase price of $2.4 million. On January 8, 2021, the Company acquired the remaining 37% of its 2018-C securitization trust from its joint venture partner. After the close of the transaction the Company owned 100% of the trust. On January 29, 2021, the Company priced Ajax Mortgage Loan Trust 2021-A with $146.2 million of AAA rated senior securities, $21.1 million of A rated securities and $7.8 million of BBB rated securities issued with respect to $206.5 million of mortgage loans. The AAA, A and BBB rated securities were issued at a weighted yield of 1.35% excluding transaction expenses, and represent 84.6% of the UPB of the underlying mortgage loans. A total of 1,082 of RPLs and NPLs with a collateral value of $368.1 million were securitized. On February 12, 2021, the Company closed on Ajax Mortgage Loan Trust 2021-B with an aggregate of $215.9 million of senior securities and $20.2 million of subordinated securities issued with respect to $287.9 million of mortgage loans. The senior securities have a coupon of 2.25% excluding transaction expenses, and represent 75.0% of UPB of the underlying mortgage loans. A total of 1,384 of RPLs and NPLs with a collateral value of $473.2 million were securitized. On February 25, 2021, the Company called the outstanding bonds of 2017-B and 2018-C. On March 4, 2021, the Company’s Board of Directors declared a dividend of $0.17 per share, to be paid on March 31, 2021 to stockholders of record as of March 18, 2021. On March 4, 2021, our Board of Directors appointed Mary Haggerty to a newly created position on our Board. Ms. Haggerty will also serve as a member of the Audit Committee. The appointment will become effective on Monday March 8, 2021. Ms. Haggerty served as a Managing Director of J.P. Morgan Chase from July 2008 until her retirement in March 2020. Prior to joining J.P. Morgan Chase, Ms. Haggerty held various roles at Bear Stearns & Co., Inc. She has served as a director at J.P. Morgan Residential Mortgage Acceptance Corp., Reoco, Inc. and Bear Stearns Residential Mortgage Corporation. Additionally, she has also served as a director for Virtual Enterprises International, Inc., an educational non-profit, a director of The University at Albany Foundation, and a director of the Dean’s Advisory Board of the School of Business at the University of Albany. In her role for us, Ms. Haggerty is an independent director, as defined by the New York Stock Exchange. In connection with her appointment, Ms. Haggerty will receive a stock award of 2,000 shares of our common stock subject to a one-year vesting period pursuant to our 2014 Director Equity Plan. |
Schedule IV Mortgage loans on r
Schedule IV Mortgage loans on real estate | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Schedule IV Mortgage loans on real estate | Schedule IV Mortgage loans on real estate December 31, 2020 ($ in thousands) Loan count Interest rate Maturity Carrying amount of mortgages (1) Principal amount subject to delinquent Amount of balloon $0 – 49,999 615 0.00% - 13.50% 08/13/2008 – 09/01/2058 $ 17,632 $ 9,536 $ 2,571 $50,000 – 99,999 1,252 0.00% - 12.95% 09/01/2009 – 09/01/2059 91,092 44,966 7,056 $100,000 – 149,999 1,265 0.00% - 13.34% 08/01/2019 – 08/01/2065 147,799 76,991 11,313 $150,000 – 199,999 827 1.88% - 14.13% 12/01/2019 – 08/01/2065 133,972 67,801 10,373 $200,000 – 249,999 556 0.00% - 10.93% 08/01/2020 – 07/01/2064 115,645 61,661 10,727 $250,000+ 1,516 0.00% - 28.00% 01/31/2017 – 05/01/2066 613,232 313,262 92,287 Total 6,031 $ 1,119,372 $ 574,217 $ 134,327 (1) The aggregate cost for federal income tax purposes is $1,005.7 million as of December 31, 2020. The following table sets forth the activity in our mortgage loans ($ in thousands): Mortgage loans January 1, 2020 through December 31, 2020 Beginning carrying value $ 1,151,469 RPL, NPL and SBC portfolio acquisitions, net cost basis 88,965 Draws on SBC loans 56 Accretion recognized 77,129 Payments received on loans, net (175,678) Reclassifications to REO (4,764) Sale of mortgage loans (26,111) Provision for credit benefit on mortgage loans 8,274 Other 32 Ending carrying value $ 1,119,372 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Purchased Credit Deteriorated Loans ("PCD Loans") | Mortgage loans Purchased Credit Deteriorated Loans ("PCD Loans") As of their acquisition date, the loans acquired by the Company have generally suffered some credit deterioration subsequent to origination. As a result, prior to the adoption of ASU 2016-13, Financial Instruments - Credit Losses, otherwise known as CECL, on January 1, 2020 , the Company was required to account for the mortgage loans pursuant to ASC 310-30, Accounting for Loans with Deterioration in Credit Quality . Under both standards, the Company’s recognition of interest income for loans with deteriorated credit quality is based upon its having a reasonable expectation of the amount and timing of the cash flows expected to be collected. When the timing and amount of cash flows expected to be collected are reasonably estimable, the Company uses expected cash flows to apply the effective interest method of income recognition. Under both CECL and ASC 310-30, acquired loans may be aggregated and accounted for as a pool of loans if the loans have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. However, CECL allows more flexibility to the Company to adjust its loan pools as the underlying risk factors change over time. Under ASC 310-30, RPLs were determined by the Company to have common risk characteristics and were accounted for as a single loan pool for loans acquired within each three-month calendar quarter. Similarly, NPLs were determined to have common risk characteristics and were accounted for as a single non-performing pool for loans acquired within each three-month calendar quarter. The result was generally two additional pools (RPLs and NPLs) each quarter. Under CECL, the Company has re-aggregated its loan pools around similar risk factors, while eliminating the previous distinction for the quarter in which loans were acquired. This resulted in a reduction of the number of loan pools to four as of March 31, 2020. The number of pools was then re-evaluated and increased to six as of June 30, 2020 and remains at six loan pools as of December 31, 2020. Each loan pool is oriented around similar risk factors. Excluded from the aggregate pools are loans that pay in full subsequent to the acquisition closing date but prior to pooling. Any gain or loss on these loans is recognized as Interest income in the period the loan pays in full. The Company’s accounting for PCD loans gives rise to an accretable yield and an allowance for credit losses. Under CECL, upon the acquisition of PCD loans the Company records the acquisition as three separate elements for 1) the amount of purchase discount which the Company expects to recover through eventual repayment by the borrower, 2) an allowance for future expected credit loss and 3) the UPB of the loan. The purchase price discount which the Company expects at the time of acquisition to collect over the life of the loans is the accretable yield. Cash flows expected at acquisition include all cash flows directly related to the acquired loan, including those expected from the underlying collateral. The Company recognizes the accretable yield as Interest income on a prospective level yield basis over the life of the pool. The Company’s expectation of the amount of undiscounted cash flows to be collected is evaluated at the end of each calendar quarter. If the Company expects to collect greater cash flows over the life of the pool, any prior allowance is reversed to the extent of the increase and the expected yield to maturity is adjusted on a prospective basis. The allowance for credit losses is increased when the Company estimates it will not collect all amounts previously estimated to be collectible. Reduction to the allowance, or recovery, may occur if there is an increase in expected future cash flows that were previously subject to a provision for loss. Management assesses the credit quality of the portfolio and the adequacy of loan loss reserves on a quarterly basis, or more frequently as necessary. Significant judgment is required in this analysis. Depending on the expected recovery of its investment, the Company considers the estimated net recoverable value of the loan pools as well as other factors, such as the fair value of the underlying collateral. Because these determinations are based upon projections of future economic events, which are inherently subjective, the amounts ultimately realized may differ materially from the carrying value as of the reporting date. The Company’s mortgage loans are secured by real estate. The Company monitors the credit quality of the mortgage loans in its portfolio on an ongoing basis, principally by considering loan payment activity or delinquency status. In addition, the Company assesses the expected cash flows from the mortgage loans, the fair value of the underlying collateral and other factors, and evaluates whether and when it becomes probable that all amounts contractually due will not be collected. Borrower payments on the Company’s mortgage loans are classified as principal, interest, payments of fees, or escrow deposits. Amounts applied as interest on the borrower account are similarly classified as interest for accounting purposes and are classified as operating cash flows in the Company’s consolidated Statement of Cash Flows. Amounts applied as principal on the borrower account including amounts contractually due from borrowers that exceed the Company’s basis in loans purchased at a discount, are similarly classified as principal for accounting purposes and are classified as investing cash flows in the consolidated Statement of Cash Flows as required under U.S. GAAP. Amounts received as payments of fees are recorded in Other income and classified as operating cash flows in the consolidated Statement of Cash Flows. Escrow deposits are recorded on the Servicer’s balance sheet and do not impact the Company’s cash flow. |
Non-PCD Loans | Non PCD Loans While the Company generally acquires loans that have experienced deterioration in credit quality, it also acquires loans that have not experienced a deterioration in credit quality and originates SBC loans which are also subject to the provisions of CECL as discussed above. The Company estimates any allowance for credit losses for its non-PCD loans based on historical experience and the risk characteristics of the individual loans. Impaired loans are carried at the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s market price, or the fair value of the collateral if the loan is collateral dependent. For individual loans, a troubled debt restructuring is a formal restructuring of a loan where, for economic or legal reasons related to the borrower’s financial difficulties, a concession that would not otherwise be considered is granted to the borrower. The concession may be granted in various forms, including providing a below-market interest rate, a reduction in the loan balance or accrued interest, an extension of the maturity date, or a combination of these. An individual loan that has had a troubled debt restructuring is considered to be impaired and is subject to the relevant accounting for impaired loans. If necessary, an allowance for loan losses is established through a provision for loan losses charged to expenses. The allowance is the difference between the present value of the expected future cash flows from the loan and the contractual balance due. |
Investment in Securities at Fair Value | Investments in Securities at Fair Value The Company’s Investments at Fair Value as of December 31, 2020 and December 31, 2019 consist of investments in senior and subordinate notes issued by joint ventures which the Company forms with third party institutional accredited investors. The Company recognizes income on the debt securities using the effective interest method. Additionally, the notes are classified as available for sale and are carried at fair value with changes in fair value reflected in the Company's consolidated statements of comprehensive income. The Company marks its investments to fair value using prices received from its financing counterparties and believes any unrealized losses on its debt securities to be temporary. Any other-than-temporary losses, which represent the excess of the amortized cost basis over the present value of expected future cash flows, are recognized in the period identified in the Company’s consolidated statements of income. Risks inherent in the Company's debt securities portfolio, affecting both the valuation of its securities as well as the portfolio's interest income and recovery of principal include the risk of default, delays and inconsistency in the frequency and amount of payments, risks affecting borrowers such as man-made or natural disasters and damage to or delay in realizing the value of the underlying collateral. The Company monitors the credit quality of the mortgage loans underlying its debt securities on an ongoing basis, principally by considering loan payment activity or delinquency status. In addition, the Company assesses the expected cash flows from the mortgage loans, the fair value of the underlying collateral and other factors, and evaluates whether and when it becomes probable that all amounts contractually due will not be collected. |
Investments in Beneficial Interests | Investments in Beneficial InterestsThe Company’s Investments in Beneficial Interests as of December 31, 2020 and December 31, 2019 consist of investments in the trust certificates issued by joint ventures which the Company forms with third party institutional accredited investors. The trust certificates represent the residual interest of any special purpose entity formed to facilitate certain investments. The Company adopted CECL with respect to its Investment in beneficial interests on January 1, 2020. The methodology is similar to that described in "Mortgage Loans" except that the Company only recognizes its ratable share of gain, loss, income or expense. |
Real Estate | Real Estate The Company acquires real estate properties directly through purchases, when it forecloses on the borrower and takes title to the underlying property, or the borrower surrenders the deed in lieu of foreclosure. Property is recorded at cost if purchased, or at the present value of future cash flows if obtained through foreclosure by the Company. Property that the Company expects to actively market for sale is classified as held-for-sale. Property held-for-sale is carried at the lower of its acquisition basis or net realizable value (fair market value less expected selling costs, and any additional costs necessary to prepare the property for sale). Fair market value is determined based on broker price opinions (“BPOs”), appraisals, or other market indicators of fair value including list price or contract price, if listed or under contract for sale at the balance sheet date. Net unrealized losses due to changes in market value are recognized through a valuation allowance by charges to income through real estate operating expenses. No depreciation or amortization expense is recognized on properties held-for-sale. Holding costs are generally incurred by the Servicer and are subtracted from the Servicer’s remittance of sale proceeds upon ultimate disposition of properties held-for-sale. Rental property is property not held-for-sale. Rental properties are intended to be held as long-term investments but may eventually be reclassified as held-for-sale. Property that arose through conversions of mortgage loans in the Company's portfolio such as when a mortgage loan is foreclosed upon and the Company takes title to the property or the borrower surrenders the deed in lieu of foreclosure is generally held for investment as rental property if the cash flows from use as a rental exceed the present value of expected cash flows from a sale. The Company also acquires rental properties through direct purchases of properties for its rental portfolio. Depreciation is provided for using the straight-line method over the estimated useful lives of the assets of 27.5 years. The Company performs an impairment analysis for rental property using estimated cash flows if events or changes in circumstances indicate that the carrying value may be impaired, such as prolonged vacancy, identification of materially adverse legal or environmental factors, changes in expected ownership period or a decline in market value to an amount less than cost. This analysis is performed at the property level. The cash flows are estimated based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for rental properties, competition for customers, changes in market rental rates, costs to operate each property and expected ownership periods. Renovations are performed by the Servicer, and those costs are then reimbursed to the Servicer. Any renovations on properties which the Company elects to hold as rental properties are capitalized as part of the property’s basis and depreciated over the remaining estimated useful life of the property. The Company may perform property renovations to maximize the value of a property for either its rental strategy or for resale. |
Preferred Stock | Preferred Stock During the quarter ended June 30, 2020, the Company issued an aggregate of $125.0 million, net of offering costs, of preferred stock in two series and warrants to institutional accredited investors in a series of private placements. The Company issued 2,307,400 shares of 7.25% Series A Fixed-to-Floating Rate Preferred Stock and 2,892,600 shares of 5.00% Series B Fixed-to-Floating Rate Preferred Stock, each at a purchase price per share of $25.00. The shares have a liquidation preference of $25.00 per share. |
Put Option Liability | Put Option Liability As part of the Company’s capital raise transactions during the quarter ended June 30, 2020, the Company issued two series of five-year warrants to purchase an aggregate of 6,500,000 shares of the Company's common stock at an exercise price of $10.00 per share. Each series of warrants includes a put option that allows the holder to sell the warrants to the Company at a specified put price on or after July 6, 2023. U.S. GAAP requires the Company to account for the outstanding warrants as if the put option will be exercised by the holders. The put option was recorded as a liability in the Company's consolidated balance sheet within accrued expenses and other liabilities with an original basis of $9.5 million. The Company is accreting the amount of the liability under the effective interest method to its expected future put value of $50.7 million and marks the obligation to market through earnings. |
Secured Borrowings | Secured Borrowings The Company, through securitization trusts which are VIEs, issues callable debt secured by its mortgage loans in the ordinary course of business. The secured borrowings facilitated by the trusts are structured as debt financings, and the mortgage loans used as collateral remain on the Company’s consolidated balance sheet as the Company is the primary beneficiary of the securitization trusts. These secured borrowing VIEs are structured as pass through entities that receive principal and interest on the underlying mortgages and distribute those payments to the holders of the notes. The Company’s exposure to the obligations of the VIEs is generally limited to its investments in the entities; the creditors do not have recourse to the primary beneficiary. Coupon interest expense on the debt is recognized using the accrual method of accounting. Deferred issuance costs, including original issue discount and debt issuance costs, are carried on the Company’s consolidated balance sheets as a deduction from Secured borrowings, and are amortized to interest expense on an effective yield basis based on the underlying cash flow of the mortgage loans serving as collateral. The Company assumes the debt will be called at the specified call date for purposes of amortizing discount and issuance costs because the Company believes it will have the intent and ability to call the debt on the call date. Changes in the actual or projected underlying cash flows are reflected in the timing and amount of deferred issuance cost amortization. See Note 8 — Commitments and Contingencies. |
Repurchase Facilities | Repurchase Facilities The Company enters into repurchase financing facilities under which it nominally sells assets to a counterparty and simultaneously enters into an agreement to repurchase the sold assets at a price equal to the sold amount plus an interest factor. Despite being legally structured as sales and subsequent repurchases, repurchase transactions are generally accounted for as |
Convertible senior notes | Convertible Senior Notes On April 25, 2017, the Company completed the public offer and sale of $87.5 million in aggregate principal amount of its convertible senior notes (the “notes”) due 2024, with follow-on offerings of an additional $20.5 million and $15.9 million, respectively, in aggregate principal amount completed on August 18, 2017 and November 19, 2018, respectively, which, combined with the notes from the April offering, form a single series of securities. The notes bear interest at a rate of 7.25% per annum, payable quarterly in arrears on January 15, April 15, July 15 and October 15 of each year. The notes will mature on April 30, 2024, unless earlier repurchased, converted or redeemed. During certain periods and subject to certain conditions the notes will be convertible by their holders into shares of the Company’s common stock at a conversion rate of 1.7279 shares of common stock per $25.00 principal amount of the notes, which represents a conversion price of approximately $14.47 per share of common stock. The conversion rate, and thus the conversion price, may be subject to adjustment under certain circumstances. Coupon interest on the notes is recognized using the accrual method of accounting. Discount and deferred issuance costs are carried on the Company’s consolidated balance sheets as a deduction from the notes, and are amortized to interest expense on an effective yield basis through April 30, 2023, the date at which the notes can be converted. The Company assumes the debt will be converted at the specified conversion date for purposes of amortizing issuance costs because the Company believes such conversion will be in the economic interest of the holders. A cumulative discount at issuance of $3.2 million, representing the fair value of the embedded conversion feature, was recorded to stockholders’ equity. No sinking fund has been established for redemption of the principal. During the first and third quarter of 2020, the Company completed a series of convertible note repurchases for aggregate principal amounts of $8.0 million and $2.5 million, respectively, for total purchase prices of $8.2 million and $2.3 million, respectively. The carrying amounts of the equity component representing the embedded conversion feature reversed from Additional paid-in capital due to the first and third quarter of 2020 transactions were $0.1 million and zero, respectively. |
Management Fee and Expense Reimbursement | Management Fee and Expense Reimbursement The Company is a party to the Third Amended and Restated Management Agreement with the Manager (the "Management Agreement") by and between the Company and the Manager, dated as of May 1, 2020, expiring on March 5, 2034. Under the Management Agreement, the Manager implements the Company’s business strategy and manages the Company’s business and investment activities and day-to-day operations, subject to oversight by the Company’s Board of Directors. Among other services, the Manager provides the Company with a management team and necessary administrative and support personnel. Additionally, the Company pays directly for the internal audit function that reports directly to the Audit Committee and the Board of Directors. The Company does not currently have any employees that it pays directly and does not expect to have any employees that it pays directly in the foreseeable future. Each of the Company’s executive officers is an employee or officer, or both, of the Manager or the Servicer. |
Servicing Fees | Servicing Fees The Company is also a party to a Servicing Agreement (the "Servicing Agreement"), expiring July 8, 2029, with the Servicer. Under the Servicing Agreement by and between the Company and the Servicer, the Servicer receives an annual |
Stock-based Payments | Stock-based Payments At least a portion of the management fee is payable in cash, and a portion of the management fee may be payable (at the Company's discretion) in shares of the Company’s common stock which are issued to the Manager in a private placement and are restricted securities under the Securities Act of 1933, as amended (the “Securities Act”). The number of shares issued to the Manager (if any) is determined based on the higher of the most recently reported book value or the average of the closing prices of the Company's common stock on the New York Stock Exchange ("NYSE") on the five business days after the date on which the most recent regular quarterly dividend to holders of the common stock is paid. Any management fees paid in common stock are recognized as an expense in the quarter incurred and recorded in stockholders' equity at quarter end. The shares vest immediately upon issuance. The Manager has agreed to hold any shares of common stock received by it as payment of the base management fee for at least three years from the date such shares of common stock are received. Under the Company’s 2014 Director Equity Plan (the “Director Plan”), the Company may make stock-based awards to its directors. The Director Plan is designed to promote the Company’s interests by attracting and retaining qualified and experienced individuals for service as non-employee directors. The Director Plan is administered by the Company’s Board of Directors. The total number of shares of common stock or other stock-based award, including grants of long-term incentive plan units (“LTIP Units”) from the Operating Partnership, available for issuance under the Director Plan is 78,000 shares. The Company has issued to each of its independent directors restricted stock awards of 2,000 shares of its common stock upon joining the Board of Directors, which are subject to a one-year vesting period. The Company also periodically issues additional restricted stock awards to its independent directors under the Director Plan. In addition, through March 31, 2019, each of the Company’s independent directors received an annual fee of $75,000, payable quarterly, 50% in shares of the Company’s common stock and 50% in cash. The annual fee was increased to $100,000, 40% of which is payable in shares of the Company's common stock and 60% in cash, which was effective as of April 1, 2019. Stock-based expense for the directors’ annual fee is expensed as earned, in equal quarterly amounts during the year, and recorded in stockholders' equity at quarter end. On June 7, 2016, the Company’s stockholders approved the 2016 Equity Incentive Plan (the “2016 Plan”) to attract and retain non-employee directors, executive officers, key employees and service providers, including officers and employees of the Company’s affiliates. The 2016 Plan authorized the issuance of up to 5% of the Company’s outstanding shares from time to time on a fully diluted basis (assuming, if applicable, the exercise of all outstanding options and the conversion of all warrants and convertible senior notes, including OP Units and any LTIP Units, into shares of common stock). Grants of restricted stock under the 2016 Plan use grant date fair value of the stock as the basis for measuring the cost of the grant. Forfeitures of granted shares are accounted for in the period in which they occur. The share grants vest over three years, with one third of the shares vesting on each of the first, second and third anniversaries of the grant date. The shares may not be sold until the third anniversary of the grant date. |
Directors' fees | Directors’ Fees The expense related to directors’ fees is accrued, and the portion payable in common stock is reflected in consolidated Stockholders’ equity in the period in which it is incurred. |
Variable Interest Entities | Variable Interest EntitiesIn the normal course of business, the Company enters into various types of transactions with special purpose entities, which have primarily consisted of trusts established for the Company’s secured borrowings (See “Secured Borrowings” above and Note 9 to the consolidated Financial Statements). Additionally, from time to time, the Company may enter into joint ventures with unrelated entities, which also generally involves the formation of a special purpose entity. The Company evaluates each transaction and its resulting beneficial interest to determine if the entity formed pursuant to the transaction should be classified as a VIE. If an entity created in a transaction meets the definition of a VIE and the Company determines that it or a consolidated subsidiary is the primary beneficiary, the Company will include the entity in its consolidated financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents Highly liquid investments with an original maturity of three months or less when purchased are considered cash equivalents. The Company generally maintains cash and cash equivalents at insured banking institutions with minimum assets of $1 billion. Certain account balances exceed Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. |
Cash Held in Trust | Cash Held in Trust Cash held in trust consists of restricted cash balances either legally due to lenders or held in trust for the benefit of the Company's secured borrowers, and is segregated from the Company’s other cash deposits. Cash held in trust is not available to the Company for any purposes other than the settlement of existing obligations. |
Earnings per Share | Earnings per Share The Company grants restricted shares which entitle the recipients to receive dividend equivalents during the vesting period on a basis equivalent to the dividends paid to holders of common shares. Unvested share-based compensation awards containing non-forfeitable rights to receive dividends or dividend equivalents (collectively, “dividends”) are classified as “participating securities” and are included in the basic earnings per share calculation using the two-class method. Under the two-class method, all of the Company’s Consolidated net income attributable to common stockholders, consisting of Consolidated net income, less dividends on the Company’s Series A and Series B preferred stock, is allocated to common shares and participating securities, based on their respective rights to receive dividends. Basic earnings per share is determined by dividing net income available to common shareholders, reduced by income attributable to the participating securities, by the weighted-average common shares outstanding during the period. Diluted earnings per share is determined by dividing Consolidated net income attributable to diluted shareholders, which adds back to Consolidated net income attributable to common stockholders the interest expense and applicable portion of management fee expense, net of applicable income taxes, on the Company’s convertible senior notes, by the weighted-average common shares outstanding, assuming all dilutive securities, including stock grants, shares that would be issued in the event that warrants were redeemed for shares of common stock of the Company, shares issued in respect of the stock-based portion of the base fee payable to the Manager and independent directors, and shares that would be issued in the event of conversion of the Company’s outstanding convertible senior notes, were issued. In the event the Company were to record a net loss, potentially dilutive securities would be excluded from the diluted loss per share calculation, as their effect on loss per share would be anti-dilutive. The Company uses the Treasury Stock method of accounting for the outstanding warrants. Under the Treasury Stock method, the exercise of the warrants is assumed at the beginning of the period, and shares of common stock are assumed to have been issued. The proceeds from the exercise are assumed to be used by the Company to repurchase treasury stock, thereby reducing the assumed dilution from the warrant exercise. In applying the Treasury Stock method, all dilutive potential common shares, regardless of whether they are exercisable, are treated as if they had been exercised. In the event that any of the adjustments normally included to arrive at diluted earnings per share were to produce an anti-dilutive result, one that either increased earnings or reduced the quantity of shares used in the calculation, the anti-dilutive adjustment would not be included in the diluted earnings per share calculation. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy has been established that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The degree of judgment utilized in measuring fair value generally correlates to the level of pricing observability. Assets and liabilities with readily available actively quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of pricing observability and a lesser degree of judgment utilized in measuring fair value. Conversely, assets and liabilities rarely traded or not quoted will generally have little or no pricing observability and a higher degree of judgment utilized in measuring fair value. Pricing observability is impacted by a number of factors, including the type of asset or liability, whether it is new to the market and not yet established, and the characteristics specific to the transaction. The fair value of mortgage loans is estimated using the Manager’s proprietary pricing model which estimates expected cash flows with the discount rate used in the present value calculation representing the estimated effective yield of the loans. The value of transfers of mortgage loans to REO is based upon the present value of future expected cash flows of the loans being transferred. The Company values its investments in debt securities using estimates provided by our financing counterparties. The Company also relies on the Manager's proprietary pricing model to estimate the underlying cash flows expected to be collected on these investments as a comparison to the estimates received from financing counterparties. The Company also relies on its Manager's proprietary pricing model to estimate the underlying cash flows expected to be collected on its investments in beneficial interests. During the quarter ended September 30, 2020, the Company transferred its beneficial interests from level 2 to level 3 due to our increased reliance on our Manager’s pricing model for these valuations. The Company's investment in the Manager is valued by applying an earnings multiple to base fee revenue. The Company's investments in AS Ajax E LLC and AS Ajax E II LLC are valued using estimates provided by financing counterparties and other publicly available information. The fair value of the Company's investment in GAFS, including warrants, is determined by applying an earnings multiple to expected earnings. The fair value of the Company's investment in Gaea is estimated using a projected net operating income for its property portfolio. The fair value of the Company's investment in the loan pool LLCs is determined by using estimates of underlying assets and liabilities taken from our Manager's pricing model. Previously through September 30, 2020 the fair value of the investment in the loan pool LLCs was presented as the carrying value due to the recent nature of the acquisition transactions. The fair value of the Company's put option liability is adjusted to approximate market value through earnings. Fair value is determined by using the greater of the expected call or put prices based on the call price, the carry cost discount and the interest discount. The fair value of secured borrowings is estimated using estimates provided by the Company's financing counterparties, which are compared for reasonableness to the Manager’s proprietary pricing model which estimates expected cash flows of the underlying mortgage loans collateralizing the debt. During the quarter ended June 30, 2020, the Company transferred its secured borrowings from level 3 to level 2 due to our increased reliance on the use of estimates provided by the Company's financing counterparties in the determination of secured borrowings fair values. The Company’s borrowings under its repurchase agreements are short-term in nature, and the Manager believes it can renew the current borrowing arrangements on similar terms in the future. Accordingly, the carrying value of these borrowings approximates fair value. The Company’s convertible senior notes are traded on the NYSE under the ticker symbol "AJXA"; the debt’s fair value is determined from the closing price on the balance sheet date. Property held-for-sale is carried at the lower of its acquisition basis or net realizable value. Net realizable value is determined based on broker price opinions, appraisals, or other market indicators of fair value, which are then reduced by anticipated selling costs. Net unrealized losses due to changes in market value are recognized through a valuation allowance by charges to income. The carrying values of our Cash and cash equivalents, Cash held in trust, Receivable from Servicer, Prepaid expenses and other assets, Management fee payable and Accrued expenses and other liabilities are equal to or approximate fair value. |
Income Taxes | Income Taxes The Company elected REIT status upon the filing of its 2014 income tax return, and has conducted its operations in order to satisfy and maintain eligibility for REIT status. Accordingly, the Company does not believe it will be subject to U.S. federal income tax from the year ended December 31, 2014 forward on the portion of the Company’s REIT taxable income that is distributed to the Company’s stockholders as long as certain asset, income and stock ownership tests are met. If the Company fails to qualify as a REIT in any taxable year, it generally will not be permitted to qualify for treatment as a REIT for U.S. federal income tax purposes for the four taxable years following the year during which qualification is lost. In addition, notwithstanding the Company’s qualification as a REIT, it may also have to pay certain state and local income taxes, because not all states and localities treat REITs in the same manner that they are treated for U.S. federal income tax purposes. The Company’s consolidated Financial Statements include the operations of two TRS entities, GA-TRS LLC and GAJX Real Estate Corp, which are subject to U.S. federal, state and local income taxes on their taxable income. Income from these two entities and any other TRS that the Company forms will be subject to U.S. federal and state income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences or benefits attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which management expects those temporary differences to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period in which the change occurs. Subject to the Company’s judgment, it reduces a deferred tax asset by a valuation allowance if it is “more-likely-than-not” that some or all of the deferred tax asset will not be realized. Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities. Significant judgment is required in evaluating tax positions, and the Company recognizes tax benefits only if it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authority. The Company evaluates tax positions taken in its consolidated financial statements under the interpretation for accounting for uncertainty in income taxes. As a result of this evaluation, the Company may recognize a tax benefit from an uncertain tax position only if it is “more-likely-than-not” that the tax position will be sustained on examination by taxing authorities. The Company’s tax returns remain subject to examination and consequently, the taxability of the distributions and other tax positions taken by the Company may be subject to change. Distributions to stockholders generally will be primarily taxable as long-term capital gain, although a portion of such distributions may be designated as ordinary income or qualified dividend income, or may constitute a return of capital. The Company furnishes annually to each stockholder a statement setting forth distributions paid during the preceding year and their U.S. federal income tax treatment. |
Segment Information | Segment Information The Company’s primary business is acquiring, investing in and managing a portfolio of mortgage loans. The Company operates in a single segment focused on re-performing mortgages, and to a lesser extent non-performing mortgages and real property. |
Reclassifications | Reclassifications As of December 31, 2020, the Company reclassified its investments in warrants for the purchase of an additional interest in GAFS with a balance of $0.8 million at December 31, 2019 from the Prepaid expenses and other assets classification in the consolidated balance sheets to the Investments in affiliates classification to more accurately present the Company's combined interest in GAFS. There was no effect on the Company's reported earnings or cash flows for the period presented. Also, the Company reclassified the acquisition of commercial loans with the purchase of mortgage loan pools and related |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses . The main objective of this guidance is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity. To achieve this, the amendments in this guidance replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Specifically, the amendments in this guidance require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. In May 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments . The amendments to Topic 326 and other Topics in this Update include items related to the amendments in Update 2016-13 discussed at the June 2018 and November 2018 Credit Losses Transition Resource Group meetings. The amendments clarify or address stakeholders’ specific issues about certain aspects of the amendments in Update 2016-13. This guidance is effective for interim and annual reporting periods that are applicable to the original ASU’s affected by the codification improvements. Also in May 2019, the FASB issued ASU 2019-05, Financial Instruments - Credit Losses - Targeted Transition Relief to allow financial statement preparers who had elected the fair value option for newly acquired financial assets to irrevocably elect the fair value option, applied on an instrument-by-instrument basis for eligible instruments, upon adoption of ASU 2016-13 for assets previously measured at amortized cost basis. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses to clarify or address stakeholders’ specific issues about certain aspects of the amendments in Update 2016-13. In February 2020, the FASB issued ASU 2020-02, Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842) to amend SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 119 and to update the SEC section on the effective date related to ASU 2016-02. The guidance in ASU 2016-13, ASU 2019-04, ASU 2019-05, ASU 2019-11 and ASU 2020-02 became effective for the Company for all periods beginning after December 15, 2019. The Company adopted ASU 2016-13 and all related amendments on January 1, 2020. For the Company’s mortgage loan portfolio, the initial adoption resulted in a reclassification between loan discount and allowance for purchased credit impaired loans of $10.2 million. This adjustment had no effect on the Company’s balance sheet presentation, or on consolidated equity. The Company does not consider this transition adjustment to be material to its financial position or previously reported statements. During subsequent periods this allowance for credit losses will be adjusted either upward or downward for expected changes in future credit losses based on expected cash flows. These changes to the reserve will be recognized in the Company's current period income. Historically, only reductions in expected cash flows were recognized in the current period earnings, while increases in expected cash flows were recognized prospectively over the remaining expected lives of the loan pools. The Company’s investments in beneficial interests are also deemed to be credit impaired under ASC 2016-13 and follow guidance comparable to that for impaired loans. Similarly, upon adoption, a reclassification from discount to allowance for credit impaired loss of $4.2 million was recorded, with no net impact on the Company’s balance sheet or on consolidated equity. As with the adjustment noted above for the Company's loan portfolio, this adjustment had no effect on the Company’s balance sheet presentation, or on consolidated equity. The Company does not consider this transition adjustment to be material to its financial position or previously reported statements. In subsequent periods, changes to the reserve for beneficial interests will be recognized in the Company’s current period income. Under ASU 2016-13, credit losses for available-for-sale debt securities are measured in a manner similar to current GAAP. However, the amendments in this ASU require that credit losses be recorded through an allowance for credit losses, which will cause subsequent reversals in credit loss estimates to be recognized in current income. In addition, the allowance for available-for-sale debt securities is limited to the extent that the fair value is less than the amortized cost. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework -Changes to the Disclosure Requirements for Fair Value Measurement . The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the concepts statement, including the consideration of costs and benefits. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted, including early adoption of any removed or modified disclosures addressed in this update and delay of additional disclosures until their effective date. The Company adopted ASU 2018-13 in the first quarter of 2020 with no effect on its consolidated assets or liabilities, consolidated net income or equity or cash flows on the date of adoption. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement . The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal-use software license. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted, including adoption in any interim period. The Company adopted ASU 2018-15 in the first quarter of 2020 with no effect on its consolidated assets or liabilities, consolidated net income or equity or cash flows on the date of adoption. Recently Issued Accounting Standards In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes. The amendments in this update simplify the accounting for income taxes by removing certain exceptions and adding certain clarifications to rules and definitions used in the calculation of the income tax provision. This guidance is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted, including adoption in any interim period. The Company does not anticipate a material impact on its consolidated financial statements and related disclosures. In January 2020, the FASB issued ASU 2020-01, Investments – Equity Securities (Topic 321, Investments) – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). The amendments in this update clarify the interactions between Topic 321, Topic 323, and Topic 815, which clarifies aspects of accounting for investments in equity-method investees acquired through step acquisitions to require remeasurement of an investment immediately before adopting the equity method of accounting if the investor identifies observable price changes in orderly transactions for an identical or similar investment of the same issuer, and also requires such remeasurement upon discontinuance of the equity method. The amendments also clarify whether upon settlement of a forward contract or option the underlying security would be accounted for under the Equity Method (Topic 323) or the fair value option (Topic 825). This guidance is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted, including adoption in any interim period. The Company does not anticipate a material impact on its consolidated financial statements and related disclosures. In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in an Entity’s Own Equity (Subtopic 815-40). The amendments in this update simplify the accounting for convertible instruments by removing certain accounting models that require separation of convertible instruments into debt and equity components with conversion features that are not required to be accounted for as derivatives or that do not result in substantial premiums. Consequently a convertible instrument will be accounted for as a single liability measured as its amortized cost and convertible preferred stock will be accounted for as a single instrument recorded at historical cost as long as no other features require bifurcation and recognition as derivatives. This guidance is effective for interim and annual reporting periods beginning after December 15, 2021, with early adoption permitted, including adoption in any interim period. The Company is currently evaluating the impact on its consolidated financial statements and related disclosures. In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables-Nonrefundable Fees and Other Costs. The amendments in this update clarify the guidance in ASC 310-20-35-33 pertaining to the amortization period used for deferred expenses and premiums associated with purchased callable debt securities. This guidance is effective for interim and annual reporting periods beginning after December 15, 2021, with early adoption permitted, including adoption in any interim period. The Company is currently evaluating the impact on its consolidated financial statements and related disclosures. In October 2020, the FASB issued ASU 2020-10, Codification Improvements. The amendments in this update ensure that all guidance that requires or provides an option for an entity to provide information in the notes of financial statements is codified in the Disclosure section of the codification and also clarifies the guidance in cases in which the original guidance may have been unclear. This guidance is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted, including adoption in any interim period. The Company is currently evaluating this amendment and does not anticipate a material impact on its consolidated financial statements and related disclosures. |
Mortgage Loans (Tables)
Mortgage Loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Mortgage Loans [Abstract] | |
Schedule of loan portfolio basis by asset type | The following table presents information regarding the carrying value for the Mortgage loan categories of RPL, NPL, SBC and originated as of December 31, 2020 and 2019 ($ in thousands): As of December 31, Loan portfolio basis by asset type 2020 2019 Residential RPLs $ 1,057,454 $ 1,085,514 Residential NPLs 38,724 30,869 SBC loans 23,194 35,086 Total $ 1,119,372 $ 1,151,469 |
Schedule of loan basis by year of origination | The following table presents information regarding the year of origination of the Company's mortgage loan portfolio by basis ($ in thousands): December 31, 2020 2020 2019 2018 2017 2016 2009-2015 2006-2008 2005 and prior Total Great Ajax II REIT $ — $ — $ 257 $ 488 $ 1,991 $ 41,746 $ 280,606 $ 99,909 $ 424,997 2018-C — — — — — 14,100 119,343 39,778 173,221 2017-D — — — 121 — 6,826 94,711 32,238 133,896 California 2,221 952 1,484 362 — 5,292 60,393 18,084 88,788 7f7 and better — 911 434 — 2,125 17,520 88,414 32,831 142,235 4f4-6f6 and below 872 1,397 2,054 336 305 13,409 78,202 30,239 126,814 Non-PCD 21,387 4,738 64 2,493 99 611 20 9 29,421 Total $ 24,480 $ 7,998 $ 4,293 $ 3,800 $ 4,520 $ 99,504 $ 721,689 $ 253,088 $ 1,119,372 |
Schedule of loan acquisition reconciliation between purchase price and par value | The following table presents a reconciliation between the purchase price and par value for the Company's loan acquisitions and originations for the year ended December 31, 2020 ($ in thousands): For the year ended December 31, 2020 PCD Loans Non PCD Loans Par $ 70,811 $ 27,191 Discount (6,457) (701) Allowance (1,879) — Purchase Price $ 62,475 $ 26,490 |
Allowance for credit losses on mortgage loans | An analysis of the balance in the allowance for loan losses account follows ($ in thousands): For the year ended December 31, 2020 2019 2018 Allowance for loan credit losses, beginning of period $ (1,960) $ (1,164) $ — Beginning period adjustment for CECL (10,156) — — Reversal of / (increase in) provision for credit losses on mortgage loans 8,274 (803) (1,164) Incremental (increase in) / reversal of allowance for loan credit losses (7,991) 7 — Increase in allowance for loan credit losses for loan acquisitions (1,879) — — Allowance for loan credit losses, end of period $ (13,712) $ (1,960) $ (1,164) |
Schedule of carrying value of mortgage loans and related UPB by delinquency status | The following table sets forth the carrying value of the Company’s mortgage loans by delinquency status as of December 31, 2020 and 2019 ($ in thousands): As of December 31, 2020 Current 30 60 90 Foreclosure Total Great Ajax II REIT $ 311,941 $ 48,266 $ 19,559 $ 43,364 $ 1,867 $ 424,997 2018-C 70,034 20,541 15,300 57,538 9,808 173,221 2017-D 58,198 24,906 12,437 36,106 2,249 133,896 California 42,214 7,660 5,519 29,343 4,052 88,788 7f7 and better 72,613 14,003 12,447 41,383 1,789 142,235 4f4- 6f6 and below 13,976 10,773 7,157 68,677 26,231 126,814 Non-PCD 22,562 6,099 56 704 — 29,421 Total $ 591,538 $ 132,248 $ 72,475 $ 277,115 $ 45,996 $ 1,119,372 As of December 31, 2019 Current 30 60 90 Foreclosure Total Great Ajax II REIT $ 265,677 $ 37,553 $ 14,034 $ 4,597 $ — $ 321,861 2018-C 75,253 33,904 19,756 42,315 8,074 179,302 2017-D 68,996 28,318 14,452 33,166 3,188 148,120 California 90,658 12,733 9,123 20,737 1,173 134,424 7f7 and better 147,722 29,371 22,645 28,864 1,829 230,431 4f4-6f6 and below 6,412 4,329 12,946 66,177 24,033 113,897 Non-PCD 21,425 — 850 1,159 — 23,434 Total $ 676,143 $ 146,208 $ 93,806 $ 197,015 $ 38,297 $ 1,151,469 |
Real Estate Assets, Net (Tables
Real Estate Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Real Estate [Abstract] | |
Schedule of activity in the Company's carrying value held-for-sale | The following table presents the activity in the Company’s carrying value of property held-for-sale for the years ended December 31, 2020 and 2019 ($ in thousands): For the year ended December 31, 2020 2019 Count Amount Count Amount Balance at beginning of year 58 $ 13,537 102 $ 19,402 Net transfers from mortgage loans and prepaids 20 4,903 61 12,104 Adjustments to record at lower of cost or fair value — (1,359) — (2,104) Disposals (50) (10,089) (109) (16,819) Transfer from rental property 4 795 6 1,613 Transfer to rental property — — (2) (414) Other — 20 — (245) Balance at end of year 32 $ 7,807 58 $ 13,537 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | The following table presents information regarding the Company's investments in debt securities and investments in beneficial interests ($ in thousands): As of December 31, 2020 Basis (1) Gross unrealized gains Gross unrealized losses Carrying value (fair value) Debt securities $ 273,459 $ 1,152 $ (777) $ 273,834 Beneficial interests in securitization trusts 91,418 — — 91,418 Total investments at fair value $ 364,877 $ 1,152 $ (777) $ 365,252 (1) Basis amount is net of any realized amortized costs, principal paydowns and interest receivable on securities of $0.2 million. As of December 31, 2019 Basis (1) Gross unrealized gains Gross unrealized losses Carrying value (fair value) Debt securities $ 230,408 $ 1,643 $ (366) $ 231,685 Beneficial interests in securitization trusts 57,954 — — 57,954 Total investments at fair value $ 288,362 $ 1,643 $ (366) $ 289,639 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | The following table presents a breakdown of the Company's gross unrealized losses ($ in thousands): As of December 31, 2020 Step-up date (1) Basis (2) Gross unrealized losses Carrying value (fair value) Debt securities due September 2059 (3) February 2023/April 2023 $ 22,216 $ (238) $ 21,978 Debt securities due November 2059 (4) April 2023 14,738 (61) 14,677 Debt securities due December 2059 (4) July 2023 47,270 (315) 46,955 Debt securities due September 2060 (4) March 2024 34,970 (44) 34,926 Debt Securities due June 2060 (4) March 2024 35,127 (119) 35,008 Total $ 154,321 $ (777) $ 153,544 (1) Step-up date is the date at which the coupon interest rate on the security increases. The Company expects the security to be called before the step-up date. (2) Basis amount is net of any realized amortized costs and principal paydowns. (3) This line is comprised of two securities that are both due September 2059. One security with a balance of $0.2 million has been in an unrealized loss position for less than 12 months and has a step-up date in April 2023 and the other security of $0.1 million has been in a loss position for 12 months or longer and has a step-up date in February 2023. (4) This security has been in an unrealized loss position for less than 12 months. As of December 31, 2019 Step-up date (1) Basis (2) Gross unrealized losses Carrying value (fair value) Debt securities due April 2058 (3) None $ 6,855 $ (9) $ 6,846 Debt securities due February 2057 (3) October 2021 7,324 (1) 7,323 Debt securities due September 2059 (4) February 2023 37,843 (356) 37,487 Total $ 52,022 $ (366) $ 51,656 (1) Step-up date is the date at which the coupon interest rate on the security increases. The Company expects the security to be called before the step-up date. (2) Basis amount is net of any realized amortized costs and principal paydowns. (3) These securities have been in an unrealized loss position for 12 months or longer. |
Schedule of securities acquisition reconciliation between purchase price and par value | The following table presents a reconciliation between the purchase price and par value for the Company's beneficial interests acquisitions for the year ended December 31, 2020 ($ in thousands): For the year ended December 31, 2020 Beneficial Interest Par $ 27,319 Discount (5,233) Allowance (2,779) Purchase Price $ 19,307 |
Allowance for Credit Loss on Beneficial Interests | An analysis of the balance in the allowance for beneficial interest losses account follows ($ in thousands): For the year ended December 31, 2020 2019 Allowance for beneficial interests credit losses, beginning balance $ — $ — Beginning period adjustment for CECL (4,221) — Reversal of provision for credit losses on beneficial interests 2,547 — Increase in allowance for beneficial interest credit losses for acquisitions (2,779) — Allowance for beneficial interests credit losses, end balance $ (4,453) $ — |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Recurring financial assets and liabilities measured and carried at fair value by level within the fair value hierarchy as of December 31, 2020 and 2019 ($ in thousands): Level 1 Level 2 Level 3 December 31, 2020 Carrying Value Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Recurring financial assets Investment in debt securities at fair value $ 273,834 $ — $ 273,834 $ — Recurring financial liabilities Put option liability $ 14,205 $ — $ — $ 14,205 Level 1 Level 2 Level 3 December 31, 2019 Carrying Value Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Recurring financial assets Investments in debt securities at fair value $ 231,685 $ — $ 231,685 $ — |
Schedule of fair value of financial assets and liabilities | The following tables set forth the fair value of financial instruments by level within the fair value hierarchy as of December 31, 2020 and 2019 ($ in thousands): Level 1 Level 2 Level 3 December 31, 2020 Carrying Value Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Financial assets Mortgage loans, net $ 1,119,372 $ — $ — $ 1,232,081 Investment in beneficial interests $ 91,418 $ — $ — $ 91,418 Investment in Manager $ 1,366 $ — $ — $ 11,709 Investment in AS Ajax E LLC $ 776 $ — $ 934 $ — Investment in AS Ajax E II LLC $ 3,381 $ — $ 3,484 $ — Investment in GAFS, including warrants $ 2,711 $ — $ — $ 3,320 Investment in Gaea $ 20,001 $ — $ — $ 19,150 Investment in Loan pool LLCs $ 381 $ — $ — $ 701 Financial liabilities Secured borrowings, net $ 585,403 $ — $ — $ 586,419 Borrowings under repurchase agreement $ 421,132 $ — $ 421,132 $ — Convertible senior notes, net $ 110,057 $ 110,675 $ — $ — Level 1 Level 2 Level 3 December 31, 2019 Carrying Value Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Financial assets Mortgage loans, net $ 1,151,469 $ — $ — $ 1,260,385 Investment in beneficial interests $ 57,954 $ — $ 57,954 $ — Investment in Manager $ 1,755 $ — $ — $ 7,721 Investment in AS Ajax E LLC $ 931 $ — $ 1,012 $ — Investment in AS Ajax E II LLC $ 3,977 $ — $ 3,895 $ — Investment in GAFS, including warrants $ 3,023 $ — $ — $ 3,320 Investment in Gaea $ 19,995 $ — $ — $ 19,995 Investment in Loan pool LLCs $ 760 $ — $ — $ 760 Financial liabilities Secured borrowings, net $ 652,747 $ — $ — $ 657,918 Borrowings under repurchase transactions $ 414,114 $ — $ 414,114 $ — Convertible senior notes, net $ 118,784 $ 132,173 $ — $ — |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | The following tables set forth the fair value of non-financial assets by level within the fair value hierarchy as of December 31, 2020 and 2019 ($ in thousands): Level 1 Level 2 Level 3 December 31, 2020 Carrying Value Fair value adjustment recognized in the consolidated statements of income Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Non-financial assets Property held-for-sale $ 7,807 $ (1,359) $ — $ — $ 7,807 Level 1 Level 2 Level 3 December 31, 2019 Carrying Value Fair value adjustment recognized in the consolidated statements of income Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Non-financial assets Property held-for-sale $ 13,537 $ (2,104) $ — $ — $ 13,537 |
Affiliates (Tables)
Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Schedule of assets and liabilities for the Company's unconsolidated affiliates at 100%, and at the Company's share | The table below shows the net income, assets and liabilities for the Company’s unconsolidated affiliates at 100%, and at the Company’s share ($ in thousands): Net income/(loss), assets and liabilities of unconsolidated affiliates at 100% For the year ended December 31, Net income/(loss) at 100% 2020 2019 2018 Gaea Real Estate Corp. $ 720 $ (20) $ — AS Ajax E LLC $ 209 $ 299 $ 324 Loan pool LLCs $ (133) $ (9) $ — Thetis Asset Management LLC $ (693) $ 4,685 $ 2,202 Great Ajax FS LLC (1) $ (3,901) $ 2,233 $ 1,257 December 31, 2020 December 31, 2019 Assets and Liabilities at 100% Assets Liabilities Assets Liabilities Gaea Real Estate Corp. $ 94,639 $ 11,886 $ 83,068 $ 768 AS Ajax E LLC $ 4,808 $ 2 $ 5,747 $ 2 Loan pool LLCs $ 2,423 $ 3,961 $ 1,592 $ 3,095 Thetis Asset Management LLC $ 9,531 $ 2,122 $ 12,277 $ 2,265 Great Ajax FS LLC $ 56,532 $ 36,101 $ 61,432 $ 37,142 Net income/(loss), assets and liabilities of unconsolidated affiliates at the Company's share For the year ended December 31, Net income/(loss) at the Company's share 2020 2019 2018 Gaea Real Estate Corp. $ 165 $ (5) $ — AS Ajax E LLC $ 34 $ 49 $ 53 Loan pool LLCs $ (54) $ (4) $ — Thetis Asset Management LLC $ (137) $ 928 $ 436 Great Ajax FS LLC (1) $ (312) $ 179 $ 90 December 31, 2020 December 31, 2019 Assets and Liabilities at the Company's share Assets Liabilities Assets Liabilities Gaea Real Estate Corp. $ 21,729 $ 2,729 $ 19,252 $ 178 AS Ajax E LLC $ 791 $ — $ 948 $ — Loan pool LLCs $ 973 $ 1,595 $ 637 $ 1,247 Thetis Asset Management LLC $ 1,887 $ 420 $ 2,431 $ 448 Great Ajax FS LLC $ 4,523 $ 2,888 $ 4,915 $ 2,971 (1) Net income at the Company's share is not directly proportionate to Net income at 100% due to the timing of the Company's acquisition during the year ended December 31, 2018. |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | The following table sets forth the details of the Company's put option liability ($ in thousands): For the year ended December 31, 2020 2019 2018 Beginning balance $ — $ — $ — Basis of put option liability 9,482 — — Amortization of put option expense 4,475 — — Mark to market adjustment 248 — — Ending balance $ 14,205 $ — $ — |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of details of repurchase agreement | The following table sets forth the details of the Company’s repurchase transactions and facilities ($ in thousands): December 31, 2020 Maturity Date Origination date Maximum Borrowing Capacity Amount Outstanding Amount of Collateral Percentage of Collateral Coverage Interest Rate January 6, 2021 October 9, 2020 $ 35,635 $ 35,635 $ 46,120 129 % 2.33 % January 6, 2021 September 28, 2020 7,697 7,697 10,075 131 % 2.33 % January 6, 2021 September 28, 2020 6,311 6,311 9,038 143 % 2.48 % January 6, 2021 September 28, 2020 4,755 4,755 6,114 129 % 2.33 % January 6, 2021 September 28, 2020 4,666 4,666 6,044 130 % 2.33 % January 6, 2021 September 28, 2020 3,213 3,213 4,667 145 % 2.48 % January 11, 2021 September 29, 2020 5,879 5,879 7,575 129 % 2.32 % January 14, 2021 October 29, 2020 6,991 6,991 8,738 125 % 2.35 % January 20, 2021 October 20, 2020 13,263 13,263 16,582 125 % 2.22 % January 29, 2021 October 30, 2020 7,762 7,762 9,702 125 % 2.21 % January 29, 2021 October 30, 2020 7,153 7,153 9,537 133 % 2.21 % February 1, 2021 December 1, 2020 12,258 12,258 16,052 131 % 1.88 % February 1, 2021 December 1, 2020 12,015 12,015 15,794 131 % 1.88 % February 1, 2021 December 1, 2020 5,298 5,298 6,895 130 % 1.88 % February 1, 2021 December 1, 2020 3,985 3,985 5,136 129 % 1.88 % February 1, 2021 December 1, 2020 2,887 2,887 3,790 131 % 1.88 % February 1, 2021 December 1, 2020 2,332 2,332 3,360 144 % 2.03 % February 1, 2021 December 1, 2020 1,132 1,132 1,607 142 % 2.03 % February 12, 2021 November 13, 2020 2,945 2,945 4,428 150 % 2.02 % March 5, 2021 December 7, 2020 24,946 24,946 33,348 134 % 1.78 % March 5, 2021 December 7, 2020 24,312 24,312 32,571 134 % 1.78 % March 17, 2021 December 17, 2020 10,219 10,219 13,172 129 % 1.78 % March 17, 2021 December 17, 2020 8,381 8,381 10,872 130 % 1.78 % March 17, 2021 December 17, 2020 3,894 3,894 5,193 133 % 1.78 % March 17, 2021 December 17, 2020 1,145 1,145 1,687 147 % 1.93 % March 24, 2021 December 24, 2020 7,016 7,016 10,024 143 % 1.94 % March 24, 2021 December 24, 2020 5,008 5,008 6,637 133 % 1.79 % March 24, 2021 December 24, 2020 2,577 2,577 3,367 131 % 1.79 % April 9, 2021 October 13, 2020 33,084 33,084 43,069 130 % 2.35 % July 9, 2021 July 10, 2020 250,000 53,256 84,337 158 % 2.64 % September 23, 2021 September 24, 2020 400,000 101,117 160,068 158 % 2.65 % Totals/weighted averages $ 916,759 $ 421,132 $ 595,599 141 % 2.29 % December 31, 2019 Maturity Date Origination date Maximum Borrowing Capacity Amount Outstanding Amount of Collateral Percentage of Collateral Coverage Interest Rate January 3, 2020 November 26, 2019 $ 8,411 $ 8,411 $ 11,098 132 % 3.45 % January 3, 2020 November 26, 2019 6,093 6,093 9,038 148 % 3.45 % January 3, 2020 November 26, 2019 5,175 5,175 6,855 132 % 3.45 % January 3, 2020 December 2, 2019 11,966 11,966 15,742 132 % 3.45 % January 3, 2020 December 2, 2019 10,648 10,648 14,058 132 % 3.45 % January 3, 2020 December 2, 2019 5,485 5,485 7,050 129 % 3.45 % January 3, 2020 December 2, 2019 4,096 4,096 5,261 128 % 3.45 % January 3, 2020 December 2, 2019 1,644 1,644 2,388 145 % 3.55 % January 3, 2020 December 2, 2019 1,576 1,576 2,287 145 % 3.55 % January 10, 2020 December 11, 2019 21,088 21,088 28,284 134 % 3.47 % January 10, 2020 December 11, 2019 1,808 1,808 2,640 146 % 3.57 % January 13, 2020 July 11, 2019 8,956 8,956 13,016 145 % 4.16 % January 21, 2020 December 20, 2019 15,718 15,718 20,623 131 % 3.41 % January 21, 2020 December 20, 2019 10,305 10,305 13,521 131 % 3.41 % January 21, 2020 December 20, 2019 5,840 5,840 7,324 125 % 3.41 % January 21, 2020 December 20, 2019 2,784 2,784 4,050 145 % 3.51 % January 28, 2020 October 30, 2019 5,318 5,318 7,464 140 % 3.19 % January 28, 2020 October 30, 2019 2,520 2,520 3,381 134 % 2.99 % February 3, 2020 August 1, 2019 7,568 7,568 9,702 128 % 4.19 % February 3, 2020 August 1, 2019 6,664 6,664 9,537 143 % 4.19 % February 24, 2020 November 26, 2019 41,412 41,412 54,828 132 % 2.92 % March 25, 2020 September 25, 2019 7,075 7,075 10,024 142 % 3.96 % March 25, 2020 September 25, 2019 5,851 5,851 7,423 127 % 3.81 % March 26, 2020 September 26, 2019 27,075 27,075 34,591 128 % 3.81 % March 27, 2020 September 27, 2019 2,915 2,915 3,709 127 % 3.79 % June 3, 2020 December 6, 2019 6,097 6,097 7,891 129 % 3.64 % June 3, 2020 December 6, 2019 4,704 4,704 6,106 130 % 3.64 % June 3, 2020 December 6, 2019 3,053 3,053 4,035 132 % 3.64 % June 3, 2020 December 6, 2019 2,332 2,332 3,360 144 % 3.79 % June 3, 2020 December 6, 2019 1,132 1,132 1,607 142 % 3.79 % June 19, 2020 December 19, 2019 13,447 13,447 18,076 134 % 3.55 % June 19, 2020 December 19, 2019 1,155 1,155 1,687 146 % 3.70 % June 30, 2020 December 30, 2019 5,286 5,286 7,044 133 % 3.57 % June 30, 2020 December 30, 2019 3,324 3,324 4,667 140 % 3.72 % July 10, 2020 July 12, 2019 250,000 28,931 57,397 198 % 4.28 % September 24, 2020 September 25, 2019 400,000 116,662 164,403 141 % 4.24 % Totals/weighted averages $ 918,521 $ 414,114 $ 580,167 140 % 3.77 % |
Schedule of amount outstanding on repurchase transactions and carrying value collateral | amount outstanding on the Company’s repurchase facilities and the carrying value of the Company’s loans pledged as collateral are presented as gross amounts in the Company’s consolidated balance sheets at December 31, 2020 and 2019 in the table below ($ in thousands): Gross amounts not offset in balance sheet December 31, 2020 December 31, 2019 Gross amount of recognized liabilities $ 421,132 $ 414,114 Gross amount of loans and securities pledged as collateral 595,599 580,167 Other prepaid collateral 4,653 4,117 Net collateral amount $ 179,120 $ 170,170 |
Schedule of securitization of notes | The following table sets forth the original terms of all securitization notes outstanding at December 31, 2020 at their respective cutoff dates: Issuing Trust/Issue Date Interest Rate Step-up Date Security Original Principal Interest Rate Ajax Mortgage Loan Trust 2017-B/ December 2017 None Class A notes due 2056 $115.8 million 3.16 % None Class M-1 notes due 2056 (3) $9.7 million 3.50 % None Class M-2 notes due 2056 (3) $9.5 million 3.50 % None Class B-1 notes due 2056 (1) $9.0 million 3.75 % None Class B-2 notes due 2056 (1) $7.5 million 3.75 % Trust certificates (2) $14.3 million — % Deferred issuance costs $(1.8) million — % Ajax Mortgage Loan Trust 2017-D/ December 2017 April 25, 2021 Class A notes due 2057 (4) $177.8 million 3.75 % None Class B certificates (4) $44.5 million — % Deferred issuance costs $(1.1) million — % Ajax Mortgage Loan Trust 2018-C/ September 2018 October 25, 2021 Class A notes due 2065 (5) $170.5 million 4.36 % April 25, 2022 Class B notes due 2065 (5) $15.9 million 5.25 % Trust certificates (5) $40.9 million — % Deferred issuance costs $(2.0) million — % Ajax Mortgage Loan Trust 2019-D/ July 2019 None Class A-1 notes due 2065 $140.4 million 2.96 % None Class A-2 notes due 2065 $6.1 million 3.50 % None Class A-3 notes due 2065 $10.1 million 3.50 % None Class M-1 notes due 2065 (3) $9.3 million 3.50 % None Class B-1 notes due 2065 (6) $7.5 million 3.50 % None Class B-2 notes due 2065 (6) $7.1 million variable (7) None Class B-3 notes due 2065 (6) $12.8 million variable (7) Deferred issuance costs $(2.7) million — % Ajax Mortgage Loan Trust 2019-F/ November 2019 None Class A-1 notes due 2059 $110.1 million 2.86 % None Class A-2 notes due 2059 $12.5 million 3.50 % None Class A-3 notes due 2059 $5.1 million 3.50 % None Class M-1 notes due 2059 (3) $6.1 million 3.50 % None Class B-1 notes due 2059 (6) $11.5 million 3.50 % None Class B-2 notes due 2059 (6) $10.4 million variable (7) None Class B-3 notes due 2059 (6) $15.1 million variable (7) Deferred issuance costs $(1.8) million — % Ajax Mortgage Loan Trust 2020-B/ August 2020 None Class A-1 notes due 2059 $97.2 million 1.70 % None Class A-2 notes due 2059 $17.3 million 2.86 % None Class M-1 notes due 2059 (3) $7.3 million 3.70 % None Class B-1 notes due 2059 (6) $5.9 million 3.70 % None Class B-2 notes due 2059 (6) $5.1 million variable (7) None Class B-3 notes due 2059 (6) $23.6 million variable (7) Deferred issuance costs $(1.8) million — % (1) The Class B notes are subordinated, sequential pay, fixed rate notes with Class B-2 notes subordinate to the Class B-1 notes. The Company has retained the Class B notes. (2) The trust certificates issued by the trusts and the beneficial ownership of the trusts are retained by Great Ajax Funding LLC as the depositor. As the holder of the trust certificates, the Company is entitled to receive any remaining amounts in the trusts after the Class A notes, Class M notes, where present, and Class B notes have been paid in full. (3) The Class M notes are subordinated, sequential pay, fixed rate notes with Class M-2 notes subordinate to the Class M-1 notes. The Company has retained the Class M notes. (4) Ajax Mortgage Loan Trust ("AJAXM") 2017-D is a joint venture in which a third party owns 50% of the Class A notes and 50% of the Class B certificates. The Company is required to consolidate 2017-D under GAAP and is reflecting 100% of the mortgage loans, in Mortgage loans, net. 50% of the Class A notes, which are held by the third party, are included in Secured borrowings, net and 50% of the Class B-1 certificates are recognized as Non-controlling interest. (5) AJAXM 2018-C is a joint venture in which a third party owns 95% of the Class A notes and 37% of the Class B notes and certificates. The Company is required to consolidate 2018-C under GAAP and is reflecting 100% of the mortgage loans, in Mortgage loans, net. 95% of the Class A notes and 37% of the Class B notes, which are held by the third party, are included in Secured borrowings, net. The 5% portion of the Class A notes retained by the Company have been encumbered under a repurchase agreement. 37% of the Class C certificates are recognized as Non-controlling interest. (6) The Class B notes are subordinate, sequential pay, with B-2 and B-3 notes having variable interest rates and are subordinate to the Class B-1 notes. The Class B-1 notes are fixed rate notes. The Company has retained the Class B notes. |
Schedule of status of mortgage loans | The following table sets forth the status of the notes held by others at December 31, 2020 and 2019, and the securitization cutoff date ($ in thousands): Balances at December 31, 2020 Balances at December 31, 2019 Original balances at Class of Notes Carrying value of mortgages Bond principal balance Percentage of collateral coverage Carrying value of mortgages Bond principal balance Percentage of collateral coverage Mortgage UPB Bond principal balance 2017-B $ 110,062 $ 68,729 160 % $ 121,909 $ 84,624 144 % $ 165,850 $ 115,846 2017-C — — — % 137,369 94,126 146 % 185,942 130,159 2017-D 133,897 51,256 (1) 261 % 148,119 60,934 (1) 243 % 203,870 (2) 88,903 2018-C 173,221 131,983 (3) 131 % 179,303 146,925 (3) 122 % 222,181 (4) 167,910 2019-D 148,641 125,008 119 % 165,963 146,383 113 % 193,301 156,670 2019-F 139,996 108,184 129 % 155,899 126,723 123 % 170,876 127,673 2020-B 136,360 105,601 129 % — — — % 156,468 114,534 $ 842,177 $ 590,761 (5) 143 % $ 908,562 $ 659,715 (5) 138 % $ 1,298,488 $ 901,695 (1) The gross amounts of senior bonds at December 31, 2020 and December 31, 2019 were $102.6 million and $121.9 million, however, only $51.3 million and $60.9 million, respectively, are reflected in Secured borrowings as the remainders were owned by the Company at the respective balance sheet dates. (2) Includes $26.7 million of cash collateral intended for use in the acquisition of additional mortgage loans. (3) 2018-C contains notes held by third party institutional investors for senior bonds and class B bonds. The gross amount of senior and class B bonds at December 31, 2020 were $132.7 million and $15.9 million, however, only $126.1 million and $5.9 million, respectively, are reflected in Secured borrowings as the remainders were owned by the Company. The gross amount of the senior and class B bonds at December 31, 2019 were $148.5 million and $15.9 million, however, only $141.0 million and $5.9 million, respectively, are reflected in Secured borrowings as the remainders were owned by the Company. (4) Includes $45.5 million of cash collateral intended for use in the acquisition of additional mortgage loans. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of consolidated statement of income | The Company’s consolidated statements of income included the following significant related party transactions ($ in thousands): For the year ended December 31, 2020 Transaction Consolidated Statement of Income location Counterparty Amount Interest income on securities and beneficial interests and recovery of provision for credit losses on beneficial interests Net interest income after provision for credit benefit/(losses) Various non-consolidated joint ventures $ 24,153 Management fee Related party expense - management fee Thetis $ 8,456 Loan servicing fees Related party expense - loan servicing fees Gregory $ 7,678 Income from equity investment Income from investments in affiliates Gaea $ 165 Gain on sale of securities Other income Various non-consolidated joint ventures $ 145 Income from equity investment Income from investments in affiliates AS Ajax E LLC $ 34 Loss from equity investment Income from investments in affiliates Loan pool LLCs $ (54) Loss from equity investment Income from investments in affiliates Thetis $ (137) Loss from equity investment Income from investments in affiliates Great Ajax FS $ (312) Loss on sale of mortgage loans Loss on sale of mortgage loans Gaea $ (705) For the year ended December 31, 2019 Transaction Consolidated Statement of Income location Counterparty Amount Interest income on securities and recovery of provision for credit losses on beneficial interests Net interest income after provision for credit benefit/(losses) Various non-consolidated joint ventures $ 13,081 Loan servicing fees Related party expense - loan servicing fee Gregory $ 9,133 Management fee Related party expense - management fee Thetis $ 7,356 Gain on sale of mortgage loans Gain on sale of mortgage loans 2019-C $ 7,014 Income from equity investment Income from investments in affiliates Thetis $ 928 Income from equity investment Income from investments in affiliates Great Ajax FS $ 179 Income from equity investment Income from investments in affiliates AS Ajax E LLC $ 49 Gain on sale of securities Other income Various non-consolidated joint ventures $ 8 Loss from equity investment Income from investments in affiliates Loan pool LLCs $ (4) Loss from equity investment Income from investments in affiliates Gaea $ (5) For the year ended December 31, 2018 Transaction Consolidated Statement of Income location Counterparty Amount Loan servicing fees Related party expense - loan servicing fees Gregory $ 10,148 Management fee Related party expense - management fee Thetis $ 6,025 Interest income on securities and recovery of provision for credit losses on beneficial interests Net interest income after provision for credit benefit/(losses) Various non-consolidated joint ventures $ 1,967 Income from equity investment Income from investments in affiliates Thetis $ 436 Gain on sale of securities Other income Various non-consolidated joint ventures $ 347 Due diligence and related loan acquisition costs Loan transaction expense Gregory $ 99 Income from equity investment Income from investments in affiliates Great Ajax FS $ 90 Income from equity investment Income from investments in affiliates AS Ajax E LLC $ 53 Expense reimbursements Other fees and expenses Gregory $ 40 |
Schedule of related party transactions for consolidated balance sheet | The Company’s consolidated balance sheets included the following significant related party balances ($ in thousands): As of December 31, 2020 Transaction Consolidated Balance Sheet location Counterparty Amount Investment in beneficial interests Investments in beneficial interests Various non-consolidated joint ventures $ 91,418 Receivables from Servicer Receivable from Servicer Gregory $ 15,755 Affiliate loan receivable Mortgage loans, net Gaea $ 11,000 Management fee payable Management fee payable Thetis $ 2,247 Affiliate loan purchase Mortgage loans, net Great Ajax FS $ 1,838 Expense reimbursement receivable Prepaid expenses and other assets Various non-consolidated joint ventures $ 876 Expense reimbursement receivable Prepaid expenses and other assets Thetis $ 18 Expense reimbursements Accrued expenses and other assets Gregory $ (44) As of December 31, 2019 Transaction Consolidated Balance Sheet location Counterparty Amount Investment in beneficial interests Investments in beneficial interests Various non-consolidated joint ventures $ 57,954 Receivables from Servicer Receivable from Servicer Gregory $ 17,013 Management fee payable Management fee payable Thetis $ 1,634 Expense reimbursements receivable Prepaid expenses and other assets Gregory $ 687 Advances to Servicer Prepaid expenses and other assets Gregory $ 585 Expense reimbursement receivable Prepaid expenses and other assets Various non-consolidated joint ventures $ 241 Expense reimbursements receivable Prepaid expenses and other assets Thetis $ 87 Expense reimbursements Accrued expenses and other liabilities Gaea $ 68 Expense reimbursements Accrued expenses and other liabilities Various non-consolidated joint ventures $ 10 |
Stock-based Payments and Dire_2
Stock-based Payments and Director Fees (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of management fees and director fees | The following table sets forth the Company’s stock-based management fees and independent director fees ($ in thousands): Stock-based Management Fees and Director Fees For the year ended December 31, 2020 2019 2018 Number of shares Amount of expense recognized (1) Number of shares Amount of expense recognized (1) Number of shares Amount of expense recognized (1) Independent director fees 17,064 $ 152 10,948 $ 158 9,628 $ 150 Management fees — — 184,681 2,600 200,405 2,813 Total 17,064 $ 152 195,629 $ 2,758 210,033 $ 2,963 (1) All management fees and independent director fees are fully expensed in the period in which the underlying expense is incurred. |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | Under the Company’s 2014 Director Equity Plan and 2016 Equity Incentive Plan the Company made grants of restricted stock to its Directors and to employees of its Manager and Servicer as set forth the table below: Employee and Service Provider Grants Director Grants Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value December 31, 2020 outstanding unvested share grants 163,083 $ 11.07 — $ — Shares vested (50,334) 13.86 — — Shares forfeited (9,667) 12.06 — — Shares granted 108,750 9.55 — — December 31, 2019 outstanding unvested share grants 114,334 $ 13.83 — $ — Shares vested (70,555) 13.60 (6,000) 13.48 Shares forfeited (4,500) 13.58 — — Shares granted 79,000 13.94 — — December 31, 2018 outstanding unvested share grants 110,389 $ 13.59 6,000 $ 13.48 Shares vested (61,778) 13.59 (6,000) 13.48 Shares forfeited (2,666) 13.50 — — Shares granted 36,500 13.58 12,000 13.48 December 31, 2017 outstanding unvested share grants 138,333 $ 13.59 — $ — |
Schedule of restricted stock plan grants, expense | The following table presents the expenses for the Company's restricted stock plan for the years ended ($ in thousands): For the year ended December 31, 2020 2019 2018 Restricted stock grants $ 728 $ 839 $ 878 Director grants — 13 148 Total expenses for plan grants $ 728 $ 852 $ 1,026 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Components of basic and diluted earnings per share | The following table sets forth the components of basic and diluted EPS ($ in thousands, except per share): For the year ended December 31, 2020 Income Shares Per Share Basic EPS Consolidated net income attributable to common stockholders $ 22,756 22,641,636 Allocation of earnings to participating restricted shares (140) — Consolidated net income attributable to unrestricted common stockholders $ 22,616 22,641,636 $ 1.00 Effect of dilutive securities (1)(2) Diluted EPS Consolidated net income attributable to common stockholders and dilutive securities $ 22,616 22,641,636 $ 1.00 (1) The Company's outstanding warrants for an additional 6,500,000 shares of common stock and effect of the put option share settlement would have an anti-dilutive effect on diluted earnings per share for the year ended December 31, 2020, and have not been included in the calculation. (2) The effect of restricted stock grants and manager and director fee shares and interest expense and assumed conversion of shares from convertible notes on the Company's diluted EPS calculation for the year ended December 31, 2020 would have been anti-dilutive and have been removed from the calculation. For the year ended December 31, 2019 Income (Numerator) Shares (Denominator) Per Share Amount Basic EPS Consolidated net income attributable to common stockholders $ 34,705 19,710,482 Allocation of earnings to participating restricted shares (336) — Consolidated net income attributable to unrestricted common stockholders $ 34,369 19,710,482 $ 1.74 Effect of dilutive securities (1) Operating Partnership units 346 241,093 Interest expense (add back) and assumed conversion of shares from convertible senior notes 10,200 8,221,642 Diluted EPS Consolidated net income attributable to common stockholders and dilutive securities $ 44,915 28,173,217 $ 1.59 (1) The effect of the restricted stock grants and Manager and director fee shares on the Company's Diluted EPS calculation for 2019 would have been anti-dilutive, accordingly the effect of these securities have been removed from the Diluted EPS calculation for the year ended December 31, 2019. For the year ended December 31, 2018 Income (Numerator) Shares (Denominator) Per Share Amount Basic EPS Consolidated net income attributable to common stockholders $ 28,340 18,642,526 Allocation of earnings to participating restricted shares (307) — Consolidated net income attributable to unrestricted common stockholders $ 28,033 18,642,526 $ 1.50 Effect of dilutive securities (1) Interest expense (add back) and assumed conversion of shares from convertible senior notes 8,786 7,188,020 Diluted EPS Consolidated net income attributable to common stockholders and dilutive securities $ 36,819 25,830,546 $ 1.43 (1) The effect of operating partnership units, restricted stock grants and Manager and director fee shares on the Company's Diluted EPS calculation for 2018 would have been anti-dilutive, accordingly the effect of these securities have been removed from the Diluted EPS calculation for the year ended December 31, 2018. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income | Total accumulated other comprehensive gain (loss) on the Company’s balance sheet at December 31, 2020, 2019 and 2018 was as follows ($ in thousands): For the year ended December 31, Investment in securities: 2020 2019 2018 Unrealized gains $ 1,152 $ 1,643 $ 250 Unrealized losses (777) (366) (825) Accumulated other comprehensive income/(loss) $ 375 $ 1,277 $ (575) |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net | The following table sets forth the effects of changes in the Company's ownership interest due to transfers to or from non-controlling interest ($ in thousands): For the year ended December 31, 2020 2019 2018 Increase from establishment of 2018-C $ — $ — $ 6,685 Increase from establishment of BFLD — — 24 Decrease from redemption of OP units by third party investor — (10,816) — Decrease due to deconsolidation of Gaea — (22) — Change in non-controlling interest $ — $ (10,838) $ 6,709 |
Quarterly Financial Informati_2
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Schedule of quarterly financial information | The following table sets forth our quarterly financial information ($ in thousands): For the year ended December 31, 2020 First quarter Second quarter Third quarter Fourth quarter Total revenue, net $ 8,037 $ 16,327 $ 16,742 $ 22,505 Income before provision for income taxes $ 1,177 $ 8,938 $ 8,876 $ 14,492 Consolidated net income attributable to common stockholders $ 400 $ 6,242 $ 5,280 $ 10,834 Basic earnings common share $ 0.02 $ 0.27 $ 0.23 $ 0.47 Diluted earnings per common share $ 0.02 $ 0.27 $ 0.23 $ 0.41 For the year ended December 31, 2019 First quarter Second quarter Third quarter Fourth quarter Total revenue, net $ 15,184 $ 20,703 $ 15,316 $ 13,716 Income before provision for income taxes $ 8,192 $ 13,664 $ 8,250 $ 7,107 Consolidated net income attributable to common stockholders $ 7,330 $ 13,027 $ 7,691 $ 6,657 Basic earnings common share $ 0.39 $ 0.67 $ 0.39 $ 0.31 Diluted earnings per common share $ 0.36 $ 0.56 $ 0.36 $ 0.31 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details Textuals) | Apr. 06, 2020USD ($) | Nov. 22, 2019USD ($)$ / sharesshares | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)paymentnumberOfSubsidiaries | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Organization And Basis Of Presentation [Line Items] | ||||||
Number of payments made on RPL mortgage loans (at least) | payment | 5 | |||||
Number of recent payments made on RPL mortgage loans | payment | 7 | |||||
Principal balance of small balance commercial mortgage loans (up to) | $ 574,217,000 | |||||
Number of payments made on NPL mortgage loans | payment | 3 | |||||
Proceeds from issuance of preferred stock and warrants, net of offering costs | $ 125,000,000 | $ 130,000,000 | $ 124,976,000 | $ 0 | $ 0 | |
Percentage of ownership interests in joint venture | 34.00% | |||||
Percentage Of Outstanding Operating Partnership Units Owned | 100.00% | 96.80% | ||||
Percentage of outstanding OP units owned | 100.00% | 96.80% | ||||
Percentage of outstanding OP owned by an unaffiliated holder | 3.20% | |||||
Number of non controlling interest subsidiaries | numberOfSubsidiaries | 4 | |||||
Maximum | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Principal balance of small balance commercial mortgage loans (up to) | $ 5,000,000 | |||||
2018-C | Great Ajax Corp | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 63.00% | |||||
2017-D | Great Ajax Corp | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 50.00% | |||||
Ownership percentage by noncontrolling owners | 50.00% | |||||
AS Ajax E II LLC | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Ownership percentage | 5.00% | |||||
Percentage of ownership interests in joint venture | 53.10% | |||||
AS Ajax E II LLC | Third Party | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Ownership percentage by noncontrolling owners | 46.90% | |||||
Great Ajax II REIT | Great Ajax Corp | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 99.90% | 99.80% | ||||
Ownership percentage by noncontrolling owners | 0.10% | 0.20% | ||||
Thetis | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Ownership percentage | 19.80% | |||||
Gaea | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Ownership percentage | 23.20% | 23.00% | ||||
Share Price | $ / shares | $ 15 | |||||
Private placement share issuance | shares | 4,419,641 | |||||
Proceeds from issuance of preferred stock and warrants, net of offering costs | $ 66,300,000 | |||||
Gaea | Third Party | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Ownership percentage by noncontrolling owners | 76.80% | 77.00% | ||||
Great Ajax FS LLC | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Ownership percentage | 8.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) | Apr. 06, 2020USD ($)$ / sharesshares | Jan. 01, 2020USD ($) | Apr. 01, 2019USD ($) | Mar. 31, 2019USD ($) | Jun. 07, 2016 | Jul. 08, 2014 | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($)numberOfLoanPools | Mar. 31, 2020USD ($)numberOfLoanPools | Dec. 31, 2020USD ($)numberOfSubsidiariespaymentnumberOfLoanPools$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($)numberOfSubsidiariesnumberOfLoanPools$ / sharesshares | Nov. 19, 2018USD ($) | Aug. 18, 2017USD ($) | Apr. 25, 2017USD ($) |
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Conversion discount (premium) - Convertible senior notes | $ 3,200,000 | |||||||||||||||
Proceeds from issuance of preferred stock and warrants, net of offering costs | $ 125,000,000 | $ 130,000,000 | $ 124,976,000 | $ 0 | $ 0 | |||||||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 25 | $ 0.01 | $ 0.01 | |||||||||||||
Preferred Stock, Liquidation Preference Per Share | $ / shares | $ 25 | |||||||||||||||
Class of Warrant or Right, Outstanding | shares | 6,500,000 | |||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 10 | |||||||||||||||
Warrants Original Basis | $ 9,500,000 | |||||||||||||||
Warrant liability | $ 50,700,000 | $ 50,700,000 | ||||||||||||||
Convertible Notes Payable | $ 2,500,000 | $ 8,000,000 | ||||||||||||||
Payments for Repurchase of Convertible Notes | 2,300,000 | 8,200,000 | ||||||||||||||
Convertible Senior Note Repurchase | $ 0 | $ 100,000 | $ 81,000 | |||||||||||||
Prior Period Reclassification Adjustment | $ 800,000 | |||||||||||||||
Number of loan pools | numberOfLoanPools | 6 | 4 | 6 | 6 | ||||||||||||
Number of taxable subsidiaries | numberOfSubsidiaries | 2 | 2 | ||||||||||||||
Percentage of incentive fees payable in cash | 100.00% | |||||||||||||||
Minimum assets with banking institutions | $ 1,000,000,000 | $ 1,000,000,000 | ||||||||||||||
Beginning period adjustment for CECL | $ (10,200,000) | $ (10,156,000) | $ 0 | $ 0 | ||||||||||||
Beneficial interests in securitization trusts | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Beginning period adjustment for CECL | $ (4,200,000) | |||||||||||||||
Series A Preferred Stock | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Preferred Stock, Shares Issued | shares | 2,307,400 | 2,307,400 | 0 | 2,307,400 | ||||||||||||
Preferred Stock, Dividend Rate, Percentage | 7.25% | |||||||||||||||
Series B Preferred Stock | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Preferred Stock, Shares Issued | shares | 2,892,600 | 2,892,600 | 0 | 2,892,600 | ||||||||||||
Preferred Stock, Dividend Rate, Percentage | 5.00% | |||||||||||||||
Minimum | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Estimated useful lives of an assets | 27 years 6 months | |||||||||||||||
Servicing Agreement | Gregory | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Servicing fees percentage | 0.20% | 0.42% | ||||||||||||||
Servicing fee consecutive payments for rate reduction | payment | 7 | |||||||||||||||
Percentage of fair market value of REO | 1.00% | |||||||||||||||
Percentage of purchase price of REO | 1.00% | |||||||||||||||
Servicing Agreement | Gregory | Minimum | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Servicing fees percentage | 0.65% | |||||||||||||||
Servicing Agreement | Gregory | Maximum | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Servicing fees percentage | 1.25% | |||||||||||||||
Amended And Restated Management Agreement | Thetis | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Period of common shares held as base management fee (at least) | 3 years | |||||||||||||||
2014 Director Equity Plan | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Number of shares available under for distribution (in shares) | shares | 78,000 | 78,000 | ||||||||||||||
Vesting period | 1 year | |||||||||||||||
Annual retainer, shares | 40.00% | 50.00% | ||||||||||||||
Annual retainer, cash | 60.00% | 50.00% | ||||||||||||||
2014 Director Equity Plan | Restricted stock | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Number of shares issued to independent directors (in shares) | shares | 2,000 | |||||||||||||||
Annual retainer amount | $ 100,000 | $ 75,000 | ||||||||||||||
2016 Equity Incentive Plan | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Vesting period | 3 years | |||||||||||||||
Fraction of award vesting period | 0.3333 | |||||||||||||||
Percentage of outstanding shares on a fully diluted basis (up to) | 5.00% | |||||||||||||||
Convertible Notes Payable | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Aggregate principal | $ 87,500,000 | |||||||||||||||
Additional aggregate principal | $ 15,900,000 | $ 20,500,000 | ||||||||||||||
Interest rate | 7.25% | |||||||||||||||
Conversion discount (premium) - Convertible senior notes | $ 1,400,000 | $ 1,300,000 | ||||||||||||||
Convertible Notes Payable | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Principal amount of note (in dollars per share) | $ / shares | $ 25 | |||||||||||||||
Common Stock | Convertible Notes Payable | ||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||||
Conversion rate | 1.7279 | |||||||||||||||
Conversion price per share | $ / shares | $ 14.47 | $ 14.47 |
Mortgage Loans - Schedule of Lo
Mortgage Loans - Schedule of Loan Portfolio Basis by Asset Type (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, net | [1],[2] | $ 1,119,372 | $ 1,151,469 |
Residential RPLs | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, net | 1,057,454 | 1,085,514 | |
SBC loans | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, net | 23,194 | 35,086 | |
Residential NPLs | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans, net | $ 38,724 | $ 30,869 | |
[1] | As of December 31, 2020, balances for Mortgage loans, net includes $307.1 million and Secured borrowings, net of deferred costs includes $250.6 million from the 50.0% and 63.0% owned joint ventures, respectively. As of December 31, 2019, balances for Mortgage loans, net include $341.8 million and Secured borrowings, net of deferred costs includes $284.8 million from the 50.0% and 63.0% owned joint ventures, all of which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). | ||
[2] | Mortgage loans, net include $842.2 million and $908.6 million of loans at December 31, 2020 and December 31, 2019, respectively, transferred to securitization trusts that are variable interest entities (“VIEs”); these loans can only be used to settle obligations of the VIEs. Secured borrowings consist of notes issued by VIEs that can only be settled with the assets and cash flows of the VIEs. The creditors do not have recourse to the primary beneficiary (Great Ajax Corp.). See Note 9 — Debt. Mortgage loans, net include $13.7 million and $2.0 million of allowance for loan losses at December 31, 2020 and December 31, 2019, respectively. (2) As of December 31, 2020, balances for Mortgage loans, net includes $307.1 million and Secured borrowings, net of deferred costs includes $250.6 million from the 50.0% and 63.0% owned joint ventures, respectively. As of December 31, 2019, balances for Mortgage loans, net include $341.8 million and Secured borrowings, net of deferred costs includes $284.8 million from the 50.0% and 63.0% owned joint ventures, all of which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). |
Mortgage Loans - Narrative (Det
Mortgage Loans - Narrative (Details) $ in Thousands | Jan. 01, 2020USD ($) | Dec. 31, 2020USD ($)loannumberOfLoanPoolspayment | Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($) | Jun. 30, 2020numberOfLoanPools | Mar. 31, 2020numberOfLoanPools | Dec. 31, 2017USD ($) | |
Mortgage Loans on Real Estate [Line Items] | ||||||||
Carrying value of mortgage loans | [1],[2] | $ 1,119,372 | $ 1,151,469 | |||||
Investment Income, Interest | 85,400 | 95,100 | $ 102,500 | |||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 26,200 | 202,100 | ||||||
SBC loan count | loan | 6,031 | |||||||
Provision for credit benefit/(losses) | $ (8,274) | (803) | (1,164) | |||||
Financing Receivable, Allowance for Credit Losses | 13,712 | 1,960 | 1,164 | $ 0 | ||||
Sale of mortgage loans | $ 26,111 | $ 178,800 | ||||||
Number of sold loans | loan | 26 | 965 | ||||||
Estimated Market Value Of Underlying Collaterals | $ 44,200 | $ 323,700 | ||||||
Beginning period adjustment for CECL | $ (10,200) | $ (10,156) | 0 | $ 0 | ||||
Number of loan pools | numberOfLoanPools | 6 | 6 | 4 | |||||
Number of recent payments made on RPL mortgage loans | payment | 7 | |||||||
RPLs, NPLs, and Originated SBCs | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Carrying value of mortgage loans | [2] | $ 1,100,000 | 1,200,000 | |||||
SBC loans acquired at or near origination | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 20,300 | $ 19,000 | ||||||
SBC loan count | loan | 14 | 22 | ||||||
Non-PCD loans | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Number of loan pools | numberOfLoanPools | 1 | |||||||
7f7 and better | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Carrying value of mortgage loans | $ 142,235 | $ 230,431 | ||||||
Number of recent payments made on RPL mortgage loans | numberOfLoanPools | 7 | |||||||
4f4-6f6 and below | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Carrying value of mortgage loans | $ 126,814 | 113,897 | ||||||
Number of recent payments made on RPL mortgage loans | numberOfLoanPools | 4 | |||||||
RPLs | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Carrying value of mortgage loans | $ 1,057,454 | $ 1,085,514 | ||||||
Number of mortgage loans on real estate | loan | 304 | 573 | ||||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 61,700 | $ 122,500 | ||||||
NPLs | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Number of mortgage loans on real estate | loan | 65 | 35 | ||||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 16,000 | $ 6,700 | ||||||
[1] | As of December 31, 2020, balances for Mortgage loans, net includes $307.1 million and Secured borrowings, net of deferred costs includes $250.6 million from the 50.0% and 63.0% owned joint ventures, respectively. As of December 31, 2019, balances for Mortgage loans, net include $341.8 million and Secured borrowings, net of deferred costs includes $284.8 million from the 50.0% and 63.0% owned joint ventures, all of which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). | |||||||
[2] | Mortgage loans, net include $842.2 million and $908.6 million of loans at December 31, 2020 and December 31, 2019, respectively, transferred to securitization trusts that are variable interest entities (“VIEs”); these loans can only be used to settle obligations of the VIEs. Secured borrowings consist of notes issued by VIEs that can only be settled with the assets and cash flows of the VIEs. The creditors do not have recourse to the primary beneficiary (Great Ajax Corp.). See Note 9 — Debt. Mortgage loans, net include $13.7 million and $2.0 million of allowance for loan losses at December 31, 2020 and December 31, 2019, respectively. (2) As of December 31, 2020, balances for Mortgage loans, net includes $307.1 million and Secured borrowings, net of deferred costs includes $250.6 million from the 50.0% and 63.0% owned joint ventures, respectively. As of December 31, 2019, balances for Mortgage loans, net include $341.8 million and Secured borrowings, net of deferred costs includes $284.8 million from the 50.0% and 63.0% owned joint ventures, all of which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). |
Mortgage Loans - Schedule of _2
Mortgage Loans - Schedule of loan basis by year of origination (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | $ 1,119,372 |
Great Ajax II REIT | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 424,997 |
2018-C | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 173,221 |
2017-D | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 133,896 |
California | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 88,788 |
7f7 and better | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 142,235 |
4f4-6f6 and below | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 126,814 |
Non-PCD | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 29,421 |
Year 2020 | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 24,480 |
Year 2020 | Great Ajax II REIT | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 |
Year 2020 | 2018-C | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 |
Year 2020 | 2017-D | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 |
Year 2020 | California | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 2,221 |
Year 2020 | 7f7 and better | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 |
Year 2020 | 4f4-6f6 and below | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 872 |
Year 2020 | Non-PCD | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 21,387 |
Year 2019 | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 7,998 |
Year 2019 | Great Ajax II REIT | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 |
Year 2019 | 2018-C | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 |
Year 2019 | 2017-D | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 |
Year 2019 | California | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 952 |
Year 2019 | 7f7 and better | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 911 |
Year 2019 | 4f4-6f6 and below | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 1,397 |
Year 2019 | Non-PCD | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 4,738 |
Year 2018 | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 4,293 |
Year 2018 | Great Ajax II REIT | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 257 |
Year 2018 | 2018-C | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 |
Year 2018 | 2017-D | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 |
Year 2018 | California | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 1,484 |
Year 2018 | 7f7 and better | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 434 |
Year 2018 | 4f4-6f6 and below | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 2,054 |
Year 2018 | Non-PCD | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 64 |
Year 2017 | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 3,800 |
Year 2017 | Great Ajax II REIT | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 488 |
Year 2017 | 2018-C | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 |
Year 2017 | 2017-D | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 121 |
Year 2017 | California | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 362 |
Year 2017 | 7f7 and better | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 |
Year 2017 | 4f4-6f6 and below | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 336 |
Year 2017 | Non-PCD | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 2,493 |
Year 2016 | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 4,520 |
Year 2016 | Great Ajax II REIT | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 1,991 |
Year 2016 | 2018-C | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 |
Year 2016 | 2017-D | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 |
Year 2016 | California | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 0 |
Year 2016 | 7f7 and better | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 2,125 |
Year 2016 | 4f4-6f6 and below | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 305 |
Year 2016 | Non-PCD | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 99 |
Years 2009-2015 | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 99,504 |
Years 2009-2015 | Great Ajax II REIT | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 41,746 |
Years 2009-2015 | 2018-C | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 14,100 |
Years 2009-2015 | 2017-D | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 6,826 |
Years 2009-2015 | California | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 5,292 |
Years 2009-2015 | 7f7 and better | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 17,520 |
Years 2009-2015 | 4f4-6f6 and below | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 13,409 |
Years 2009-2015 | Non-PCD | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 611 |
Years 2006-2008 | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 721,689 |
Years 2006-2008 | Great Ajax II REIT | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 280,606 |
Years 2006-2008 | 2018-C | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 119,343 |
Years 2006-2008 | 2017-D | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 94,711 |
Years 2006-2008 | California | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 60,393 |
Years 2006-2008 | 7f7 and better | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 88,414 |
Years 2006-2008 | 4f4-6f6 and below | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 78,202 |
Years 2006-2008 | Non-PCD | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 20 |
Years 2005 and prior | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 253,088 |
Years 2005 and prior | Great Ajax II REIT | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 99,909 |
Years 2005 and prior | 2018-C | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 39,778 |
Years 2005 and prior | 2017-D | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 32,238 |
Years 2005 and prior | California | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 18,084 |
Years 2005 and prior | 7f7 and better | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 32,831 |
Years 2005 and prior | 4f4-6f6 and below | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 30,239 |
Years 2005 and prior | Non-PCD | |
Mortgage Loans [Line Items] | |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | $ 9 |
Mortgage Loans - Schedule of _3
Mortgage Loans - Schedule of loan acquisition reconciliation between purchase price and par value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Mortgage Loans on Real Estate [Line Items] | |||
Par | $ 27,319 | ||
Discount | (5,233) | ||
Allowance | (1,879) | $ 0 | $ 0 |
PCD loans | |||
Mortgage Loans on Real Estate [Line Items] | |||
Par | 70,811 | ||
Discount | (6,457) | ||
Allowance | (1,879) | ||
Purchase Price | 62,475 | ||
Non-PCD | |||
Mortgage Loans on Real Estate [Line Items] | |||
Par | 27,191 | ||
Discount | (701) | ||
Allowance | 0 | ||
Purchase Price | $ 26,490 |
Mortgage Loans - Allowance for
Mortgage Loans - Allowance for loan losses (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Allowance for loan credit losses, beginning of period | $ (1,960) | $ (1,960) | $ (1,164) | $ 0 |
Beginning period adjustment for CECL | $ (10,200) | (10,156) | 0 | 0 |
Reversal of / (increase in) provision for credit losses on mortgage loans | (8,274) | (803) | (1,164) | |
Incremental (increase in) / reversal of allowance for loan credit losses | (7,991) | 7 | 0 | |
Increase in allowance for loan credit losses for loan acquisitions | (1,879) | 0 | 0 | |
Allowance for loan credit losses, end of period | $ (13,712) | $ (1,960) | $ (1,164) |
Mortgage Loans - Schedule of Ca
Mortgage Loans - Schedule of Carrying Value of Mortgage Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | [1],[2] | $ 1,119,372 | $ 1,151,469 |
Great Ajax II REIT | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 424,997 | 321,861 | |
2018-C | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 173,221 | 179,302 | |
2017-D | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 133,896 | 148,120 | |
California | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 88,788 | 134,424 | |
7f7 and better | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 142,235 | 230,431 | |
4f4-6f6 and below | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 126,814 | 113,897 | |
Non-PCD | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 29,421 | 23,434 | |
Current | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 591,538 | 676,143 | |
Current | Great Ajax II REIT | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 311,941 | 265,677 | |
Current | 2018-C | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 70,034 | 75,253 | |
Current | 2017-D | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 58,198 | 68,996 | |
Current | California | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 42,214 | 90,658 | |
Current | 7f7 and better | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 72,613 | 147,722 | |
Current | 4f4-6f6 and below | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 13,976 | 6,412 | |
Current | Non-PCD | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 22,562 | 21,425 | |
30 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 132,248 | 146,208 | |
30 | Great Ajax II REIT | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 48,266 | 37,553 | |
30 | 2018-C | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 20,541 | 33,904 | |
30 | 2017-D | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 24,906 | 28,318 | |
30 | California | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 7,660 | 12,733 | |
30 | 7f7 and better | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 14,003 | 29,371 | |
30 | 4f4-6f6 and below | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 10,773 | 4,329 | |
30 | Non-PCD | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 6,099 | 0 | |
60 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 72,475 | 93,806 | |
60 | Great Ajax II REIT | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 19,559 | 14,034 | |
60 | 2018-C | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 15,300 | 19,756 | |
60 | 2017-D | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 12,437 | 14,452 | |
60 | California | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 5,519 | 9,123 | |
60 | 7f7 and better | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 12,447 | 22,645 | |
60 | 4f4-6f6 and below | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 7,157 | 12,946 | |
60 | Non-PCD | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 56 | 850 | |
90 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 277,115 | 197,015 | |
90 | Great Ajax II REIT | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 43,364 | 4,597 | |
90 | 2018-C | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 57,538 | 42,315 | |
90 | 2017-D | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 36,106 | 33,166 | |
90 | California | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 29,343 | 20,737 | |
90 | 7f7 and better | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 41,383 | 28,864 | |
90 | 4f4-6f6 and below | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 68,677 | 66,177 | |
90 | Non-PCD | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 704 | 1,159 | |
Foreclosure | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 45,996 | 38,297 | |
Foreclosure | Great Ajax II REIT | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 1,867 | 0 | |
Foreclosure | 2018-C | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 9,808 | 8,074 | |
Foreclosure | 2017-D | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 2,249 | 3,188 | |
Foreclosure | California | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 4,052 | 1,173 | |
Foreclosure | 7f7 and better | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 1,789 | 1,829 | |
Foreclosure | 4f4-6f6 and below | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | 26,231 | 24,033 | |
Foreclosure | Non-PCD | |||
Mortgage Loans on Real Estate [Line Items] | |||
Carrying value of mortgage loans | $ 0 | $ 0 | |
[1] | As of December 31, 2020, balances for Mortgage loans, net includes $307.1 million and Secured borrowings, net of deferred costs includes $250.6 million from the 50.0% and 63.0% owned joint ventures, respectively. As of December 31, 2019, balances for Mortgage loans, net include $341.8 million and Secured borrowings, net of deferred costs includes $284.8 million from the 50.0% and 63.0% owned joint ventures, all of which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). | ||
[2] | Mortgage loans, net include $842.2 million and $908.6 million of loans at December 31, 2020 and December 31, 2019, respectively, transferred to securitization trusts that are variable interest entities (“VIEs”); these loans can only be used to settle obligations of the VIEs. Secured borrowings consist of notes issued by VIEs that can only be settled with the assets and cash flows of the VIEs. The creditors do not have recourse to the primary beneficiary (Great Ajax Corp.). See Note 9 — Debt. Mortgage loans, net include $13.7 million and $2.0 million of allowance for loan losses at December 31, 2020 and December 31, 2019, respectively. (2) As of December 31, 2020, balances for Mortgage loans, net includes $307.1 million and Secured borrowings, net of deferred costs includes $250.6 million from the 50.0% and 63.0% owned joint ventures, respectively. As of December 31, 2019, balances for Mortgage loans, net include $341.8 million and Secured borrowings, net of deferred costs includes $284.8 million from the 50.0% and 63.0% owned joint ventures, all of which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). |
Real Estate Assets, Net - Narra
Real Estate Assets, Net - Narrative (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020USD ($)property | Dec. 31, 2019USD ($)property | Dec. 31, 2018USD ($) | |||
Real Estate [Line Items] | |||||
Number of properties owned | property | 6 | 10 | |||
Rental Properties | $ 719 | $ 1,534 | |||
Aggregate carrying value REO properties | $ 700 | $ 1,500 | |||
Number of REO properties held for rental | property | 5 | 6 | |||
Number of properties acquired through foreclosure | property | 1 | 1 | |||
Number of properties transferred from property held for sale | property | 3 | 6 | |||
Number of real estate properties purchased | property | 1 | 2 | |||
Impaired REO held for sale net at NRV | $ 7,807 | [1] | $ 13,537 | [1] | $ 19,402 |
Number of held-for-sale residential properties disposed | property | 50 | 109 | |||
Real Estate Held For Sale Improvements | $ 300 | $ 2,200 | |||
Gain on sale of property | 1,011 | 629 | $ 380 | ||
Adjustment to record REO properties at lower of cost | 1,400 | 2,100 | |||
Other Income | |||||
Real Estate [Line Items] | |||||
Gain on sale of property | $ 1,000 | $ 600 | |||
[1] | Property held-for-sale, net, includes valuation allowances of $1.4 million and $1.8 million at December 31, 2020 and December 31, 2019, respectively. |
Real Estate Assets, Net - Sched
Real Estate Assets, Net - Schedule of REO Held-For-Sale (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)property | Dec. 31, 2019USD ($)property | |||
Real Estate Held For Sale [Roll Forward] | ||||
Balance at beginning of year | property | 58 | 102 | ||
Balance at beginning of period | $ | $ 13,537 | [1] | $ 19,402 | |
Transfers from mortgage loans, count | property | 20 | 61 | ||
Real Estate Owned, Transfer to Real Estate Owned | $ | $ 4,903 | $ 12,104 | ||
Adjustments to record at lower of cost or fair value, count | property | 0 | 0 | ||
Adjustments to record at lower of cost or fair value | $ | $ (1,359) | $ (2,104) | ||
Disposals, count | property | (50) | (109) | ||
Disposals | $ | $ (10,089) | $ (16,819) | ||
Transfer from rental property, count | property | 4 | 6 | ||
Transfer from rental property | $ | $ 795 | $ 1,613 | ||
Transfer to rental property, count | property | 0 | (2) | ||
Transfer to rental property | $ | $ 0 | $ (414) | ||
Other, count | property | 0 | 0 | ||
Other Real Estate Held-for-Sale | $ | $ 20 | $ 245 | ||
Balance at end of period , count | property | 32 | 58 | ||
Balance at end of year | $ | [1] | $ 7,807 | $ 13,537 | |
[1] | Property held-for-sale, net, includes valuation allowances of $1.4 million and $1.8 million at December 31, 2020 and December 31, 2019, respectively. |
Investments (Details)
Investments (Details) - USD ($) | Jan. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Available-for-sale Securities, Gross Realized Gains | $ 0 | $ 0 | |||
Investment In Securities | 144,700,000 | 187,800,000 | |||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 1,200,000 | 1,600,000 | |||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | 800,000 | 400,000 | |||
Investments in securities at fair value | [1] | 273,834,000 | 231,685,000 | ||
Investments in beneficial interests | [2] | 91,418,000 | 57,954,000 | ||
Proceeds on sale of securities | 38,944,000 | 39,635,000 | $ 8,073,000 | ||
Debt and Equity Securities, Gain (Loss) | 100,000 | 8,000 | |||
Interest and Dividend Income, Securities, Operating, Available-for-sale | 200,000 | 300,000 | |||
Beginning period adjustment for CECL | $ (10,200,000) | (10,156,000) | 0 | 0 | |
Reversal of provision for credit losses on beneficial interests | 2,547,000 | 0 | $ 0 | ||
Beneficial interests in securitization trusts | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Beginning period adjustment for CECL | $ (4,200,000) | ||||
Reversal of provision for credit losses on beneficial interests | 2,500,000 | 0 | |||
Senior Notes | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Investments in securities at fair value | 115,600,000 | 139,600,000 | |||
Subordinated Debt | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Investments in securities at fair value | 9,800,000 | 16,800,000 | |||
Beneficial interests in securitization trusts | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Investments in beneficial interests | $ 19,300,000 | $ 31,400,000 | |||
[1] | As of December 31, 2020 and December 31, 2019 Investments in securities at fair value include amortized cost basis of $273.4 million and $230.4 million, respectively, and net unrealized gains of $0.4 million and $1.3 million, respectively. | ||||
[2] | Investments in beneficial interests includes allowance for credit losses of $4.5 million at December 31, 2020. No allowance for credit losses was recorded as of December 31, 2019. |
Investments - Available-for-sal
Investments - Available-for-sale (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | $ 273,400 | $ 230,400 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 1,200 | 1,600 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (800) | (400) |
Interest and Dividend Income, Securities, Operating, Available-for-sale | 200 | 300 |
Investment in debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 273,459 | 230,408 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 1,152 | 1,643 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (777) | (366) |
Debt Securities | 273,834 | 231,685 |
Beneficial interests in securitization trusts | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 91,418 | 57,954 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Available-for-sale Securities | 91,418 | 57,954 |
Accumulated Net Investment Gain (Loss) Attributable to Noncontrolling Interest | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 364,877 | 288,362 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1,152 | 1,643 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (777) | (366) |
Available-for-sale Securities | $ 365,252 | $ 289,639 |
Investments at fair value Inves
Investments at fair value Investments at fair value - Schedule of Debt and Equity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Line Items] | |||
Available-for-sale Debt Securities, Amortized Cost Basis | $ 273,400 | $ 230,400 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (800) | (400) | |
Investments in securities at fair value | [1] | 273,834 | 231,685 |
Debt securities due April 2058 | |||
Investments, Debt and Equity Securities [Line Items] | |||
Available-for-sale Debt Securities, Amortized Cost Basis | 6,855 | ||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (9) | ||
Investments in securities at fair value | 6,846 | ||
Debt securities due February 2057 | |||
Investments, Debt and Equity Securities [Line Items] | |||
Available-for-sale Debt Securities, Amortized Cost Basis | 7,324 | ||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (1) | ||
Investments in securities at fair value | 7,323 | ||
Debt securities due September 2059 | |||
Investments, Debt and Equity Securities [Line Items] | |||
Available-for-sale Debt Securities, Amortized Cost Basis | 22,216 | 37,843 | |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (238) | (356) | |
Investments in securities at fair value | 21,978 | 37,487 | |
Debt securities due September 2059 | Unrealized loss 12 months or longer | |||
Investments, Debt and Equity Securities [Line Items] | |||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (100) | ||
Debt securities due September 2059 | Unrealized loss less than 12 months | |||
Investments, Debt and Equity Securities [Line Items] | |||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (200) | ||
Debt securities due November 2059 | |||
Investments, Debt and Equity Securities [Line Items] | |||
Available-for-sale Debt Securities, Amortized Cost Basis | 14,738 | ||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (61) | ||
Investments in securities at fair value | 14,677 | ||
Debt securities due December 2059 | |||
Investments, Debt and Equity Securities [Line Items] | |||
Available-for-sale Debt Securities, Amortized Cost Basis | 47,270 | ||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (315) | ||
Investments in securities at fair value | 46,955 | ||
Debt securities due September 2060 | |||
Investments, Debt and Equity Securities [Line Items] | |||
Available-for-sale Debt Securities, Amortized Cost Basis | 34,970 | ||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (44) | ||
Investments in securities at fair value | 34,926 | ||
Debt securities due June 2060 | |||
Investments, Debt and Equity Securities [Line Items] | |||
Available-for-sale Debt Securities, Amortized Cost Basis | 35,127 | ||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (119) | ||
Investments in securities at fair value | 35,008 | ||
Debt securities basis | |||
Investments, Debt and Equity Securities [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 154,321 | 52,022 | |
Debt Securities Gross Unrealized Gain (Losses) | |||
Investments, Debt and Equity Securities [Line Items] | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (777) | ||
Debt securities carrying value | |||
Investments, Debt and Equity Securities [Line Items] | |||
Available-for-sale Securities | $ 153,544 | $ 51,656 | |
[1] | As of December 31, 2020 and December 31, 2019 Investments in securities at fair value include amortized cost basis of $273.4 million and $230.4 million, respectively, and net unrealized gains of $0.4 million and $1.3 million, respectively. |
Investments - Schedule of secur
Investments - Schedule of securities at acquisition reconciliation between purchase price and par value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Par | $ 27,319 | |
Discount | (5,233) | |
Allowance | 2,779 | $ 0 |
Beneficial interest purchase price | $ 19,307 |
Investments - Allowance for Cre
Investments - Allowance for Credit Loss on Beneficial Interests (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |||
Allowance for beneficial interests credit losses, beginning balance | $ 0 | $ 0 | |
Beginning period adjustment for CECL | (4,221) | 0 | |
Reversal of provision for credit losses on beneficial interests | 2,547 | 0 | $ 0 |
Increase in allowance for beneficial interest credit losses for acquisitions | 2,779 | 0 | |
Allowance for beneficial interests credit losses, end balance | $ (4,453) | $ 0 | $ 0 |
Fair Value - Schedule of Recurr
Fair Value - Schedule of Recurring Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Carrying Value | Fair Value, Recurring | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Investments in securities at fair value | $ 273,834 | ||
Investment in debt securities | $ 231,685 | ||
Consolidated balance sheet at fair value (liabilities) | |||
Warrant liability | 14,205 | ||
Investments in securities at fair value | [1] | 273,834 | 231,685 |
Warrant liability | 50,700 | ||
Level 1 Quoted prices in active markets | Fair Value, Recurring | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Investments in securities at fair value | 0 | ||
Investment In debt securities, fair value | 0 | ||
Consolidated balance sheet at fair value (liabilities) | |||
Fair value of warrant liability | 0 | ||
Level 2 Observable inputs other than Level 1 prices | Fair Value, Recurring | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Investments in securities at fair value | 273,834 | ||
Investment In debt securities, fair value | 231,685 | ||
Consolidated balance sheet at fair value (liabilities) | |||
Fair value of warrant liability | 0 | ||
Level 3 Unobservable inputs | Fair Value, Recurring | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Investments in securities at fair value | 0 | ||
Investment In debt securities, fair value | $ 0 | ||
Consolidated balance sheet at fair value (liabilities) | |||
Fair value of warrant liability | $ 14,205 | ||
[1] | As of December 31, 2020 and December 31, 2019 Investments in securities at fair value include amortized cost basis of $273.4 million and $230.4 million, respectively, and net unrealized gains of $0.4 million and $1.3 million, respectively. |
Fair Value - Schedule of Financ
Fair Value - Schedule of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated balance sheet at fair value disclosure (assets) | |||
Carrying value of mortgage loans | [1],[2] | $ 1,119,372 | $ 1,151,469 |
Consolidated balance sheet at fair value (liabilities) | |||
Gross amount of recognized liabilities | 421,132 | 414,114 | |
Secured borrowings, net | 585,403 | ||
Convertible senior notes, net | [3] | 110,057 | 118,784 |
Beneficial interests in securitization trusts | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Available-for-sale Securities | 91,418 | 57,954 | |
Carrying Value | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Carrying value of mortgage loans | 1,119,372 | 1,151,469 | |
Consolidated balance sheet at fair value (liabilities) | |||
Gross amount of recognized liabilities | 421,132 | 652,747 | |
Secured borrowings, net | 414,114 | ||
Convertible senior notes, net | 110,057 | 118,784 | |
Level 1 Quoted prices in active markets | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Trading Securities | 0 | 0 | |
Mortgage Loans Fair Value Disclosure | 0 | 0 | |
Consolidated balance sheet at fair value (liabilities) | |||
Secured borrowings, fair value | 0 | 0 | |
Secured Debt Repurchase Agreements Fair Value Disclosure | 0 | 0 | |
Convertible senior notes, net, fair value | 110,675 | 132,173 | |
Level 2 Observable inputs other than Level 1 prices | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Trading Securities | 0 | 57,954 | |
Mortgage Loans Fair Value Disclosure | 0 | 0 | |
Consolidated balance sheet at fair value (liabilities) | |||
Secured borrowings, fair value | 0 | 0 | |
Secured Debt Repurchase Agreements Fair Value Disclosure | 421,132 | 414,114 | |
Convertible senior notes, net, fair value | 0 | 0 | |
Level 3 Unobservable inputs | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Trading Securities, Equity | 91,418 | 0 | |
Mortgage Loans Fair Value Disclosure | 1,232,081 | 1,260,385 | |
Consolidated balance sheet at fair value (liabilities) | |||
Secured borrowings, fair value | 586,419 | 657,918 | |
Secured Debt Repurchase Agreements Fair Value Disclosure | 0 | 0 | |
Convertible senior notes, net, fair value | 0 | 0 | |
Manager | Carrying Value | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity Method Investments | 1,366 | 1,755 | |
Manager | Level 1 Quoted prices in active markets | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity Method Investments, Fair Value Disclosure | 0 | 0 | |
Manager | Level 2 Observable inputs other than Level 1 prices | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity Method Investments, Fair Value Disclosure | 0 | 0 | |
Manager | Level 3 Unobservable inputs | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity Method Investments, Fair Value Disclosure | 11,709 | 7,721 | |
Great Ajax F S | Carrying Value | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity Method Investments | 2,711 | 3,023 | |
Great Ajax F S | Level 1 Quoted prices in active markets | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity Method Investments, Fair Value Disclosure | 0 | 0 | |
Great Ajax F S | Level 2 Observable inputs other than Level 1 prices | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity Method Investments, Fair Value Disclosure | 0 | 0 | |
Great Ajax F S | Level 3 Unobservable inputs | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity Method Investments, Fair Value Disclosure | 3,320 | 3,320 | |
AS Ajax E | Carrying Value | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Real Estate Investments, Net | 776 | 931 | |
AS Ajax E | Level 1 Quoted prices in active markets | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Fair value adjustment recognized in the consolidated statements of income | 0 | 0 | |
AS Ajax E | Level 2 Observable inputs other than Level 1 prices | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Fair value adjustment recognized in the consolidated statements of income | 934 | 1,012 | |
AS Ajax E | Level 3 Unobservable inputs | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Fair value adjustment recognized in the consolidated statements of income | 0 | 0 | |
Gaea | Carrying Value | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity Method Investments | 20,001 | 19,995 | |
Gaea | Level 1 Quoted prices in active markets | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity Method Investments, Fair Value Disclosure | 0 | 0 | |
Gaea | Level 2 Observable inputs other than Level 1 prices | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity Method Investments, Fair Value Disclosure | 0 | 0 | |
Gaea | Level 3 Unobservable inputs | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity Method Investments, Fair Value Disclosure | 19,150 | 19,995 | |
AS Ajax E II LLC | Carrying Value | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity Method Investments | 3,381 | 3,977 | |
AS Ajax E II LLC | Level 1 Quoted prices in active markets | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Fair value adjustment recognized in the consolidated statements of income | 0 | 0 | |
AS Ajax E II LLC | Level 2 Observable inputs other than Level 1 prices | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Fair value adjustment recognized in the consolidated statements of income | 3,484 | 3,895 | |
AS Ajax E II LLC | Level 3 Unobservable inputs | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Fair value adjustment recognized in the consolidated statements of income | 0 | 0 | |
Loan pool LLCs | Carrying Value | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity Method Investments | 381 | 760 | |
Loan pool LLCs | Level 1 Quoted prices in active markets | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity Method Investments, Fair Value Disclosure | 0 | 0 | |
Loan pool LLCs | Level 2 Observable inputs other than Level 1 prices | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity Method Investments, Fair Value Disclosure | 0 | 0 | |
Loan pool LLCs | Level 3 Unobservable inputs | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity Method Investments, Fair Value Disclosure | $ 701 | $ 760 | |
[1] | As of December 31, 2020, balances for Mortgage loans, net includes $307.1 million and Secured borrowings, net of deferred costs includes $250.6 million from the 50.0% and 63.0% owned joint ventures, respectively. As of December 31, 2019, balances for Mortgage loans, net include $341.8 million and Secured borrowings, net of deferred costs includes $284.8 million from the 50.0% and 63.0% owned joint ventures, all of which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). | ||
[2] | Mortgage loans, net include $842.2 million and $908.6 million of loans at December 31, 2020 and December 31, 2019, respectively, transferred to securitization trusts that are variable interest entities (“VIEs”); these loans can only be used to settle obligations of the VIEs. Secured borrowings consist of notes issued by VIEs that can only be settled with the assets and cash flows of the VIEs. The creditors do not have recourse to the primary beneficiary (Great Ajax Corp.). See Note 9 — Debt. Mortgage loans, net include $13.7 million and $2.0 million of allowance for loan losses at December 31, 2020 and December 31, 2019, respectively. (2) As of December 31, 2020, balances for Mortgage loans, net includes $307.1 million and Secured borrowings, net of deferred costs includes $250.6 million from the 50.0% and 63.0% owned joint ventures, respectively. As of December 31, 2019, balances for Mortgage loans, net include $341.8 million and Secured borrowings, net of deferred costs includes $284.8 million from the 50.0% and 63.0% owned joint ventures, all of which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). | ||
[3] | Secured borrowings and Convertible senior notes are presented net of deferred issuance costs. |
Fair Value - Schedule of Non Fi
Fair Value - Schedule of Non Financial Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Carrying Value | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Property held-for-sale, net | $ 7,800 | $ 13,537 | |||
Property held-for-sale, net | 7,807 | [1] | 13,537 | [1] | $ 19,402 |
Level 1 Quoted prices in active markets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Real estate held for sale fair value | 0 | 0 | |||
Level 2 Observable inputs other than Level 1 prices | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Real estate held for sale fair value | 0 | 0 | |||
Level 3 Unobservable inputs | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Real estate held for sale fair value | 7,807 | 13,537 | |||
Changes Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Property held-for-sale, net | $ (1,359) | $ (2,104) | |||
[1] | Property held-for-sale, net, includes valuation allowances of $1.4 million and $1.8 million at December 31, 2020 and December 31, 2019, respectively. |
Affiliates - Narrative (Details
Affiliates - Narrative (Details) $ in Thousands | Apr. 06, 2020USD ($) | Nov. 22, 2019USD ($)shares | May 29, 2018USD ($)warrantshares | Jan. 26, 2018USD ($)warrantshares | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)counterparty | Dec. 31, 2018USD ($)transaction | Mar. 14, 2016 |
Schedule of Equity Method Investments [Line Items] | |||||||||
Proceeds from issuance of preferred stock and warrants, net of offering costs | $ 125,000 | $ 130,000 | $ 124,976 | $ 0 | $ 0 | ||||
Percentage of ownership interests in joint venture | 34.00% | ||||||||
Great Ajax FS LLC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage | 8.00% | ||||||||
Number of transactions | transaction | 2 | ||||||||
Percentage of equity interest at closing date | 3.10% | 4.90% | |||||||
Number of warrants | warrant | 3 | 3 | |||||||
Percentage of warrants exercisable | 1.55% | 2.45% | |||||||
Cash payment in business acquisition | $ 700 | $ 1,100 | |||||||
Number of shares (in shares) | shares | 29,063 | 45,938 | |||||||
Common stock value | $ 400 | $ 600 | |||||||
Loan pool LLCs | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage | 40.40% | ||||||||
Cash payment in business acquisition | $ 1,000 | ||||||||
Number of entities | counterparty | 3 | ||||||||
AS Ajax E II LLC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage | 5.00% | ||||||||
Percentage of ownership interests in joint venture | 53.10% | ||||||||
AS Ajax E II LLC | Third Party | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage by noncontrolling owners | 46.90% | ||||||||
Thetis | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage | 19.80% | ||||||||
As Ajax E LLC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage | 16.50% | 24.20% | |||||||
Gaea | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Proceeds from issuance of preferred stock and warrants, net of offering costs | $ 66,300 | ||||||||
Private placement share issuance | shares | 4,419,641 | ||||||||
Ownership percentage | 23.20% | 23.00% | |||||||
Gaea | Third Party | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage by noncontrolling owners | 76.80% | 77.00% | |||||||
Ajax E Master Trust | As Ajax E LLC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership interest in real estate trust, percentage | 5.00% |
Affiliates - Schedule of Net In
Affiliates - Schedule of Net Income, Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 22, 2019 | Mar. 14, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||||
Assets at Company share | $ 1,653,732 | $ 1,576,841 | |||
Liabilities at Company share | 1,139,241 | 1,192,757 | |||
(Loss)/income from investment in affiliates | (155) | 1,332 | $ 762 | ||
Great Ajax FS LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Net income/(loss) at the Company's share | (3,901) | 2,233 | 1,257 | ||
Assets at Company share | 4,523 | 4,915 | |||
Liabilities at Company share | 2,888 | 2,971 | |||
(Loss)/income from investment in affiliates | (312) | 179 | 90 | ||
Great Ajax FS LLC | Liabilities, Total | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Liabilities at Company share | 36,101 | 37,142 | |||
Great Ajax FS LLC | Assets, Total | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets at Company share | $ 56,532 | 61,432 | |||
Thetis | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 19.80% | ||||
Net income/(loss) at the Company's share | $ (693) | 4,685 | 2,202 | ||
Assets at Company share | 1,887 | 2,431 | |||
Liabilities at Company share | 420 | 448 | |||
(Loss)/income from investment in affiliates | (137) | 928 | 436 | ||
Thetis | Liabilities, Total | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Liabilities at Company share | 2,122 | 2,265 | |||
Thetis | Assets, Total | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets at Company share | $ 9,531 | 12,277 | |||
Unconsolidated Affiliates | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 100.00% | ||||
As Ajax E LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 16.50% | 24.20% | |||
Net income/(loss) at the Company's share | $ 209 | 299 | 324 | ||
Assets at Company share | 791 | 948 | |||
Liabilities at Company share | 0 | 0 | |||
(Loss)/income from investment in affiliates | 34 | 49 | 53 | ||
As Ajax E LLC | Liabilities, Total | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Liabilities at Company share | 2 | 2 | |||
As Ajax E LLC | Assets, Total | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets at Company share | 4,808 | 5,747 | |||
Loan pool LLCs | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Net income/(loss) at the Company's share | (133) | (9) | 0 | ||
Assets at Company share | 973 | 637 | |||
Liabilities at Company share | 1,595 | 1,247 | |||
(Loss)/income from investment in affiliates | (54) | (4) | 0 | ||
Loan pool LLCs | Liabilities, Total | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Liabilities at Company share | 3,961 | 3,095 | |||
Loan pool LLCs | Assets, Total | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets at Company share | $ 2,423 | 1,592 | |||
Gaea | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 23.00% | 23.20% | |||
Net income/(loss) at the Company's share | $ 720 | (20) | 0 | ||
Assets at Company share | 21,729 | 19,252 | |||
Liabilities at Company share | 2,729 | 178 | |||
(Loss)/income from investment in affiliates | 165 | (5) | $ 0 | ||
Gaea | Liabilities, Total | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Liabilities at Company share | 11,886 | 768 | |||
Gaea | Assets, Total | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets at Company share | $ 94,639 | $ 83,068 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | Apr. 06, 2020USD ($)$ / sharesshares | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)loan$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) |
Mortgage Loans on Real Estate [Line Items] | |||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 26,200,000 | $ 202,100,000 | |||
Proceeds from issuance of preferred stock and warrants, net of offering costs | $ 125,000,000 | $ 130,000,000 | $ 124,976,000 | $ 0 | $ 0 |
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 25 | $ 0.01 | |||
Class of Warrant or Right, Outstanding | shares | 6,500,000 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 10 | ||||
Warrant liability | $ 50,700,000 | ||||
Loss Contingency Accrual | $ 0 | ||||
Series A Preferred Stock | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Preferred Stock, Shares Issued | shares | 2,307,400 | 2,307,400 | 0 | ||
Preferred Stock, Dividend Rate, Percentage | 7.25% | ||||
Series B Preferred Stock | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Preferred Stock, Shares Issued | shares | 2,892,600 | 2,892,600 | 0 | ||
Preferred Stock, Dividend Rate, Percentage | 5.00% | ||||
One-to-four family residences | Purchase commitment | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 6,000,000 | ||||
One-to-four family residences | Reperforming Mortgage Loans On Real Estate | Purchase commitment | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Number of mortgage loans on real estate | loan | 40 |
Commitment and Contingencies -
Commitment and Contingencies - Schedule of Put Option Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Commitments [Roll Forward] | |||
Amortization of put option expense | $ 5,176 | $ 5,716 | $ 6,378 |
Ending balance | 14,200 | ||
Five-Year Warrants | |||
Other Commitments [Roll Forward] | |||
Beginning balance | 0 | 0 | 0 |
Basis of put option liability | 9,482 | 0 | 0 |
Amortization of put option expense | 4,475 | 0 | 0 |
Mark to market adjustment | 248 | 0 | 0 |
Ending balance | $ 14,205 | $ 0 | $ 0 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jan. 25, 2019 | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)securitizationDaycounterpartyFacilitytrust$ / shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($)securitization$ / shares | Nov. 19, 2018USD ($) | Aug. 18, 2017USD ($) | Apr. 25, 2017USD ($) |
Debt Instrument [Line Items] | |||||||||
Percentage of guarantors beneficial interest | 100.00% | 100.00% | |||||||
Number of securitizations completed | securitization | 16 | ||||||||
Number of securitizations outstanding | securitization | 6 | 6 | |||||||
Basis spread on variable rate | 100.00% | ||||||||
Conversion premium - Convertible senior notes | $ 494,000 | ||||||||
Interest expense | $ 48,692,000 | $ 59,325,000 | $ 53,335,000 | ||||||
Conversion discount (premium) - Convertible senior notes | 3,200,000 | ||||||||
Collateralized Financings | $ 32,400,000 | $ 4,653,000 | 4,117,000 | $ 4,653,000 | |||||
Increase (Decrease) in Margin Deposits Outstanding | $ 28,200,000 | ||||||||
Class A Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Period after issue of class A notes | 36 months | ||||||||
Convertible Notes Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal | $ 87,500,000 | ||||||||
Interest rate | 7.25% | ||||||||
Conversion premium - Convertible senior notes | $ 3,200,000 | ||||||||
Additional aggregate principal | $ 15,900,000 | $ 20,500,000 | |||||||
Threshold percentage of stock price trigger (at least) | 130.00% | ||||||||
Threshold trading days (at least) | Day | 20 | ||||||||
Threshold consecutive trading days | Day | 30 | ||||||||
Redemption price, percentage | 100.00% | ||||||||
Unamortized discount | $ 3,300,000 | 5,100,000 | $ 3,300,000 | ||||||
Conversion discount (premium) - Convertible senior notes | $ 1,400,000 | $ 1,300,000 | |||||||
Interest rate, effective percentage | 9.04% | 8.94% | 9.04% | ||||||
Master Repurchase Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 2.29% | 3.77% | 2.29% | ||||||
Master Repurchase Agreement | Delaware Trust | Mortgage loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of facilities repurchased | Facility | 2 | ||||||||
Number of wholly-owned Delaware trusts | trust | 2 | ||||||||
Number of counterparties | counterparty | 2 | ||||||||
Ceiling for each repurchase facility | $ 250,000,000 | $ 250,000,000 | |||||||
Master Repurchase Agreement | Delaware Trust | Mortgage loans | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of purchase price for each mortgage loan or REO | 70.00% | ||||||||
Master Repurchase Agreement | Delaware Trust | Mortgage loans | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of purchase price for each mortgage loan or REO | 85.00% | ||||||||
Master Repurchase Agreement | Delaware Trust | Mortgages One | |||||||||
Debt Instrument [Line Items] | |||||||||
Ceiling for each repurchase facility | $ 400,000,000 | 400,000,000 | |||||||
Master Repurchase Agreement | Delaware Trust | Bonds | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of facilities repurchased | Facility | 4 | ||||||||
Convertible Notes Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of note (in dollars per share) | $ / shares | $ 25 | ||||||||
If-converted value in excess of principal | $ 31,400,000 | ||||||||
Unpaid principal balance | 113,400,000 | $ 123,900,000 | $ 113,400,000 | ||||||
Interest expense | $ 9,700,000 | 10,200,000 | |||||||
Common Stock | Convertible Notes Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Convertible, Conversion Ratio | 1.7279 | ||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 14.47 | $ 14.47 | |||||||
2017-D | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 300.00% | ||||||||
Servicer | Master Repurchase Agreement | Mortgage loans | Reperforming Mortgage Loans On Real Estate | |||||||||
Debt Instrument [Line Items] | |||||||||
Servicing fees percentage | 0.65% | ||||||||
Servicer | Master Repurchase Agreement | Mortgage loans | Residential NPLs | |||||||||
Debt Instrument [Line Items] | |||||||||
Servicing fees percentage | 1.25% | ||||||||
2018-C | Class A Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of Interest retained by the Company | 5.00% | ||||||||
Percentage of Interests Sold to Third Parties | 95.00% | ||||||||
2018-C | Mortgage loans | Class A Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal | $ 132,700,000 | 148,500,000 | $ 132,700,000 | ||||||
2018-C | Mortgage loans | Class B Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal | $ 15,900,000 | $ 15,900,000 | $ 15,900,000 |
Debt - Schedule of Repurchase T
Debt - Schedule of Repurchase Transactions and Facilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Amount of Collateral | $ 595,599 | $ 580,167 |
Master Repurchase Agreement | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | 916,759 | 918,521 |
Amount Outstanding | 421,132 | 414,114 |
Amount of Collateral | $ 595,599 | $ 580,167 |
Percentage of Collateral Coverage | 141.00% | 140.00% |
Interest rate | 2.29% | 3.77% |
Master Repurchase Agreement | January 3, 2020 | 2019-A | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 11,966 | |
Amount Outstanding | 11,966 | |
Amount of Collateral | $ 15,742 | |
Percentage of Collateral Coverage | 132.00% | |
Interest rate | 3.45% | |
Master Repurchase Agreement | January 3, 2020 | 2019-B | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 4,096 | |
Amount Outstanding | 4,096 | |
Amount of Collateral | $ 5,261 | |
Percentage of Collateral Coverage | 128.00% | |
Interest rate | 3.45% | |
Master Repurchase Agreement | January 3, 2020 | 2018-A | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 6,093 | |
Amount Outstanding | 6,093 | |
Amount of Collateral | $ 9,038 | |
Percentage of Collateral Coverage | 148.00% | |
Interest rate | 3.45% | |
Master Repurchase Agreement | January 3, 2020 | Class A Notes | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 1,644 | |
Amount Outstanding | 1,644 | |
Amount of Collateral | $ 2,388 | |
Percentage of Collateral Coverage | 145.00% | |
Interest rate | 3.55% | |
Master Repurchase Agreement | January 3, 2020 | Class A Notes | 2019-A | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 10,648 | |
Amount Outstanding | 10,648 | |
Amount of Collateral | $ 14,058 | |
Percentage of Collateral Coverage | 132.00% | |
Interest rate | 3.45% | |
Master Repurchase Agreement | January 3, 2020 | Class A Notes | 2018-D | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 5,175 | |
Amount Outstanding | 5,175 | |
Amount of Collateral | $ 6,855 | |
Percentage of Collateral Coverage | 132.00% | |
Interest rate | 3.45% | |
Master Repurchase Agreement | January 3, 2020 | Class B Notes | 2019-A | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 5,485 | |
Amount Outstanding | 5,485 | |
Amount of Collateral | $ 7,050 | |
Percentage of Collateral Coverage | 129.00% | |
Interest rate | 3.45% | |
Master Repurchase Agreement | January 3, 2020 | Class B Notes | 2019-B | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 1,576 | |
Amount Outstanding | 1,576 | |
Amount of Collateral | $ 2,287 | |
Percentage of Collateral Coverage | 145.00% | |
Interest rate | 3.55% | |
Master Repurchase Agreement | January 3, 2020 | Class B 1 Notes | 2017-B | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 8,411 | |
Amount Outstanding | 8,411 | |
Amount of Collateral | $ 11,098 | |
Percentage of Collateral Coverage | 132.00% | |
Interest rate | 3.45% | |
Master Repurchase Agreement | January 10, 2020 | Class A Notes | 2019-G | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 21,088 | |
Amount Outstanding | 21,088 | |
Amount of Collateral | $ 28,284 | |
Percentage of Collateral Coverage | 134.00% | |
Interest rate | 3.47% | |
Master Repurchase Agreement | January 10, 2020 | Class B Notes | 2019-G | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 1,808 | |
Amount Outstanding | 1,808 | |
Amount of Collateral | $ 2,640 | |
Percentage of Collateral Coverage | 146.00% | |
Interest rate | 3.57% | |
Master Repurchase Agreement | January 13, 2020 | Class B Notes | 2017-C | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 8,956 | |
Amount Outstanding | 8,956 | |
Amount of Collateral | $ 13,016 | |
Percentage of Collateral Coverage | 145.00% | |
Interest rate | 4.16% | |
Master Repurchase Agreement | January 21, 2020 | 2018-G | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 15,718 | |
Amount Outstanding | 15,718 | |
Amount of Collateral | $ 20,623 | |
Percentage of Collateral Coverage | 131.00% | |
Interest rate | 3.41% | |
Master Repurchase Agreement | January 21, 2020 | Class A Notes | 2018-G | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 10,305 | |
Amount Outstanding | 10,305 | |
Amount of Collateral | $ 13,521 | |
Percentage of Collateral Coverage | 131.00% | |
Interest rate | 3.41% | |
Master Repurchase Agreement | January 21, 2020 | Class A Notes | 2018-B | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 2,784 | |
Amount Outstanding | 2,784 | |
Amount of Collateral | $ 4,050 | |
Percentage of Collateral Coverage | 145.00% | |
Interest rate | 3.51% | |
Master Repurchase Agreement | January 21, 2020 | Class B Notes | 2018-G | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 5,840 | |
Amount Outstanding | 5,840 | |
Amount of Collateral | $ 7,324 | |
Percentage of Collateral Coverage | 125.00% | |
Interest rate | 3.41% | |
Master Repurchase Agreement | January 28, 2020 | Class B Notes | 2019-E | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 2,520 | |
Amount Outstanding | 2,520 | |
Amount of Collateral | $ 3,381 | |
Percentage of Collateral Coverage | 134.00% | |
Interest rate | 2.99% | |
Master Repurchase Agreement | January 28, 2020 | Class B 2 Notes | 2017-B | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 5,318 | |
Amount Outstanding | 5,318 | |
Amount of Collateral | $ 7,464 | |
Percentage of Collateral Coverage | 140.00% | |
Interest rate | 3.19% | |
Master Repurchase Agreement | February 3, 2020 | Class M1 Notes | 2017-B | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 7,568 | |
Amount Outstanding | 7,568 | |
Amount of Collateral | $ 9,702 | |
Percentage of Collateral Coverage | 128.00% | |
Interest rate | 4.19% | |
Master Repurchase Agreement | February 3, 2020 | Class M2 Notes | 2017-B | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 6,664 | |
Amount Outstanding | 6,664 | |
Amount of Collateral | $ 9,537 | |
Percentage of Collateral Coverage | 143.00% | |
Interest rate | 4.19% | |
Master Repurchase Agreement | February 24, 2020 | Class A Notes | 2017-D | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 41,412 | |
Amount Outstanding | 41,412 | |
Amount of Collateral | $ 54,828 | |
Percentage of Collateral Coverage | 132.00% | |
Interest rate | 2.92% | |
Master Repurchase Agreement | March 25, 2020 | Class A Notes | 2018-C | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 7,075 | |
Amount Outstanding | 7,075 | |
Amount of Collateral | $ 10,024 | |
Percentage of Collateral Coverage | 142.00% | |
Interest rate | 3.96% | |
Master Repurchase Agreement | March 25, 2020 | Class B Notes | 2018-C | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 5,851 | |
Amount Outstanding | 5,851 | |
Amount of Collateral | $ 7,423 | |
Percentage of Collateral Coverage | 127.00% | |
Interest rate | 3.81% | |
Master Repurchase Agreement | March 26, 2020 | Class A Notes | 2019-E | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 27,075 | |
Amount Outstanding | 27,075 | |
Amount of Collateral | $ 34,591 | |
Percentage of Collateral Coverage | 128.00% | |
Interest rate | 3.81% | |
Master Repurchase Agreement | March 27, 2020 | Class A Notes | 2018-D | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 2,915 | |
Amount Outstanding | 2,915 | |
Amount of Collateral | $ 3,709 | |
Percentage of Collateral Coverage | 127.00% | |
Interest rate | 3.79% | |
Master Repurchase Agreement | June 3, 2020 | Class A Notes | 2017-D | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 6,097 | |
Amount Outstanding | 6,097 | |
Amount of Collateral | $ 7,891 | |
Percentage of Collateral Coverage | 129.00% | |
Interest rate | 3.64% | |
Master Repurchase Agreement | June 3, 2020 | Class A Notes | 2018-F | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 2,332 | |
Amount Outstanding | 2,332 | |
Amount of Collateral | $ 3,360 | |
Percentage of Collateral Coverage | 144.00% | |
Interest rate | 3.79% | |
Master Repurchase Agreement | June 3, 2020 | Class A Notes | 2018-E | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 4,704 | |
Amount Outstanding | 4,704 | |
Amount of Collateral | $ 6,106 | |
Percentage of Collateral Coverage | 130.00% | |
Interest rate | 3.64% | |
Master Repurchase Agreement | June 3, 2020 | Class B Notes | 2018-F | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 1,132 | |
Amount Outstanding | 1,132 | |
Amount of Collateral | $ 1,607 | |
Percentage of Collateral Coverage | 142.00% | |
Interest rate | 3.79% | |
Master Repurchase Agreement | June 3, 2020 | Class B Notes | 2018-E | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 3,053 | |
Amount Outstanding | 3,053 | |
Amount of Collateral | $ 4,035 | |
Percentage of Collateral Coverage | 132.00% | |
Interest rate | 3.64% | |
Master Repurchase Agreement | June 19, 2020 | Class A Notes | 2019-H | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 13,447 | |
Amount Outstanding | 13,447 | |
Amount of Collateral | $ 18,076 | |
Percentage of Collateral Coverage | 134.00% | |
Interest rate | 3.55% | |
Master Repurchase Agreement | June 19, 2020 | Class B Notes | 2019-H | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 1,155 | |
Amount Outstanding | 1,155 | |
Amount of Collateral | $ 1,687 | |
Percentage of Collateral Coverage | 146.00% | |
Interest rate | 3.70% | |
Master Repurchase Agreement | June 30, 2020 | Class A Notes | 2019-C | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 5,286 | |
Amount Outstanding | 5,286 | |
Amount of Collateral | $ 7,044 | |
Percentage of Collateral Coverage | 133.00% | |
Interest rate | 3.57% | |
Master Repurchase Agreement | June 30, 2020 | Class B Notes | 2019-C | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 3,324 | |
Amount Outstanding | 3,324 | |
Amount of Collateral | $ 4,667 | |
Percentage of Collateral Coverage | 140.00% | |
Interest rate | 3.72% | |
Master Repurchase Agreement | July 10, 2020 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 250,000 | |
Amount Outstanding | 28,931 | |
Amount of Collateral | $ 57,397 | |
Percentage of Collateral Coverage | 198.00% | |
Interest rate | 4.28% | |
Master Repurchase Agreement | September 24, 2020 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 400,000 | |
Amount Outstanding | 116,662 | |
Amount of Collateral | $ 164,403 | |
Percentage of Collateral Coverage | 141.00% | |
Interest rate | 4.24% | |
Master Repurchase Agreement | January 11, 2021 | 2019-G | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 5,879 | |
Amount Outstanding | 5,879 | |
Amount of Collateral | $ 7,575 | |
Percentage of Collateral Coverage | 129.00% | |
Interest rate | 2.32% | |
Master Repurchase Agreement | January 6, 2021 | 2019-C | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 4,755 | |
Amount Outstanding | 4,755 | |
Amount of Collateral | $ 6,114 | |
Percentage of Collateral Coverage | 129.00% | |
Interest rate | 2.33% | |
Master Repurchase Agreement | January 6, 2021 | Class A Notes | 2017-D | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 35,635 | |
Amount Outstanding | 35,635 | |
Amount of Collateral | $ 46,120 | |
Percentage of Collateral Coverage | 129.00% | |
Interest rate | 2.33% | |
Master Repurchase Agreement | January 6, 2021 | Class A Notes | 2018-D | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 7,697 | |
Amount Outstanding | 7,697 | |
Amount of Collateral | $ 10,075 | |
Percentage of Collateral Coverage | 131.00% | |
Interest rate | 2.33% | |
Master Repurchase Agreement | January 6, 2021 | Class A Notes | 2018-A | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 4,666 | |
Amount Outstanding | 4,666 | |
Amount of Collateral | $ 6,044 | |
Percentage of Collateral Coverage | 130.00% | |
Interest rate | 2.33% | |
Master Repurchase Agreement | January 6, 2021 | Class B Notes | 2019-C | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 3,213 | |
Amount Outstanding | 3,213 | |
Amount of Collateral | $ 4,667 | |
Percentage of Collateral Coverage | 145.00% | |
Interest rate | 2.48% | |
Master Repurchase Agreement | January 6, 2021 | Class B 1 Notes | 2017-B | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 6,311 | |
Amount Outstanding | 6,311 | |
Amount of Collateral | $ 9,038 | |
Percentage of Collateral Coverage | 143.00% | |
Interest rate | 2.48% | |
Master Repurchase Agreement | January 14, 2021 | Class A Notes | 2019-E | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 6,991 | |
Amount Outstanding | 6,991 | |
Amount of Collateral | $ 8,738 | |
Percentage of Collateral Coverage | 125.00% | |
Interest rate | 2.35% | |
Master Repurchase Agreement | January 20, 2021 | Class A Notes | 2018-G | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 13,263 | |
Amount Outstanding | 13,263 | |
Amount of Collateral | $ 16,582 | |
Percentage of Collateral Coverage | 125.00% | |
Interest rate | 2.22% | |
Master Repurchase Agreement | January 29, 2021 | Class M1 Notes | 2017-B | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 7,762 | |
Amount Outstanding | 7,762 | |
Amount of Collateral | $ 9,702 | |
Percentage of Collateral Coverage | 125.00% | |
Interest rate | 2.21% | |
Master Repurchase Agreement | January 29, 2021 | Class M2 Notes | 2017-B | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 7,153 | |
Amount Outstanding | 7,153 | |
Amount of Collateral | $ 9,537 | |
Percentage of Collateral Coverage | 133.00% | |
Interest rate | 2.21% | |
Master Repurchase Agreement | February 1, 2021 | 2018-F | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 2,332 | |
Amount Outstanding | 2,332 | |
Amount of Collateral | $ 3,360 | |
Percentage of Collateral Coverage | 144.00% | |
Interest rate | 2.03% | |
Master Repurchase Agreement | February 1, 2021 | Class A Notes | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 5,298 | |
Amount Outstanding | 5,298 | |
Amount of Collateral | $ 6,895 | |
Percentage of Collateral Coverage | 130.00% | |
Interest rate | 1.88% | |
Master Repurchase Agreement | February 1, 2021 | Class A Notes | 2017-D | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 3,985 | |
Amount Outstanding | 3,985 | |
Amount of Collateral | $ 5,136 | |
Percentage of Collateral Coverage | 129.00% | |
Interest rate | 1.88% | |
Master Repurchase Agreement | February 1, 2021 | Class A Notes | 2019-A | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 12,258 | |
Amount Outstanding | 12,258 | |
Amount of Collateral | $ 16,052 | |
Percentage of Collateral Coverage | 131.00% | |
Interest rate | 1.88% | |
Master Repurchase Agreement | February 1, 2021 | Class A Notes | 2019-B | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 12,015 | |
Amount Outstanding | 12,015 | |
Amount of Collateral | $ 15,794 | |
Percentage of Collateral Coverage | 131.00% | |
Interest rate | 1.88% | |
Master Repurchase Agreement | February 1, 2021 | Class A Notes | 2018-E | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 2,887 | |
Amount Outstanding | 2,887 | |
Amount of Collateral | $ 3,790 | |
Percentage of Collateral Coverage | 131.00% | |
Interest rate | 1.88% | |
Master Repurchase Agreement | February 1, 2021 | Class B Notes | 2018-E | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 1,132 | |
Amount Outstanding | 1,132 | |
Amount of Collateral | $ 1,607 | |
Percentage of Collateral Coverage | 142.00% | |
Interest rate | 2.03% | |
Master Repurchase Agreement | February 12, 2021 | Class B Notes | 2020-A | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 2,945 | |
Amount Outstanding | 2,945 | |
Amount of Collateral | $ 4,428 | |
Percentage of Collateral Coverage | 150.00% | |
Interest rate | 2.02% | |
Master Repurchase Agreement | March 5, 2021 | Class A Notes | 2020-C | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 24,946 | |
Amount Outstanding | 24,946 | |
Amount of Collateral | $ 33,348 | |
Percentage of Collateral Coverage | 134.00% | |
Interest rate | 1.78% | |
Master Repurchase Agreement | March 5, 2021 | Class A Notes | 2020-D | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 24,312 | |
Amount Outstanding | 24,312 | |
Amount of Collateral | $ 32,571 | |
Percentage of Collateral Coverage | 134.00% | |
Interest rate | 1.78% | |
Master Repurchase Agreement | March 17, 2021 | Class A Notes | 2018-B | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 3,894 | |
Amount Outstanding | 3,894 | |
Amount of Collateral | $ 5,193 | |
Percentage of Collateral Coverage | 133.00% | |
Interest rate | 1.78% | |
Master Repurchase Agreement | March 17, 2021 | Class A Notes | 2019-G | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 8,381 | |
Amount Outstanding | 8,381 | |
Amount of Collateral | $ 10,872 | |
Percentage of Collateral Coverage | 130.00% | |
Interest rate | 1.78% | |
Master Repurchase Agreement | March 17, 2021 | Class A Notes | 2019-H | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 10,219 | |
Amount Outstanding | 10,219 | |
Amount of Collateral | $ 13,172 | |
Percentage of Collateral Coverage | 129.00% | |
Interest rate | 1.78% | |
Master Repurchase Agreement | March 17, 2021 | Class B Notes | 2019-H | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 1,145 | |
Amount Outstanding | 1,145 | |
Amount of Collateral | $ 1,687 | |
Percentage of Collateral Coverage | 147.00% | |
Interest rate | 1.93% | |
Master Repurchase Agreement | March 24, 2021 | Class A Notes | 2018-D | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 2,577 | |
Amount Outstanding | 2,577 | |
Amount of Collateral | $ 3,367 | |
Percentage of Collateral Coverage | 131.00% | |
Interest rate | 1.79% | |
Master Repurchase Agreement | March 24, 2021 | Class A Notes | 2018-C | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 5,008 | |
Amount Outstanding | 5,008 | |
Amount of Collateral | $ 6,637 | |
Percentage of Collateral Coverage | 133.00% | |
Interest rate | 1.79% | |
Master Repurchase Agreement | March 24, 2021 | Class B Notes | 2018-C | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 7,016 | |
Amount Outstanding | 7,016 | |
Amount of Collateral | $ 10,024 | |
Percentage of Collateral Coverage | 143.00% | |
Interest rate | 1.94% | |
Master Repurchase Agreement | April 9, 2021 | Class A Notes | 2020-A | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 33,084 | |
Amount Outstanding | 33,084 | |
Amount of Collateral | $ 43,069 | |
Percentage of Collateral Coverage | 130.00% | |
Interest rate | 2.35% | |
Master Repurchase Agreement | July 9, 2021 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 250,000 | |
Amount of Collateral | $ 84,337 | |
Percentage of Collateral Coverage | 158.00% | |
Interest rate | 2.64% | |
Master Repurchase Agreement | July 9, 2021 | Class B Notes | 2018-F | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 53,256 | |
Master Repurchase Agreement | September 23, 2021 | Class A Notes | 2019-H | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | 400,000 | |
Amount Outstanding | 101,117 | |
Amount of Collateral | $ 160,068 | |
Percentage of Collateral Coverage | 158.00% | |
Interest rate | 2.65% |
Debt - Schedule of Netting Agre
Debt - Schedule of Netting Agreement (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | |||
Gross amount of recognized liabilities | $ 421,132 | $ 414,114 | |
Gross amount of loans and securities pledged as collateral | 595,599 | 580,167 | |
Collateralized Financings | 4,653 | $ 32,400 | 4,117 |
Net collateral amount | $ 179,120 | $ 170,170 |
Debt - Schedule of Securitizati
Debt - Schedule of Securitization Notes Outstanding (Details) - Mortgage loans - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Deferred issuance costs | $ (5.4) | $ (7) |
2017-D | ||
Debt Instrument [Line Items] | ||
Ownership percentage | 100.00% | |
2018-C | ||
Debt Instrument [Line Items] | ||
Ownership percentage | 100.00% | |
Class A notes | 2017-B | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 115.8 | |
Interest rate | 3.16% | |
Class A notes | 2017-D | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 177.8 | |
Interest rate | 3.75% | |
Ownership percentage | 50.00% | |
Class A notes | 2018-C | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 170.5 | |
Interest rate | 4.36% | |
Class B Notes | 2018-C | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 15.9 | |
Interest rate | 5.25% | |
Class B 1 Notes | 2017-B | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 9 | |
Interest rate | 3.75% | |
Class B 1 Notes | 2017-D | ||
Debt Instrument [Line Items] | ||
Ownership percentage | 50.00% | |
Class B 1 Notes | 2019-D | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 7.5 | |
Interest rate | 3.50% | |
Class B 1 Notes | 2019-F | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 11.5 | |
Interest rate | 3.50% | |
Class B 1 Notes | 2020-B | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 5.9 | |
Interest rate | 3.70% | |
Class B 2 Notes | 2017-B | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 7.5 | |
Interest rate | 3.75% | |
Class B 2 Notes | 2019-D | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 7.1 | |
Class B 2 Notes | 2019-F | ||
Debt Instrument [Line Items] | ||
Original Principal | 10.4 | |
Class B 2 Notes | 2020-B | ||
Debt Instrument [Line Items] | ||
Original Principal | 5.1 | |
Trust Certificate | 2017-B | ||
Debt Instrument [Line Items] | ||
Original principal, trust certificates | $ 14.3 | |
Interest rate | 0.00% | |
Trust Certificate | 2018-C | ||
Debt Instrument [Line Items] | ||
Original principal, trust certificates | $ 40.9 | |
Interest rate | 0.00% | |
Deferred issuance costs | 2017-B | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.00% | |
Deferred issuance costs | $ (1.8) | |
Deferred issuance costs | 2017-D | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.00% | |
Deferred issuance costs | $ (1.1) | |
Deferred issuance costs | 2018-C | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.00% | |
Deferred issuance costs | $ (2) | |
Deferred issuance costs | 2019-D | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.00% | |
Deferred issuance costs | $ (2.7) | |
Deferred issuance costs | 2019-F | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.00% | |
Deferred issuance costs | $ (1.8) | |
Deferred issuance costs | 2020-B | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.00% | |
Deferred issuance costs | $ (1.8) | |
Class M1 Notes | 2017-B | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 9.7 | |
Interest rate | 3.50% | |
Class M1 Notes | 2019-D | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 9.3 | |
Interest rate | 3.50% | |
Class M1 Notes | 2019-F | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 6.1 | |
Interest rate | 3.50% | |
Class M1 Notes | 2020-B | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 7.3 | |
Interest rate | 3.70% | |
Class M2 Notes | 2017-B | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 9.5 | |
Interest rate | 3.50% | |
Class B Certificates | 2017-D | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 44.5 | |
Interest rate | 0.00% | |
Ownership percentage | 50.00% | |
Class A-1 Notes | 2019-D | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 140.4 | |
Interest rate | 2.96% | |
Class A-1 Notes | 2019-F | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 110.1 | |
Interest rate | 2.86% | |
Class A-1 Notes | 2020-B | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 97.2 | |
Interest rate | 1.70% | |
Class A-2 Notes | 2019-D | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 6.1 | |
Interest rate | 3.50% | |
Class A-2 Notes | 2019-F | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 12.5 | |
Interest rate | 3.50% | |
Class A-2 Notes | 2020-B | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 17.3 | |
Interest rate | 2.86% | |
Class A-3 Notes | 2019-D | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 10.1 | |
Interest rate | 3.50% | |
Class A-3 Notes | 2019-F | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 5.1 | |
Interest rate | 3.50% | |
Class B-3 Notes | 2019-D | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 12.8 | |
Class B-3 Notes | 2019-F | ||
Debt Instrument [Line Items] | ||
Original Principal | 15.1 | |
Class B-3 Notes | 2020-B | ||
Debt Instrument [Line Items] | ||
Original Principal | $ 23.6 |
Debt - Schedule of Status of No
Debt - Schedule of Status of Notes and Securitizations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Debt Instrument [Line Items] | |||
Mortgage loans, net | [1],[2] | $ 1,119,372 | $ 1,151,469 |
Mortgage loans | |||
Debt Instrument [Line Items] | |||
Mortgage loans, net | 842,177 | 908,562 | |
Bond principal balance | $ 590,761 | $ 659,715 | |
Percentage of collateral coverage | 143.00% | 138.00% | |
Original balances at securitization cutoff date Mortgage UPB | $ 1,298,488 | ||
Original balances at securitization cutoff date Bond principal balance | 901,695 | ||
Mortgage loans | 2017-B | |||
Debt Instrument [Line Items] | |||
Mortgage loans, net | 110,062 | $ 121,909 | |
Bond principal balance | $ 68,729 | $ 84,624 | |
Percentage of collateral coverage | 160.00% | 144.00% | |
Original balances at securitization cutoff date Mortgage UPB | $ 165,850 | ||
Original balances at securitization cutoff date Bond principal balance | 115,846 | ||
Mortgage loans | 2017-C | |||
Debt Instrument [Line Items] | |||
Mortgage loans, net | 0 | $ 137,369 | |
Bond principal balance | $ 0 | $ 94,126 | |
Percentage of collateral coverage | 0.00% | 146.00% | |
Original balances at securitization cutoff date Mortgage UPB | $ 185,942 | ||
Original balances at securitization cutoff date Bond principal balance | 130,159 | ||
Mortgage loans | 2017-D | |||
Debt Instrument [Line Items] | |||
Mortgage loans, net | 133,897 | $ 148,119 | |
Bond principal balance | $ 51,256 | $ 60,934 | |
Percentage of collateral coverage | 261.00% | 243.00% | |
Original balances at securitization cutoff date Mortgage UPB | $ 203,870 | ||
Original balances at securitization cutoff date Bond principal balance | 88,903 | ||
Cash collateral for borrowed securities | 26,700 | ||
Mortgage loans | 2018-C | |||
Debt Instrument [Line Items] | |||
Mortgage loans, net | 173,221 | $ 179,303 | |
Bond principal balance | $ 131,983 | $ 146,925 | |
Percentage of collateral coverage | 131.00% | 122.00% | |
Original balances at securitization cutoff date Mortgage UPB | $ 222,181 | ||
Original balances at securitization cutoff date Bond principal balance | 167,910 | ||
Cash collateral for borrowed securities | 45,500 | ||
Mortgage loans | 2019-D | |||
Debt Instrument [Line Items] | |||
Mortgage loans, net | 148,641 | $ 165,963 | |
Bond principal balance | $ 125,008 | $ 146,383 | |
Percentage of collateral coverage | 119.00% | 113.00% | |
Original balances at securitization cutoff date Mortgage UPB | $ 193,301 | ||
Original balances at securitization cutoff date Bond principal balance | 156,670 | ||
Mortgage loans | 2019-F | |||
Debt Instrument [Line Items] | |||
Mortgage loans, net | 139,996 | $ 155,899 | |
Bond principal balance | $ 108,184 | $ 126,723 | |
Percentage of collateral coverage | 129.00% | 123.00% | |
Original balances at securitization cutoff date Mortgage UPB | $ 170,876 | ||
Original balances at securitization cutoff date Bond principal balance | 127,673 | ||
Mortgage loans | 2020-B | |||
Debt Instrument [Line Items] | |||
Mortgage loans, net | 136,360 | $ 0 | |
Bond principal balance | $ 105,601 | $ 0 | |
Percentage of collateral coverage | 129.00% | 0.00% | |
Original balances at securitization cutoff date Mortgage UPB | $ 156,468 | ||
Original balances at securitization cutoff date Bond principal balance | 114,534 | ||
Class A notes | Mortgage loans | 2017-D | |||
Debt Instrument [Line Items] | |||
Original Principal | $ 121,900 | ||
Secured borrowings | 51,300 | 60,900 | |
Class A Notes | Mortgage loans | 2017-D | |||
Debt Instrument [Line Items] | |||
Original Principal | 102,600 | ||
Class A Notes | Mortgage loans | 2018-C | |||
Debt Instrument [Line Items] | |||
Original Principal | 132,700 | 148,500 | |
Secured borrowings | 126,100 | 141,000 | |
Class B Notes | Mortgage loans | 2018-C | |||
Debt Instrument [Line Items] | |||
Original Principal | 15,900 | 15,900 | |
Secured borrowings | $ 5,900 | $ 5,900 | |
[1] | As of December 31, 2020, balances for Mortgage loans, net includes $307.1 million and Secured borrowings, net of deferred costs includes $250.6 million from the 50.0% and 63.0% owned joint ventures, respectively. As of December 31, 2019, balances for Mortgage loans, net include $341.8 million and Secured borrowings, net of deferred costs includes $284.8 million from the 50.0% and 63.0% owned joint ventures, all of which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). | ||
[2] | Mortgage loans, net include $842.2 million and $908.6 million of loans at December 31, 2020 and December 31, 2019, respectively, transferred to securitization trusts that are variable interest entities (“VIEs”); these loans can only be used to settle obligations of the VIEs. Secured borrowings consist of notes issued by VIEs that can only be settled with the assets and cash flows of the VIEs. The creditors do not have recourse to the primary beneficiary (Great Ajax Corp.). See Note 9 — Debt. Mortgage loans, net include $13.7 million and $2.0 million of allowance for loan losses at December 31, 2020 and December 31, 2019, respectively. (2) As of December 31, 2020, balances for Mortgage loans, net includes $307.1 million and Secured borrowings, net of deferred costs includes $250.6 million from the 50.0% and 63.0% owned joint ventures, respectively. As of December 31, 2019, balances for Mortgage loans, net include $341.8 million and Secured borrowings, net of deferred costs includes $284.8 million from the 50.0% and 63.0% owned joint ventures, all of which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). |
Related Party Transactions - Sc
Related Party Transactions - Schedule Statement of Income of Related Party Transactions (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Related Party Transaction [Line Items] | ||||
Debt and Equity Securities, Gain (Loss) | $ 100,000 | $ 8,000 | ||
Related Party Loan Servicing Fee Expense | 7,678,000 | 9,133,000 | $ 10,148,000 | |
Related Party Management Fee Expense | 8,456,000 | 7,356,000 | 6,025,000 | |
(Loss)/income on sale of mortgage loans(1) | [1] | (705,000) | 7,123,000 | 0 |
Interest Income | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | 24,153,000 | 13,081,000 | 1,967,000 | |
Other Income | ||||
Related Party Transaction [Line Items] | ||||
Debt and Equity Securities, Gain (Loss) | 145,000 | 8,000 | 347,000 | |
Gregory | Loan servicing fees | ||||
Related Party Transaction [Line Items] | ||||
Related Party Loan Servicing Fee Expense | 7,678,000 | 9,133,000 | 10,148,000 | |
Gregory | Loan Transaction Expense | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | 99,000 | |||
Gregory | Other fees and expenses | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | 40,000 | |||
Thetis | Management fee | ||||
Related Party Transaction [Line Items] | ||||
Related Party Management Fee Expense | 8,456,000 | 7,356,000 | 6,025,000 | |
Thetis | Income from investments in affiliates | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | (137,000) | 928,000 | 436,000 | |
Gaea | Income from investments in affiliates | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | 165,000 | (5,000) | ||
Gaea | Gain/Loss on sale of mortgage loans | ||||
Related Party Transaction [Line Items] | ||||
(Loss)/income on sale of mortgage loans(1) | (705,000) | |||
As Ajax E LLC | Income from investments in affiliates | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | 34,000 | 49,000 | 53,000 | |
Great Ajax F S | Income from investments in affiliates | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | (312,000) | 179,000 | $ 90,000 | |
2019-C | ||||
Related Party Transaction [Line Items] | ||||
(Loss)/income on sale of mortgage loans(1) | 7,000,000 | |||
2019-C | Gain on Sale of Mortgage Loans | ||||
Related Party Transaction [Line Items] | ||||
(Loss)/income on sale of mortgage loans(1) | 7,014,000 | |||
Loan pool LLCs | Income from investments in affiliates | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | $ (54,000) | $ (4,000) | ||
[1] | During the year ended December 31, 2020, the Company sold 26 small balance commercial loans (“SBC loans”) with a carrying value of $26.1 million and UPB of $26.2 million for a loss of $0.7 million. Comparatively, during the year ended December 31, 2019, the Company sold 965 loans with a carrying value of $178.8 million and UPB of $202.1 million for a gain of $7.1 million. The Company sold no mortgage loans during the year ended December 31, 2018. |
Related Party Transactions - _2
Related Party Transactions - Schedule of Balance Sheet of Related Party Transaction (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Investments in beneficial interests | [1] | $ 91,418,000 | $ 57,954,000 |
Prepaid expenses and other assets | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 876,000 | 241,000 | |
Accrued expenses and other liabilities | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 10,000 | ||
Gregory | Receivable from Servicer | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 15,755,000 | 17,013,000 | |
Gregory | Prepaid expenses and other assets | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | (44,000) | 687,000 | |
Gregory | Prepaid expenses and other assets | Receivable from Servicer for REO acquisitions | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 0 | 585,000 | |
Thetis | Management fee payable | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 2,247,000 | 1,634,000 | |
Thetis | Prepaid expenses and other assets | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 18,000 | 87,000 | |
Gaea | Accrued expenses and other liabilities | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | $ 68,000 | ||
Gaea | Mortgage Loans, Net | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 11,000,000 | ||
Great Ajax F S | Mortgage Loans, Net | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | $ 1,838,000 | ||
[1] | Investments in beneficial interests includes allowance for credit losses of $4.5 million at December 31, 2020. No allowance for credit losses was recorded as of December 31, 2019. |
Related party Transactions - Na
Related party Transactions - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2020USD ($)loancalender | Dec. 31, 2019USD ($)loancounterparty | Dec. 31, 2018USD ($) | Nov. 22, 2019 | ||
Related Party Transaction [Line Items] | |||||
Number of purchased loans | loan | 15 | ||||
SBC loan count | loan | 6,031 | ||||
Estimated Market Value Of Underlying Collaterals | $ 44,200,000 | $ 323,700,000 | |||
Aggregate unpaid principal balance of mortgage loans on real estate | 26,200,000 | 202,100,000 | |||
Investments in securities at fair value | [1] | 273,834,000 | 231,685,000 | ||
Investment In Securities | 144,700,000 | 187,800,000 | |||
Investments in beneficial interests | [2] | 91,418,000 | $ 57,954,000 | ||
Percentage of ownership interests in joint venture | 34.00% | ||||
(Loss)/income on sale of mortgage loans(1) | [3] | (705,000) | $ 7,123,000 | $ 0 | |
Sale of mortgage loans | $ 26,111,000 | $ 178,800,000 | |||
Number of sold loans | loan | 26 | 965 | |||
Proceeds on sale of securities | $ 38,944,000 | $ 39,635,000 | 8,073,000 | ||
Debt and Equity Securities, Gain (Loss) | $ 100,000 | 8,000 | |||
Percentage of management fees payable in cash, minimum | 50.00% | ||||
Percentage of management fees payable in cash, maximum | 100.00% | ||||
Management fee payable | $ 2,247,000 | 1,634,000 | |||
Percentage of incentive fees payable in cash | 100.00% | ||||
Incentive Fee Expense | $ 0 | 700,000 | $ 100,000 | ||
Period of termination of license agreement | 30 days | ||||
Loan pool LLCs | |||||
Related Party Transaction [Line Items] | |||||
Cash payment in business acquisition | $ 1,000,000 | ||||
Equity Method Investment, Ownership Percentage | 40.40% | ||||
Number of entities | counterparty | 3 | ||||
Gaea | |||||
Related Party Transaction [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 23.00% | 23.20% | |||
Third Party | Gaea | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage by noncontrolling owners | 77.00% | 76.80% | |||
Gregory | |||||
Related Party Transaction [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 12,000,000 | ||||
Fixed interest rate | 7.20% | ||||
2019-C | |||||
Related Party Transaction [Line Items] | |||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 200,100,000 | ||||
Investment In Securities | 12,100,000 | ||||
(Loss)/income on sale of mortgage loans(1) | 7,000,000 | ||||
Sale of mortgage loans | $ 176,900,000 | ||||
Number of sold loans | loan | 962 | ||||
Great Ajax F S | |||||
Related Party Transaction [Line Items] | |||||
Purchase Price | $ 1,800,000 | ||||
Estimated Market Value Of Underlying Collaterals | 3,700,000 | ||||
Aggregate unpaid principal balance of mortgage loans on real estate | 2,100,000 | ||||
Gaea | |||||
Related Party Transaction [Line Items] | |||||
Investment in Mortgage Loans on Real Estate | $ 11,000,000 | ||||
SBC loan count | loan | 20 | ||||
Fixed interest rate | 4.25% | ||||
Management Agreement | Thetis | |||||
Related Party Transaction [Line Items] | |||||
Base management fee percentage | 1.50% | ||||
Amended And Restated Management Agreement | Thetis | |||||
Related Party Transaction [Line Items] | |||||
Percentage of base management fees payable in cash | 75.00% | ||||
Percentage of base management fee payable in shares of common stock | 25.00% | ||||
Management fee payable | $ 1,000,000 | ||||
Percentage in excess of base management fees payable in cash | 50.00% | ||||
Percentage in excess of base management fees payable in shares | 50.00% | ||||
Period of common shares held as base management fee (at least) | 3 years | ||||
Percentage of remaining incentive fee payable in common stock | 20.00% | ||||
Number of calender quarters | calender | 8 | ||||
Percentage of remaining incentive fee in excess of book value | 8.00% | ||||
Fraction of independent directors | 66.67% | ||||
Servicing Agreement | Gregory | |||||
Related Party Transaction [Line Items] | |||||
Servicing fees percentage | 0.20% | 0.42% | |||
Servicing Agreement | Gregory | Minimum | |||||
Related Party Transaction [Line Items] | |||||
Servicing fees percentage | 0.65% | ||||
Servicing Agreement | Gregory | Maximum | |||||
Related Party Transaction [Line Items] | |||||
Servicing fees percentage | 1.25% | ||||
Prepaid expenses and other assets | |||||
Related Party Transaction [Line Items] | |||||
Amount of transaction | $ 876,000 | $ 241,000 | |||
Prepaid expenses and other assets | Gregory | |||||
Related Party Transaction [Line Items] | |||||
Amount of transaction | (44,000) | 687,000 | |||
Prepaid expenses and other assets | Gregory | Receivable from Servicer for REO acquisitions | |||||
Related Party Transaction [Line Items] | |||||
Amount of transaction | 0 | 585,000 | |||
Prepaid expenses and other assets | Thetis | |||||
Related Party Transaction [Line Items] | |||||
Amount of transaction | 18,000 | 87,000 | |||
Beneficial interests in securitization trusts | |||||
Related Party Transaction [Line Items] | |||||
Investments in beneficial interests | 19,300,000 | 31,400,000 | |||
Beneficial interests in securitization trusts | 2019-C | |||||
Related Party Transaction [Line Items] | |||||
Investment in beneficial interests | 8,000,000 | ||||
Senior Notes | |||||
Related Party Transaction [Line Items] | |||||
Investments in securities at fair value | 115,600,000 | 139,600,000 | |||
Subordinated Debt | |||||
Related Party Transaction [Line Items] | |||||
Investments in securities at fair value | $ 9,800,000 | $ 16,800,000 | |||
[1] | As of December 31, 2020 and December 31, 2019 Investments in securities at fair value include amortized cost basis of $273.4 million and $230.4 million, respectively, and net unrealized gains of $0.4 million and $1.3 million, respectively. | ||||
[2] | Investments in beneficial interests includes allowance for credit losses of $4.5 million at December 31, 2020. No allowance for credit losses was recorded as of December 31, 2019. | ||||
[3] | During the year ended December 31, 2020, the Company sold 26 small balance commercial loans (“SBC loans”) with a carrying value of $26.1 million and UPB of $26.2 million for a loss of $0.7 million. Comparatively, during the year ended December 31, 2019, the Company sold 965 loans with a carrying value of $178.8 million and UPB of $202.1 million for a gain of $7.1 million. The Company sold no mortgage loans during the year ended December 31, 2018. |
Stock-based Payments and Dire_3
Stock-based Payments and Director Fees - Narrative (Details) - USD ($) $ in Thousands | Apr. 01, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Management fees | $ 8,400 | $ 6,700 | $ 6,000 | ||
Annual retainer amount | $ 75 | ||||
Number of shares (in shares) | 17,064 | 195,629 | 210,033 | ||
Incentive Fee Expense | $ 0 | $ 700 | $ 100 | ||
Restricted stock | Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Long term incentive plan | Initial public offering | Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of restricted stock awards issued to independent directors (in shares) | 2,000 | ||||
Vesting period | 1 year | ||||
2014 Director Equity Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual retainer, shares | 40.00% | 50.00% | |||
Vesting period | 1 year | ||||
Management fee | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Payment Arrangement, Expense | $ 0 | $ 2,500 | $ 2,800 | ||
Number of shares (in shares) | 0 | 184,681 | 200,405 | ||
Incentive fees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Payment Arrangement, Expense | $ 100 | $ 24 | |||
Common Stock | Management fee | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares (in shares) | 175,211 | 198,856 | |||
Common Stock | Incentive fees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares (in shares) | 9,470 | 1,549 |
Stock-based Payments and Dire_4
Stock-based Payments and Director Fees - Schedule of Management Fees and Director Fees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares (in shares) | 17,064 | 195,629 | 210,033 |
Amount of expense recognized | $ 152 | $ 2,758 | $ 2,963 |
Independent director fees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares (in shares) | 17,064 | 10,948 | 9,628 |
Amount of expense recognized | $ 152 | $ 158 | $ 150 |
Management fees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares (in shares) | 0 | 184,681 | 200,405 |
Amount of expense recognized | $ 0 | $ 2,600 | $ 2,813 |
Stock-based Payments and Dire_5
Stock-based Payments and Director Fees - Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity (Details) - Restricted stock - Long Term Incentive Plan - $ / shares | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee and Service Provider Grants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares, nonvested (in shares) | 163,083 | 114,334 | 110,389 | 138,333 |
Per share grant fair value (in dollars per share) | $ 11.07 | $ 13.83 | $ 13.59 | $ 13.59 |
Number of shares vested (in shares) | 50,334 | 70,555 | 61,778 | |
Per share grant fair value, shares vested (in dollars per share) | $ 13.86 | $ 13.60 | $ 13.59 | |
Number of shares forfeited (in shares) | 9,667 | 4,500 | 2,666 | |
Per share grant fair value, shares forfeited (in dollars per share) | $ 12.06 | $ 13.58 | $ 13.50 | |
Shares granted during the year (in shares) | 108,750 | 79,000 | 36,500 | |
Per share grant fair value, shares granted during the year ( in dollars per share) | $ 9.55 | $ 13.94 | $ 13.58 | |
Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares, nonvested (in shares) | 0 | 0 | 6,000 | 0 |
Per share grant fair value (in dollars per share) | $ 0 | $ 0 | $ 13.48 | $ 0 |
Number of shares vested (in shares) | 0 | 6,000 | 6,000 | |
Per share grant fair value, shares vested (in dollars per share) | $ 0 | $ 13.48 | $ 13.48 | |
Number of shares forfeited (in shares) | 0 | 0 | 0 | |
Per share grant fair value, shares forfeited (in dollars per share) | $ 0 | $ 0 | $ 0 | |
Shares granted during the year (in shares) | 0 | 0 | 12,000 | |
Per share grant fair value, shares granted during the year ( in dollars per share) | $ 0 | $ 0 | $ 13.48 |
Schedule of restricted stock pl
Schedule of restricted stock plan grants, expense (Details) - Restricted stock - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant expense recognized for the year | $ 728 | $ 852 | $ 1,026 |
Employee and Service Provider Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant expense recognized for the year | 728 | 839 | 878 |
Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant expense recognized for the year | $ 0 | $ 13 | $ 148 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)yearnumberOfSubsidiaries | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Tax Credit Carryforward [Line Items] | |||
Distribution percentage of REIT taxable income (at least) | 90.00% | ||
Number of taxable years | year | 4 | ||
Number of taxable subsidiaries | numberOfSubsidiaries | 2 | ||
Taxable income | $ 12,400,000 | $ 23,300,000 | $ 24,100,000 |
Provision for income taxes (benefit) | (125,000) | 124,000 | 64,000 |
Income Tax Examination, Penalties and Interest Accrued | 0 | 0 | $ 0 |
Assets | |||
Tax Credit Carryforward [Line Items] | |||
Deferred Income Tax Assets, Net | $ 0 | $ 0 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Components of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 06, 2020 | |
Basic EPS | ||||||||||||
Net Income (Loss) Attributable to Common Stockholders | $ 10,834 | $ 5,280 | $ 6,242 | $ 400 | $ 6,657 | $ 7,691 | $ 13,027 | $ 7,330 | $ 22,756 | $ 34,705 | $ 28,340 | |
Allocation of earnings to participating restricted shares | (140) | (336) | (307) | |||||||||
Consolidated net income attributable to unrestricted common stockholders | 22,616 | 34,369 | 28,033 | |||||||||
Effect of dilutive securities | ||||||||||||
Operating Partnership units | 346 | |||||||||||
Interest expense (add back) and assumed conversion of shares from convertible senior notes | 10,200 | 8,786 | ||||||||||
Diluted EPS | ||||||||||||
Consolidated income attributable to common stockholders and dilutive securities | $ 22,616 | $ 44,915 | $ 36,819 | |||||||||
Basic EPS | ||||||||||||
Weighted Average Number of Shares Issued, Basic | 22,641,636 | 19,710,482 | 18,642,526 | |||||||||
Allocation of earnings to participating restricted shares (in shares) | 0 | 0 | 0 | |||||||||
Weighted Average Number of Shares Outstanding, Basic | 22,641,636 | 19,710,482 | 18,642,526 | |||||||||
Effect of dilutive securities | ||||||||||||
Operating Partnership units (in shares) | 241,093 | |||||||||||
Interest expense (add back) and assumed conversion of shares from convertible senior notes (in shares) | 8,221,642 | 7,188,020 | ||||||||||
Diluted EPS | ||||||||||||
Consolidated net income attributable to common stockholders and dilutive securities (in shares) | 22,641,636 | 28,173,217 | 25,830,546 | |||||||||
Per Share Amount | ||||||||||||
Consolidated net income attributable to unrestricted common stockholders (in dollars per share) | $ 0.47 | $ 0.23 | $ 0.27 | $ 0.02 | $ 0.31 | $ 0.39 | $ 0.67 | $ 0.39 | $ 1 | $ 1.74 | $ 1.50 | |
Consolidated net income attributable to common stockholders and dilutive securities (in dollars per share) | $ 0.41 | $ 0.23 | $ 0.27 | $ 0.02 | $ 0.31 | $ 0.36 | $ 0.56 | $ 0.36 | $ 1 | $ 1.59 | $ 1.43 | |
Class of Warrant or Right, Outstanding | 6,500,000 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 06, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 24, 2020 | Mar. 17, 2020 | Feb. 28, 2020 | Jun. 30, 2019 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||||||||||
Common stock shares outstanding (in shares) | 22,978,339 | 22,142,143 | |||||||||
Common stock par value per share (in dollars per share) | $ 0.01 | ||||||||||
Common stock shares authorized (in shares) | 125,000,000 | ||||||||||
Preferred stock shares authorized (in shares) | 25,000,000 | 25,000,000 | |||||||||
Common stock authorized | $ 25,000 | ||||||||||
Treasury Stock, Shares | 107,243 | 33,248 | |||||||||
Sale of common stock pursuant to dividend reinvestment plan | $ 131 | $ 280 | $ 199 | ||||||||
Common stock shares issued (in shares) | 22,978,339 | 22,142,143 | |||||||||
Conversion of Operating Partnership Units | $ 10,800 | $ 0 | |||||||||
Units of Partnership Interest, Amount | 624,106 | ||||||||||
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy | four | ||||||||||
Percentage of ownership interests in joint venture | 34.00% | ||||||||||
Dividends Payable, Amount Per Share | $ 0.32 | $ 0.17 | $ 0.32 | $ 0.32 | $ 0.32 | ||||||
Shares Issued, Price Per Share | $ 9.14 | ||||||||||
Stock Dividends, Shares | 781,222 | ||||||||||
Proceeds from issuance of preferred stock and warrants, net of offering costs | $ 125,000 | $ 130,000 | $ 124,976 | $ 0 | $ 0 | ||||||
Third party purchaser | |||||||||||
Class of Stock [Line Items] | |||||||||||
Treasury Stock, Shares | 48,464 | ||||||||||
At-the-Market Program | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock authorized | $ 50,000 | ||||||||||
Proceeds from issuance of common stock | $ 34,300 | ||||||||||
Common stock shares issued (in shares) | 0 | 2,278,518 | |||||||||
Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock shares outstanding (in shares) | 22,142,143 | 18,909,874 | 18,588,228 | ||||||||
Issuance of shares under dividend reinvestment (in shares) | 14,502 | 20,107 | 14,953 | ||||||||
Sale of common stock pursuant to dividend reinvestment plan | $ 100 | $ 300 | |||||||||
Conversion of Operating Partnership Units | $ 6 | ||||||||||
Stock Dividends, Shares | 781,222 | ||||||||||
AS Ajax E II LLC | |||||||||||
Class of Stock [Line Items] | |||||||||||
Percentage of ownership interests in joint venture | 53.10% | ||||||||||
AS Ajax E II LLC | Third Party | |||||||||||
Class of Stock [Line Items] | |||||||||||
Ownership percentage by noncontrolling owners | 46.90% | ||||||||||
Securitization Trust, 2017-D | Great Ajax Corp | |||||||||||
Class of Stock [Line Items] | |||||||||||
Ownership percentage by noncontrolling owners | 50.00% | ||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 50.00% | ||||||||||
2018-C | Great Ajax Corp | |||||||||||
Class of Stock [Line Items] | |||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 63.00% | ||||||||||
2018-C | Third Party Institutional Investor | |||||||||||
Class of Stock [Line Items] | |||||||||||
Ownership percentage by noncontrolling owners | 37.00% | ||||||||||
Great Ajax II REIT | Great Ajax Corp | |||||||||||
Class of Stock [Line Items] | |||||||||||
Ownership percentage by noncontrolling owners | 0.10% | 0.20% | |||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 99.90% | 99.80% | |||||||||
Thetis | |||||||||||
Class of Stock [Line Items] | |||||||||||
Treasury Stock, Shares | 58,779 |
Equity - Schedule of Accumulate
Equity - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income | $ 375 | $ 1,277 | |
AOCI Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income | 375 | 1,277 | $ (575) |
Investment in debt securities | Accumulated Net Investment Gain (Loss) Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized gains | 1,152 | 1,643 | 250 |
Unrealized losses | $ (777) | $ (366) | $ (825) |
Equity Non-controlling interest
Equity Non-controlling interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Noncontrolling Interest [Line Items] | |||
Issuance of non-controlling interest in subsidiaries | $ 22 | $ 6,709 | |
Noncontrolling Interset, Decrease from redemption of OP units | $ 0 | (10,816) | 0 |
Change in non-controlling interest | 0 | (10,838) | 6,709 |
2018-C | |||
Noncontrolling Interest [Line Items] | |||
Issuance of non-controlling interest in subsidiaries | 0 | 0 | 6,685 |
BLFD Holding LLC | |||
Noncontrolling Interest [Line Items] | |||
Issuance of non-controlling interest in subsidiaries | 0 | 0 | 24 |
Gaea | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling Interest, Decrease from Deconsolidation | $ 0 | $ (22) | $ 0 |
Quarterly Financial Informati_3
Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total revenue, net | $ 22,505 | $ 16,742 | $ 16,327 | $ 8,037 | $ 13,716 | $ 15,316 | $ 20,703 | $ 15,184 | $ 63,611 | $ 64,919 | $ 58,164 |
Income before provision for income taxes | 14,492 | 8,876 | 8,938 | 1,177 | 7,107 | 8,250 | 13,664 | 8,192 | 33,483 | 37,213 | 31,401 |
Consolidated net income attributable to common stockholders | $ 10,834 | $ 5,280 | $ 6,242 | $ 400 | $ 6,657 | $ 7,691 | $ 13,027 | $ 7,330 | $ 22,756 | $ 34,705 | $ 28,340 |
Basic earnings per common share (in dollars per share) | $ 0.47 | $ 0.23 | $ 0.27 | $ 0.02 | $ 0.31 | $ 0.39 | $ 0.67 | $ 0.39 | $ 1 | $ 1.74 | $ 1.50 |
Diluted earnings per common share (in dollars per share) | $ 0.41 | $ 0.23 | $ 0.27 | $ 0.02 | $ 0.31 | $ 0.36 | $ 0.56 | $ 0.36 | $ 1 | $ 1.59 | $ 1.43 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) | Mar. 04, 2021$ / sharesshares | Feb. 12, 2021USD ($) | Jan. 29, 2021USD ($) | Mar. 05, 2021USD ($)FacilitynumberOfLoanPools | Dec. 31, 2020USD ($)loan$ / sharesshares | Dec. 31, 2019USD ($)loan$ / shares | Mar. 03, 2021 | Jan. 08, 2021 | Jan. 07, 2021USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($)$ / shares | Mar. 24, 2020$ / shares | Dec. 31, 2018$ / shares |
Subsequent Event [Line Items] | |||||||||||||
Estimated Market Value Of Underlying Collaterals | $ 44,200,000 | $ 323,700,000 | |||||||||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 26,200,000 | $ 202,100,000 | |||||||||||
Convertible Notes Payable | $ 2,500,000 | $ 8,000,000 | |||||||||||
Payments for Repurchase of Convertible Notes | $ 2,300,000 | $ 8,200,000 | |||||||||||
Dividends payable, amount per share (in dollars per share) | $ / shares | $ 0.17 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | ||||||||
Initial public offering | Restricted stock | Long Term Incentive Plan | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | shares | 2,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||||||||||
2018-C | Great Ajax Corp | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 63.00% | ||||||||||||
Subsequent events | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Convertible Notes Payable | $ 2,500,000 | ||||||||||||
Payments for Repurchase of Convertible Notes | $ 2,400,000 | ||||||||||||
Subsequent events | Initial public offering | Restricted stock | Long Term Incentive Plan | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | shares | 2,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||||||||||
Subsequent events | 2018-C | Great Ajax Corp | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | ||||||||||||
Ownership percentage by noncontrolling owners | 37.00% | ||||||||||||
Subsequent events | Corporate Joint Venture | 2021-A | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Number of mortgage loans on real estate | 1,082 | ||||||||||||
Estimated Market Value Of Underlying Collaterals | $ 368,100,000 | ||||||||||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 206,500,000 | ||||||||||||
Securities Percentage of Total UPB | 84.60% | ||||||||||||
Coupon rate | 1.35% | ||||||||||||
Subsequent events | Corporate Joint Venture | 2021-B | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Number of mortgage loans on real estate | 1,384 | ||||||||||||
Estimated Market Value Of Underlying Collaterals | $ 473,200,000 | ||||||||||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 287,900,000 | ||||||||||||
Coupon rate | 2.25% | ||||||||||||
Subsequent events | Corporate Joint Venture | Class A Notes | 2021-B | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Securities Percentage of Total UPB | 75.00% | ||||||||||||
Subsequent events | Corporate Joint Venture | Class A Notes | Mortgage loans | 2021-A | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Original Principal | $ 146,200,000 | ||||||||||||
Subsequent events | Corporate Joint Venture | Class A Notes | Mortgage loans | 2021-B | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Original Principal | $ 215,900,000 | ||||||||||||
Subsequent events | Corporate Joint Venture | Senior Notes | Mortgage loans | 2021-A | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Original Principal | 21,100,000 | ||||||||||||
Subsequent events | Corporate Joint Venture | Class BBB notes | Mortgage loans | 2021-A | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Original Principal | $ 7,800,000 | ||||||||||||
Subsequent events | Corporate Joint Venture | Class B Notes | Mortgage loans | 2021-B | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Original Principal | $ 20,200,000 | ||||||||||||
Subsequent events | Board of Directors Chairman | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Dividends payable, amount per share (in dollars per share) | $ / shares | $ 0.17 | ||||||||||||
Two Sellers | Subsequent events | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Number Of Sellers | numberOfLoanPools | 2 | ||||||||||||
Number Of Transaction | numberOfLoanPools | 2 | ||||||||||||
Reperforming Mortgage Loans On Real Estate | Subsequent events | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Number of mortgage loans on real estate | numberOfLoanPools | 322 | ||||||||||||
Estimated Market Value Of Underlying Collaterals | $ 81,400,000 | ||||||||||||
Percentage Of Estimated Market Value Of Underlying Collateral | 56.90% | ||||||||||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 53,800,000 | ||||||||||||
Number Of Transaction | Facility | 6 | ||||||||||||
Percentage Of Unpaid Principal Balance Of Loan Acquired | 86.10% | ||||||||||||
Reperforming Mortgage Loans On Real Estate | Two Sellers | Subsequent events | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Number of mortgage loans on real estate | numberOfLoanPools | 2 | ||||||||||||
Estimated Market Value Of Underlying Collaterals | $ 300,000 | ||||||||||||
Percentage Of Estimated Market Value Of Underlying Collateral | 67.10% | ||||||||||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 200,000 | ||||||||||||
Percentage Of Unpaid Principal Balance Of Loan Acquired | 89.70% | ||||||||||||
Residential NPLs | Subsequent events | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Number of mortgage loans on real estate | numberOfLoanPools | 4 | ||||||||||||
Estimated Market Value Of Underlying Collaterals | $ 1,100,000 | ||||||||||||
Percentage Of Estimated Market Value Of Underlying Collateral | 60.80% | ||||||||||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 800,000 | ||||||||||||
Number Of Transaction | Facility | 2 | ||||||||||||
Percentage Of Unpaid Principal Balance Of Loan Acquired | 84.80% | ||||||||||||
SBC loans | One Seller | Subsequent events | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Number of mortgage loans on real estate | numberOfLoanPools | 1 | ||||||||||||
Estimated Market Value Of Underlying Collaterals | $ 9,900,000 | ||||||||||||
Percentage Of Estimated Market Value Of Underlying Collateral | 36.40% | ||||||||||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 3,600,000 | ||||||||||||
Percentage Of Unpaid Principal Balance Of Loan Acquired | 100.00% | ||||||||||||
Residential RPLs | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Number of mortgage loans on real estate | loan | 304 | 573 | |||||||||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 61,700,000 | $ 122,500,000 |
Schedule IV Mortgage loans on_2
Schedule IV Mortgage loans on real estate - Schedule of Mortgage Loans (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | ||
Mortgage Loans on Real Estate [Line Items] | |||
Loan count | loan | 6,031 | ||
Carrying value of mortgage loans | [1],[2] | $ 1,119,372,000 | $ 1,151,469,000 |
Principal amount subject to delinquent principal and interest | 574,217,000 | ||
Amount of balloon payments at maturity | 134,327,000 | ||
Aggregate cost for federal income tax purposes | $ 1,005,700,000 | ||
Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest rate | 13.50% | ||
Principal amount subject to delinquent principal and interest | $ 5,000,000 | ||
$0 – 49,999 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan count | loan | 615 | ||
Carrying value of mortgage loans | $ 17,632,000 | ||
Principal amount subject to delinquent principal and interest | 9,536,000 | ||
Amount of balloon payments at maturity | $ 2,571,000 | ||
$0 – 49,999 | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest rate | 0.00% | ||
$50,000 – 99,999 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan count | loan | 1,252 | ||
Carrying value of mortgage loans | $ 91,092,000 | ||
Principal amount subject to delinquent principal and interest | 44,966,000 | ||
Amount of balloon payments at maturity | $ 7,056,000 | ||
$50,000 – 99,999 | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest rate | 0.00% | ||
$50,000 – 99,999 | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest rate | 12.95% | ||
$100,000 – 149,999 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan count | loan | 1,265 | ||
Carrying value of mortgage loans | $ 147,799,000 | ||
Principal amount subject to delinquent principal and interest | 76,991,000 | ||
Amount of balloon payments at maturity | $ 11,313,000 | ||
$100,000 – 149,999 | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest rate | 0.00% | ||
$100,000 – 149,999 | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest rate | 13.34% | ||
$150,000 – 199,999 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan count | loan | 827 | ||
Carrying value of mortgage loans | $ 133,972,000 | ||
Principal amount subject to delinquent principal and interest | 67,801,000 | ||
Amount of balloon payments at maturity | $ 10,373,000 | ||
$150,000 – 199,999 | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest rate | 1.88% | ||
$150,000 – 199,999 | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest rate | 14.13% | ||
$200,000 – 249,999 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan count | loan | 556 | ||
Carrying value of mortgage loans | $ 115,645,000 | ||
Principal amount subject to delinquent principal and interest | 61,661,000 | ||
Amount of balloon payments at maturity | $ 10,727,000 | ||
$200,000 – 249,999 | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest rate | 0.00% | ||
$200,000 – 249,999 | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest rate | 10.93% | ||
$250,000+ | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan count | loan | 1,516 | ||
Carrying value of mortgage loans | $ 613,232,000 | ||
Principal amount subject to delinquent principal and interest | 313,262,000 | ||
Amount of balloon payments at maturity | $ 92,287,000 | ||
$250,000+ | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest rate | 0.00% | ||
$250,000+ | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest rate | 28.00% | ||
[1] | As of December 31, 2020, balances for Mortgage loans, net includes $307.1 million and Secured borrowings, net of deferred costs includes $250.6 million from the 50.0% and 63.0% owned joint ventures, respectively. As of December 31, 2019, balances for Mortgage loans, net include $341.8 million and Secured borrowings, net of deferred costs includes $284.8 million from the 50.0% and 63.0% owned joint ventures, all of which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). | ||
[2] | Mortgage loans, net include $842.2 million and $908.6 million of loans at December 31, 2020 and December 31, 2019, respectively, transferred to securitization trusts that are variable interest entities (“VIEs”); these loans can only be used to settle obligations of the VIEs. Secured borrowings consist of notes issued by VIEs that can only be settled with the assets and cash flows of the VIEs. The creditors do not have recourse to the primary beneficiary (Great Ajax Corp.). See Note 9 — Debt. Mortgage loans, net include $13.7 million and $2.0 million of allowance for loan losses at December 31, 2020 and December 31, 2019, respectively. (2) As of December 31, 2020, balances for Mortgage loans, net includes $307.1 million and Secured borrowings, net of deferred costs includes $250.6 million from the 50.0% and 63.0% owned joint ventures, respectively. As of December 31, 2019, balances for Mortgage loans, net include $341.8 million and Secured borrowings, net of deferred costs includes $284.8 million from the 50.0% and 63.0% owned joint ventures, all of which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). |
Schedule IV Mortgage loans on_3
Schedule IV Mortgage loans on real estate - Schedule of Mortgage Loan Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Movement in Mortgage Loans on Real Estate [Roll Forward] | ||||
Beginning balance | [1],[2] | $ 1,151,469 | ||
RPL, NPL and SBC portfolio acquisitions, net cost basis | 88,965 | |||
Draws on SBC loans | 56 | |||
Accretion recognized | 77,129 | |||
Payments received on loans, net | (175,678) | |||
Reclassifications to REO | (4,764) | |||
Sale of mortgage loans | 26,111 | $ 178,800 | ||
Provision for credit benefit on mortgage loans | 8,274 | 803 | $ 1,164 | |
Other | 32 | |||
Ending balance | [1],[2] | $ 1,119,372 | $ 1,151,469 | |
[1] | As of December 31, 2020, balances for Mortgage loans, net includes $307.1 million and Secured borrowings, net of deferred costs includes $250.6 million from the 50.0% and 63.0% owned joint ventures, respectively. As of December 31, 2019, balances for Mortgage loans, net include $341.8 million and Secured borrowings, net of deferred costs includes $284.8 million from the 50.0% and 63.0% owned joint ventures, all of which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). | |||
[2] | Mortgage loans, net include $842.2 million and $908.6 million of loans at December 31, 2020 and December 31, 2019, respectively, transferred to securitization trusts that are variable interest entities (“VIEs”); these loans can only be used to settle obligations of the VIEs. Secured borrowings consist of notes issued by VIEs that can only be settled with the assets and cash flows of the VIEs. The creditors do not have recourse to the primary beneficiary (Great Ajax Corp.). See Note 9 — Debt. Mortgage loans, net include $13.7 million and $2.0 million of allowance for loan losses at December 31, 2020 and December 31, 2019, respectively. (2) As of December 31, 2020, balances for Mortgage loans, net includes $307.1 million and Secured borrowings, net of deferred costs includes $250.6 million from the 50.0% and 63.0% owned joint ventures, respectively. As of December 31, 2019, balances for Mortgage loans, net include $341.8 million and Secured borrowings, net of deferred costs includes $284.8 million from the 50.0% and 63.0% owned joint ventures, all of which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). |