Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 02, 2022 | Jun. 30, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-36844 | ||
Entity Registrant Name | GREAT AJAX CORP | ||
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 110 | ||
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 Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 280,575,369 | ||
Entity Common Stock, Shares Outstanding (in shares) | 23,149,282 | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement with respect to its 2022 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. | ||
Entity Central Index Key | 0001614806 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Common stock, par value $0.01 per share | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Trading Symbol | AJX | ||
Security Exchange Name | NYSE | ||
7.25% Convertible Senior Notes due 2024 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 7.25% Convertible Senior Notes due 2024 | ||
Trading Symbol | AJXA | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Moss Adams LLP |
Auditor Location | Portland, Oregon |
Auditor Firm ID | 659 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
ASSETS | |||
Cash and cash equivalents | $ 84,426 | $ 107,147 | |
Cash held in trust | 3,100 | 188 | |
Mortgage loans held-for-sale, net | 29,572 | 0 | |
Mortgage loans held-for-investment, net | [1],[2] | 1,080,434 | 1,119,372 |
Real estate owned properties, net | [3] | 6,063 | 8,526 |
Investment in debt securities at fair value | [4] | 355,178 | 273,834 |
Investments in beneficial interests | [5] | 139,588 | 91,418 |
Receivable from servicer | 20,899 | 15,755 | |
Investment in affiliates | 27,020 | 28,616 | |
Prepaid expenses and other assets | 13,400 | 8,876 | |
Total assets | 1,759,680 | 1,653,732 | |
Liabilities: | |||
Secured borrowings, net | [1],[2],[6] | 575,563 | 585,403 |
Borrowings under repurchase transactions | 546,054 | 421,132 | |
Convertible senior notes, net | [6] | 102,845 | 110,057 |
Management fee payable | 2,279 | 2,247 | |
Put option liability | 23,667 | 14,205 | |
Accrued expenses and other liabilities | 8,799 | 6,197 | |
Total liabilities | 1,259,207 | 1,139,241 | |
Commitments and contingencies – see Note 8 | |||
Equity: | |||
Common stock $0.01 par value; 125,000,000 shares authorized, 23,146,775 issued and outstanding at December 31, 2021 and 22,978,339 shares issued and outstanding at December 31, 2020 | 233 | 231 | |
Additional paid-in capital | 316,162 | 317,424 | |
Treasury stock | (1,691) | (1,159) | |
Retained earnings | 66,427 | 53,346 | |
Accumulated other comprehensive income | 1,020 | 375 | |
Equity attributable to stockholders | 497,295 | 485,361 | |
Non-controlling interests | [7] | 3,178 | 29,130 |
Total equity | 500,473 | 514,491 | |
Total liabilities and equity | 1,759,680 | 1,653,732 | |
Series A Preferred Stock | |||
Equity: | |||
Preferred stock $0.01 par value; 25,000,000 shares authorized | 51,100 | 51,100 | |
Series B Preferred Stock | |||
Equity: | |||
Preferred stock $0.01 par value; 25,000,000 shares authorized | $ 64,044 | $ 64,044 | |
[1] | As of December 31, 2021, balances for Mortgage loans held-for-investment, net includes $1.4 million from the 50.0% owned joint ventures. As of December 31, 2020, balances for Mortgage loans held-for-investment, net include $307.1 million and Secured borrowings, net of deferred costs includes $250.6 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 held-for-investment, net include $756.8 million and $842.2 million of loans at December 31, 2021 and December 31, 2020, 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 held-for-investment, net include $7.1 million and $13.7 million of allowance for loan losses at December 31, 2021 and December 31, 2020, respectively. (2) As of December 31, 2021, balances for Mortgage loans held-for-investment, net includes $1.4 million from the 50.0% owned joint ventures. As of December 31, 2020, balances for Mortgage loans held-for-investment, net include $307.1 million and Secured borrowings, net of deferred costs includes | ||
[3] | Real estate owned properties, net, are presented net of valuation allowances of $0.5 million and $1.4 million at December 31, 2021 and December 31, 2020, respectively. | ||
[4] | As of December 31, 2021 and December 31, 2020 Investments in securities at fair value include amortized cost basis of $354.2 million and $273.4 million, respectively, and net unrealized gains of $1.0 million and $0.4 million, respectively. | ||
[5] | Investments in beneficial interests includes allowance for credit losses of $0.6 million at $4.5 million at December 31, 2021 and December 31, 2020, respectively. | ||
[6] | Secured borrowings, net are presented net of deferred issuance costs of $7.3 million and $5.4 million at December 31, 2021 and December 31, 2020, respectively. Convertible senior notes, net are presented net of deferred issuance costs of $1.7 million and $3.3 million at December 31, 2021 and December 31, 2020, respectively. | ||
[7] | As of December 31, 2021 non-controlling interests includes $1.8 million from a 50.0% owned joint venture, $1.3 million from a 53.1% owned subsidiary and $0.1 million from a 99.9% owned subsidiary. As of December 31, 2020 non-controlling interests includes $27.4 million from the 50.0% and 63.0% owned joint ventures, $1.5 million from a 53.1% owned subsidiary and $0.2 million from a 99.9% owned subsidiary which the Company consolidates. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Preferred stock par value per share (in dollars per share) | $ 0.01 | $ 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 | $ 0.01 | |
Common stock shares authorized (in shares) | 125,000,000 | 125,000,000 | |
Common stock shares outstanding (in shares) | 23,146,775 | 22,978,339 | |
Mortgage loans held-for-investment, net | [1],[2] | $ 1,080,434,000 | $ 1,119,372,000 |
Allowance for loan losses | 7,112,000 | 13,712,000 | |
Secured borrowings, net | [1],[2],[3] | 575,563,000 | 585,403,000 |
Property held-for-sale, valuation allowances | 500,000 | 1,400,000 | |
Investments in securities, amortized cost basis | 354,200,000 | 273,400,000 | |
Debt securities accumulated unrealized gain (loss) | 1,000,000 | 400,000 | |
Non-controlling interests | [4] | 3,178,000 | 29,130,000 |
Beneficial interests in securitization trusts | |||
Allowance for loan losses | $ (600,000) | $ (4,500,000) | |
Series A Preferred Stock | |||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | |
Preferred stock issued (in shares) | 2,307,400 | 2,307,400 | |
Preferred stock outstanding (in shares) | 2,307,400 | 2,307,400 | |
Series B Preferred Stock | |||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | |
Preferred stock issued (in shares) | 2,892,600 | 2,892,600 | |
Preferred stock outstanding (in shares) | 2,892,600 | 2,892,600 | |
AS Ajax E II LLC | |||
Ownership percentage by parent | 53.10% | 53.10% | |
Great Ajax II REIT | |||
Ownership percentage by parent | 99.90% | 99.90% | |
Consolidated Entities | |||
Mortgage loans | $ 1,400,000 | $ 307,100,000 | |
Secured borrowings, net | 250,600,000 | ||
Non-controlling interests | 27,400,000 | ||
Consolidated Entities | 2017-D | |||
Non-controlling interests | 1,800,000 | ||
Consolidated Entities | AS Ajax E II LLC | |||
Non-controlling interests | 1,300,000 | 1,500,000 | |
Consolidated Entities | Great Ajax II REIT | |||
Non-controlling interests | $ 100,000 | $ 200,000 | |
2017-D | Great Ajax Corp | |||
Ownership percentage by parent | 50.00% | 50.00% | |
2018-C | Great Ajax Corp | |||
Ownership percentage by parent | 100.00% | 63.00% | |
Mortgage loans | |||
Mortgage loans held-for-investment, net | $ 756,787,000 | $ 842,177,000 | |
Debt issuance costs, net | 7,300,000 | 5,400,000 | |
Secured Debt | |||
Debt issuance costs, net | 7,300,000 | 5,400,000 | |
Convertible Debt | |||
Debt issuance costs, net | $ 1,700,000 | $ 3,300,000 | |
[1] | As of December 31, 2021, balances for Mortgage loans held-for-investment, net includes $1.4 million from the 50.0% owned joint ventures. As of December 31, 2020, balances for Mortgage loans held-for-investment, net include $307.1 million and Secured borrowings, net of deferred costs includes $250.6 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 held-for-investment, net include $756.8 million and $842.2 million of loans at December 31, 2021 and December 31, 2020, 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 held-for-investment, net include $7.1 million and $13.7 million of allowance for loan losses at December 31, 2021 and December 31, 2020, respectively. (2) As of December 31, 2021, balances for Mortgage loans held-for-investment, net includes $1.4 million from the 50.0% owned joint ventures. As of December 31, 2020, balances for Mortgage loans held-for-investment, net include $307.1 million and Secured borrowings, net of deferred costs includes | ||
[3] | Secured borrowings, net are presented net of deferred issuance costs of $7.3 million and $5.4 million at December 31, 2021 and December 31, 2020, respectively. Convertible senior notes, net are presented net of deferred issuance costs of $1.7 million and $3.3 million at December 31, 2021 and December 31, 2020, respectively. | ||
[4] | As of December 31, 2021 non-controlling interests includes $1.8 million from a 50.0% owned joint venture, $1.3 million from a 53.1% owned subsidiary and $0.1 million from a 99.9% owned subsidiary. As of December 31, 2020 non-controlling interests includes $27.4 million from the 50.0% and 63.0% owned joint ventures, $1.5 million from a 53.1% owned subsidiary and $0.2 million from a 99.9% owned subsidiary which the Company consolidates. |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
INCOME | ||||
Interest income | $ 93,383 | $ 98,336 | $ 112,416 | |
Interest expense | (36,742) | (48,692) | (59,325) | |
Net interest income | 56,641 | 49,644 | 53,091 | |
Net decrease/(increase) in the net present value of expected credit losses | [1] | 18,223 | 12,555 | (803) |
Net interest income after the impact of changes in the net present value of expected credit losses | 74,864 | 62,199 | 52,288 | |
Income/(loss) from investment in affiliates | 699 | (155) | 1,332 | |
Other Income | 2,385 | 1,567 | 11,299 | |
Total revenue, net | 77,948 | 63,611 | 64,919 | |
EXPENSE | ||||
Related party expense – loan servicing fees | 7,433 | 7,678 | 9,133 | |
Related party expense – management fee | 9,116 | 8,456 | 7,356 | |
Professional fees | 2,940 | 2,834 | 2,550 | |
Real estate operating expenses | 328 | 1,482 | 3,685 | |
Fair value adjustment on put option | 9,462 | 4,733 | 0 | |
Other expense | 5,221 | 4,284 | 4,553 | |
Total expense | 34,500 | 29,467 | 27,277 | |
Loss on debt extinguishment | 1,439 | 661 | 429 | |
Income before provision for income taxes | 42,009 | 33,483 | 37,213 | |
Provision for income taxes (benefit) | 234 | (125) | 124 | |
Consolidated net income | 41,775 | 33,608 | 37,089 | |
Less: consolidated net (loss)/income attributable to the non-controlling interest | (80) | 5,112 | 2,384 | |
Consolidated net income attributable to Company | 41,855 | 28,496 | 34,705 | |
Less: dividends on preferred stock | 7,798 | 5,740 | 0 | |
Consolidated net income attributable to common stockholders | $ 34,057 | $ 22,756 | $ 34,705 | |
Basic earnings per common share (in dollars per share) | $ 1.48 | $ 1 | $ 1.74 | |
Diluted earnings per common share (in dollars per share) | $ 1.41 | $ 1 | $ 1.59 | |
Weighted average shares - basic (in shares) | 22,852,948 | 22,641,636 | 19,710,482 | |
Weighted average shares - diluted (in shares) | 30,262,467 | 22,641,636 | 28,173,217 | |
[1] | Net decrease in the net present value of expected credit losses represents the net decrease to the allowance resulting from changes in actual and expected cash flows during the years ended December 31, 2021, December 31, 2020, and December 31, 2019. It represents the net increase of the present value of the expected cash flows in excess of contractual cash flows offset by any incremental provision expense on the Mortgage loan pools and Beneficial interests. The decrease is calculated at the pool level for Mortgage loans and at the security level for Beneficial interests. To the extent a pool or Beneficial interest has an associated allowance, the decrease in expected credit losses is recorded in the period in which the change occurs, otherwise it is recognized prospectively as an increase in yield. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPRHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Consolidated net income attributable to common stockholders | $ 34,057 | $ 22,756 | $ 34,705 |
Other comprehensive income/(loss): | |||
Net unrealized income/(loss) on investments, net of non-controlling interest | 645 | (902) | 1,852 |
Income tax expense related to items of other comprehensive income | 0 | 0 | 0 |
Comprehensive income | $ 34,702 | $ 21,854 | $ 36,557 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Consolidated net income | $ 41,775 | $ 33,608 | $ 37,089 |
Adjustments to reconcile net income to net cash from operating activities | |||
Stock-based management fee and compensation expense | 1,312 | 879 | 3,604 |
Non-cash interest income accretion on mortgage loans | (19,451) | (29,040) | (39,113) |
Interest and discount accretion on investment in debt securities | (10,963) | (9,852) | (6,655) |
Discount accretion on investment in beneficial interests | (15,997) | (11,754) | (6,426) |
(Gain)/loss on sale of mortgage loans | (122) | 705 | (7,123) |
Loss on debt extinguishment | 1,439 | 661 | 429 |
Gain on sale of real estate owned properties | (893) | (1,011) | (629) |
Gain on sale of securities | (201) | (145) | (8) |
Depreciation of property | 7 | 29 | 499 |
Impairment of real estate owned | 293 | 1,359 | 2,104 |
(Decrease)/increase in present value of expected credit losses on loans | (13,668) | (9,345) | 803 |
Credit loss expense on mortgage loans | 842 | 1,071 | 0 |
Decrease in net present value of expected credit losses on beneficial interests | (4,555) | (3,210) | 0 |
Credit loss expense on beneficial interests | 457 | 663 | 0 |
Amortization of debt discount and prepaid financing costs | 6,164 | 5,176 | 5,716 |
Undistributed (income)/loss from investment in affiliates | (699) | 155 | (1,332) |
Fair value adjustment on put option liability | 9,462 | 4,733 | 0 |
Other non-cash charges | (3) | 0 | 0 |
Net change in operating assets and liabilities | |||
Prepaid expenses and other assets | (8,027) | (845) | (2,555) |
Receivable from Servicer | (5,144) | 1,311 | (2,231) |
Accrued expenses, management fee payable, and other liabilities | 2,648 | 963 | 830 |
Net cash from operating activities | (15,324) | (13,889) | (14,998) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of mortgage loans and related balances | (286,219) | (88,965) | (129,186) |
Principal paydowns on mortgage loans | 218,762 | 127,505 | 134,696 |
Proceeds from sale of mortgage loans | 125,975 | 25,412 | 212,648 |
Draws on small balance commercial loans | (20,689) | (56) | (912) |
Purchase of securities | (341,788) | (144,682) | (187,825) |
Proceeds from paydowns on debt securities | 155,187 | 53,517 | 42,386 |
Proceeds from payoff and sale of securities | 90,229 | 38,944 | 39,635 |
Purchase of rental property and property held-for-sale | (277) | 0 | (27,524) |
Proceeds from sale of property held-for-sale | 6,843 | 11,100 | 17,436 |
Renovations and recovery costs of rental property and property held-for-sale | 0 | (28) | 171 |
Investment in equity method investee | 0 | 0 | (2,502) |
Distribution from affiliates | 1,778 | 1,418 | 1,144 |
Net cash from investing activities | (50,199) | 24,165 | 100,167 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from repurchase transactions | 560,627 | 315,364 | 322,561 |
Repayments on repurchase transactions | (435,705) | (308,346) | (444,372) |
Proceeds from origination of secured borrowings | 391,028 | 114,534 | 283,914 |
Repayments on secured borrowings | (393,005) | (183,487) | (241,134) |
Payment of prepaid financing costs | (7,726) | (1,876) | (4,559) |
Purchase of bonds of non-controlling interest in subsidiaries | (5,887) | 0 | 0 |
Repurchase of the Company's senior convertible notes | (8,762) | (10,481) | 0 |
Proceeds from issuance of preferred stock and warrants, net of offering costs | 0 | 124,976 | 0 |
Sale of common stock, net of offering costs | 251 | 0 | 34,301 |
Sale of common stock pursuant to dividend reinvestment plan | 241 | 131 | 280 |
Acquisition of non-controlling interest in subsidiary | (11,362) | 0 | 0 |
Distribution to non-controlling interest | 15,196 | 329 | 789 |
Issuance of non-controlling interest in subsidiaries | 0 | 145 | 144 |
Repurchase of the Company's common stock | (16) | (436) | 0 |
Dividends paid on common stock and preferred stock | (28,774) | (17,499) | (26,322) |
Net cash from financing activities | 45,714 | 32,696 | (75,976) |
NET CHANGE IN CASH, CASH EQUIVALENTS, AND CASH HELD IN TRUST | (19,809) | 42,972 | 9,193 |
CASH, CASH EQUIVALENTS AND CASH HELD IN TRUST, beginning of period | 107,335 | 64,363 | 55,170 |
CASH, CASH EQUIVALENTS AND CASH HELD IN TRUST, end of period | 87,526 | 107,335 | 64,363 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Cash paid for interest | 29,521 | 42,301 | 53,324 |
Cash paid for income taxes | 57 | 94 | 71 |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||
Net transfer of loans from mortgage held-for-investment, net to mortgage loans held-for-sale, net | 159,733 | 0 | 0 |
Net transfer of loans and loan advances to rental property or property held-for-sale | 3,511 | 4,903 | 12,104 |
Non-cash adjustments to basis in mortgage loans | 3,193 | 32 | (20) |
Issuance of common stock for management fee and compensation expense | 1,312 | 879 | 3,604 |
Unrealized gain/(loss) on available for sale securities, net of non-controlling interest and tax | 645 | (902) | 1,852 |
Treasury stock received through distributions from investment in Manager | 516 | 253 | 188 |
Issuance of common stock for dividends | 0 | 7,097 | 0 |
Transfer of prepaids to rental property or property held-for-sale | 0 | 139 | 0 |
Non-cash transfer of rental property to Gaea | 0 | 0 | 41,997 |
Non-cash equity investment in Gaea resulting from deconsolidation | 0 | 0 | 18,494 |
Conversion of Operating Partnership Units | 0 | 0 | 10,816 |
Non-cash transfer of loans to Gaea | 0 | 0 | 2,215 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||
Cash and cash equivalents | 84,426 | 107,147 | |
Restricted cash | 3,100 | 188 | |
Total cash and cash equivalents and restricted cash shown on the consolidated statements of cash flows | $ 87,526 | $ 107,335 | $ 64,363 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Series A and Series B Preferred Stock | Series A Preferred Stock | Series B Preferred Stock | Preferred StockSeries A Preferred Stock | Preferred StockSeries B Preferred Stock | Common Stock | Treasury stock | Additional Paid-in Capital | Retained Earnings | Accumulated other comprehensive (loss)/gain | Total Stockholders’ Equity | Total Stockholders’ EquitySeries A and Series B Preferred Stock | Non-controlling interest |
Beginning balance, preferred stock (in shares) at Dec. 31, 2018 | 0 | 0 | ||||||||||||
Beginning balance, preferred stock at Dec. 31, 2018 | $ 0 | $ 0 | ||||||||||||
Beginning balance (in shares) at Dec. 31, 2018 | 18,909,874 | |||||||||||||
Beginning 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] | ||||||||||||||
Consolidated net income attributable to common stockholders | 34,705 | 34,705 | 34,705 | |||||||||||
Net income | 37,089 | 2,384 | ||||||||||||
Issuance of non-controlling interest in subsidiaries | (22) | (22) | ||||||||||||
Sale of shares (in shares) | 2,278,518 | |||||||||||||
Sale of shares | 34,301 | $ 23 | 34,278 | 34,301 | ||||||||||
Conversion of Operating Partnership Units (in shares) | 624,106 | |||||||||||||
Conversion of Operating Partnership Units | 0 | $ 6 | 10,810 | 10,816 | (10,816) | |||||||||
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 declared and distributions | (27,111) | (26,322) | (26,322) | (789) | ||||||||||
Other comprehensive income/(loss) | 1,852 | 1,852 | 1,852 | |||||||||||
Treasury stock (in shares) | (12,971) | |||||||||||||
Treasury stock | (188) | (188) | (188) | |||||||||||
Ending balance, preferred stock (in shares) at Dec. 31, 2019 | 0 | 0 | ||||||||||||
Ending balance, preferred stock at Dec. 31, 2019 | $ 0 | $ 0 | ||||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 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] | ||||||||||||||
Consolidated net income attributable to common stockholders | 28,496 | 28,496 | 28,496 | |||||||||||
Net income | 33,608 | 5,112 | ||||||||||||
Sale of shares (in shares) | 2,307,400 | 2,892,600 | ||||||||||||
Sale of shares | $ 115,144 | $ 51,100 | $ 64,044 | $ 115,144 | ||||||||||
Issuance of subsidiary shares | 145 | 145 | ||||||||||||
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 | ||||||||||
Dividends declared and distributions | (17,828) | $ (8) | (7,089) | (24,596) | (17,499) | (329) | ||||||||
Dividends declared (in shares) | 781,222 | |||||||||||||
Convertible senior notes repurchase | (81) | (81) | (81) | |||||||||||
Other comprehensive income/(loss) | (902) | (902) | (902) | |||||||||||
Treasury stock (in shares) | (73,995) | |||||||||||||
Treasury stock | $ (689) | (701) | 12 | (689) | ||||||||||
Ending balance, preferred stock (in shares) at Dec. 31, 2020 | 2,307,400 | 2,892,600 | 2,307,400 | 2,892,600 | ||||||||||
Ending balance, preferred stock at Dec. 31, 2020 | $ 51,100 | $ 64,044 | $ 51,100 | $ 64,044 | ||||||||||
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] | ||||||||||||||
Consolidated net income attributable to common stockholders | 41,855 | 41,855 | 41,855 | |||||||||||
Net income | 41,775 | (80) | ||||||||||||
Sale of shares (in shares) | 24,951 | |||||||||||||
Sale of shares | 251 | $ 0 | 251 | 251 | ||||||||||
Acquisition of non-controlling interest in subsidiary | (11,362) | (3,056) | (3,056) | (8,306) | ||||||||||
Issuance of shares under dividend reinvestment (in shares) | 18,750 | |||||||||||||
Issuance of shares under dividend reinvestment | 241 | $ 1 | 240 | 241 | ||||||||||
Stock-based compensation expense (in shares) | 164,862 | |||||||||||||
Stock-based compensation expense | 1,312 | $ 1 | 1,311 | 1,312 | ||||||||||
Dividends declared and distributions | (29,154) | (28,774) | (28,774) | (380) | ||||||||||
Distribution to non-controlling interest | (17,186) | (17,186) | ||||||||||||
Convertible senior notes repurchase | (8) | (8) | (8) | |||||||||||
Other comprehensive income/(loss) | 645 | 645 | 645 | |||||||||||
Treasury stock (in shares) | (40,127) | |||||||||||||
Treasury stock | $ (532) | (532) | 0 | (532) | ||||||||||
Ending balance, preferred stock (in shares) at Dec. 31, 2021 | 2,307,400 | 2,892,600 | ||||||||||||
Ending balance, preferred stock at Dec. 31, 2021 | $ 51,100 | $ 64,044 | $ 51,100 | $ 64,044 | ||||||||||
Ending balance (in shares) at Dec. 31, 2021 | 23,146,775 | |||||||||||||
Ending balance at Dec. 31, 2021 | $ 500,473 | $ 233 | $ (1,691) | $ 316,162 | $ 66,427 | $ 1,020 | $ 497,295 | $ 3,178 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Stockholders' Equity [Abstract] | |||||||||
Dividends payable, amount per share (in dollars per share) | $ 0.10 | $ 0.24 | $ 0.21 | $ 0.19 | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.32 | $ 0.32 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
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 facilitates capital raising activities and operates 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 may also acquire or originate small balance commercial loans (“SBC loans”). The SBC loans that the Company opportunistically targets 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 invests 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. The Company may also target investments in non-performing loans (“NPLs”). 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 the Servicer") which owns substantially all of the interest in Gregory Funding LLC ("Gregory" or the "Servicer"), the Company's loan and real property servicer that is 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 Operating Partnership, through interests in certain entities, as of December 31, 2021 and December 31, 2020, held 99.9% of Great Ajax II REIT Inc., which owns 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. 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, 2021 the Company owned approximately 22.8% of Gaea with the dilution since the capital raise driven by Gaea's equity issuances. 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 three 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 owns 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") is a securitization trust that holds mortgage loans, REO property and secured borrowings; 2017-D is 50.0% owned by the Company. Great Ajax II REIT Inc. which wholly owns Great Ajax II Depositor LLC which acts as the depositor of mortgage loans into securitization trusts and holds subordinated securities issued by such trusts and is 99.9% owned by the Company as of December 31, 2021 and December 31, 2020. 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. During the second quarter of 2021, the majority of loans held by 2017-D were sold into Ajax Mortgage Loan Trust 2021-C ("2021-C"), a related party joint venture with third party institutional investors. The Company held a 50.0% ownership of the remaining loans held by 2017-D at December 31, 2021. During the first quarter of 2021, the Company acquired the remaining ownership of Ajax Mortgage Loan Trust 2018-C ("2018-C"), a subsidiary that previously had non-controlling ownership interest held by third parties and was 63.0% owned by the Company as of December 31, 2020 and consolidated in the Company's consolidated financial statements. At December 31, 2021 there was no non-controlling ownership interest in 2018-C held by third parties. The Company’s 19.8% ownership 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, 2021 | |
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, the Company’s recognition of interest income for PCD loans is based upon it 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. The Company adopted ASU 2016-13, Financial Instruments - Credit Losses , otherwise known as 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 expected credit losses with no net impact on the amortized cost basis of the portfolio. 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. The Company may adjust its loan pools as the underlying risk factors change over time. The Company has aggregated its mortgage loan portfolio into loan pools based on 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 expected credit losses. Upon the acquisition of PCD loans the Company records the acquisition as three separate elements for (i) the amount of purchase discount which the Company expects to recover through eventual repayment by the borrower, (ii) an allowance for future expected credit loss and (iii) 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. The net present value of changes in expected cash flows, whether caused by timing or loan performance, is reported in the period in which it arises and is reflected as an increase or decrease in the provision for expected credit losses to the extent a provision for expected credit losses is recorded against the pool of mortgage loans. If no provision for expected credit losses is recorded against the pool of assets, the increase in expected future cash flows is recognized prospectively as an increase in yield. 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. The Company accounts for its non-PCD loans by estimating any allowance for expected credit losses for its non-PCD loans based on the risk characteristics of the individual loans. If necessary, an allowance for expected credit losses is established through a provision for loan losses. The allowance is the difference between the net present value of the expected future cash flows from the loan and the contractual balance due. 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. Investments in Securities at Fair Value The Company’s Investments in Securities at Fair Value 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 are expected 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 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 and each beneficial interest is accounted for independently. 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. Depreciation is provided for using the straight-line method over the estimated useful lives of the assets of up to 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. 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 warrants were recorded as a liability in the Company's consolidated balance sheet as a put option liability 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 at each balance sheet date. The Company determines the fair value using a discounted cash flow method. 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 expense when incurred. Convertible Senior Notes During 2017 and 2018, the Company completed the public offer and sale of $123.9 million in aggregate principal amount of its convertible senior notes (the “notes”) due 2024, in three separate offerings which 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 the Company’s common stock at a current 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, is 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, second and fourth quarters of 2021, the Company completed a series of convertible note repurchases for aggregate principal amounts of $2.5 million, $5.0 million and $1.3 million, respectively, for total purchase prices of $2.4 million, $5.1 million and $1.3 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 second quarters of 2021 were both zero and for the fourth quarter of 2021 was $8 thousand. There were no convertible note repurchases during the third quarter of 2021. During the first and third quarters 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. There were no convertible note repurchases during the second and fourth quarters of 2020. 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. Management fees are expensed in the quarter incurred and the portion payable in common stock (if any) 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. 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 an 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 the 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) are determined based on the average of the closing prices of the Company's common stock on the New York Stock Exchange ("NYSE") on the five business days preceding the record date of the most recent regular quarterly dividend to holders of the common stock. 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 awards, including grants of long-term incentive plan units (“LTIP Units”) from the Operating Partnership, available for issuance under the Director Plan is 60,000 shares. The Company issued to each of its independent directors restricted stock awards of 2,000 shares of its common stock upon joining the Board of Directors. The Company may also periodically issue additional restricted stock awards to its independent directors under the Director Plan. In addition, each of the Company’s independent directors receives an annual fee of $100,000, payable quarterly, 40% in shares of the Company’s common stock and 60% in cash. 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 conversion of all warrants and convertible senior notes 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 shares granted in 2021 vest over four years, with one-fourth of the shares vesting on each of the first, second, third and fourth anniversaries of the grant date. The shares granted prior to 2021 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 or fourth anniversary of the grant date, as determined by the contract. 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 periodically grants restricted common 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 Consolidated net income attributable to common stockholders, 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 its 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 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 its 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's investments in beneficial interests are trust certificates representing the residual investment in securitization trusts the Company forms with joint venture partners. The trust certificates represent the residual investment in the trust. The Company relies on its Manager's proprietary pricing model to estimate the underlying cash flows expected to be collected on its investments in beneficial interests. The Company's ownership interest in the Manager is valued by applying an earnings multiple to base fee revenue. The Company's ownership interests in AS Ajax E LLC and AS Ajax E II LLC are valued using estimates provided by |
Mortgage Loans
Mortgage Loans | 12 Months Ended |
Dec. 31, 2021 | |
Mortgage Loans [Abstract] | |
Mortgage Loans | Mortgage Loans The following table presents information regarding the carrying value for the Mortgage loan categories of RPL, NPL and SBC as of December 31, 2021 and 2020 ($ in thousands): December 31, 2021 December 31, 2020 Loan portfolio basis by asset type Mortgage loans held-for-investment Mortgage loans held-for-sale Mortgage loans held-for-investment Mortgage loans held-for-sale Residential RPLs $ 941,565 $ 29,572 $ 1,057,454 $ — Residential NPLs 119,520 — 38,724 — SBC loans 19,349 — 23,194 — Total $ 1,080,434 $ 29,572 $ 1,119,372 $ — Included on the Company’s consolidated balance sheets as of December 31, 2021 and December 31, 2020 are approximately $1.1 billion at each year end of RPLs, NPLs, and SBC loans that are held-for-investment and approximately $29.6 million and zero, respectively, of RPLs that are held-for-sale. At September 30, 2021 the Company reclassified $31.0 million of Mortgage loans held-for-investment to the Mortgage loans held-for-sale line in its consolidated balance sheet. The categorization of RPLs, NPLs and SBC loans is determined at the time of acquisition. The carrying value of RPLs, NPLs and SBC loans reflects the original investment amount, plus accretion of interest income and credit and non-credit discount, less principal and interest cash flows received. The carrying values at December 31, 2021 and December 31, 2020 for the Company's loans in the table above are presented net of a cumulative allowance for expected credit losses of $7.1 million and $13.7 million, respectively, reflected in the appropriate lines in the table by loan type. For the year ended December 31, 2021 and 2020 the Company recognized $13.7 million and $9.3 million, respectively, of revenue due to a net decrease in expected credit losses resulting from increases in the present value of the expected cash flows. For the year ended December 31, 2019, the Company recognized $0.8 million of losses, due to a net increase in expected credit losses resulting from decreases in the present value of the expected cash flows. For the years ended December 31, 2021, 2020 and 2019, the Company accreted $79.9 million, $86.1 million and $97.1 million, respectively, net of the impact of changes in expected credit losses into interest income with respect to its RPL, NPL and SBC loans. 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 using a prepayment rate assumption. 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 bearing upon cash flow expectations include the specific location of the underlying property, loan-to-value ratio, property age and condition, borrower's amount of equity in the property, 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, 2021 and 2020, the Company purchased 1,006 and 304 RPLs with UPB of $191.3 million and $61.7 million, respectively. During the years ended December 31, 2021 and 2020, 387 and 65 NPLs were purchased with UPB of $94.8 million and $16.0 million, respectively. During the years ended December 31, 2021 and 2020, the Company acquired 16 and 14 SBC loans with UPB of $8.9 million and $20.3 million, respectively. Included in the Company's loan acquisitions for 2021 are 772 RPLs, NPLs and SBC loans with a carrying value of $152.9 million from Ajax Mortgage Loan Trust 2019-C ("2019-C"), a joint venture trust previously formed by the Company in which it had held a 34.0% interest in the class B securities and trust certificate. The remaining 66.0% of 2019-C was acquired from the Company's joint venture partner in exchange for cash consideration for the outstanding equity certificate and subordinate notes and the assumption of the obligation to repay the senior note outstanding. Subsequent to the acquisition, the senior and subordinate notes were retired in December 2021. The Company previously recorded its investment in 2019-C as Investment in debt securities and Investment in beneficial interests because it was not the primary beneficiary of the trust. Subsequent to acquiring the outstanding equity certificate, the Company became the sole owner of the trust and now reflects the underlying mortgage loans on its consolidated balance sheet. During the year ended December 31, 2021 the Company sold 760 loans from 2017-D with a carrying value of $129.2 million and UPB of $133.8 million through a sponsored joint venture between the Company and a third party accredited institutional investor resulting in the removal of the related loans from the consolidated balance sheet. The Company retained various classes of securities from the joint venture. Comparatively, during the year ended December 31, 2020 the Company sold 26 loans with a carrying value of $26.1 million and UPB of $26.2 million and collateral values of $44.2 million to Gaea, a related party. 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 expected credit losses with no net impact on the amortized cost basis of the portfolio. The Company views its mortgage loan portfolio based on a combination of loan performance and legal ownership for loans held by certain consolidated trusts, and used seven and six pools at December 31, 2021 and December 31, 2020, respectively, to aggregate its portfolio of PCD loans, and two pools and one pool for its non-PCD loans at December 31, 2021 and December 31, 2020, respectively. At December 31, 2021, the Company aggregated its PCD loans in seven loan pools. Pool Great Ajax REIT II contains loans in the Company’s rated securitization transactions. Great Ajax REIT II is a separate taxpayer from Great Ajax Corp. Accordingly, the Company maintains separate books and records for each entity. At inception, loans in the Company’s rated securitization transactions have all made at least 12 of the last 12 payments and meet the pay string and loan to value requirements to obtain a AAA rating on the senior bond. Pool California contains all loans from California that are not included in Great Ajax REIT II. The Company's California loans generally outperform those of other states in that the Company rarely takes back an REO property because it receives foreclosure bids that exceeds its investment in the mortgage loan. 7f7 and better contains all loans that have made at least seven on time payments, either sequentially or in bulk. The Company's analytics have demonstrated that a borrower that makes seven of the last seven payments is substantially less likely to default than a borrower that has not made at least seven of the last seven payments. Pool 6f6 and below contains loans that have not made seven of the last seven payments and, accordingly, have a much lower survival rate assumption in expected cash flows. Pool 2021-B is an on-balance-sheet secured borrowing consisting primarily of loans previously owned by 2018-C that were not eligible to be securitized in a rated transaction. Pool 2019-C was formed by acquiring the trust's outstanding equity certificate from an unaffiliated third party holder and recognizing the loans on the Company's balance sheet. The Company expects to securitize the majority of the loans acquired from 2019-C in early 2022. The Company established the Ajax N pool to hold a small pool of loans which were designated as held-for-sale as of December 31, 2021. At December 31, 2020, the Company aggregated its PCD loans in six loan pools. Separate pools were utilized for loans that had been securitized in rated secured borrowings during 2019 and 2020 ("Great Ajax II REIT") and for loans that are consolidated under U.S. GAAP but where the Company did not own 100% of the loan pool ("2017-D" and "2018-C") to facilitate the complete and accurate calculation of income attributable to the non-controlling interest. The remaining PCD loans were pooled between the California pool, and the 7f7 and better and the 6f6 and below pools based on their payment history as discussed above. The portfolio of non-PCD loans at December 31, 2021 is divided between two loan pools, the non-PCD pool and the 18-1 LLC pool. The 18-1 LLC loans were previously pooled under non-PCD and determined during the fourth quarter of 2021 to be separated based on its similar risk characteristics because the loans can be put back to the seller once they are 60 days delinquent. Since the criteria for pooling loans includes a combination of both performance and legal ownership by subsidiary trust, these factors are not always mutually exclusive. The following table presents information regarding the year of origination of the Company's mortgage loan portfolio by basis ($ in thousands): December 31, 2021 Mortgage loans held-for-investment, net 2021 2020 2019 2018 2017 2016 2009-2015 2006-2008 2005 and prior Total Great Ajax II REIT $ — $ 764 $ 181 $ 698 $ 328 $ 1,730 $ 46,041 $ 339,759 $ 125,095 $ 514,596 2021-B — — 589 — 2,353 443 28,541 159,318 50,948 242,192 2019-C — — — — 265 — 9,020 96,995 39,801 146,081 California — — 1,268 1,248 — — 1,681 6,431 1,373 12,001 7f7 and better 471 — 2,019 1,541 440 — 3,847 17,032 6,891 32,241 6f6 and below — 1,351 1,783 1,470 209 368 9,885 70,163 28,774 114,003 18-1 LLC — — 605 176 284 429 819 33 10 2,356 Non-PCD 3,771 8,831 3,855 — 507 — — — — 16,964 Total $ 4,242 $ 10,946 $ 10,300 $ 5,133 $ 4,386 $ 2,970 $ 99,834 $ 689,731 $ 252,892 $ 1,080,434 December 31, 2021 Mortgage loans held-for-sale, net 2021 2020 2019 2018 2017 2016 2009-2015 2006-2008 2005 and prior Total Ajax N $ — $ — $ 204 $ — $ — $ — $ 4,267 $ 15,893 $ 9,208 $ 29,572 Total $ — $ — $ 204 $ — $ — $ — $ 4,267 $ 15,893 $ 9,208 $ 29,572 December 31, 2020 Mortgage loans held-for-investment, net 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 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 years ended December 31, 2021 and 2020 ($ in thousands): For the year ended December 31, 2021 For the year ended December 31, 2020 PCD Loans Non PCD Loans PCD Loans Non PCD Loans Par $ 291,338 $ 3,611 $ 70,811 $ 27,191 Discount (1,059) (8) (6,457) (701) Allowance (7,663) — (1,879) — Purchase Price $ 282,616 $ 3,603 $ 62,475 $ 26,490 The Company performs an analysis of its expectation of the amount of undiscounted cash flows to be collected from its mortgage loan pools at the end of each calendar quarter. Under CECL, the Company adjusts its allowance for expected credit losses when there are changes in its expectation of future cash flows. An increase to the allowance for expected credit 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 an allowance for expected credit loss. A decrease in the allowance for expected credit losses is generally facilitated by reclassifying amounts to non-credit discount from the allowance and then recording the recovery. During the year ended December 31, 2021, the Company recorded a $0.3 million reclassification from non-credit discount to the allowance for expected credit losses. This was followed by a $13.7 million reduction of the allowance for expected credit losses, respectively, due to increases in the net present value of expected cash flows. During the year ended December 31, 2021, the Company also recorded a $7.7 million increase in the allowance for expected credit losses due to new acquisitions. Comparatively, during the year ended December 31, 2020, the Company recorded a $8.0 million reclassification from non-credit discount to the allowance for expected credit losses. This was followed by a $9.3 million reduction of the allowance for expected credit losses due to increases in the net present value of expected cash flows. During the year ended December 31, 2020, the Company also recorded a $1.9 million increase in the allowance for expected credit losses due to new acquisitions. Comparatively, during the year ended December 31, 2019, the Company recorded a $7 thousand reclassification to non-credit discount from the allowance for expected credit losses. This was followed by a $0.8 million increase of the allowance for expected credit losses due to the decreases in the present value of expected cash flows. During the year ended December 31, 2019, the Company had no allowance for expected credit losses for new acquisitions. An analysis of the balance in the allowance for expected credit losses account follows ($ in thousands): For the year ended December 31, 2021 2020 2019 Allowance for loan credit losses, beginning of period $ (13,712) $ (1,960) $ (1,164) Beginning period adjustment for CECL — (10,156) — Reclassification (from)/to non-credit discount (to)/from the allowance for changes in payment expectations (304) (7,991) 7 Increase in allowance for expected credit losses for loan acquisitions (7,663) (1,879) — Credit loss expense on mortgage loans (842) (1,071) — Reversal of/(increase in) allowance for expected credit losses due to increases/(decreases) in the net present value of expected cash flows 13,668 9,345 (803) Reversal of allowance upon reclass of pool 2017-D to mortgage loans held-for-sale, net 1,741 — — Allowance for loan credit losses, end of period $ (7,112) $ (13,712) $ (1,960) The following table sets forth the carrying value of the Company’s mortgage loans by delinquency status as of December 31, 2021 and 2020 ($ in thousands): As of December 31, 2021 Mortgage loans held-for-investment, net Current 30 60 90 Foreclosure Total Great Ajax II REIT $ 398,200 $ 52,782 $ 19,530 $ 41,931 $ 2,153 $ 514,596 2021-B 61,066 24,428 24,807 113,459 18,432 242,192 2019-C 78,238 13,920 11,738 35,727 6,458 146,081 California 3,938 661 — 5,132 2,270 12,001 7f7 and better 13,087 4,192 1,718 13,068 176 32,241 6f6 and below 15,169 4,408 2,064 62,456 29,906 114,003 18-1 LLC 2,123 67 111 55 — 2,356 Non-PCD 16,457 — — — 507 16,964 Total $ 588,278 $ 100,458 $ 59,968 $ 271,828 $ 59,902 $ 1,080,434 As of December 31, 2021 Mortgage loans held-for-sale, net Current 30 60 90 Foreclosure Total Ajax N $ 13,485 $ 3,927 $ 2,369 $ 7,828 $ 1,963 $ 29,572 Total $ 13,485 $ 3,927 $ 2,369 $ 7,828 $ 1,963 $ 29,572 As of December 31, 2020 Mortgage loans held-for-investment, net 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 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 |
Real Estate Assets, Net
Real Estate Assets, Net | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate [Abstract] | |
Real Estate Assets, Net | Real Estate Assets, Net The Company acquires real estate assets either through direct purchases of properties 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. Property Held-for-Sale and Rental Property As of December 31, 2021 and 2020, the Company’s net investments in real estate properties were $6.1 million and $8.5 million, respectively, which include balances relating to properties held-for-sale of $6.1 million and $7.8 million, respectively, and no rental properties at December 31, 2021 and $0.7 million in rental properties at December 31, 2020. REO property is considered held-for-sale if the REO is expected to be actively marketed for sale. Also, included in the properties held-for-sale balance for the periods as of December 31, 2021 and 2020, was $0.7 million and $0.3 million, respectively, for properties undergoing renovation or which are otherwise in the process of being brought to market. As of December 31, 2021 and 2020, the Company had a total of 31 and 38 real estate owned properties, respectively, which included 31 and 32 held-for-sale properties, respectively, and no rental properties at December 31, 2021 and six rental properties at December 31, 2020. For the year ended December 31, 2021, additions to REO held-for-sale were acquired through foreclosure or deed in lieu of foreclosure, and reclassified out of the mortgage loan portfolio or were transfers from rental property. Also, in 2021, three REO held-for-sale were acquired through direct purchase as a result of the Company's acquisition of 2019-C, which was previously a non-consolidated joint venture. For the year ended December 31, 2020, all of the additions to REO held-for-sale were acquired through foreclosure or deed in lieu of foreclosure, and reclassified out of the mortgage loan portfolio or were transfers from rental property. The following table presents the activity in the Company’s carrying value of property held-for-sale and rental property for the years ended December 31, 2021 and 2020 ($ in thousands): For the year ended December 31, 2021 2020 Property Held-for-Sale and Rental Property Count Amount Count Amount Balance at beginning of period 38 $ 8,526 68 $ 15,071 Net transfers from mortgage loans and prepaids 23 3,511 20 4,903 Purchases 3 277 — — Adjustments to record at lower of cost or fair value — (293) — (1,359) Depreciation on rental properties — (7) — (29) Disposals (33) (5,951) (50) (10,089) Other — — — 29 Balance at end of period 31 $ 6,063 38 $ 8,526 Dispositions |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
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 either sponsored or contributed assets to, 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, 2021 Basis (1) Gross unrealized gains Gross unrealized losses Carrying value Debt securities $ 354,158 $ 1,822 $ (802) $ 355,178 Beneficial interests in securitization trusts 139,588 — — 139,588 Total investments at fair value $ 493,746 $ 1,822 $ (802) $ 494,766 (1) Basis amount is net of any realized amortized costs, principal paydowns and interest receivable on securities of $0.3 million. As of December 31, 2020 Basis (1) Gross unrealized gains Gross unrealized losses Carrying 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 amortized costs, principal paydowns and interest receivable on securities of $0.2 million. The following table presents a breakdown of the Company's gross unrealized losses ($ in thousands): As of December 31, 2021 Step-up date (1) Basis (2) Gross unrealized losses Carrying value Debt securities due November 2051 (3) March 2025 $ 44,902 $ (12) $ 44,890 Debt securities due June 2057 (3) April 2022 (5) 23,165 (3) 23,162 Debt securities due September 2059 (3) February 2023 9,173 (24) 9,149 Debt securities due December 2059 (3) July 2023 40,502 (87) 40,415 Debt securities due March 2060 (3) February 2025 16,977 (91) 16,886 Debt securities due January 2061 (3) September 2024 14,000 (140) 13,860 Debt securities due June 2061 (4) January 2025/February 2025 86,909 (445) 86,464 Total $ 235,628 $ (802) $ 234,826 (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 security has been in an unrealized loss position for less than 12 months. (4) This line is comprised of two securities that are both due June 2061. One security with a balance of $0.4 million has been in an unrealized loss position for less than 12 months and has a step-up date in January 2025 and the other security of $0.1 million has been in a loss position for less than 12 months has a step-up date in February 2025. (5) On January 25, 2022 the step-up date for this security was extended from January 2022 to April 2022. See Note 16 — Subsequent events. As of December 31, 2020 Step-up date (1) Basis (2) Gross unrealized losses Carrying 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, 2021, the Company recorded $1.8 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 on total investments with a fair value of $355.2 million, which includes $0.3 million in interest receivable. As of December 31, 2020, the Company recorded $1.2 million of 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 on total investments with a fair value of $273.8 million, which includes $0.2 million in interest receivable. During 2021 and 2020, the Company acquired $342.9 million and $144.7 million, respectively, in aggregate of debt securities and beneficial interests issued by joint ventures between the Company and third party institutional accredited investors. The joint ventures issued senior notes and beneficial interests. In certain transactions, the joint ventures also issued subordinated notes. Of the $342.9 million, the Company acquired $254.2 million in senior notes, $35.6 million in subordinate notes and $53.1 million in beneficial interests issued by joint ventures. Comparatively, of the $144.7 million, the Company acquired $115.6 million in senior notes, $9.8 million in subordinate notes and $19.3 million in beneficial interests issued by joint ventures. At December 31, 2021, the investments in debt securities and beneficial interests were carried on the Company's consolidated balance sheet at $355.2 million and $139.6 million, respectively. At December 31, 2020, the investments in debt securities and beneficial interests were carried on the Company's consolidated balance sheet at $273.8 million and $91.4 million, respectively. As of December 31, 2021 and December 31, 2020, the Company owned no securities that were past due. The following table presents a reconciliation between the purchase price and par value for the Company's beneficial interests acquisitions for the year ended December 31, 2021 ($ in thousands): For the year ended December 31, 2021 2020 Par $ 60,282 $ 27,319 Discount (4,953) (5,233) Allowance (2,211) (2,779) Purchase Price $ 53,118 $ 19,307 The Company generally recognizes increases and decreases in the net present value of expected cash flows in earnings in the period they occur. An expense is recorded to increase the allowance for expected credit losses when there is a reduction in the Company’s expected future cash flows compared to contractual amounts due. Income is recognized if there is an increase in expected future cash flows to the extent an allowance has been recorded against the beneficial interest. If there is no allowance for expected credit losses recorded against a beneficial interest, any increase in expected cash flows is recognized prospectively as a change in yield. A decrease in the allowance for expected credit losses is generally facilitated by reclassifying amounts to non-credit discount from the allowance and then recording the reduction to the allowance through the income statement. Management assesses the credit quality of the portfolio and the adequacy of loss reserves on a quarterly basis, or more frequently as necessary. During 2021 and 2020, the Company recorded reversals of the allowance for expected credit losses for beneficial interests of $4.6 million and $3.2 million, respectively. An analysis of the balance in the allowance for expected credit losses for beneficial interests account follows ($ in thousands): For the year ended December 31, 2021 2020 2019 Allowance for beneficial interests credit losses, beginning balance $ (4,453) $ — $ — Beginning period adjustment for CECL — (1,668) — Reclassification to/(from) non-credit discount from/(to) the allowance for changes in payment expectations 1,951 (2,553) — Increase in allowance for credit losses for acquisitions (2,211) (2,779) — Credit loss expense on beneficial interests (457) (663) — Reversal of allowance for expected credit losses due to increases in the net present value of expected cash flows 4,555 3,210 — Allowance for beneficial interests credit losses, end balance $ (615) $ (4,453) $ — |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020 ($ in thousands): Level 1 Level 2 Level 3 December 31, 2021 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 $ 355,178 $ — $ 355,178 $ — Recurring financial liabilities Put option liability $ 23,667 $ — $ — $ 23,667 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 Investments in debt securities at fair value $ 273,834 $ — $ 273,834 $ — Recurring financial liabilities Put option liability $ 14,205 $ — $ — $ 14,205 The following tables set forth the fair value of financial instruments by level within the fair value hierarchy as of December 31, 2021 and 2020 ($ in thousands): Level 1 Level 2 Level 3 December 31, 2021 Carrying value Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Financial assets Mortgage loans held-for-investment, net $ 1,080,434 $ — $ — $ 1,174,660 Mortgage loans held-for-sale, net $ 29,572 $ — $ — $ 32,857 Investment in beneficial interests $ 139,588 $ — $ — $ 139,588 Investment in Manager $ 1,502 $ — $ — $ 12,346 Investment in AS Ajax E LLC $ 569 $ — $ 721 $ — Investment in AS Ajax E II LLC $ 2,550 $ — $ 2,824 $ — Investment in GAFS, including warrants $ 2,602 $ — $ — $ 3,320 Investment in Gaea $ 19,571 $ — $ — $ 21,170 Investment in Loan pool LLCs $ 226 $ — $ — $ 853 Financial liabilities Secured borrowings, net $ 575,563 $ — $ 580,166 $ — Borrowings under repurchase transactions $ 546,054 $ — $ 546,054 $ — Convertible senior notes, net $ 102,845 $ 108,816 $ — $ — 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 held-for-investment, 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 transactions $ 421,132 $ — $ 421,132 $ — Convertible senior notes, net $ 110,057 $ 110,675 $ — $ — The fair value of mortgage loans and beneficial interests 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's investments in beneficial interests are trust certificates representing the residual investment in securitization trusts the Company forms with joint venture partners. The Company relies on its Manager's proprietary pricing model to estimate the underlying cash flows expected to be collected on its investments in beneficial interests. The Company's ownership interest in the Manager is valued by applying an earnings multiple to base fee revenue. The Company’s ownership interest 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 ownership interest in GAFS, including warrants, is determined by applying an earnings multiple to expected earnings. The Company's ownership interest in Gaea is estimated using a projected net operating income for its property portfolio. The fair value of the Company's ownership interest of in the loan pool LLCs is determined by using estimates of underlying assets and liabilities taken from its Manager's pricing model. 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. The Company is able to call the bonds issued in its secured borrowings at par value plus accrued interest pursuant to the terms of the offering document. The Company carries its secured borrowings net of deferred issuance cost. Accordingly, the difference between fair value and carrying value is largely driven by the deferred issuance costs. The Company's put option liability is adjusted to approximate market value through earnings. The put obligation is a fixed amount that may be settled in cash or shares of the Company's common stock at the option of the Company. Fair value is determined using the discounted cash flow method using a rate to accrete the initial basis of $9.5 million to the future put obligation of $50.7 million over the 39-month term of the put option liability. The fair value of the Company's put option liability is measured quarterly with adjustments posted to the Company's consolidated statements of income. The Company’s borrowings under repurchase agreements are short-term in nature, and the Manager believes it can renew the current borrowing arrangements on similar terms in the future. Accordingly, the carrying value of these borrowings approximates fair value. The Company’s convertible senior notes are traded on the NYSE; the debt’s fair value is determined from the NYSE closing price on the balance sheet date. The notes will mature on April 30, 2024, unless earlier repurchased, converted or redeemed. The Company carries its Convertible debt net of deferred issuance cost. Accordingly, the difference between fair value and carrying value is partially driven by the deferred issuance costs. The carrying values of its Cash and cash equivalents, Cash held in trust, Receivable from Servicer, Prepaid expenses and other assets, Management fee payable and Accrued expenses and other liabilities are equal to or approximate fair value. Non-financial assets Property held-for-sale is carried at the lower of its acquisition cost ("cost") or net realizable value. Net realizable value is determined based on appraisals, BPOs, or other market indicators of fair value less expected liquidation costs. The lower of cost or net realizable value for the Company’s REO Property is stated as it's carrying value. The following tables set forth the fair value of non-financial assets by level within the fair value hierarchy as of December 31, 2021 and 2020 ($ in thousands): Level 1 Level 2 Level 3 December 31, 2021 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 $ 6,063 $ (293) $ — $ — $ 6,063 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 |
Affiliates
Affiliates | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 the Company owned approximately 22.8% of Gaea with third party investors owning the remaining approximately 77.2%. The additional dilution since the date of the capital raise is driven by Gaea's equity issuances. The Company accounts for its ownership interest 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 ownership interest 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 $0.4 million. The Company accounts for its investment in GAFS using the equity method. On March 14, 2016, the Company formed AS Ajax E LLC to hold an equity interest in a Delaware trust formed to own residential mortgage loans and residential real estate assets. AS Ajax E LLC owns a 5% equity interest in Ajax E Master Trust which holds a portfolio of RPLs. At the time of the original investment, the Company held a 24.2% interest in AS Ajax E LLC. In October 2016, additional capital contributions were made by third parties, and the Company’s ownership interest in AS Ajax E LLC was reduced to a lower percentage of the total. As of December 31, 2021 and 2020, the Company’s ownership interest in AS Ajax E LLC was approximately 16.5%. The Company accounts for its ownership interest using the equity method. Upon the closing of the Company’s original private placement in July 2014, the Company received a 19.8% equity interest in the Manager, a privately held company for which there is no public market for its securities. The Company accounts for its ownership interest in the Manager using the equity method. The table below shows the net income, assets and liabilities for the Company’s unconsolidated affiliates at 100%, and at the Company’s share ($ in thousands): Net income/(loss), assets and liabilities of unconsolidated affiliates at 100% For the year ended December 31, Net income/(loss) at 100% 2021 2020 2019 Thetis Asset Management LLC $ 3,297 $ (693) $ 4,685 Gaea Real Estate Corp. $ 222 $ 720 $ (20) AS Ajax E LLC $ 198 $ 209 $ 299 Loan pool LLCs $ (126) $ (133) $ (9) Great Ajax FS LLC $ (1,363) $ (3,901) $ 2,233 December 31, 2021 December 31, 2020 Assets and Liabilities at 100% Assets Liabilities Assets Liabilities Thetis Asset Management LLC $ 9,498 $ 1,904 $ 9,531 $ 2,122 Gaea Real Estate Corp. $ 105,667 $ 24,305 $ 94,639 $ 11,886 AS Ajax E LLC $ 3,545 $ 2 $ 4,808 $ 2 Loan pool LLCs $ 2,242 $ 4,060 $ 2,423 $ 3,961 Great Ajax FS LLC $ 66,355 $ 47,293 $ 56,532 $ 36,101 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 2021 2020 2019 Thetis Asset Management LLC $ 653 $ (137) $ 928 Gaea Real Estate Corp. $ 51 $ 165 $ (5) AS Ajax E LLC $ 33 $ 34 $ 49 Loan pool LLCs $ (51) $ (54) $ (4) Great Ajax FS LLC $ (109) $ (312) $ 179 December 31, 2021 December 31, 2020 Assets and Liabilities at the Company's share Assets Liabilities Assets Liabilities Thetis Asset Management LLC $ 1,881 $ 377 $ 1,887 $ 420 Gaea Real Estate Corp. $ 24,092 $ 5,542 $ 21,729 $ 2,729 AS Ajax E LLC $ 583 $ — $ 791 $ — Loan pool LLCs $ 900 $ 1,635 $ 973 $ 1,595 Great Ajax FS LLC $ 5,308 $ 3,783 $ 4,523 $ 2,888 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 VIEs, and the Company has determined that it is the primary beneficiary of certain of these VIEs. 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, 2021, AS Ajax E II LLC was 53.1% owned by the Company, with the remainder held by third-parties. 2017-D is a securitization trust formed to hold mortgage loans, REO property and secured borrowings. During the second quarter of 2021, the majority of loans held by 2017-D were sold into 2021-C, a related party joint venture with third party institutional investors. At December 31, 2021, the Company held a 50.0% ownership in the remaining loans held by 2017-D. Great Ajax II REIT owns Great Ajax II Depositor LLC which acts as the depositor of mortgage loans into securitization trusts and holds subordinated securities issued by such trusts. Great Ajax II REIT was 99.9% owned by the Company as of December 31, 2021 and 2020. During the first quarter of 2021, the Company acquired the remaining ownership of 2018-C, a subsidiary that previously had non-controlling ownership interest held by third parties and was 63.0% owned by the Company as of December 31, 2020. As of December 31, 2021, 2018-C was 100.0% owned by the Company and the previous non-controlling interest had been reduced to zero. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, the Company had commitments to purchase, subject to due diligence, 52 RPLs and NPLs secured by single-family residences with aggregated UPB of $9.3 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, 2021 for the present value of the put liability of $23.7 million. The Company is accreting the amount of the liability under the effective interest method to its expected future put value of $50.7 million and marks the obligation to market through earnings. The expense is recognized in the Fair value adjustment on put option liability line of the Company's consolidated statements of income. The following table sets forth the details of the Company's put option liability ($ in thousands): For the year ended December 31, 2021 2020 2019 Beginning balance $ 14,205 $ — $ — Initial recognition of put option liability — 9,472 — Fair value adjustments during the period 9,462 4,733 — Ending balance $ 23,667 $ 14,205 $ — The full extent of the impact of the COVID-19 pandemic on the global economy generally, and the Company's business in particular, continues to be uncertain. As of December 31, 2021, no contingencies have been recorded on the Company's consolidated balance sheet as a result of the COVID-19 pandemic, 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, 2021, 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, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Repurchase Agreements 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 $150.0 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 five repurchase facilities substantially similar to the mortgage loan repurchase facilities, but where the pledged assets are securities retained from the Company's securitization 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, 2021 Maturity Date Origination Date Maximum Borrowing Capacity Amount Outstanding Amount of Collateral Percentage of Collateral Coverage Interest Rate January 6, 2022 October 6, 2021 $ 6,567 $ 6,567 $ 8,450 129 % 1.33 % January 12, 2022 October 12, 2021 4,978 4,978 6,304 127 % 1.32 % January 13, 2022 December 15, 2021 2,850 2,850 4,050 142 % 1.31 % January 14, 2022 October 15, 2021 4,992 4,992 5,808 116 % 1.17 % January 20, 2022 October 20, 2021 9,667 9,667 11,550 119 % 1.18 % January 27, 2022 December 27, 2021 2,206 2,206 2,824 128 % 1.30 % January 28, 2022 October 29, 2021 9,115 9,115 11,244 123 % 1.33 % January 28, 2022 October 29, 2021 8,508 8,508 10,538 124 % 1.33 % February 11, 2022 November 12, 2021 3,094 3,094 4,428 143 % 1.75 % February 11, 2022 November 16, 2021 4,060 4,060 5,796 143 % 1.36 % February 11, 2022 November 16, 2021 2,166 2,166 3,090 143 % 1.36 % February 11, 2022 November 16, 2021 1,850 1,850 2,640 143 % 1.36 % February 11, 2022 November 16, 2021 1,670 1,670 2,287 137 % 1.36 % February 11, 2022 November 16, 2021 1,526 1,526 2,178 143 % 1.36 % February 18, 2022 November 19, 2021 9,275 9,275 11,954 129 % 1.36 % February 24, 2022 November 24, 2021 3,538 3,538 5,106 144 % 1.77 % March 8, 2022 December 8, 2021 5,363 5,363 6,970 130 % 1.19 % December 31, 2021 Maturity Date Origination Date Maximum Borrowing Capacity Amount Outstanding Amount of Collateral Percentage of Collateral Coverage Interest Rate March 8, 2022 December 8, 2021 1,955 1,955 2,496 128 % 1.19 % March 16, 2022 December 16, 2021 40,956 40,956 54,424 133 % 1.21 % March 16, 2022 December 16, 2021 4,258 4,258 6,232 146 % 1.46 % March 17, 2022 December 17, 2021 6,425 6,425 8,093 126 % 1.42 % March 17, 2022 December 17, 2021 5,904 5,904 7,573 128 % 1.42 % March 17, 2022 December 17, 2021 1,177 1,177 1,687 143 % 1.82 % March 21, 2022 December 20, 2021 30,850 30,850 41,473 134 % 1.26 % March 21, 2022 December 20, 2021 2,629 2,629 3,770 143 % 1.56 % March 22, 2022 December 22, 2021 33,201 33,201 35,956 108 % 0.66 % March 22, 2022 December 22, 2021 2,892 2,892 3,421 118 % 0.96 % March 22, 2022 December 22, 2021 1,541 1,541 1,943 126 % 1.16 % March 22, 2022 December 22, 2021 1,369 1,369 2,047 150 % 1.56 % March 22, 2022 December 22, 2021 1,330 1,330 1,788 134 % 1.41 % March 25, 2022 December 27, 2021 15,443 15,443 20,367 132 % 1.41 % March 25, 2022 December 27, 2021 4,444 4,444 6,413 144 % 1.81 % April 1, 2022 October 5, 2021 28,482 28,482 36,200 127 % 1.36 % April 19, 2022 October 22, 2021 7,909 7,909 9,279 117 % 1.02 % April 19, 2022 October 22, 2021 6,215 6,215 7,276 117 % 1.02 % April 19, 2022 October 22, 2021 5,090 5,090 6,063 119 % 1.02 % June 10, 2022 December 13, 2021 13,992 13,992 20,151 144 % 1.49 % June 10, 2022 December 13, 2021 6,220 6,220 8,203 132 % 1.29 % July 8, 2022 July 9, 2021 150,000 13,824 20,856 151 % 2.60 % September 22, 2022 September 23, 2021 400,000 228,523 300,324 131 % 2.36 % Totals/weighted averages $ 853,707 $ 546,054 $ 711,252 130 % 1.74 % 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 % December 31, 2020 Maturity Date Origination Date Maximum Borrowing Capacity Amount Outstanding Amount of Collateral Percentage of Collateral Coverage Interest Rate 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 % 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. As of December 31, 2021 and 2020, the Company had $6.9 million and $4.7 million, respectively, of cash collateral on deposit with financing counterparties. This cash is included in Prepaid expenses and other assets on its consolidated balance sheets and is not netted against its Borrowings under repurchase agreements. The amount outstanding on the Company’s repurchase facilities and the carrying value of the Company’s loans pledged as collateral are presented as gross amounts in the Company’s consolidated balance sheets at December 31, 2021 and 2020 in the table below ($ in thousands): Gross amounts not offset in balance sheet December 31, 2021 December 31, 2020 Gross amount of recognized liabilities $ 546,054 $ 421,132 Gross amount of loans and securities pledged as collateral 711,252 595,599 Other prepaid collateral 6,902 4,653 Net collateral amount $ 172,100 $ 179,120 Secured Borrowings From its inception (January 30, 2014) to December 31, 2021, the Company has completed 18 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, five of which were outstanding at December 31, 2021. The secured borrowings are structured as debt financings and not sales through a real estate mortgage 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 non-rated 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. The Company has retained the subordinate notes and the applicable trust certificates from one non-rated secured borrowing outstanding at December 31, 2021. The Company’s rated secured borrowings are generally structured as “REIT TMP” transactions which allow the Company to issue multiple classes of securities without using a REMIC structure or being subject to an entity level tax. The Company’s rated secured borrowings generally issue classes of debt from AAA through mezzanine. The Company generally retains the mezzanine and residual certificates in the transactions. The Company has retained the applicable mezzanine and residual certificates from the other four rated secured borrowings at December 31, 2021. The Company’s rated secured borrowings are designated in the table below. At March 31, 2021, the Company's 2017-D secured borrowing contained 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 notes. The Company had retained 50.0% of both the Class A notes and Class B certificates from 2017-D; and the assets and liabilities were consolidated on the Company's consolidated balance sheets. During the second quarter of 2021, the majority of the loans in 2017-D were sold into 2021-C. Based on the structure of the transaction the Company does not consolidate 2021-C under U.S. GAAP. The Company's 2018-C secured borrowing was structured with 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 had retained 5.0% of the Class A notes and 63.0% of the Class B notes and trust certificates. During the first quarter of 2021 the Company acquired the remaining 37.0% ownership of the Class B notes and trust certificates and settled the remaining 95.0% of the outstanding Class A notes. The Company's secured borrowings carry no provision for a step-up in interest rate on any of the Class B notes, except for 2021-B. The following table sets forth the original terms of notes from the Company's secured borrowings outstanding at December 31, 2021 at their respective cutoff dates: Issuing Trust/Issue Date Interest Rate Step-up Date Security Original Principal Interest Rate Rated Ajax Mortgage Loan Trust 2019-D/ July 2019 July 25, 2027 Class A-1 notes due 2065 $140.4 million 2.96 % July 25, 2027 Class A-2 notes due 2065 $6.1 million 3.50 % July 25, 2027 Class A-3 notes due 2065 $10.1 million 3.50 % July 25, 2027 Class M-1 notes due 2065 (1) $9.3 million 3.50 % None Class B-1 notes due 2065 (2) $7.5 million 3.50 % None Class B-2 notes due 2065 (2) $7.1 million variable (3) None Class B-3 notes due 2065 (2) $12.8 million variable (3) Deferred issuance costs $(2.7) million — % Rated Ajax Mortgage Loan Trust 2019-F/ November 2019 November 25, 2026 Class A-1 notes due 2059 $110.1 million 2.86 % November 25, 2026 Class A-2 notes due 2059 $12.5 million 3.50 % November 25, 2026 Class A-3 notes due 2059 $5.1 million 3.50 % November 25, 2026 Class M-1 notes due 2059 (1) $6.1 million 3.50 % None Class B-1 notes due 2059 (2) $11.5 million 3.50 % None Class B-2 notes due 2059 (2) $10.4 million variable (3) Issuing Trust/Issue Date Interest Rate Step-up Date Security Original Principal Interest Rate None Class B-3 notes due 2059 (2) $15.1 million variable (3) Deferred issuance costs $(1.8) million — % Rated Ajax Mortgage Loan Trust 2020-B/ August 2020 July 25, 2027 Class A-1 notes due 2059 $97.2 million 1.70 % July 25, 2027 Class A-2 notes due 2059 $17.3 million 2.86 % July 25, 2027 Class M-1 notes due 2059 (1) $7.3 million 3.70 % None Class B-1 notes due 2059 (2) $5.9 million 3.70 % None Class B-2 notes due 2059 (2) $5.1 million variable (3) None Class B-3 notes due 2059 (2) $23.6 million variable (3) Deferred issuance costs $(1.8) million — % Rated Ajax Mortgage Loan Trust 2021-A/ January 2021 January 25, 2029 Class A-1 notes due 2065 $146.2 million 1.07 % January 25, 2029 Class A-2 notes due 2065 $21.1 million 2.35 % January 25, 2029 Class M-1 notes due 2065 (1) $7.8 million 3.15 % None Class B-1 notes due 2065 (2) $5.0 million 3.80 % None Class B-2 notes due 2065 (2) $5.0 million variable (3) None Class B-3 notes due 2065 (2) $21.5 million variable (3) Deferred issuance costs $(2.5) million — % Non-rated Ajax Mortgage Loan Trust 2021-B/ February 2021 August 25, 2024 Class A notes due 2066 $215.9 million 2.24 % February 25, 2025 Class B notes due 2066 (2) $20.2 million 4.00 % Deferred issuance costs $(4.3) million — % (1) The Class M notes are subordinated, sequential pay, fixed rate notes. The Company has retained the Class M notes, with the exception of Ajax Mortgage Loan Trust 2021-A. (2) The Class B notes are subordinated, sequential pay, with B-2 and B-3 notes having variable interest rates and are subordinate to the Class B-1 notes. The Class B-1 notes are fixed rate notes. The Company has retained the Class B notes. (3) The interest rate is effectively the rate equal to the spread between the gross average rate of interest the trust collects on its mortgage loan portfolio minus the rate derived from the sum of the servicing fee and other expenses of the trust. Servicing for the mortgage loans in the Company’s secured borrowings is provided by the Servicer at servicing fee rates between 0.65% of outstanding UPB and 1.25% of outstanding UPB at acquisition, and is paid monthly. The determination of RPL or NPL status, which determines the servicing fee rates, is based on the status of the loan at acquisition and does not change regardless of the loan's subsequent performance. The following table sets forth the status of the notes held by others at December 31, 2021 and 2020, and the securitization cutoff date ($ in thousands): Balances at December 31, 2021 Balances at December 31, 2020 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 % $ 165,850 $ 115,846 2017-D — — — % 133,897 51,256 (1) 261 % 203,870 (2) 88,903 2018-C — — — % 173,221 131,983 (3) 131 % 222,181 (4) 167,910 2019-D 118,075 92,778 127 % 148,641 125,008 119 % 193,301 156,670 2019-F 115,571 81,026 143 % 139,996 108,184 129 % 170,876 127,673 2020-B 119,184 86,011 139 % 136,360 105,601 129 % 156,468 114,534 2021-A 161,766 141,435 114 % — — — % 206,506 175,116 2021-B 242,191 181,657 133 % — — — % 287,882 215,912 $ 756,787 $ 582,907 (5) 130 % $ 842,177 $ 590,761 (5) 143 % $ 1,606,934 $ 1,162,564 (1) The gross amounts of senior bonds at December 31, 2020 was $102.6 million, however, only $51.3 million is reflected in Secured borrowings as the remainder is owned by the Company. (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. (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 $7.3 million and $5.4 million as of December 31, 2021 and December 31, 2020, respectively. Convertible Senior Notes At December 31, 2021 and December 31, 2020, the Company had carrying values of $102.8 million and $110.1 million, respectively, for its convertible senior notes. 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. As of December 31, 2021, the amount by which the if-converted value falls short of the principal value for the entire series is $9.5 million. At December 31, 2021, the outstanding aggregate principal amount of the notes was $104.6 million, and discount and deferred expenses were $1.7 million. During the year ended December 31, 2021, the Company recognized interest expense on its outstanding convertible notes of $9.1 million, which includes $1.3 million of amortization of discount and deferred expenses. Comparatively 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 on its outstanding convertible notes of $9.7 million, which includes $1.4 million of amortization of discount and deferred expenses. The effective interest rates of the notes for the years ended December 31, 2021 and December 31, 2020 were 8.46% and 8.56%, respectively. During the first, second and fourth quarters of 2021, the Company completed a series of convertible note repurchases for aggregate principal amounts of $2.5 million, $5.0 million and $1.3 million, respectively, for total purchase prices of $2.4 million, $5.1 million and $1.3 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 second quarters of 2021 were both zero and for the fourth quarter of 2021 was $8 thousand. There were no convertible note repurchases during the third quarter of 2021. During the first and third quarters 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. There were no convertible note repurchases during the second and fourth quarters of 2020. 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. No sinking fund has been established for redemption of the principal. 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 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. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 Transaction Consolidated Statement of Income location Counterparty Amount Earnings from securities and beneficial interests in trusts Net interest income after the impact of changes in the net present value of expected credit losses Various non-consolidated joint ventures $ 31,058 Management fee Related party expense – management fee Manager $ 9,116 Loan servicing fees Related party expense – loan servicing fees Servicer $ 7,433 Income from equity investment Income/(loss) from investment in affiliates Manager $ 653 Affiliate loan interest income Interest income Gaea $ 248 Gain on sale of securities Other income Various non-consolidated joint ventures $ 201 Gain on sale of mortgage loans Other income 2021-C $ 122 Income from equity investment Income/(loss) from investment in affiliates Gaea $ 51 Affiliate loan interest income Interest income Servicer $ 37 Income from equity investment Income/(loss) from investment in affiliates AS Ajax E LLC $ 33 Loss from equity investment Income/(loss) from investment in affiliates Loan pool LLCs $ (51) Loss from equity investment Income/(loss) from investment in affiliates Great Ajax FS $ (109) For the year ended December 31, 2020 Transaction Consolidated Statement of Income location Counterparty Amount Earnings from securities and beneficial interests in trusts Net interest income after the impact of changes in the net present value of expected credit losses Various non-consolidated joint ventures $ 24,153 Management fee Related party expense – management fee Manager $ 8,456 For the year ended December 31, 2020 Transaction Consolidated Statement of Income location Counterparty Amount Loan servicing fees Related party expense – loan servicing fees Servicer $ 7,678 Income from equity investment Income/(loss) from investment in affiliates Gaea $ 165 Gain on sale of securities Other income Various non-consolidated joint ventures $ 145 Income from equity investment Income/(loss) from investment in affiliates AS Ajax E LLC $ 34 Loss from equity investment Income/(loss) from investment in affiliates Loan pool LLCs $ (54) Loss from equity investment Income/(loss) from investment in affiliates Manager $ (137) Loss from equity investment Income/(loss) from investment in affiliates Great Ajax FS $ (312) Loss on sale of mortgage loans (Loss)/income on sale of mortgage loans Gaea $ (705) For the year ended December 31, 2019 Transaction Consolidated Statement of Income location Counterparty Amount Earnings from securities and beneficial interests in trusts Net interest income after the impact of changes in the net present value of expected credit losses Various non-consolidated joint ventures $ 13,081 Loan servicing fees Related party expense – loan servicing fees Servicer $ 9,133 Management fee Related party expense – management fee Manager $ 7,356 Gain on sale of mortgage loans Other income 2019-C $ 7,014 Income from equity investment Income/(loss) from investment in affiliates Manager $ 928 Income from equity investment Income/(loss) from investment in affiliates Great Ajax FS $ 179 Income from equity investment Income/(loss) from investment 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/(loss) from investment in affiliates Loan pool LLCs $ (4) Loss from equity investment Income/(loss) from investment in affiliates Gaea $ (5) The Company’s consolidated balance sheets included the following significant related party balances ($ in thousands): As of December 31, 2021 Transaction Consolidated Balance Sheet location Counterparty Amount Purchase of mortgage loans Mortgage loans held-for-investment, net 2019-C $ 152,883 Investment in beneficial interests Investments in beneficial interests Various non-consolidated joint ventures $ 139,588 Receivables from Servicer Receivable from servicer Servicer $ 20,899 Advances to Servicer Prepaid expenses and other assets Servicer $ 3,509 As of December 31, 2021 Transaction Consolidated Balance Sheet location Counterparty Amount Management fee payable Management fee payable Manager $ 2,279 Expense reimbursement receivable Prepaid expenses and other assets Various non-consolidated joint ventures $ 1,211 Expense reimbursements Accrued expenses and other liabilities Servicer $ 78 Affiliate loan receivable interest Prepaid expenses and other assets Gaea 21 Expense reimbursement receivable Prepaid expenses and other assets Servicer $ 12 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 Servicer $ 15,755 Affiliate loan receivable Mortgage loans held-for-investment, net Gaea $ 11,000 Management fee payable Management fee payable Manager $ 2,247 Affiliate loan purchase Mortgage loans held-for-investment, net Servicer $ 1,838 Expense reimbursement receivable Prepaid expenses and other assets Various non-consolidated joint ventures $ 876 Expense reimbursements Accrued expenses and other liabilities Servicer $ 44 Expense reimbursements receivable Prepaid expenses and other assets Manager $ 18 On December 9, 2021, the Company became a party to a promissory note with the Servicer under which the Servicer can borrow up to $3.5 million on a revolving line of credit from the Company. Interest on the arrangement accrues at 7.2% annually. At December 31, 2021, the amount outstanding on the note was $3.5 million. During the fourth quarter of 2021, the Company acquired 772 RPLs, NPLs and SBC loans with a carrying value of $152.9 million from 2019-C, a joint venture trust previously formed by the Company in which it had held a 34.0% interest in the class B securities and trust certificate. The remaining 66.0% of 2019-C was acquired from the Company's joint venture partner in exchange for cash consideration for the outstanding equity certificate and subordinate notes and the assumption of the obligation to repay the senior note outstanding. Subsequent to the acquisition, the senior and subordinate notes were retired in December 2021. The Company previously recorded its investment in 2019-C as Investment in debt securities and Investment in beneficial interests because it was not the primary beneficiary of the trust. Subsequent to acquiring the outstanding equity certificate, the Company became the sole owner of the trust and now reflects the underlying mortgage loans on its consolidated balance sheet. On June 21, 2021, the Company became a party to a promissory note with Gaea under which Gaea can borrow up to $11.0 million on a revolving line of credit from the Company. Funds advanced to Gaea under the note carry an interest rate of 4.25% and are secured by a selection of Gaea's portfolio of mortgage loans. The maturity date of the loan is December 31, 2021 and at December 31, 2021, the note was repaid. At December 31, 2020, the Company had a separate loan of $11.0 million outstanding to Gaea, which was secured by 20 of Gaea's SBC loans. The loan was repaid to the Company on April 5, 2021. At December 31, 2021 and December 31, 2020, these loans were included in Mortgage loans held-for-investment, net on the Company's consolidated balance sheets. 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. The loans are included in Mortgage loans held-for-investment, net on the Company's consolidated balance sheets. During the year ended December 31, 2021, the Company sold 760 loans from 2017-D with a carrying value of $129.2 million and UPB of $133.8 million to a joint venture formed between the Company and a third party accredited institutional investor, and retained various classes of securities from the joint venture. Comparatively, during the year ended December 31, 2020, the Company sold 26 SBC mortgage loans a carrying value of $26.1 million and UPB of $26.2 million to Gaea, a related party. During 2021 and 2020, the Company acquired $342.9 million and $144.7 million, respectively, in aggregate of debt securities and beneficial interests issued by joint ventures between the Company and third party institutional accredited investors. The joint ventures issued senior notes and beneficial interests. In certain transactions, the joint ventures also issued subordinated notes. Of the $342.9 million, the Company acquired $254.2 million in senior notes, $35.6 million in subordinate notes and $53.1 million in beneficial interests issued by joint ventures. Comparatively, of the $144.7 million, the Company acquired $115.6 million in senior notes, $9.8 million in subordinate notes and $19.3 million in beneficial interests issued by joint ventures. At December 31, 2021, the investments in debt securities and beneficial interests were carried on the Company's consolidated balance sheet at $355.2 million and $139.6 million, respectively. At December 31, 2020, the investments in debt securities and beneficial interests were carried on the Company's consolidated balance sheet at $273.8 million and $91.4 million, respectively. As of December 31, 2021 and December 31, 2020, the Company owned no securities that were past due. 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 sale of REO properties 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 both December 31, 2021 and December 31, 2020, the Company had zero advances 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, 2021 the Company owned approximately 22.8% of Gaea with third party investors owning the remaining approximately 77.2%. The Company accounts for its ownership interest 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 LLC was reduced to a lower percentage of the total. As of December 31, 2021 and December 31, 2020, 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 contains 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 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 and special cash dividends on its common stock 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. During the years ended December 31, 2021 and 2020, the Company did not record an incentive fee payable to the Manager. Comparatively, during the year ended December 31, 2019 the Company recorded an expense of $0.7 million 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. 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 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 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, 2021 | |
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 record date of the most recent regular quarterly dividend to holders of the common stock. The Company recognized a base management fee to the Manager for the years ended December 31, 2021 and December 31, 2020 of $9.1 million and $8.4 million, respectively, of which zero was settled in shares of its common stock. Comparatively, for the year ended December 31, 2019 the Company recognized a base management fee of $6.7 million, of which $2.5 million was settled in 175,211 shares of its common stock. For the year ended December 31, 2019 the Company also recognized an incentive fee of $0.7 million, of which $0.1 million was settled in 9,470 shares 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, each of the Company's independent directors received an annual fee retainer of $100,000, payable quarterly, 40% of which is payable in shares of the Company's common stock using the same valuation method as defined for the stock portion of the management fee payable to the Manager. This excludes additional compensation for committee chairs which is paid in cash. The following table sets forth the Company’s stock-based management fees and independent director fees ($ in thousands): Stock-based Management Fees and Director Fees For the year ended December 31, 2021 2020 2019 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 15,020 $ 200 17,064 $ 152 10,948 $ 158 Management fees — — — — 184,681 2,600 Total 15,020 $ 200 17,064 $ 152 195,629 $ 2,758 (1) All management fees and independent director fees are fully expensed in the period in which the relevant service is received by the Company. Restricted Stock The Company periodically grants shares of its common stock to employees of its Manager and Servicer. The shares granted in 2021 vest over four years, with one-fourth of the shares vesting on each of the first, second, third and fourth anniversaries of the grant date. The shares granted prior to 2021 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 or fourth anniversary of the grant date, as determined by the contract. 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 upon joining the 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, 2018 outstanding unvested share grants 110,389 $ 13.59 6,000 $ 13.48 Shares vested (70,555) 13.60 (6,000) 13.48 Shares forfeited (4,500) 13.58 — — Shares granted 79,000 13.94 — — December 31, 2019 outstanding unvested share grants 114,334 $ 13.83 — $ — Shares vested (50,334) 13.86 — — Shares forfeited (9,667) 12.06 — — Shares granted 108,750 9.55 — — December 31, 2020 outstanding unvested share grants 163,083 $ 11.07 — $ — Shares vested (65,750) 11.72 (10,000) 12.53 Shares forfeited (21,668) 11.41 — — Shares granted 152,700 12.79 18,000 12.53 December 31, 2021 outstanding unvested share grants 228,365 $ 12.05 8,000 $ 12.53 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, 2021 2020 2019 Restricted stock grants $ 900 $ 728 $ 839 Director grants 192 — 13 Total expenses for plan grants $ 1,092 $ 728 $ 852 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
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. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 Income Shares Per Share Basic EPS Consolidated net income attributable to common stockholders $ 34,057 22,852,948 Allocation of earnings to participating restricted shares (304) — Consolidated net income attributable to unrestricted common stockholders $ 33,753 22,852,948 $ 1.48 Effect of dilutive securities (1)(2) Interest expense (add back) and assumed conversion of shares from convertible senior notes 9,065 7,409,519 Diluted EPS Consolidated net income attributable to common stockholders and dilutive securities $ 42,818 30,262,467 $ 1.41 (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, 2021, and have not been included in the calculation. (2) The effect of restricted stock grants and manager and director fee shares on the Company's diluted EPS calculation for the year ended December 31, 2021 would have been anti-dilutive and have been removed from the calculation. For the year ended December 31, 2020 Income (Numerator) Shares (Denominator) Per Share Amount 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, 2021, 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. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Equity | Equity Common Stock As of December 31, 2021 and 2020, the Company had 23,146,775 and 22,978,339 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, 2021 and 2020. There were 25,000,000 shares, cumulative for all series, authorized as of both December 31, 2021 and 2020. 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, 2021 the Company held 147,370 shares of treasury stock consisting of 97,686 shares received through distributions of the Company's shares previously held by its Manager and 49,684 shares acquired through open market purchases, of which 1,220 shares were acquired through open market purchases in the fourth quarter of 2021 under the Company's approved stock buyback plan. As of December 31, 2020 the Company held 107,243 shares of treasury stock consisting of 58,779 shares received through distributions of its 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. 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, 2021 and 2020, 18,750 and 14,502 shares, respectively, were issued under the plan for total proceeds of approximately $0.2 million and $0.1 million, respectively. 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 $100.0 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, 2021, 24,951 shares of common stock were sold under the at the market program for total net proceeds of approximately $0.3 million. During the year ended December 31, 2020, no shares were sold under the at the market program. The Company intends to use the net proceeds to acquire mortgage loans and mortgage-related assets consistent with its investment strategy. Accumulated Other Comprehensive Income The Company recognizes unrealized gains or losses on its investment in debt securities as components of other comprehensive income. Total accumulated other comprehensive gain on the Company’s balance sheet at December 31, 2021, 2020 and 2019 was as follows ($ in thousands): For the year ended December 31, Investment in securities: 2021 2020 2019 Unrealized gains $ 1,822 $ 1,152 $ 1,643 Unrealized losses (802) (777) (366) Accumulated other comprehensive income $ 1,020 $ 375 $ 1,277 Non-controlling Interest At December 31, 2021 and December 31, 2020, the Company had non-controlling interests attributable to ownership interests by the following three and four legal entities, respectively. 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, 2021 and December 31, 2020, 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 50.0% held by an accredited institutional investor. During the second quarter of 2021, the majority of the loans in 2017-D were sold into 2021-C, with 22 loans remaining in 2017-D substantially reducing the non-controlling interest. As of December 31, 2021 and December 31, 2020, the Company had retained 50.0% of 2017-D and consolidates the assets, liabilities, revenues and expenses of the trust. Great Ajax II REIT was formed by the Company during 2019 to own Great Ajax II Depositor LLC, which acts as the depositor of mortgage loans into securitization trusts and holds subordinated securities issued by such trusts. As of December 31, 2021 and December 31, 2020, Great Ajax II REIT was 0.1% held by third parties and the Company had retained 99.9% of Great Ajax II REIT and consolidates the assets, liabilities, revenues and expenses of the entity. Securitization trust 2018-C was formed by the Company during 2018 and was 37.0% held by an accredited institutional investor. The non-controlling 37.0% ownership was purchased by the Company during the first quarter of 2021, and the non-controlling interest was derecognized from the Company's balance sheet. As of December 31, 2021 the Company owned 100.0% of 2018-C. Comparatively, as of December 31, 2020 the Company owned 63.0% of 2018-C and consolidated the assets, liabilities, revenues and expenses of the trust. 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, 2021 2020 2019 Decrease from redemption of 2018-C $ (8,306) $ — $ — Decrease from the distribution resulting from the sale of substantially all of 2017-D (17,186) — — Decrease from redemption of OP units by third party investor (1) — — (10,816) Decrease due to deconsolidation of Gaea — — (22) Change in non-controlling interest $ (25,492) $ — $ (10,838) (1) During the second quarter of 2019, 624,106 partnership units in the Company's Operating Partnership previously held by an unaffiliated holder were exchanged for shares of the Company's common stock. |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information (unaudited) | Quarterly Financial Information (unaudited): The following table sets forth the Company's quarterly financial information ($ in thousands): For the year ended December 31, 2021 First quarter Second quarter Third quarter Fourth quarter Total revenue, net $ 19,766 $ 19,794 $ 18,991 $ 19,397 Income before provision for income taxes $ 10,676 $ 11,237 $ 10,786 $ 9,310 Consolidated net income attributable to common stockholders $ 7,004 $ 10,378 $ 9,313 $ 7,362 Basic earnings common share $ 0.30 $ 0.45 $ 0.40 $ 0.32 Diluted earnings per common share $ 0.30 $ 0.42 $ 0.38 $ 0.32 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 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent Events Since year end, the Company acquired two residential RPLs with aggregate UPB of $0.4 million in two transactions from two sellers. The RPLs were acquired at 89.0% of UPB and 57.9% of the estimated market value of the underlying collateral of $0.5 million. The Company has also agreed to acquire, subject to due diligence, 23 residential RPLs and 39 NPLs with aggregate UPB of $5.6 million and $7.4 million, respectively, in five transactions and three transactions, respectively, from five sellers and three sellers, respectively. The purchase price of the residential RPLs equals 98.3% of UPB and 39.7% of the estimated market value of the underlying collateral value of $13.8 million. The purchase price of the NPLs equals 99.2% of UPB and 49.9% of the estimated market value of the underlying collateral of $14.7 million. In January 2022, Gaea, an affiliated company in which the Company holds an interest, completed a private capital raise through which Gaea raised $30.0 million from the issuance of 1,828,153 shares of common stock and warrants. The purchase price per combined share and warrant was $16.41. Each warrant is exercisable for a single share of common stock at an exercise price of $16.41 for 24 months beginning on the date on which the shares of common stock are tradable on an exchange. Great Ajax Corp. acquired 371,103 shares and an equal number of warrants. Upon completion of the private placement, the Company's ownership interest in Gaea was approximately 22.2%. On January 25, 2022, the Company the entered into an agreement to extend the interest rate step-up dates for Ajax Mortgage Loan Trust 2018-D and Ajax Mortgage Loan Trust 2018-G, both of which are joint ventures, from January 2022 to April 2022. On February 22, 2022, the Board authorized an increase in the annual compensation of the Company's independent directors from $100,000 to $140,000, 50% of which is payable in shares of the Company's common stock and 50% in cash, and committee heads will receive an increase of $5,000 payable in cash. The increases are effective as of January 1, 2022. The value of the common stock is determined in the same manner as the value of the common stock to be paid to the Manager as part of its base management fee. On March 3, 2022, the Board declared a dividend of $0.26 per share, to be paid on March 31, 2022 to stockholders of record as of March 18, 2022. |
Schedule IV Mortgage loans on r
Schedule IV Mortgage loans on real estate | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Schedule IV Mortgage loans on real estate | Schedule IV Mortgage loans on real estate December 31, 2021 ($ in thousands) Description (face value of loan) Loan count Interest rate Maturity Carrying amount of mortgages (1) Principal amount subject to delinquent Amount of balloon $0 – 49,999 630 0.00% - 18.00% 07/15/2015 – 06/01/2061 $ 18,438 $ 7,590 $ 615 $50,000 – 99,999 1,213 0.00% - 12.99% 07/20/2017 – 07/01/2061 90,450 40,821 1,958 $100,000 – 149,999 1,179 0.00% - 13.34% 12/01/2017 – 08/01/2065 141,133 67,745 2,135 $150,000 – 199,999 802 0.00% - 14.13% 02/15/2019 – 08/01/2065 133,444 63,080 1,845 $200,000 – 249,999 569 0.00% - 9.65% 09/01/2019 – 07/01/2064 122,094 64,396 2,843 $250,000+ 1,548 0.00% - 10.13% 05/01/2019 – 05/01/2066 604,447 287,626 29,817 Total 5,941 $ 1,110,006 $ 531,258 $ 39,213 (1) The aggregate cost for federal income tax purposes is $1.0 billion as of December 31, 2021. The following table sets forth the activity in our mortgage loans ($ in thousands): January 1, 2021 through December 31, 2021 Mortgage loans held-for-investment, net Mortgage loans held-for-sale, net Beginning carrying value $ 1,119,372 $ — Mortgage loans acquired 286,219 — Draws on SBC loans 20,689 — Accretion recognized 65,953 460 Payments received on loans, net (264,713) (1,851) Net reclassifications to mortgage loans held-for-sale, net (159,733) 159,733 Reclassifications to REO (3,511) — Sale of mortgage loans (1) — (128,770) Decrease in net present value of expected credit losses on mortgage loans 13,668 — Other 2,490 — Ending carrying value $ 1,080,434 $ 29,572 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Purchased Credit Deteriorated Loans ("PCD 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, the Company’s recognition of interest income for PCD loans is based upon it 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. The Company adopted ASU 2016-13, Financial Instruments - Credit Losses , otherwise known as 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 expected credit losses with no net impact on the amortized cost basis of the portfolio. 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. The Company may adjust its loan pools as the underlying risk factors change over time. The Company has aggregated its mortgage loan portfolio into loan pools based on 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 expected credit losses. Upon the acquisition of PCD loans the Company records the acquisition as three separate elements for (i) the amount of purchase discount which the Company expects to recover through eventual repayment by the borrower, (ii) an allowance for future expected credit loss and (iii) 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. The net present value of changes in expected cash flows, whether caused by timing or loan performance, is reported in the period in which it arises and is reflected as an increase or decrease in the provision for expected credit losses to the extent a provision for expected credit losses is recorded against the pool of mortgage loans. If no provision for expected credit losses is recorded against the pool of assets, the increase in expected future cash flows is recognized prospectively as an increase in yield. 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. The Company accounts for its non-PCD loans by estimating any allowance for expected credit losses for its non-PCD loans based on the risk characteristics of the individual loans. If necessary, an allowance for expected credit losses is established through a provision for loan losses. The allowance is the difference between the net present value of the expected future cash flows from the loan and the contractual balance due. 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. |
Investment in Securities at Fair Value | Investments in Securities at Fair Value The Company’s Investments in Securities at Fair Value 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 are expected 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 |
Investments in Beneficial Interests | Investments in Beneficial Interests The Company’s Investments in Beneficial Interests 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 and each beneficial interest is accounted for independently. |
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. Depreciation is provided for using the straight-line method over the estimated useful lives of the assets of up to 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. |
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 warrants were recorded as a liability in the Company's consolidated balance sheet as a put option liability 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 at each balance sheet date. The Company determines the fair value using a discounted cash flow method. |
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 |
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 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 expense when incurred. |
Convertible Senior Notes | Convertible Senior Notes During 2017 and 2018, the Company completed the public offer and sale of $123.9 million in aggregate principal amount of its convertible senior notes (the “notes”) due 2024, in three separate offerings which 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 the Company’s common stock at a current 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, is 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, second and fourth quarters of 2021, the Company completed a series of convertible note repurchases for aggregate principal amounts of $2.5 million, $5.0 million and $1.3 million, respectively, for total purchase prices of $2.4 million, $5.1 million and $1.3 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 second quarters of 2021 were both zero and for the fourth quarter of 2021 was $8 thousand. There were no convertible note repurchases during the third quarter of 2021. During the first and third quarters 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. There were no convertible note repurchases during the second and fourth quarters of 2020. |
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. 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. Management fees are expensed in the quarter incurred and the portion payable in common stock (if any) is included in stockholders’ equity at quarter end. See Note 10 — Related party transactions. |
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 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. 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 an 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 the 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 | 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) are determined based on the average of the closing prices of the Company's common stock on the New York Stock Exchange ("NYSE") on the five business days preceding the record date of the most recent regular quarterly dividend to holders of the common stock. 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 awards, including grants of long-term incentive plan units (“LTIP Units”) from the Operating Partnership, available for issuance under the Director Plan is 60,000 shares. The Company issued to each of its independent directors restricted stock awards of 2,000 shares of its common stock upon joining the Board of Directors. The Company may also periodically issue additional restricted stock awards to its independent directors under the Director Plan. In addition, each of the Company’s independent directors receives an annual fee of $100,000, payable quarterly, 40% in shares of the Company’s common stock and 60% in cash. 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 |
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 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 | 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 periodically grants restricted common 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 Consolidated net income attributable to common stockholders, 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 its 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 its 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's investments in beneficial interests are trust certificates representing the residual investment in securitization trusts the Company forms with joint venture partners. The trust certificates represent the residual investment in the trust. The Company relies on its Manager's proprietary pricing model to estimate the underlying cash flows expected to be collected on its investments in beneficial interests. The Company's ownership interest in the Manager is valued by applying an earnings multiple to base fee revenue. The Company's ownership interests 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 ownership interest in GAFS, including warrants, is determined by applying an earnings multiple to expected earnings. The fair value of the Company's ownership interest in Gaea is estimated using a projected net operating income for its property portfolio. The fair value of the Company's ownership interest in the loan pool LLCs is determined by using estimates of underlying assets and liabilities taken from its Manager's pricing model. 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. The Company is able to call the bonds issued in its secured borrowings at par value plus accrued interest pursuant to the terms of the offering document. The Company carries its secured borrowings net of deferred issuance cost. Accordingly, the difference between fair value and carrying value is largely driven by the deferred issuance costs. The fair value of the Company's put option liability is adjusted to approximate market value through earnings. The put obligation is a fixed amount that may be settled in cash or shares of the Company’s common stock at the option of the Company. Fair value is determined using the discounted cash flow method using a rate to accrete the initial basis of $9.5 million to the future put obligation of $50.7 million over the 39-month term of the put option liability. The fair value of the Company's put option liability is measured quarterly with adjustments posted to the Company's consolidated statements of income. 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. The Convertible debt may be redeemable at par plus accrued interest beginning on April 30, 2022 subject to satisfying the conversion price trigger. The Company carries its Convertible debt net of deferred issuance cost. Accordingly, the difference between fair value and carrying value is partially driven by the deferred issuance costs. Property held-for-sale is carried at the lower of its acquisition basis or net realizable value. Net realizable value is determined based on BPOs, 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 the Company's 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 initially 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 GA-TRS and GAJX Real Estate Corp. and other TRS entities, which are subject to U.S. federal, state and local income taxes on their taxable income. Income from these entities and any other TRS that the Company forms in the future 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. |
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 | ReclassificationsThe Company combined its Property held-for-sale, net and Rental property, net lines with balances of $7.8 million and $0.7 million, respectively, in its December 31, 2020 consolidated balance sheet into a single line, Real estate owned properties, net, to conform to the current period presentation. There was no effect on the Company's reported earnings or cash flows for the periods presented. The Company reclassified its put option liability of $14.2 million at December 31, 2020, from Accrued expenses and other liabilities in its consolidated balance sheets to a separate line, Put option liability, to conform to the current period presentation. There was no effect on the Company's reported earnings or cash flows for the periods presented. The Company also reclassified its loans and beneficial interest credit loss expenses of $1.1 million and $0.7 million, respectively, for the year ended December 31, 2020, from Net decrease in the net present value of expected credit losses to Interest income on its consolidated statement of income to align the presentation with the method the Company uses to evaluate these results. The Company reclassified its loss from loan settlement of $0.7 million for the year ended December 31, 2020 and income from loan settlement of $7.1 million for the year ended December 31, 2019 from Loss/income on sale of mortgage loans to Other income on its consolidated statements of income to align the presentation with the method the Company uses to evaluate these results. The Company reclassified its loan transaction expense of $0.2 million and $0.3 million for the years ended December 31, 2020 and 2019, respectively, from Loan transaction expense to Other expense on its consolidated statements of income to align the presentation with the method the Company uses to evaluate these results. The Company also reclassified its fair value adjustment on put option of $4.7 million for the year ended December 31, 2020 from Other expense to Fair value adjustment on put option on its consolidated statement of income to align the presentation with the method the Company uses to evaluate these results. |
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 $1.7 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 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 adopted ASU 2019-12 in the first quarter of 2021 with no effect on its consolidated assets or liabilities, consolidated net income or equity or cash flows on the date of adoption. 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 adopted ASU 2020-01 in the first quarter of 2021 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 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). |
Mortgage Loans (Tables)
Mortgage Loans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 and SBC as of December 31, 2021 and 2020 ($ in thousands): December 31, 2021 December 31, 2020 Loan portfolio basis by asset type Mortgage loans held-for-investment Mortgage loans held-for-sale Mortgage loans held-for-investment Mortgage loans held-for-sale Residential RPLs $ 941,565 $ 29,572 $ 1,057,454 $ — Residential NPLs 119,520 — 38,724 — SBC loans 19,349 — 23,194 — Total $ 1,080,434 $ 29,572 $ 1,119,372 $ — |
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, 2021 Mortgage loans held-for-investment, net 2021 2020 2019 2018 2017 2016 2009-2015 2006-2008 2005 and prior Total Great Ajax II REIT $ — $ 764 $ 181 $ 698 $ 328 $ 1,730 $ 46,041 $ 339,759 $ 125,095 $ 514,596 2021-B — — 589 — 2,353 443 28,541 159,318 50,948 242,192 2019-C — — — — 265 — 9,020 96,995 39,801 146,081 California — — 1,268 1,248 — — 1,681 6,431 1,373 12,001 7f7 and better 471 — 2,019 1,541 440 — 3,847 17,032 6,891 32,241 6f6 and below — 1,351 1,783 1,470 209 368 9,885 70,163 28,774 114,003 18-1 LLC — — 605 176 284 429 819 33 10 2,356 Non-PCD 3,771 8,831 3,855 — 507 — — — — 16,964 Total $ 4,242 $ 10,946 $ 10,300 $ 5,133 $ 4,386 $ 2,970 $ 99,834 $ 689,731 $ 252,892 $ 1,080,434 December 31, 2021 Mortgage loans held-for-sale, net 2021 2020 2019 2018 2017 2016 2009-2015 2006-2008 2005 and prior Total Ajax N $ — $ — $ 204 $ — $ — $ — $ 4,267 $ 15,893 $ 9,208 $ 29,572 Total $ — $ — $ 204 $ — $ — $ — $ 4,267 $ 15,893 $ 9,208 $ 29,572 December 31, 2020 Mortgage loans held-for-investment, net 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 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 years ended December 31, 2021 and 2020 ($ in thousands): For the year ended December 31, 2021 For the year ended December 31, 2020 PCD Loans Non PCD Loans PCD Loans Non PCD Loans Par $ 291,338 $ 3,611 $ 70,811 $ 27,191 Discount (1,059) (8) (6,457) (701) Allowance (7,663) — (1,879) — Purchase Price $ 282,616 $ 3,603 $ 62,475 $ 26,490 |
Allowance for credit losses on mortgage loans | An analysis of the balance in the allowance for expected credit losses account follows ($ in thousands): For the year ended December 31, 2021 2020 2019 Allowance for loan credit losses, beginning of period $ (13,712) $ (1,960) $ (1,164) Beginning period adjustment for CECL — (10,156) — Reclassification (from)/to non-credit discount (to)/from the allowance for changes in payment expectations (304) (7,991) 7 Increase in allowance for expected credit losses for loan acquisitions (7,663) (1,879) — Credit loss expense on mortgage loans (842) (1,071) — Reversal of/(increase in) allowance for expected credit losses due to increases/(decreases) in the net present value of expected cash flows 13,668 9,345 (803) Reversal of allowance upon reclass of pool 2017-D to mortgage loans held-for-sale, net 1,741 — — Allowance for loan credit losses, end of period $ (7,112) $ (13,712) $ (1,960) |
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, 2021 and 2020 ($ in thousands): As of December 31, 2021 Mortgage loans held-for-investment, net Current 30 60 90 Foreclosure Total Great Ajax II REIT $ 398,200 $ 52,782 $ 19,530 $ 41,931 $ 2,153 $ 514,596 2021-B 61,066 24,428 24,807 113,459 18,432 242,192 2019-C 78,238 13,920 11,738 35,727 6,458 146,081 California 3,938 661 — 5,132 2,270 12,001 7f7 and better 13,087 4,192 1,718 13,068 176 32,241 6f6 and below 15,169 4,408 2,064 62,456 29,906 114,003 18-1 LLC 2,123 67 111 55 — 2,356 Non-PCD 16,457 — — — 507 16,964 Total $ 588,278 $ 100,458 $ 59,968 $ 271,828 $ 59,902 $ 1,080,434 As of December 31, 2021 Mortgage loans held-for-sale, net Current 30 60 90 Foreclosure Total Ajax N $ 13,485 $ 3,927 $ 2,369 $ 7,828 $ 1,963 $ 29,572 Total $ 13,485 $ 3,927 $ 2,369 $ 7,828 $ 1,963 $ 29,572 As of December 31, 2020 Mortgage loans held-for-investment, net 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 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 |
Real Estate Assets, Net (Tables
Real Estate Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 and rental property for the years ended December 31, 2021 and 2020 ($ in thousands): For the year ended December 31, 2021 2020 Property Held-for-Sale and Rental Property Count Amount Count Amount Balance at beginning of period 38 $ 8,526 68 $ 15,071 Net transfers from mortgage loans and prepaids 23 3,511 20 4,903 Purchases 3 277 — — Adjustments to record at lower of cost or fair value — (293) — (1,359) Depreciation on rental properties — (7) — (29) Disposals (33) (5,951) (50) (10,089) Other — — — 29 Balance at end of period 31 $ 6,063 38 $ 8,526 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Available-for-sale | The following table presents information regarding the Company's investments in debt securities and investments in beneficial interests ($ in thousands): As of December 31, 2021 Basis (1) Gross unrealized gains Gross unrealized losses Carrying value Debt securities $ 354,158 $ 1,822 $ (802) $ 355,178 Beneficial interests in securitization trusts 139,588 — — 139,588 Total investments at fair value $ 493,746 $ 1,822 $ (802) $ 494,766 (1) Basis amount is net of any realized amortized costs, principal paydowns and interest receivable on securities of $0.3 million. As of December 31, 2020 Basis (1) Gross unrealized gains Gross unrealized losses Carrying 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 |
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, 2021 Step-up date (1) Basis (2) Gross unrealized losses Carrying value Debt securities due November 2051 (3) March 2025 $ 44,902 $ (12) $ 44,890 Debt securities due June 2057 (3) April 2022 (5) 23,165 (3) 23,162 Debt securities due September 2059 (3) February 2023 9,173 (24) 9,149 Debt securities due December 2059 (3) July 2023 40,502 (87) 40,415 Debt securities due March 2060 (3) February 2025 16,977 (91) 16,886 Debt securities due January 2061 (3) September 2024 14,000 (140) 13,860 Debt securities due June 2061 (4) January 2025/February 2025 86,909 (445) 86,464 Total $ 235,628 $ (802) $ 234,826 (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 security has been in an unrealized loss position for less than 12 months. (4) This line is comprised of two securities that are both due June 2061. One security with a balance of $0.4 million has been in an unrealized loss position for less than 12 months and has a step-up date in January 2025 and the other security of $0.1 million has been in a loss position for less than 12 months has a step-up date in February 2025. (5) On January 25, 2022 the step-up date for this security was extended from January 2022 to April 2022. See Note 16 — Subsequent events. As of December 31, 2020 Step-up date (1) Basis (2) Gross unrealized losses Carrying 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 $0.1 million has been in a loss position for 12 months or longer and has a step-up date in February 2023. |
Schedule of securities acquisition reconciliation between purchase price and par value | The following table presents a reconciliation between the purchase price and par value for the Company's beneficial interests acquisitions for the year ended December 31, 2021 ($ in thousands): For the year ended December 31, 2021 2020 Par $ 60,282 $ 27,319 Discount (4,953) (5,233) Allowance (2,211) (2,779) Purchase Price $ 53,118 $ 19,307 |
Allowance for Credit Loss on Beneficial Interests | An analysis of the balance in the allowance for expected credit losses for beneficial interests account follows ($ in thousands): For the year ended December 31, 2021 2020 2019 Allowance for beneficial interests credit losses, beginning balance $ (4,453) $ — $ — Beginning period adjustment for CECL — (1,668) — Reclassification to/(from) non-credit discount from/(to) the allowance for changes in payment expectations 1,951 (2,553) — Increase in allowance for credit losses for acquisitions (2,211) (2,779) — Credit loss expense on beneficial interests (457) (663) — Reversal of allowance for expected credit losses due to increases in the net present value of expected cash flows 4,555 3,210 — Allowance for beneficial interests credit losses, end balance $ (615) $ (4,453) $ — |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020 ($ in thousands): Level 1 Level 2 Level 3 December 31, 2021 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 $ 355,178 $ — $ 355,178 $ — Recurring financial liabilities Put option liability $ 23,667 $ — $ — $ 23,667 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 Investments in debt securities at fair value $ 273,834 $ — $ 273,834 $ — Recurring financial liabilities Put option liability $ 14,205 $ — $ — $ 14,205 |
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, 2021 and 2020 ($ in thousands): Level 1 Level 2 Level 3 December 31, 2021 Carrying value Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Financial assets Mortgage loans held-for-investment, net $ 1,080,434 $ — $ — $ 1,174,660 Mortgage loans held-for-sale, net $ 29,572 $ — $ — $ 32,857 Investment in beneficial interests $ 139,588 $ — $ — $ 139,588 Investment in Manager $ 1,502 $ — $ — $ 12,346 Investment in AS Ajax E LLC $ 569 $ — $ 721 $ — Investment in AS Ajax E II LLC $ 2,550 $ — $ 2,824 $ — Investment in GAFS, including warrants $ 2,602 $ — $ — $ 3,320 Investment in Gaea $ 19,571 $ — $ — $ 21,170 Investment in Loan pool LLCs $ 226 $ — $ — $ 853 Financial liabilities Secured borrowings, net $ 575,563 $ — $ 580,166 $ — Borrowings under repurchase transactions $ 546,054 $ — $ 546,054 $ — Convertible senior notes, net $ 102,845 $ 108,816 $ — $ — 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 held-for-investment, 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 transactions $ 421,132 $ — $ 421,132 $ — Convertible senior notes, net $ 110,057 $ 110,675 $ — $ — |
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, 2021 and 2020 ($ in thousands): Level 1 Level 2 Level 3 December 31, 2021 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 $ 6,063 $ (293) $ — $ — $ 6,063 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 |
Affiliates (Tables)
Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Equity method investments | 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% 2021 2020 2019 Thetis Asset Management LLC $ 3,297 $ (693) $ 4,685 Gaea Real Estate Corp. $ 222 $ 720 $ (20) AS Ajax E LLC $ 198 $ 209 $ 299 Loan pool LLCs $ (126) $ (133) $ (9) Great Ajax FS LLC $ (1,363) $ (3,901) $ 2,233 December 31, 2021 December 31, 2020 Assets and Liabilities at 100% Assets Liabilities Assets Liabilities Thetis Asset Management LLC $ 9,498 $ 1,904 $ 9,531 $ 2,122 Gaea Real Estate Corp. $ 105,667 $ 24,305 $ 94,639 $ 11,886 AS Ajax E LLC $ 3,545 $ 2 $ 4,808 $ 2 Loan pool LLCs $ 2,242 $ 4,060 $ 2,423 $ 3,961 Great Ajax FS LLC $ 66,355 $ 47,293 $ 56,532 $ 36,101 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 2021 2020 2019 Thetis Asset Management LLC $ 653 $ (137) $ 928 Gaea Real Estate Corp. $ 51 $ 165 $ (5) AS Ajax E LLC $ 33 $ 34 $ 49 Loan pool LLCs $ (51) $ (54) $ (4) Great Ajax FS LLC $ (109) $ (312) $ 179 December 31, 2021 December 31, 2020 Assets and Liabilities at the Company's share Assets Liabilities Assets Liabilities Thetis Asset Management LLC $ 1,881 $ 377 $ 1,887 $ 420 Gaea Real Estate Corp. $ 24,092 $ 5,542 $ 21,729 $ 2,729 AS Ajax E LLC $ 583 $ — $ 791 $ — Loan pool LLCs $ 900 $ 1,635 $ 973 $ 1,595 Great Ajax FS LLC $ 5,308 $ 3,783 $ 4,523 $ 2,888 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 Beginning balance $ 14,205 $ — $ — Initial recognition of put option liability — 9,472 — Fair value adjustments during the period 9,462 4,733 — Ending balance $ 23,667 $ 14,205 $ — |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 Maturity Date Origination Date Maximum Borrowing Capacity Amount Outstanding Amount of Collateral Percentage of Collateral Coverage Interest Rate January 6, 2022 October 6, 2021 $ 6,567 $ 6,567 $ 8,450 129 % 1.33 % January 12, 2022 October 12, 2021 4,978 4,978 6,304 127 % 1.32 % January 13, 2022 December 15, 2021 2,850 2,850 4,050 142 % 1.31 % January 14, 2022 October 15, 2021 4,992 4,992 5,808 116 % 1.17 % January 20, 2022 October 20, 2021 9,667 9,667 11,550 119 % 1.18 % January 27, 2022 December 27, 2021 2,206 2,206 2,824 128 % 1.30 % January 28, 2022 October 29, 2021 9,115 9,115 11,244 123 % 1.33 % January 28, 2022 October 29, 2021 8,508 8,508 10,538 124 % 1.33 % February 11, 2022 November 12, 2021 3,094 3,094 4,428 143 % 1.75 % February 11, 2022 November 16, 2021 4,060 4,060 5,796 143 % 1.36 % February 11, 2022 November 16, 2021 2,166 2,166 3,090 143 % 1.36 % February 11, 2022 November 16, 2021 1,850 1,850 2,640 143 % 1.36 % February 11, 2022 November 16, 2021 1,670 1,670 2,287 137 % 1.36 % February 11, 2022 November 16, 2021 1,526 1,526 2,178 143 % 1.36 % February 18, 2022 November 19, 2021 9,275 9,275 11,954 129 % 1.36 % February 24, 2022 November 24, 2021 3,538 3,538 5,106 144 % 1.77 % March 8, 2022 December 8, 2021 5,363 5,363 6,970 130 % 1.19 % December 31, 2021 Maturity Date Origination Date Maximum Borrowing Capacity Amount Outstanding Amount of Collateral Percentage of Collateral Coverage Interest Rate March 8, 2022 December 8, 2021 1,955 1,955 2,496 128 % 1.19 % March 16, 2022 December 16, 2021 40,956 40,956 54,424 133 % 1.21 % March 16, 2022 December 16, 2021 4,258 4,258 6,232 146 % 1.46 % March 17, 2022 December 17, 2021 6,425 6,425 8,093 126 % 1.42 % March 17, 2022 December 17, 2021 5,904 5,904 7,573 128 % 1.42 % March 17, 2022 December 17, 2021 1,177 1,177 1,687 143 % 1.82 % March 21, 2022 December 20, 2021 30,850 30,850 41,473 134 % 1.26 % March 21, 2022 December 20, 2021 2,629 2,629 3,770 143 % 1.56 % March 22, 2022 December 22, 2021 33,201 33,201 35,956 108 % 0.66 % March 22, 2022 December 22, 2021 2,892 2,892 3,421 118 % 0.96 % March 22, 2022 December 22, 2021 1,541 1,541 1,943 126 % 1.16 % March 22, 2022 December 22, 2021 1,369 1,369 2,047 150 % 1.56 % March 22, 2022 December 22, 2021 1,330 1,330 1,788 134 % 1.41 % March 25, 2022 December 27, 2021 15,443 15,443 20,367 132 % 1.41 % March 25, 2022 December 27, 2021 4,444 4,444 6,413 144 % 1.81 % April 1, 2022 October 5, 2021 28,482 28,482 36,200 127 % 1.36 % April 19, 2022 October 22, 2021 7,909 7,909 9,279 117 % 1.02 % April 19, 2022 October 22, 2021 6,215 6,215 7,276 117 % 1.02 % April 19, 2022 October 22, 2021 5,090 5,090 6,063 119 % 1.02 % June 10, 2022 December 13, 2021 13,992 13,992 20,151 144 % 1.49 % June 10, 2022 December 13, 2021 6,220 6,220 8,203 132 % 1.29 % July 8, 2022 July 9, 2021 150,000 13,824 20,856 151 % 2.60 % September 22, 2022 September 23, 2021 400,000 228,523 300,324 131 % 2.36 % Totals/weighted averages $ 853,707 $ 546,054 $ 711,252 130 % 1.74 % 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 % December 31, 2020 Maturity Date Origination Date Maximum Borrowing Capacity Amount Outstanding Amount of Collateral Percentage of Collateral Coverage Interest Rate 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 % |
Schedule of amount outstanding on repurchase transactions and carrying value collateral | 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, 2021 and 2020 in the table below ($ in thousands): Gross amounts not offset in balance sheet December 31, 2021 December 31, 2020 Gross amount of recognized liabilities $ 546,054 $ 421,132 Gross amount of loans and securities pledged as collateral 711,252 595,599 Other prepaid collateral 6,902 4,653 Net collateral amount $ 172,100 $ 179,120 |
Schedule of securitization of notes | The following table sets forth the original terms of notes from the Company's secured borrowings outstanding at December 31, 2021 at their respective cutoff dates: Issuing Trust/Issue Date Interest Rate Step-up Date Security Original Principal Interest Rate Rated Ajax Mortgage Loan Trust 2019-D/ July 2019 July 25, 2027 Class A-1 notes due 2065 $140.4 million 2.96 % July 25, 2027 Class A-2 notes due 2065 $6.1 million 3.50 % July 25, 2027 Class A-3 notes due 2065 $10.1 million 3.50 % July 25, 2027 Class M-1 notes due 2065 (1) $9.3 million 3.50 % None Class B-1 notes due 2065 (2) $7.5 million 3.50 % None Class B-2 notes due 2065 (2) $7.1 million variable (3) None Class B-3 notes due 2065 (2) $12.8 million variable (3) Deferred issuance costs $(2.7) million — % Rated Ajax Mortgage Loan Trust 2019-F/ November 2019 November 25, 2026 Class A-1 notes due 2059 $110.1 million 2.86 % November 25, 2026 Class A-2 notes due 2059 $12.5 million 3.50 % November 25, 2026 Class A-3 notes due 2059 $5.1 million 3.50 % November 25, 2026 Class M-1 notes due 2059 (1) $6.1 million 3.50 % None Class B-1 notes due 2059 (2) $11.5 million 3.50 % None Class B-2 notes due 2059 (2) $10.4 million variable (3) Issuing Trust/Issue Date Interest Rate Step-up Date Security Original Principal Interest Rate None Class B-3 notes due 2059 (2) $15.1 million variable (3) Deferred issuance costs $(1.8) million — % Rated Ajax Mortgage Loan Trust 2020-B/ August 2020 July 25, 2027 Class A-1 notes due 2059 $97.2 million 1.70 % July 25, 2027 Class A-2 notes due 2059 $17.3 million 2.86 % July 25, 2027 Class M-1 notes due 2059 (1) $7.3 million 3.70 % None Class B-1 notes due 2059 (2) $5.9 million 3.70 % None Class B-2 notes due 2059 (2) $5.1 million variable (3) None Class B-3 notes due 2059 (2) $23.6 million variable (3) Deferred issuance costs $(1.8) million — % Rated Ajax Mortgage Loan Trust 2021-A/ January 2021 January 25, 2029 Class A-1 notes due 2065 $146.2 million 1.07 % January 25, 2029 Class A-2 notes due 2065 $21.1 million 2.35 % January 25, 2029 Class M-1 notes due 2065 (1) $7.8 million 3.15 % None Class B-1 notes due 2065 (2) $5.0 million 3.80 % None Class B-2 notes due 2065 (2) $5.0 million variable (3) None Class B-3 notes due 2065 (2) $21.5 million variable (3) Deferred issuance costs $(2.5) million — % Non-rated Ajax Mortgage Loan Trust 2021-B/ February 2021 August 25, 2024 Class A notes due 2066 $215.9 million 2.24 % February 25, 2025 Class B notes due 2066 (2) $20.2 million 4.00 % Deferred issuance costs $(4.3) million — % (1) The Class M notes are subordinated, sequential pay, fixed rate notes. The Company has retained the Class M notes, with the exception of Ajax Mortgage Loan Trust 2021-A. (2) The Class B notes are subordinated, sequential pay, with B-2 and B-3 notes having variable interest rates and are subordinate to the Class B-1 notes. The Class B-1 notes are fixed rate notes. The Company has retained the Class B notes. (3) The interest rate is effectively the rate equal to the spread between the gross average rate of interest the trust collects on its mortgage loan portfolio minus the rate derived from the sum of the servicing fee and other expenses of the trust. |
Schedule of status of mortgage loans | The following table sets forth the status of the notes held by others at December 31, 2021 and 2020, and the securitization cutoff date ($ in thousands): Balances at December 31, 2021 Balances at December 31, 2020 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 % $ 165,850 $ 115,846 2017-D — — — % 133,897 51,256 (1) 261 % 203,870 (2) 88,903 2018-C — — — % 173,221 131,983 (3) 131 % 222,181 (4) 167,910 2019-D 118,075 92,778 127 % 148,641 125,008 119 % 193,301 156,670 2019-F 115,571 81,026 143 % 139,996 108,184 129 % 170,876 127,673 2020-B 119,184 86,011 139 % 136,360 105,601 129 % 156,468 114,534 2021-A 161,766 141,435 114 % — — — % 206,506 175,116 2021-B 242,191 181,657 133 % — — — % 287,882 215,912 $ 756,787 $ 582,907 (5) 130 % $ 842,177 $ 590,761 (5) 143 % $ 1,606,934 $ 1,162,564 (1) The gross amounts of senior bonds at December 31, 2020 was $102.6 million, however, only $51.3 million is reflected in Secured borrowings as the remainder is owned by the Company. (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. (4) Includes $45.5 million of cash collateral intended for use in the acquisition of additional mortgage loans. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | The Company’s consolidated statements of income included the following significant related party transactions ($ in thousands): For the year ended December 31, 2021 Transaction Consolidated Statement of Income location Counterparty Amount Earnings from securities and beneficial interests in trusts Net interest income after the impact of changes in the net present value of expected credit losses Various non-consolidated joint ventures $ 31,058 Management fee Related party expense – management fee Manager $ 9,116 Loan servicing fees Related party expense – loan servicing fees Servicer $ 7,433 Income from equity investment Income/(loss) from investment in affiliates Manager $ 653 Affiliate loan interest income Interest income Gaea $ 248 Gain on sale of securities Other income Various non-consolidated joint ventures $ 201 Gain on sale of mortgage loans Other income 2021-C $ 122 Income from equity investment Income/(loss) from investment in affiliates Gaea $ 51 Affiliate loan interest income Interest income Servicer $ 37 Income from equity investment Income/(loss) from investment in affiliates AS Ajax E LLC $ 33 Loss from equity investment Income/(loss) from investment in affiliates Loan pool LLCs $ (51) Loss from equity investment Income/(loss) from investment in affiliates Great Ajax FS $ (109) For the year ended December 31, 2020 Transaction Consolidated Statement of Income location Counterparty Amount Earnings from securities and beneficial interests in trusts Net interest income after the impact of changes in the net present value of expected credit losses Various non-consolidated joint ventures $ 24,153 Management fee Related party expense – management fee Manager $ 8,456 For the year ended December 31, 2020 Transaction Consolidated Statement of Income location Counterparty Amount Loan servicing fees Related party expense – loan servicing fees Servicer $ 7,678 Income from equity investment Income/(loss) from investment in affiliates Gaea $ 165 Gain on sale of securities Other income Various non-consolidated joint ventures $ 145 Income from equity investment Income/(loss) from investment in affiliates AS Ajax E LLC $ 34 Loss from equity investment Income/(loss) from investment in affiliates Loan pool LLCs $ (54) Loss from equity investment Income/(loss) from investment in affiliates Manager $ (137) Loss from equity investment Income/(loss) from investment in affiliates Great Ajax FS $ (312) Loss on sale of mortgage loans (Loss)/income on sale of mortgage loans Gaea $ (705) For the year ended December 31, 2019 Transaction Consolidated Statement of Income location Counterparty Amount Earnings from securities and beneficial interests in trusts Net interest income after the impact of changes in the net present value of expected credit losses Various non-consolidated joint ventures $ 13,081 Loan servicing fees Related party expense – loan servicing fees Servicer $ 9,133 Management fee Related party expense – management fee Manager $ 7,356 Gain on sale of mortgage loans Other income 2019-C $ 7,014 Income from equity investment Income/(loss) from investment in affiliates Manager $ 928 Income from equity investment Income/(loss) from investment in affiliates Great Ajax FS $ 179 Income from equity investment Income/(loss) from investment 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/(loss) from investment in affiliates Loan pool LLCs $ (4) Loss from equity investment Income/(loss) from investment in affiliates Gaea $ (5) The Company’s consolidated balance sheets included the following significant related party balances ($ in thousands): As of December 31, 2021 Transaction Consolidated Balance Sheet location Counterparty Amount Purchase of mortgage loans Mortgage loans held-for-investment, net 2019-C $ 152,883 Investment in beneficial interests Investments in beneficial interests Various non-consolidated joint ventures $ 139,588 Receivables from Servicer Receivable from servicer Servicer $ 20,899 Advances to Servicer Prepaid expenses and other assets Servicer $ 3,509 As of December 31, 2021 Transaction Consolidated Balance Sheet location Counterparty Amount Management fee payable Management fee payable Manager $ 2,279 Expense reimbursement receivable Prepaid expenses and other assets Various non-consolidated joint ventures $ 1,211 Expense reimbursements Accrued expenses and other liabilities Servicer $ 78 Affiliate loan receivable interest Prepaid expenses and other assets Gaea 21 Expense reimbursement receivable Prepaid expenses and other assets Servicer $ 12 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 Servicer $ 15,755 Affiliate loan receivable Mortgage loans held-for-investment, net Gaea $ 11,000 Management fee payable Management fee payable Manager $ 2,247 Affiliate loan purchase Mortgage loans held-for-investment, net Servicer $ 1,838 Expense reimbursement receivable Prepaid expenses and other assets Various non-consolidated joint ventures $ 876 Expense reimbursements Accrued expenses and other liabilities Servicer $ 44 Expense reimbursements receivable Prepaid expenses and other assets Manager $ 18 |
Stock-based Payments and Dire_2
Stock-based Payments and Director Fees (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 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 15,020 $ 200 17,064 $ 152 10,948 $ 158 Management fees — — — — 184,681 2,600 Total 15,020 $ 200 17,064 $ 152 195,629 $ 2,758 (1) All management fees and independent director fees are fully expensed in the period in which the relevant service is received by the Company. |
Schedule of grants of restricted stock | 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, 2018 outstanding unvested share grants 110,389 $ 13.59 6,000 $ 13.48 Shares vested (70,555) 13.60 (6,000) 13.48 Shares forfeited (4,500) 13.58 — — Shares granted 79,000 13.94 — — December 31, 2019 outstanding unvested share grants 114,334 $ 13.83 — $ — Shares vested (50,334) 13.86 — — Shares forfeited (9,667) 12.06 — — Shares granted 108,750 9.55 — — December 31, 2020 outstanding unvested share grants 163,083 $ 11.07 — $ — Shares vested (65,750) 11.72 (10,000) 12.53 Shares forfeited (21,668) 11.41 — — Shares granted 152,700 12.79 18,000 12.53 December 31, 2021 outstanding unvested share grants 228,365 $ 12.05 8,000 $ 12.53 |
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, 2021 2020 2019 Restricted stock grants $ 900 $ 728 $ 839 Director grants 192 — 13 Total expenses for plan grants $ 1,092 $ 728 $ 852 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 Income Shares Per Share Basic EPS Consolidated net income attributable to common stockholders $ 34,057 22,852,948 Allocation of earnings to participating restricted shares (304) — Consolidated net income attributable to unrestricted common stockholders $ 33,753 22,852,948 $ 1.48 Effect of dilutive securities (1)(2) Interest expense (add back) and assumed conversion of shares from convertible senior notes 9,065 7,409,519 Diluted EPS Consolidated net income attributable to common stockholders and dilutive securities $ 42,818 30,262,467 $ 1.41 (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, 2021, and have not been included in the calculation. (2) The effect of restricted stock grants and manager and director fee shares on the Company's diluted EPS calculation for the year ended December 31, 2021 would have been anti-dilutive and have been removed from the calculation. For the year ended December 31, 2020 Income (Numerator) Shares (Denominator) Per Share Amount 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, 2021, 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. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income | Total accumulated other comprehensive gain on the Company’s balance sheet at December 31, 2021, 2020 and 2019 was as follows ($ in thousands): For the year ended December 31, Investment in securities: 2021 2020 2019 Unrealized gains $ 1,822 $ 1,152 $ 1,643 Unrealized losses (802) (777) (366) Accumulated other comprehensive income $ 1,020 $ 375 $ 1,277 |
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, 2021 2020 2019 Decrease from redemption of 2018-C $ (8,306) $ — $ — Decrease from the distribution resulting from the sale of substantially all of 2017-D (17,186) — — Decrease from redemption of OP units by third party investor (1) — — (10,816) Decrease due to deconsolidation of Gaea — — (22) Change in non-controlling interest $ (25,492) $ — $ (10,838) (1) During the second quarter of 2019, 624,106 partnership units in the Company's Operating Partnership previously held by an unaffiliated holder were exchanged for shares of the Company's common stock. |
Quarterly Financial Informati_2
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Data [Abstract] | |
Schedule of quarterly financial information | The following table sets forth the Company's quarterly financial information ($ in thousands): For the year ended December 31, 2021 First quarter Second quarter Third quarter Fourth quarter Total revenue, net $ 19,766 $ 19,794 $ 18,991 $ 19,397 Income before provision for income taxes $ 10,676 $ 11,237 $ 10,786 $ 9,310 Consolidated net income attributable to common stockholders $ 7,004 $ 10,378 $ 9,313 $ 7,362 Basic earnings common share $ 0.30 $ 0.45 $ 0.40 $ 0.32 Diluted earnings per common share $ 0.30 $ 0.42 $ 0.38 $ 0.32 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 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | Nov. 22, 2019USD ($)$ / sharesshares | Jun. 30, 2020USD ($) | Dec. 31, 2021USD ($)paymententity | Dec. 31, 2020USD ($)entity | Dec. 31, 2019USD ($) | Dec. 31, 2018 |
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 | |||||
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 | $ 0 | $ 124,976,000 | $ 0 | ||
Number of non controlling interest subsidiaries | entity | 3 | 4 | ||||
Maximum | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Principal balance of small balance commercial mortgage loans (up to) | $ | $ 5,000,000 | |||||
Great Ajax II REIT | Great Ajax Corp | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Ownership percentage by parent | 99.90% | 99.90% | ||||
Ownership percentage by noncontrolling owners | 0.10% | 0.10% | ||||
AS Ajax E II LLC | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Ownership percentage | 5.00% | |||||
AS Ajax E II LLC | Great Ajax Corp | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Percentage of ownership interests in joint venture | 53.10% | 53.10% | ||||
AS Ajax E II LLC | Third Party | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Ownership percentage by noncontrolling owners | 46.90% | |||||
2017-D | Great Ajax Corp | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Ownership percentage by parent | 50.00% | 50.00% | ||||
Ownership percentage by noncontrolling owners | 50.00% | |||||
2018-C | Great Ajax Corp | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Ownership percentage by parent | 100.00% | 63.00% | ||||
2018-C | Third Party | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Ownership percentage by noncontrolling owners | 0.00% | |||||
Thetis | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Ownership percentage | 19.80% | |||||
Gaea | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Ownership percentage | 23.20% | 22.80% | ||||
Proceeds from issuance of preferred stock and warrants, net of offering costs | $ | $ 66,300,000 | |||||
Private placement share issuance (in shares) | shares | 4,419,641 | |||||
Purchase price per share (in dollars per share) | $ / shares | $ 15 | |||||
Gaea | Third Party | ||||||
Organization And Basis Of Presentation [Line Items] | ||||||
Ownership percentage by noncontrolling owners | 76.80% | 77.20% | ||||
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 (Details) - USD ($) | Jan. 01, 2020 | Jun. 07, 2016 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Beginning period adjustment for CECL | $ (10,200,000) | $ 0 | $ (10,156,000) | $ 0 | |||||||||
Estimated useful lives of an assets | 27 years 6 months | ||||||||||||
Proceeds from issuance of preferred stock and warrants, net of offering costs | $ 125,000,000 | $ 0 | $ 124,976,000 | 0 | |||||||||
Preferred stock par value per share (in dollars per share) | $ 0.01 | $ 25 | $ 0.01 | $ 0.01 | |||||||||
Warrants term | 5 years | ||||||||||||
Warrants (in shares) | 6,500,000 | ||||||||||||
Warrants exercise price (in dollars per share) | $ 10 | ||||||||||||
Warrants original basis | $ 9,500,000 | ||||||||||||
Warrant liability | 50,700,000 | ||||||||||||
Conversion discount (premium) - Convertible senior notes | $ 3,200,000 | ||||||||||||
Convertible note aggregate principal | $ 1,300,000 | $ 5,000,000 | $ 2,500,000 | $ 2,500,000 | $ 8,000,000 | $ 1,300,000 | |||||||
Repurchase of convertible notes | 1,300,000 | 5,100,000 | 2,400,000 | 2,300,000 | 8,200,000 | ||||||||
Adjustments to additional paid in capital | 8,000 | $ 0 | $ 0 | $ 0 | $ 0 | 0 | $ 100,000 | $ 8,000 | $ 81,000 | ||||
Repayments of convertible notes payable | $ 0 | $ 0 | |||||||||||
Percentage of incentive fees payable in cash | 100.00% | ||||||||||||
Minimum assets with banking institutions | 1,000,000,000 | $ 1,000,000,000 | |||||||||||
Option term | 39 months | ||||||||||||
Property held-for-sale, net | 6,063,000 | 6,063,000 | 7,800,000 | ||||||||||
Rental properties | $ 0 | 0 | 700,000 | ||||||||||
Put option liability | 14,200,000 | ||||||||||||
Credit loss expense on mortgage loans | 842,000 | 1,071,000 | 0 | ||||||||||
Credit loss expense on beneficial interests | 457,000 | 663,000 | 0 | ||||||||||
(Gain)/loss on sale of mortgage loans | $ (122,000) | 705,000 | (7,123,000) | ||||||||||
Income from loan settlement | 7,100,000 | ||||||||||||
Loan transaction expense | 200,000 | $ 300,000 | |||||||||||
Fair value adjustment on put option liability | 4,700,000 | ||||||||||||
Previously Reported | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property held-for-sale, net | 7,800,000 | ||||||||||||
Rental properties | 700,000 | ||||||||||||
Beneficial interests in securitization trusts | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Beginning period adjustment for CECL | $ (1,700,000) | ||||||||||||
Director Equity Plan 2014 [Member] | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Shares available for issuance (in shares) | 60,000 | 60,000 | |||||||||||
Annual retainer, percentage in shares | 40.00% | ||||||||||||
Annual retainer, cash | 60.00% | ||||||||||||
Director Equity Plan 2014 [Member] | Restricted Stock [Member] | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Shares issued (in shares) | 2,000 | ||||||||||||
Annual retainer payable | $ 100,000 | ||||||||||||
Equity Incentive Plan [Member] | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Vesting percentage | 5.00% | ||||||||||||
Equity Incentive Plan [Member] | Share-based Payment Arrangement, Tranche One | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Vesting period | 4 years | ||||||||||||
Equity Incentive Plan [Member] | Share-based Payment Arrangement, Tranche Two | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Vesting period | 3 years | ||||||||||||
Servicing Agreement [Member] | Servicer | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Percentage of fair market value of REO | 1.00% | ||||||||||||
Percentage of purchase price of REO | 1.00% | ||||||||||||
Servicing Agreement [Member] | Servicer | Minimum [Member] | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Annual servicing fee percentage | 0.65% | ||||||||||||
Servicing Agreement [Member] | Servicer | Maximum [Member] | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Annual servicing fee 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 | ||||||||||||
Convertible Notes Payable | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Aggregate principal | $ 123,900,000 | ||||||||||||
Interest rate | 7.25% | ||||||||||||
Principal amount of note (in dollars per share) | $ 25 | ||||||||||||
Conversion discount (premium) - Convertible senior notes | $ 1,300,000 | $ 1,400,000 | |||||||||||
Convertible Notes Payable | Common Stock | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Conversion ratio | 1.7279 | ||||||||||||
Conversion price (in dollars per share) | $ 14.47 | $ 14.47 | |||||||||||
Series A Preferred Stock | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Preferred stock issued (in shares) | 2,307,400 | 2,307,400 | 2,307,400 | 2,307,400 | |||||||||
Preferred stock dividend rate percentage | 7.25% | ||||||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | ||||||||||
Series B Preferred Stock | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Preferred stock issued (in shares) | 2,892,600 | 2,892,600 | 2,892,600 | 2,892,600 | |||||||||
Preferred stock dividend rate percentage | 5.00% | ||||||||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 |
Mortgage Loans - Schedule of Lo
Mortgage Loans - Schedule of Loan Portfolio Basis by Asset Type (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | [1],[2] | $ 1,080,434 | $ 1,119,372 |
Mortgage loans held-for-sale, net | 29,572 | 0 | |
SBC loans | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 19,349 | 23,194 | |
Mortgage loans held-for-sale, net | 0 | 0 | |
Residential RPLs | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 941,565 | 1,057,454 | |
Mortgage loans held-for-sale, net | 29,572 | 0 | |
Residential NPLs | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 119,520 | 38,724 | |
Mortgage loans held-for-sale, net | $ 0 | $ 0 | |
[1] | As of December 31, 2021, balances for Mortgage loans held-for-investment, net includes $1.4 million from the 50.0% owned joint ventures. As of December 31, 2020, balances for Mortgage loans held-for-investment, net include $307.1 million and Secured borrowings, net of deferred costs includes $250.6 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 held-for-investment, net include $756.8 million and $842.2 million of loans at December 31, 2021 and December 31, 2020, 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 held-for-investment, net include $7.1 million and $13.7 million of allowance for loan losses at December 31, 2021 and December 31, 2020, respectively. (2) As of December 31, 2021, balances for Mortgage loans held-for-investment, net includes $1.4 million from the 50.0% owned joint ventures. As of December 31, 2020, balances for Mortgage loans held-for-investment, net include $307.1 million and Secured borrowings, net of deferred costs includes |
Mortgage Loans - Narrative (Det
Mortgage Loans - Narrative (Details) $ in Thousands | Jan. 01, 2020USD ($) | Dec. 31, 2021USD ($)paymentloanloanPool | Dec. 31, 2020USD ($)loanloanPool | Dec. 31, 2019USD ($) | Sep. 30, 2021USD ($) | Dec. 31, 2018USD ($) | ||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Mortgage loans held-for-investment, net | [1],[2] | $ 1,080,434 | $ 1,119,372 | |||||
Allowance for loan losses | 7,112 | 13,712 | $ 1,960 | $ 1,164 | ||||
Revenue (expense) from change in expected credit losses | 13,700 | 9,300 | (800) | |||||
Accretion of net impact of changes in expected credit losses to interest income | 79,900 | 86,100 | 97,100 | |||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 133,800 | $ 26,200 | ||||||
Number of sold loans | loan | 760 | 26 | ||||||
Sale of mortgage loans | $ 129,200 | $ 26,100 | ||||||
Collateral values | 44,200 | |||||||
Beginning period adjustment for CECL | $ (10,200) | $ 0 | $ (10,156) | 0 | ||||
Number of loan pools | loanPool | 7 | 6 | ||||||
Number of payments | payment | 12 | |||||||
Number of recent payments made on RPL mortgage loans | payment | 7 | |||||||
Reclassification (from)/to non-credit discount (to)/from the allowance for changes in payment expectations | $ (304) | $ (7,991) | $ 7 | |||||
Increase in allowance for expected credit losses due to new acquisitions | $ 7,700 | 1,900 | ||||||
2019-C | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Purchase of interest | 66.00% | |||||||
Class B Security | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Purchase of interest | 34.00% | |||||||
RPLs, NPLs, and Originated SBCs | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Mortgage loans held-for-investment, net | $ 1,100,000 | [2] | 1,100,000 | |||||
Mortgage loans held-for-sale, net | 29,600 | 0 | $ 31,000 | |||||
SBC loans acquired at or near origination | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 8,900 | $ 20,300 | ||||||
SBC loan count | loan | 16 | 14 | ||||||
Non-PCD loans | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Number of loan pools | loanPool | 2 | 1 | ||||||
7f7 and better | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Mortgage loans held-for-investment, net | $ 32,241 | $ 142,235 | ||||||
6f6 and below | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Mortgage loans held-for-investment, net | 114,003 | 126,814 | ||||||
2017-D | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Mortgage loans held-for-investment, net | 133,896 | |||||||
2019-C | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Mortgage loans held-for-investment, net | $ 146,081 | |||||||
Number of sold loans | loan | 772 | |||||||
Carrying value of loans | $ 152,900 | |||||||
RPLs | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Mortgage loans held-for-investment, net | $ 941,565 | $ 1,057,454 | ||||||
Number of mortgage loans on real estate | loan | 1,006 | 304 | ||||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 191,300 | $ 61,700 | ||||||
Residential NPLs | ||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||
Mortgage loans held-for-investment, net | $ 119,520 | $ 38,724 | ||||||
Number of mortgage loans on real estate | loan | 387 | 65 | ||||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 94,800 | $ 16,000 | ||||||
[1] | As of December 31, 2021, balances for Mortgage loans held-for-investment, net includes $1.4 million from the 50.0% owned joint ventures. As of December 31, 2020, balances for Mortgage loans held-for-investment, net include $307.1 million and Secured borrowings, net of deferred costs includes $250.6 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 held-for-investment, net include $756.8 million and $842.2 million of loans at December 31, 2021 and December 31, 2020, 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 held-for-investment, net include $7.1 million and $13.7 million of allowance for loan losses at December 31, 2021 and December 31, 2020, respectively. (2) As of December 31, 2021, balances for Mortgage loans held-for-investment, net includes $1.4 million from the 50.0% owned joint ventures. As of December 31, 2020, balances for Mortgage loans held-for-investment, net include $307.1 million and Secured borrowings, net of deferred costs includes |
Mortgage Loans - Schedule of _2
Mortgage Loans - Schedule of loan basis by year of origination (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | [1],[2] | $ 1,080,434 | $ 1,119,372 |
Mortgage loans held-for-sale, net | 29,572 | 0 | |
Great Ajax II REIT | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 514,596 | 424,997 | |
2021-B | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 242,192 | ||
2019-C | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 146,081 | ||
2018-C | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 173,221 | ||
2017-D | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 133,896 | ||
California | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 12,001 | 88,788 | |
7f7 and better | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 32,241 | 142,235 | |
6f6 and below | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 114,003 | 126,814 | |
18-1 LLC | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 2,356 | ||
Non-PCD | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 16,964 | 29,421 | |
Ajax N Trust | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-sale, net | 29,572 | ||
Year 2021 | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 4,242 | ||
Mortgage loans held-for-sale, net | 0 | ||
Year 2021 | Great Ajax II REIT | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2021 | 2021-B | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2021 | 2019-C | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2021 | California | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2021 | 7f7 and better | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 471 | ||
Year 2021 | 6f6 and below | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2021 | 18-1 LLC | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2021 | Non-PCD | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 3,771 | ||
Year 2021 | Ajax N Trust | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-sale, net | 0 | ||
Year 2020 | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 10,946 | 24,480 | |
Mortgage loans held-for-sale, net | 0 | ||
Year 2020 | Great Ajax II REIT | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 764 | 0 | |
Year 2020 | 2021-B | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2020 | 2019-C | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2020 | 2018-C | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2020 | 2017-D | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2020 | California | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | 2,221 | |
Year 2020 | 7f7 and better | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | 0 | |
Year 2020 | 6f6 and below | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 1,351 | 872 | |
Year 2020 | 18-1 LLC | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2020 | Non-PCD | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 8,831 | 21,387 | |
Year 2020 | Ajax N Trust | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-sale, net | 0 | ||
Year 2019 | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 10,300 | 7,998 | |
Mortgage loans held-for-sale, net | 204 | ||
Year 2019 | Great Ajax II REIT | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 181 | 0 | |
Year 2019 | 2021-B | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 589 | ||
Year 2019 | 2019-C | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2019 | 2018-C | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2019 | 2017-D | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2019 | California | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 1,268 | 952 | |
Year 2019 | 7f7 and better | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 2,019 | 911 | |
Year 2019 | 6f6 and below | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 1,783 | 1,397 | |
Year 2019 | 18-1 LLC | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 605 | ||
Year 2019 | Non-PCD | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 3,855 | 4,738 | |
Year 2019 | Ajax N Trust | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-sale, net | 204 | ||
Year 2018 | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 5,133 | 4,293 | |
Mortgage loans held-for-sale, net | 0 | ||
Year 2018 | Great Ajax II REIT | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 698 | 257 | |
Year 2018 | 2021-B | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2018 | 2019-C | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2018 | 2018-C | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2018 | 2017-D | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2018 | California | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 1,248 | 1,484 | |
Year 2018 | 7f7 and better | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 1,541 | 434 | |
Year 2018 | 6f6 and below | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 1,470 | 2,054 | |
Year 2018 | 18-1 LLC | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 176 | ||
Year 2018 | Non-PCD | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | 64 | |
Year 2018 | Ajax N Trust | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-sale, net | 0 | ||
Year 2017 | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 4,386 | 3,800 | |
Mortgage loans held-for-sale, net | 0 | ||
Year 2017 | Great Ajax II REIT | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 328 | 488 | |
Year 2017 | 2021-B | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 2,353 | ||
Year 2017 | 2019-C | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 265 | ||
Year 2017 | 2018-C | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2017 | 2017-D | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 121 | ||
Year 2017 | California | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | 362 | |
Year 2017 | 7f7 and better | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 440 | 0 | |
Year 2017 | 6f6 and below | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 209 | 336 | |
Year 2017 | 18-1 LLC | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 284 | ||
Year 2017 | Non-PCD | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 507 | 2,493 | |
Year 2017 | Ajax N Trust | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-sale, net | 0 | ||
Year 2016 | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 2,970 | 4,520 | |
Mortgage loans held-for-sale, net | 0 | ||
Year 2016 | Great Ajax II REIT | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 1,730 | 1,991 | |
Year 2016 | 2021-B | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 443 | ||
Year 2016 | 2019-C | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2016 | 2018-C | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2016 | 2017-D | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Year 2016 | California | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | 0 | |
Year 2016 | 7f7 and better | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | 2,125 | |
Year 2016 | 6f6 and below | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 368 | 305 | |
Year 2016 | 18-1 LLC | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 429 | ||
Year 2016 | Non-PCD | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | 99 | |
Year 2016 | Ajax N Trust | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-sale, net | 0 | ||
Years 2009-2015 | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 99,834 | 99,504 | |
Mortgage loans held-for-sale, net | 4,267 | ||
Years 2009-2015 | Great Ajax II REIT | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 46,041 | 41,746 | |
Years 2009-2015 | 2021-B | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 28,541 | ||
Years 2009-2015 | 2019-C | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 9,020 | ||
Years 2009-2015 | 2018-C | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 14,100 | ||
Years 2009-2015 | 2017-D | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 6,826 | ||
Years 2009-2015 | California | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 1,681 | 5,292 | |
Years 2009-2015 | 7f7 and better | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 3,847 | 17,520 | |
Years 2009-2015 | 6f6 and below | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 9,885 | 13,409 | |
Years 2009-2015 | 18-1 LLC | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 819 | ||
Years 2009-2015 | Non-PCD | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | 611 | |
Years 2009-2015 | Ajax N Trust | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-sale, net | 4,267 | ||
Years 2006-2008 | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 689,731 | 721,689 | |
Mortgage loans held-for-sale, net | 15,893 | ||
Years 2006-2008 | Great Ajax II REIT | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 339,759 | 280,606 | |
Years 2006-2008 | 2021-B | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 159,318 | ||
Years 2006-2008 | 2019-C | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 96,995 | ||
Years 2006-2008 | 2018-C | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 119,343 | ||
Years 2006-2008 | 2017-D | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 94,711 | ||
Years 2006-2008 | California | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 6,431 | 60,393 | |
Years 2006-2008 | 7f7 and better | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 17,032 | 88,414 | |
Years 2006-2008 | 6f6 and below | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 70,163 | 78,202 | |
Years 2006-2008 | 18-1 LLC | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 33 | ||
Years 2006-2008 | Non-PCD | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | 20 | |
Years 2006-2008 | Ajax N Trust | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-sale, net | 15,893 | ||
Years 2005 and prior | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 252,892 | 253,088 | |
Mortgage loans held-for-sale, net | 9,208 | ||
Years 2005 and prior | Great Ajax II REIT | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 125,095 | 99,909 | |
Years 2005 and prior | 2021-B | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 50,948 | ||
Years 2005 and prior | 2019-C | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 39,801 | ||
Years 2005 and prior | 2018-C | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 39,778 | ||
Years 2005 and prior | 2017-D | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 32,238 | ||
Years 2005 and prior | California | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 1,373 | 18,084 | |
Years 2005 and prior | 7f7 and better | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 6,891 | 32,831 | |
Years 2005 and prior | 6f6 and below | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 28,774 | 30,239 | |
Years 2005 and prior | 18-1 LLC | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 10 | ||
Years 2005 and prior | Non-PCD | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | $ 9 | |
Years 2005 and prior | Ajax N Trust | |||
Mortgage Loans [Line Items] | |||
Mortgage loans held-for-sale, net | $ 9,208 | ||
[1] | As of December 31, 2021, balances for Mortgage loans held-for-investment, net includes $1.4 million from the 50.0% owned joint ventures. As of December 31, 2020, balances for Mortgage loans held-for-investment, net include $307.1 million and Secured borrowings, net of deferred costs includes $250.6 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 held-for-investment, net include $756.8 million and $842.2 million of loans at December 31, 2021 and December 31, 2020, 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 held-for-investment, net include $7.1 million and $13.7 million of allowance for loan losses at December 31, 2021 and December 31, 2020, respectively. (2) As of December 31, 2021, balances for Mortgage loans held-for-investment, net includes $1.4 million from the 50.0% owned joint ventures. As of December 31, 2020, balances for Mortgage loans held-for-investment, net include $307.1 million and Secured borrowings, net of deferred costs includes |
Mortgage Loans - Schedule of _3
Mortgage Loans - Schedule of loan acquisition reconciliation between purchase price and par value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Mortgage Loans on Real Estate [Line Items] | |||
Par | $ 60,282 | $ 27,319 | |
Discount | (4,953) | (5,233) | |
Allowance | (7,663) | (1,879) | $ 0 |
PCD loans | |||
Mortgage Loans on Real Estate [Line Items] | |||
Par | 291,338 | 70,811 | |
Discount | (1,059) | (6,457) | |
Allowance | (7,663) | (1,879) | |
Purchase Price | 282,616 | 62,475 | |
Non-PCD | |||
Mortgage Loans on Real Estate [Line Items] | |||
Par | 3,611 | 27,191 | |
Discount | (8) | (701) | |
Allowance | 0 | 0 | |
Purchase Price | $ 3,603 | $ 26,490 |
Mortgage Loans - Allowance for
Mortgage Loans - Allowance for loan losses (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Allowance for loan credit losses, beginning of period | $ (1,960) | $ (13,712) | $ (1,960) | $ (1,164) |
Beginning period adjustment for CECL | $ (10,200) | 0 | (10,156) | 0 |
Reclassification (from)/to non-credit discount (to)/from the allowance for changes in payment expectations | (304) | (7,991) | 7 | |
Increase in allowance for expected credit losses for loan acquisitions | (7,663) | (1,879) | 0 | |
Credit loss expense on mortgage loans | (842) | (1,071) | 0 | |
Reversal of/(increase in) allowance for expected credit losses due to increases/(decreases) in the net present value of expected cash flows | 13,668 | 9,345 | (803) | |
Reversal of allowance upon reclass of pool 2017-D to mortgage loans held-for-sale, net | 1,741 | 0 | 0 | |
Allowance for loan credit losses, end of period | $ (7,112) | $ (13,712) | $ (1,960) |
Mortgage Loans - Schedule of Ca
Mortgage Loans - Schedule of Carrying Value of Mortgage Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-sale, net | $ 29,572 | $ 0 | |
Mortgage loans held-for-investment, net | [1],[2] | 1,080,434 | 1,119,372 |
Great Ajax II REIT | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 514,596 | 424,997 | |
2021-B | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 242,192 | ||
2019-C | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 146,081 | ||
2018-C | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 173,221 | ||
2017-D | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 133,896 | ||
California | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 12,001 | 88,788 | |
7f7 and better | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 32,241 | 142,235 | |
6f6 and below | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 114,003 | 126,814 | |
18-1 LLC | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 2,356 | ||
Non-PCD | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 16,964 | 29,421 | |
Ajax N Trust | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-sale, net | 29,572 | ||
Current | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-sale, net | 13,485 | ||
Mortgage loans held-for-investment, net | 588,278 | 591,538 | |
Current | Great Ajax II REIT | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 398,200 | 311,941 | |
Current | 2021-B | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 61,066 | ||
Current | 2019-C | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 78,238 | ||
Current | 2018-C | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 70,034 | ||
Current | 2017-D | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 58,198 | ||
Current | California | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 3,938 | 42,214 | |
Current | 7f7 and better | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 13,087 | 72,613 | |
Current | 6f6 and below | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 15,169 | 13,976 | |
Current | 18-1 LLC | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 2,123 | ||
Current | Non-PCD | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 16,457 | 22,562 | |
Current | Ajax N Trust | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-sale, net | 13,485 | ||
30 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-sale, net | 3,927 | ||
Mortgage loans held-for-investment, net | 100,458 | 132,248 | |
30 | Great Ajax II REIT | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 52,782 | 48,266 | |
30 | 2021-B | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 24,428 | ||
30 | 2019-C | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 13,920 | ||
30 | 2018-C | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 20,541 | ||
30 | 2017-D | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 24,906 | ||
30 | California | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 661 | 7,660 | |
30 | 7f7 and better | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 4,192 | 14,003 | |
30 | 6f6 and below | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 4,408 | 10,773 | |
30 | 18-1 LLC | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 67 | ||
30 | Non-PCD | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | 6,099 | |
30 | Ajax N Trust | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-sale, net | 3,927 | ||
60 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-sale, net | 2,369 | ||
Mortgage loans held-for-investment, net | 59,968 | 72,475 | |
60 | Great Ajax II REIT | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 19,530 | 19,559 | |
60 | 2021-B | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 24,807 | ||
60 | 2019-C | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 11,738 | ||
60 | 2018-C | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 15,300 | ||
60 | 2017-D | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 12,437 | ||
60 | California | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | 5,519 | |
60 | 7f7 and better | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 1,718 | 12,447 | |
60 | 6f6 and below | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 2,064 | 7,157 | |
60 | 18-1 LLC | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 111 | ||
60 | Non-PCD | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | 56 | |
60 | Ajax N Trust | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-sale, net | 2,369 | ||
90 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-sale, net | 7,828 | ||
Mortgage loans held-for-investment, net | 271,828 | 277,115 | |
90 | Great Ajax II REIT | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 41,931 | 43,364 | |
90 | 2021-B | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 113,459 | ||
90 | 2019-C | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 35,727 | ||
90 | 2018-C | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 57,538 | ||
90 | 2017-D | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 36,106 | ||
90 | California | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 5,132 | 29,343 | |
90 | 7f7 and better | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 13,068 | 41,383 | |
90 | 6f6 and below | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 62,456 | 68,677 | |
90 | 18-1 LLC | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 55 | ||
90 | Non-PCD | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | 704 | |
90 | Ajax N Trust | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-sale, net | 7,828 | ||
Foreclosure | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-sale, net | 1,963 | ||
Mortgage loans held-for-investment, net | 59,902 | 45,996 | |
Foreclosure | Great Ajax II REIT | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 2,153 | 1,867 | |
Foreclosure | 2021-B | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 18,432 | ||
Foreclosure | 2019-C | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 6,458 | ||
Foreclosure | 2018-C | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 9,808 | ||
Foreclosure | 2017-D | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 2,249 | ||
Foreclosure | California | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 2,270 | 4,052 | |
Foreclosure | 7f7 and better | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 176 | 1,789 | |
Foreclosure | 6f6 and below | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 29,906 | 26,231 | |
Foreclosure | 18-1 LLC | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | ||
Foreclosure | Non-PCD | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | 507 | $ 0 | |
Foreclosure | Ajax N Trust | |||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-sale, net | $ 1,963 | ||
[1] | As of December 31, 2021, balances for Mortgage loans held-for-investment, net includes $1.4 million from the 50.0% owned joint ventures. As of December 31, 2020, balances for Mortgage loans held-for-investment, net include $307.1 million and Secured borrowings, net of deferred costs includes $250.6 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 held-for-investment, net include $756.8 million and $842.2 million of loans at December 31, 2021 and December 31, 2020, 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 held-for-investment, net include $7.1 million and $13.7 million of allowance for loan losses at December 31, 2021 and December 31, 2020, respectively. (2) As of December 31, 2021, balances for Mortgage loans held-for-investment, net includes $1.4 million from the 50.0% owned joint ventures. As of December 31, 2020, balances for Mortgage loans held-for-investment, net include $307.1 million and Secured borrowings, net of deferred costs includes |
Real Estate Assets, Net - Narra
Real Estate Assets, Net - Narrative (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021USD ($)property | Dec. 31, 2020USD ($)property | Dec. 31, 2019USD ($)property | |||
Real Estate [Line Items] | |||||
Real estate owned properties, net | $ 6,063 | [1] | $ 8,526 | [1] | $ 15,071 |
Property held-for-sale, net | 6,063 | 7,800 | |||
Rental properties | 0 | 700 | |||
Properties undergoing renovation | $ 700 | $ 300 | |||
Real estate owned properties | property | 31 | 38 | 68 | ||
Held-for-sale properties | property | 31 | 32 | |||
Number of properties owned | property | 0 | 6 | |||
Number of properties acquired | property | 3 | 0 | |||
Number of held-for-sale residential properties disposed | property | 33 | 50 | |||
Gain on sale of property | $ 893 | $ 1,011 | $ 629 | ||
Adjustment to record REO properties at lower of cost | 300 | 1,400 | |||
Carrying Value | |||||
Real Estate [Line Items] | |||||
Real estate owned properties, net | 6,100 | 8,500 | |||
Property held-for-sale, net | 7,807 | ||||
Other Income | |||||
Real Estate [Line Items] | |||||
Gain on sale of property | $ 900 | $ 1,000 | |||
[1] | Real estate owned properties, net, are presented net of valuation allowances of $0.5 million and $1.4 million at December 31, 2021 and December 31, 2020, respectively. |
Real Estate Assets, Net - Sched
Real Estate Assets, Net - Schedule of REO Held-For-Sale (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($)property | Dec. 31, 2020USD ($)property | |||
Real Estate Held For Sale [Roll Forward] | ||||
Balance at beginning of period, count | property | 38 | 68 | ||
Balance at beginning of period | $ | $ 8,526 | [1] | $ 15,071 | |
Transfers from mortgage loans, count | property | 23 | 20 | ||
Net transfers from mortgage loans and prepaids | $ | $ 3,511 | $ 4,903 | ||
Purchases, count | property | 3 | 0 | ||
Purchases | $ | $ 277 | $ 0 | ||
Adjustments to record at lower of cost or fair value, count | property | 0 | 0 | ||
Adjustments to record at lower of cost or fair value | $ | $ (293) | $ (1,359) | ||
Depreciation on rental properties, count | property | 0 | 0 | ||
Depreciation on rental properties | $ | $ (7) | $ (29) | ||
Disposals, count | property | (33) | (50) | ||
Disposals | $ | $ (5,951) | $ (10,089) | ||
Other, count | property | 0 | 0 | ||
Other | $ | $ 0 | $ (29) | ||
Balance at end of period , count | property | 31 | 38 | ||
Balance at end of period | $ | [1] | $ 6,063 | $ 8,526 | |
[1] | Real estate owned properties, net, are presented net of valuation allowances of $0.5 million and $1.4 million at December 31, 2021 and December 31, 2020, respectively. |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross unrealized gains | $ 1,800 | $ 1,200 | ||
Gross unrealized losses | 800 | 800 | ||
Investment in debt securities at fair value | [1] | 355,178 | 273,834 | |
Interest | 300 | 200 | ||
Investment in securities | 342,900 | 144,700 | ||
Investments in beneficial interests | [2] | 139,588 | 91,418 | |
Decrease in net present value of expected credit losses on beneficial interests | (4,555) | (3,210) | $ 0 | |
Beneficial interests in securitization trusts | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Decrease in net present value of expected credit losses on beneficial interests | 4,600 | 3,200 | ||
Senior Notes | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment in debt securities at fair value | 254,200 | 115,600 | ||
Subordinated Debt | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investment in debt securities at fair value | 35,600 | 9,800 | ||
Beneficial interests in securitization trusts | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross unrealized gains | 0 | 0 | ||
Gross unrealized losses | 0 | 0 | ||
Investment in debt securities at fair value | 139,588 | 91,418 | ||
Beneficial interests in securitization trusts | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Investments in beneficial interests | $ 53,100 | $ 19,300 | ||
[1] | As of December 31, 2021 and December 31, 2020 Investments in securities at fair value include amortized cost basis of $354.2 million and $273.4 million, respectively, and net unrealized gains of $1.0 million and $0.4 million, respectively. | |||
[2] | Investments in beneficial interests includes allowance for credit losses of $0.6 million at $4.5 million at December 31, 2021 and December 31, 2020, respectively. |
Investments - Available-for-sal
Investments - Available-for-sale (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Basis | $ 354,200 | $ 273,400 |
Debt securities, Gross unrealized gains | 1,800 | 1,200 |
Debt securities, Gross unrealized losses | (800) | (800) |
Interest | 300 | 200 |
Total investments at fair value | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Basis | 493,746 | 364,877 |
Debt securities, Gross unrealized gains | 1,822 | 1,152 |
Debt securities, Gross unrealized losses | (802) | (777) |
Debt securities, Carrying value | 494,766 | 365,252 |
Debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Basis | 354,158 | 273,459 |
Debt securities, Gross unrealized gains | 1,822 | 1,152 |
Debt securities, Gross unrealized losses | (802) | (777) |
Debt securities, Carrying value | 355,178 | 273,834 |
Beneficial interests in securitization trusts | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt securities, Basis | 139,588 | 91,418 |
Debt securities, Gross unrealized gains | 0 | 0 |
Debt securities, Gross unrealized losses | 0 | 0 |
Debt securities, Carrying value | $ 139,588 | $ 91,418 |
Investments - Breakdown of Gros
Investments - Breakdown of Gross Unrealized Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Line Items] | |||
Basis | $ 354,200 | $ 273,400 | |
Gross unrealized losses | (800) | (800) | |
Carrying value | [1] | 355,178 | 273,834 |
Debt Securities due November 2051 | |||
Investments, Debt and Equity Securities [Line Items] | |||
Basis | 44,902 | ||
Gross unrealized losses | (12) | ||
Carrying value | 44,890 | ||
Debt Securities due June 2057 | |||
Investments, Debt and Equity Securities [Line Items] | |||
Basis | 23,165 | ||
Gross unrealized losses | (3) | ||
Carrying value | 23,162 | ||
Debt securities due September 2059 | |||
Investments, Debt and Equity Securities [Line Items] | |||
Basis | 9,173 | 22,216 | |
Gross unrealized losses | (24) | (238) | |
Carrying value | 9,149 | 21,978 | |
Debt Securities Due September 2059, Security One | |||
Investments, Debt and Equity Securities [Line Items] | |||
Gross unrealized losses | (200) | ||
Debt Securities Due September 2059, Security Two | |||
Investments, Debt and Equity Securities [Line Items] | |||
Gross unrealized losses | (100) | ||
Debt securities due December 2059 | |||
Investments, Debt and Equity Securities [Line Items] | |||
Basis | 40,502 | 47,270 | |
Gross unrealized losses | (87) | (315) | |
Carrying value | 40,415 | 46,955 | |
Debt Securities due March 2060 | |||
Investments, Debt and Equity Securities [Line Items] | |||
Basis | 16,977 | ||
Gross unrealized losses | (91) | ||
Carrying value | 16,886 | ||
Debt Securities due January 2061 | |||
Investments, Debt and Equity Securities [Line Items] | |||
Basis | 14,000 | ||
Gross unrealized losses | (140) | ||
Carrying value | 13,860 | ||
Debt Securities due June 2061 | |||
Investments, Debt and Equity Securities [Line Items] | |||
Basis | 86,909 | ||
Gross unrealized losses | (445) | ||
Carrying value | 86,464 | ||
Debt Securities due June 2061, Security One | |||
Investments, Debt and Equity Securities [Line Items] | |||
Gross unrealized losses | (400) | ||
Debt Securities due June 2061, Security Two | |||
Investments, Debt and Equity Securities [Line Items] | |||
Gross unrealized losses | (100) | ||
Debt securities due November 2059 | |||
Investments, Debt and Equity Securities [Line Items] | |||
Basis | 14,738 | ||
Gross unrealized losses | (61) | ||
Carrying value | 14,677 | ||
Debt securities due September 2060 | |||
Investments, Debt and Equity Securities [Line Items] | |||
Basis | 34,970 | ||
Gross unrealized losses | (44) | ||
Carrying value | 34,926 | ||
Debt securities due June 2060 | |||
Investments, Debt and Equity Securities [Line Items] | |||
Basis | 35,127 | ||
Gross unrealized losses | (119) | ||
Carrying value | 35,008 | ||
Debt securities basis | |||
Investments, Debt and Equity Securities [Line Items] | |||
Basis | 235,628 | 154,321 | |
Debt securities gross unrealized losses | |||
Investments, Debt and Equity Securities [Line Items] | |||
Gross unrealized losses | (802) | ||
Debt securities carrying value | |||
Investments, Debt and Equity Securities [Line Items] | |||
Carrying value | 234,826 | 153,544 | |
Total investments at fair value | |||
Investments, Debt and Equity Securities [Line Items] | |||
Basis | 493,746 | 364,877 | |
Gross unrealized losses | $ (802) | $ (777) | |
[1] | As of December 31, 2021 and December 31, 2020 Investments in securities at fair value include amortized cost basis of $354.2 million and $273.4 million, respectively, and net unrealized gains of $1.0 million and $0.4 million, respectively. |
Investments - Schedule of secur
Investments - Schedule of securities at acquisition reconciliation between purchase price and par value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Par | $ 60,282 | $ 27,319 | |
Discount | (4,953) | (5,233) | |
Allowance | 2,211 | 2,779 | $ 0 |
Beneficial interest purchase price | $ 53,118 | $ 19,307 |
Investments - Allowance for Cre
Investments - Allowance for Credit Loss on Beneficial Interests (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |||
Allowance for beneficial interests credit losses, beginning balance | $ (4,453) | $ 0 | $ 0 |
Beginning period adjustment for CECL | 0 | (1,668) | 0 |
Reclassification to/(from) non-credit discount from/(to) the allowance for changes in payment expectations | 1,951 | (2,553) | 0 |
Increase in allowance for credit losses for acquisitions | (2,211) | (2,779) | 0 |
Credit loss expense on beneficial interests | (457) | (663) | 0 |
Reversal of allowance for expected credit losses due to increases in the net present value of expected cash flows | 4,555 | 3,210 | 0 |
Allowance for beneficial interests credit losses, end balance | $ (615) | $ (4,453) | $ 0 |
Fair Value - Schedule of Recurr
Fair Value - Schedule of Recurring Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated balance sheet at fair value disclosure (assets) | |||
Investment in debt securities at fair value | [1] | $ 355,178 | $ 273,834 |
Carrying Value | Fair Value, Recurring | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Investment in debt securities at fair value | 355,178 | 273,834 | |
Consolidated balance sheet at fair value (liabilities) | |||
Put option liability | 23,667 | 14,205 | |
Level 1 Quoted prices in active markets | Fair Value, Recurring | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Investment in debt securities at fair value | 0 | 0 | |
Consolidated balance sheet at fair value (liabilities) | |||
Put option liability | 0 | 0 | |
Level 2 Observable inputs other than Level 1 prices | Fair Value, Recurring | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Investment in debt securities at fair value | 355,178 | 273,834 | |
Consolidated balance sheet at fair value (liabilities) | |||
Put option liability | 0 | 0 | |
Level 3 Unobservable inputs | Fair Value, Recurring | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Investment in debt securities at fair value | 0 | 0 | |
Consolidated balance sheet at fair value (liabilities) | |||
Put option liability | $ 23,667 | $ 14,205 | |
[1] | As of December 31, 2021 and December 31, 2020 Investments in securities at fair value include amortized cost basis of $354.2 million and $273.4 million, respectively, and net unrealized gains of $1.0 million and $0.4 million, respectively. |
Fair Value - Schedule of Financ
Fair Value - Schedule of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated balance sheet at fair value disclosure (assets) | |||
Mortgage loans held-for-investment, net | [1],[2] | $ 1,080,434 | $ 1,119,372 |
Mortgage loans held-for-sale, net, fair value | 29,572 | 0 | |
Investment in beneficial interest, carrying value | [3] | 355,178 | 273,834 |
Consolidated balance sheet at fair value (liabilities) | |||
Borrowings under repurchase transactions | 546,054 | 421,132 | |
Convertible senior notes, net | [4] | 102,845 | 110,057 |
Beneficial interests in securitization trusts | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Investment in beneficial interest, carrying value | 139,588 | 91,418 | |
Carrying Value | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Mortgage loans held-for-investment, net | 1,080,434 | 1,119,372 | |
Mortgage loans held-for-sale, net, fair value | 29,572 | ||
Consolidated balance sheet at fair value (liabilities) | |||
Secured borrowings, net | 575,563 | 421,132 | |
Borrowings under repurchase transactions | 546,054 | 585,403 | |
Convertible senior notes, net | 102,845 | ||
Level 1 Quoted prices in active markets | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Fair value of mortgage loans | 0 | 0 | |
Consolidated balance sheet at fair value (liabilities) | |||
Secured borrowings, net, fair value | 0 | 0 | |
Borrowings under repurchase transactions, fair value | 0 | 0 | |
Convertible senior notes, net, fair value | 108,816 | 110,675 | |
Level 1 Quoted prices in active markets | Beneficial interests in securitization trusts | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Mortgage loans held-for-sale, net, fair value | 0 | ||
Investment in beneficial interests, fair value | 0 | 0 | |
Level 2 Observable inputs other than Level 1 prices | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Fair value of mortgage loans | 0 | 0 | |
Consolidated balance sheet at fair value (liabilities) | |||
Secured borrowings, net, fair value | 580,166 | 586,419 | |
Borrowings under repurchase transactions, fair value | 546,054 | 421,132 | |
Convertible senior notes, net, fair value | 0 | 0 | |
Level 2 Observable inputs other than Level 1 prices | Beneficial interests in securitization trusts | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Mortgage loans held-for-sale, net, fair value | 0 | ||
Investment in beneficial interests, fair value | 0 | 0 | |
Level 3 Unobservable inputs | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Fair value of mortgage loans | 1,174,660 | 1,232,081 | |
Consolidated balance sheet at fair value (liabilities) | |||
Secured borrowings, net, fair value | 0 | 0 | |
Borrowings under repurchase transactions, fair value | 0 | 0 | |
Convertible senior notes, net, fair value | 0 | 0 | |
Level 3 Unobservable inputs | Beneficial interests in securitization trusts | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Mortgage loans held-for-sale, net, fair value | 32,857 | ||
Investment in beneficial interests, fair value | 139,588 | 91,418 | |
Manager | Carrying Value | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity method investments, carrying value | 1,502 | 1,366 | |
Manager | Level 1 Quoted prices in active markets | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity method investments, fair value | 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 | 0 | 0 | |
Manager | Level 3 Unobservable inputs | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity method investments, fair value | 12,346 | 11,709 | |
AS Ajax E | Carrying Value | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity method investments, carrying value | 569 | 776 | |
AS Ajax E | Level 1 Quoted prices in active markets | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity method investments, fair value | 0 | 0 | |
AS Ajax E | Level 2 Observable inputs other than Level 1 prices | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity method investments, fair value | 721 | 934 | |
AS Ajax E | Level 3 Unobservable inputs | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity method investments, fair value | 0 | 0 | |
AS Ajax E II LLC | Carrying Value | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity method investments, carrying value | 2,550 | 3,381 | |
AS Ajax E II LLC | Level 1 Quoted prices in active markets | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity method investments, fair value | 0 | 0 | |
AS Ajax E II LLC | Level 2 Observable inputs other than Level 1 prices | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity method investments, fair value | 2,824 | 3,484 | |
AS Ajax E II LLC | Level 3 Unobservable inputs | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity method investments, fair value | 0 | 0 | |
Great Ajax F S | Carrying Value | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity method investments, carrying value | 2,602 | 2,711 | |
Great Ajax F S | Level 1 Quoted prices in active markets | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity method investments, fair value | 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 | 0 | 0 | |
Great Ajax F S | Level 3 Unobservable inputs | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity method investments, fair value | 3,320 | 3,320 | |
Gaea | Carrying Value | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity method investments, carrying value | 19,571 | 20,001 | |
Gaea | Level 1 Quoted prices in active markets | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity method investments, fair value | 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 | 0 | 0 | |
Gaea | Level 3 Unobservable inputs | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity method investments, fair value | 21,170 | 19,150 | |
Loan pool LLCs | Carrying Value | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity method investments, carrying value | 226 | 381 | |
Loan pool LLCs | Level 1 Quoted prices in active markets | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity method investments, fair value | 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 | 0 | 0 | |
Loan pool LLCs | Level 3 Unobservable inputs | |||
Consolidated balance sheet at fair value disclosure (assets) | |||
Equity method investments, fair value | $ 853 | $ 701 | |
[1] | As of December 31, 2021, balances for Mortgage loans held-for-investment, net includes $1.4 million from the 50.0% owned joint ventures. As of December 31, 2020, balances for Mortgage loans held-for-investment, net include $307.1 million and Secured borrowings, net of deferred costs includes $250.6 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 held-for-investment, net include $756.8 million and $842.2 million of loans at December 31, 2021 and December 31, 2020, 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 held-for-investment, net include $7.1 million and $13.7 million of allowance for loan losses at December 31, 2021 and December 31, 2020, respectively. (2) As of December 31, 2021, balances for Mortgage loans held-for-investment, net includes $1.4 million from the 50.0% owned joint ventures. As of December 31, 2020, balances for Mortgage loans held-for-investment, net include $307.1 million and Secured borrowings, net of deferred costs includes | ||
[3] | As of December 31, 2021 and December 31, 2020 Investments in securities at fair value include amortized cost basis of $354.2 million and $273.4 million, respectively, and net unrealized gains of $1.0 million and $0.4 million, respectively. | ||
[4] | Secured borrowings, net are presented net of deferred issuance costs of $7.3 million and $5.4 million at December 31, 2021 and December 31, 2020, respectively. Convertible senior notes, net are presented net of deferred issuance costs of $1.7 million and $3.3 million at December 31, 2021 and December 31, 2020, respectively. |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2020USD ($) | |
Fair Value Disclosures [Abstract] | |
Warrants original basis | $ 9.5 |
Warrant liability | $ 50.7 |
Option term | 39 months |
Fair Value - Schedule of Non Fi
Fair Value - Schedule of Non Financial Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property held-for-sale, net | $ 6,063 | $ 7,800 |
Level 1 Quoted prices in active markets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property held-for-sale | 0 | 0 |
Level 2 Observable inputs other than Level 1 prices | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property held-for-sale | 0 | 0 |
Level 3 Unobservable inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property held-for-sale | 6,063 | 7,807 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property held-for-sale, net | 7,807 | |
Changes Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property held-for-sale, net | $ (293) | $ (1,359) |
Affiliates - Narrative (Details
Affiliates - Narrative (Details) $ in Thousands | Nov. 22, 2019USD ($)shares | May 29, 2018USD ($)warrantshares | Jan. 26, 2018USD ($)warrantshares | Jun. 30, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)counterparty | Dec. 31, 2018transaction | Mar. 14, 2016 |
Schedule of Equity Method Investments [Line Items] | |||||||||
Proceeds from issuance of preferred stock and warrants, net of offering costs | $ 125,000 | $ 0 | $ 124,976 | $ 0 | |||||
Loan pool LLCs | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage | 40.40% | ||||||||
Number of entities | counterparty | 3 | ||||||||
Cash payment in business acquisition | $ 1,000 | ||||||||
Great Ajax FS LLC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage | 8.00% | ||||||||
Cash payment in business acquisition | $ 700 | $ 1,100 | |||||||
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% | |||||||
Number of shares (in shares) | shares | 29,063 | 45,938 | |||||||
Common stock value | $ 400 | $ 600 | |||||||
AS Ajax E II LLC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage | 5.00% | ||||||||
AS Ajax E II LLC | Third Party | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage by noncontrolling owners | 46.90% | ||||||||
AS Ajax E II LLC | Great Ajax Corp | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Percentage of ownership interests in joint venture | 53.10% | 53.10% | |||||||
2017-D | Great Ajax Corp | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage by noncontrolling owners | 50.00% | ||||||||
Ownership percentage by parent | 50.00% | 50.00% | |||||||
Great Ajax II REIT | Great Ajax Corp | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage by noncontrolling owners | 0.10% | 0.10% | |||||||
Ownership percentage by parent | 99.90% | 99.90% | |||||||
2018-C | Third Party | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage by noncontrolling owners | 0.00% | ||||||||
2018-C | Great Ajax Corp | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage by parent | 100.00% | 63.00% | |||||||
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 (in shares) | shares | 4,419,641 | ||||||||
Ownership percentage | 23.20% | 22.80% | |||||||
Gaea | Third Party | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage by noncontrolling owners | 76.80% | 77.20% | |||||||
As Ajax E LLC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage | 16.50% | 16.50% | 24.20% | ||||||
Ajax E Master Trust | As Ajax E LLC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership interest in real estate trust, percentage | 5.00% | ||||||||
Thetis | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership percentage | 19.80% |
Affiliates - Schedule of Net In
Affiliates - Schedule of Net Income, Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 22, 2019 | Mar. 14, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||||
Assets at Company share | $ 1,759,680 | $ 1,653,732 | |||
Liabilities at Company share | 1,259,207 | 1,139,241 | |||
Income/(loss) from investment in affiliates | $ 699 | (155) | $ 1,332 | ||
Unconsolidated Affiliates | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 100.00% | ||||
Thetis | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 19.80% | ||||
Net income/(loss) at the Company's share | $ 3,297 | (693) | 4,685 | ||
Assets at Company share | 1,881 | 1,887 | |||
Liabilities at Company share | 377 | 420 | |||
Income/(loss) from investment in affiliates | 653 | (137) | 928 | ||
Thetis | Assets, Total | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets at Company share | 9,498 | 9,531 | |||
Thetis | Liabilities, Total | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Liabilities at Company share | $ 1,904 | 2,122 | |||
Gaea | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 22.80% | 23.20% | |||
Net income/(loss) at the Company's share | $ 222 | 720 | (20) | ||
Assets at Company share | 24,092 | 21,729 | |||
Liabilities at Company share | 5,542 | 2,729 | |||
Income/(loss) from investment in affiliates | 51 | 165 | (5) | ||
Gaea | Assets, Total | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets at Company share | 105,667 | 94,639 | |||
Gaea | Liabilities, Total | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Liabilities at Company share | $ 24,305 | $ 11,886 | |||
As Ajax E LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 16.50% | 16.50% | 24.20% | ||
Net income/(loss) at the Company's share | $ 198 | $ 209 | 299 | ||
Assets at Company share | 583 | 791 | |||
Liabilities at Company share | 0 | 0 | |||
Income/(loss) from investment in affiliates | 33 | 34 | 49 | ||
As Ajax E LLC | Assets, Total | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets at Company share | 3,545 | 4,808 | |||
As Ajax E LLC | Liabilities, Total | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Liabilities at Company share | 2 | 2 | |||
Loan pool LLCs | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Net income/(loss) at the Company's share | (126) | (133) | (9) | ||
Assets at Company share | 900 | 973 | |||
Liabilities at Company share | 1,635 | 1,595 | |||
Income/(loss) from investment in affiliates | (51) | (54) | (4) | ||
Loan pool LLCs | Assets, Total | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets at Company share | 2,242 | 2,423 | |||
Loan pool LLCs | Liabilities, Total | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Liabilities at Company share | 4,060 | 3,961 | |||
Great Ajax FS LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Net income/(loss) at the Company's share | (1,363) | (3,901) | 2,233 | ||
Assets at Company share | 5,308 | 4,523 | |||
Liabilities at Company share | 3,783 | 2,888 | |||
Income/(loss) from investment in affiliates | (109) | (312) | $ 179 | ||
Great Ajax FS LLC | Assets, Total | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets at Company share | 66,355 | 56,532 | |||
Great Ajax FS LLC | Liabilities, Total | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Liabilities at Company share | $ 47,293 | $ 36,101 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2021USD ($)loan$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | |
Mortgage Loans on Real Estate [Line Items] | ||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 133,800,000 | $ 26,200,000 | ||
Proceeds from issuance of preferred stock and warrants, net of offering costs | $ 125,000,000 | $ 0 | $ 124,976,000 | $ 0 |
Preferred stock par value per share (in dollars per share) | $ / shares | $ 25 | $ 0.01 | $ 0.01 | |
Warrants (in shares) | shares | 6,500,000 | |||
Warrants exercise price (in dollars per share) | $ / shares | $ 10 | |||
Put liability | $ 23,700,000 | |||
Warrant liability | $ 50,700,000 | |||
Loss Contingency Accrual | $ 0 | |||
Series A Preferred Stock | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Preferred stock issued (in shares) | shares | 2,307,400 | 2,307,400 | 2,307,400 | |
Preferred stock dividend rate percentage | 7.25% | |||
Series B Preferred Stock | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Preferred stock issued (in shares) | shares | 2,892,600 | 2,892,600 | 2,892,600 | |
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 | $ 9,300,000 | |||
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 | 52 |
Commitment and Contingencies -
Commitment and Contingencies - Schedule of Put Option Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Commitments [Roll Forward] | |||
Fair value adjustments during the period | $ 6,164 | $ 5,176 | $ 5,716 |
Ending balance | 23,700 | ||
Five-Year Warrants | |||
Other Commitments [Roll Forward] | |||
Beginning balance | 14,205 | 0 | 0 |
Initial recognition of put option liability | 0 | 9,472 | 0 |
Fair value adjustments during the period | 9,462 | 4,733 | 0 |
Ending balance | $ 23,667 | $ 14,205 | $ 0 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended | 12 Months Ended | 24 Months Ended | 95 Months Ended | |||||||||
Dec. 31, 2021USD ($)securitization$ / shares | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)DaysecuritizationtrustFacilitycounterparty$ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2021USD ($)securitization$ / shares | ||
Debt Instrument [Line Items] | |||||||||||||
Percentage of guarantors beneficial interest | 100.00% | 100.00% | 100.00% | ||||||||||
Other prepaid collateral | $ 6,902,000 | $ 6,902,000 | $ 4,653,000 | $ 6,902,000 | |||||||||
Number of securitizations completed | securitization | 18 | ||||||||||||
Number of securitizations outstanding | securitization | 5 | 5 | 5 | ||||||||||
Convertible senior notes, net | [1] | $ 102,845,000 | $ 102,845,000 | 110,057,000 | $ 102,845,000 | ||||||||
Interest expense | 36,742,000 | 48,692,000 | $ 59,325,000 | ||||||||||
Conversion discount (premium) - Convertible senior notes | $ 3,200,000 | ||||||||||||
Convertible note aggregate principal | 1,300,000 | $ 5,000,000 | $ 2,500,000 | $ 2,500,000 | $ 8,000,000 | 1,300,000 | 1,300,000 | ||||||
Repurchase of convertible notes | 1,300,000 | 5,100,000 | 2,400,000 | 2,300,000 | 8,200,000 | ||||||||
Adjustments to additional paid in capital | 8,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 100,000 | 8,000 | 81,000 | ||||
Repayments of convertible notes payable | $ 0 | $ 0 | |||||||||||
Reported Value Measurement [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Convertible senior notes, net | $ 102,845,000 | $ 102,845,000 | $ 102,845,000 | ||||||||||
Mortgage loans | Non-rated Secured Borrowings | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Number of securitizations outstanding | securitization | 1 | 1 | 1 | ||||||||||
Mortgage loans | Rated Secured Borrowings | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Number of securitizations outstanding | securitization | 4 | 4 | 4 | ||||||||||
Convertible Notes Payable | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 7.25% | ||||||||||||
Principal amount of note (in dollars per share) | $ / shares | $ 25 | ||||||||||||
Unamortized discount | $ 1,700,000 | $ 1,700,000 | 3,300,000 | $ 1,700,000 | |||||||||
Conversion discount (premium) - Convertible senior notes | $ 1,300,000 | $ 1,400,000 | |||||||||||
Interest rate, effective percentage | 8.46% | 8.46% | 8.56% | 8.46% | |||||||||
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% | ||||||||||||
Master Repurchase Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 1.74% | 1.74% | 2.29% | 1.74% | |||||||||
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 | $ 150,000,000 | $ 150,000,000 | $ 150,000,000 | ||||||||||
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 | 400,000,000 | ||||||||||
Master Repurchase Agreement | Delaware Trust | Bonds | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Number of facilities repurchased | Facility | 5 | ||||||||||||
Convertible Notes Payable | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
If-converted value in excess of principal | $ 9,500,000 | ||||||||||||
Unpaid principal balance | $ 104,600,000 | 104,600,000 | $ 113,400,000 | $ 104,600,000 | |||||||||
Interest expense | $ 9,100,000 | $ 9,700,000 | |||||||||||
Common Stock | Convertible Notes Payable | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Conversion ratio | 1.7279 | ||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 14.47 | $ 14.47 | $ 14.47 | ||||||||||
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 | Great Ajax Corp | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Ownership percentage by parent | 100.00% | 100.00% | 63.00% | 100.00% | |||||||||
2018-C | Third Party Institutional Investor | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Ownership percentage by noncontrolling owners | 37.00% | 37.00% | 37.00% | ||||||||||
2017-D | Great Ajax Corp | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Ownership percentage by parent | 50.00% | 50.00% | 50.00% | 50.00% | |||||||||
Ownership percentage by noncontrolling owners | 50.00% | 50.00% | 50.00% | ||||||||||
[1] | Secured borrowings, net are presented net of deferred issuance costs of $7.3 million and $5.4 million at December 31, 2021 and December 31, 2020, respectively. Convertible senior notes, net are presented net of deferred issuance costs of $1.7 million and $3.3 million at December 31, 2021 and December 31, 2020, respectively. |
Debt - Schedule of Repurchase T
Debt - Schedule of Repurchase Transactions and Facilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Amount of Collateral | $ 711,252 | $ 595,599 |
Master Repurchase Agreement | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | 853,707 | 916,759 |
Amount Outstanding | 546,054 | 421,132 |
Amount of Collateral | $ 711,252 | $ 595,599 |
Percentage of Collateral Coverage | 130.00% | 141.00% |
Interest rate | 1.74% | 2.29% |
Master Repurchase Agreement | January 6, 2022 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 6,567 | |
Amount Outstanding | 6,567 | |
Amount of Collateral | $ 8,450 | |
Percentage of Collateral Coverage | 129.00% | |
Interest rate | 1.33% | |
Master Repurchase Agreement | January 12, 2022 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 4,978 | |
Amount Outstanding | 4,978 | |
Amount of Collateral | $ 6,304 | |
Percentage of Collateral Coverage | 127.00% | |
Interest rate | 1.32% | |
Master Repurchase Agreement | January 13, 2022 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 2,850 | |
Amount Outstanding | 2,850 | |
Amount of Collateral | $ 4,050 | |
Percentage of Collateral Coverage | 142.00% | |
Interest rate | 1.31% | |
Master Repurchase Agreement | January 14, 2022 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 4,992 | |
Amount Outstanding | 4,992 | |
Amount of Collateral | $ 5,808 | |
Percentage of Collateral Coverage | 116.00% | |
Interest rate | 1.17% | |
Master Repurchase Agreement | January 20, 2022 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 9,667 | |
Amount Outstanding | 9,667 | |
Amount of Collateral | $ 11,550 | |
Percentage of Collateral Coverage | 119.00% | |
Interest rate | 1.18% | |
Master Repurchase Agreement | January 27, 2022 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 2,206 | |
Amount Outstanding | 2,206 | |
Amount of Collateral | $ 2,824 | |
Percentage of Collateral Coverage | 128.00% | |
Interest rate | 1.30% | |
Master Repurchase Agreement | January 28, 2022 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 9,115 | |
Amount Outstanding | 9,115 | |
Amount of Collateral | $ 11,244 | |
Percentage of Collateral Coverage | 123.00% | |
Interest rate | 1.33% | |
Master Repurchase Agreement | January 28, 2022 Two | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 8,508 | |
Amount Outstanding | 8,508 | |
Amount of Collateral | $ 10,538 | |
Percentage of Collateral Coverage | 124.00% | |
Interest rate | 1.33% | |
Master Repurchase Agreement | February 11, 2022 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 3,094 | |
Amount Outstanding | 3,094 | |
Amount of Collateral | $ 4,428 | |
Percentage of Collateral Coverage | 143.00% | |
Interest rate | 1.75% | |
Master Repurchase Agreement | February 11, 2022 Two | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 4,060 | |
Amount Outstanding | 4,060 | |
Amount of Collateral | $ 5,796 | |
Percentage of Collateral Coverage | 143.00% | |
Interest rate | 1.36% | |
Master Repurchase Agreement | February 11, 2022 Three | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 2,166 | |
Amount Outstanding | 2,166 | |
Amount of Collateral | $ 3,090 | |
Percentage of Collateral Coverage | 143.00% | |
Interest rate | 1.36% | |
Master Repurchase Agreement | February 11, 2022 Four | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 1,850 | |
Amount Outstanding | 1,850 | |
Amount of Collateral | $ 2,640 | |
Percentage of Collateral Coverage | 143.00% | |
Interest rate | 1.36% | |
Master Repurchase Agreement | February 11, 2022 Five | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 1,670 | |
Amount Outstanding | 1,670 | |
Amount of Collateral | $ 2,287 | |
Percentage of Collateral Coverage | 137.00% | |
Interest rate | 1.36% | |
Master Repurchase Agreement | February 11, 2022 Six | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 1,526 | |
Amount Outstanding | 1,526 | |
Amount of Collateral | $ 2,178 | |
Percentage of Collateral Coverage | 143.00% | |
Interest rate | 1.36% | |
Master Repurchase Agreement | February 18, 2022 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 9,275 | |
Amount Outstanding | 9,275 | |
Amount of Collateral | $ 11,954 | |
Percentage of Collateral Coverage | 129.00% | |
Interest rate | 1.36% | |
Master Repurchase Agreement | February 24, 2022 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 3,538 | |
Amount Outstanding | 3,538 | |
Amount of Collateral | $ 5,106 | |
Percentage of Collateral Coverage | 144.00% | |
Interest rate | 1.77% | |
Master Repurchase Agreement | March 8, 2022 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 5,363 | |
Amount Outstanding | 5,363 | |
Amount of Collateral | $ 6,970 | |
Percentage of Collateral Coverage | 130.00% | |
Interest rate | 1.19% | |
Master Repurchase Agreement | March 8, 2022 Two | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 1,955 | |
Amount Outstanding | 1,955 | |
Amount of Collateral | $ 2,496 | |
Percentage of Collateral Coverage | 128.00% | |
Interest rate | 1.19% | |
Master Repurchase Agreement | March 16, 2022 One | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 40,956 | |
Amount Outstanding | 40,956 | |
Amount of Collateral | $ 54,424 | |
Percentage of Collateral Coverage | 133.00% | |
Interest rate | 1.21% | |
Master Repurchase Agreement | March 16, 2022 Two | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 4,258 | |
Amount Outstanding | 4,258 | |
Amount of Collateral | $ 6,232 | |
Percentage of Collateral Coverage | 146.00% | |
Interest rate | 1.46% | |
Master Repurchase Agreement | March 17, 2022 One | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 6,425 | |
Amount Outstanding | 6,425 | |
Amount of Collateral | $ 8,093 | |
Percentage of Collateral Coverage | 126.00% | |
Interest rate | 1.42% | |
Master Repurchase Agreement | March 17, 2022 Two | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 5,904 | |
Amount Outstanding | 5,904 | |
Amount of Collateral | $ 7,573 | |
Percentage of Collateral Coverage | 128.00% | |
Interest rate | 1.42% | |
Master Repurchase Agreement | March 17, 2022 Three | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 1,177 | |
Amount Outstanding | 1,177 | |
Amount of Collateral | $ 1,687 | |
Percentage of Collateral Coverage | 143.00% | |
Interest rate | 1.82% | |
Master Repurchase Agreement | March 21, 2022 One | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 30,850 | |
Amount Outstanding | 30,850 | |
Amount of Collateral | $ 41,473 | |
Percentage of Collateral Coverage | 134.00% | |
Interest rate | 1.26% | |
Master Repurchase Agreement | March 21, 2022 Two | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 2,629 | |
Amount Outstanding | 2,629 | |
Amount of Collateral | $ 3,770 | |
Percentage of Collateral Coverage | 143.00% | |
Interest rate | 1.56% | |
Master Repurchase Agreement | March 22, 2022 One | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 33,201 | |
Amount Outstanding | 33,201 | |
Amount of Collateral | $ 35,956 | |
Percentage of Collateral Coverage | 108.00% | |
Interest rate | 0.66% | |
Master Repurchase Agreement | March 22, 2022 Two | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 2,892 | |
Amount Outstanding | 2,892 | |
Amount of Collateral | $ 3,421 | |
Percentage of Collateral Coverage | 118.00% | |
Interest rate | 0.96% | |
Master Repurchase Agreement | March 22, 2022 Three | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 1,541 | |
Amount Outstanding | 1,541 | |
Amount of Collateral | $ 1,943 | |
Percentage of Collateral Coverage | 126.00% | |
Interest rate | 1.16% | |
Master Repurchase Agreement | March 22, 2022 Four | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 1,369 | |
Amount Outstanding | 1,369 | |
Amount of Collateral | $ 2,047 | |
Percentage of Collateral Coverage | 150.00% | |
Interest rate | 1.56% | |
Master Repurchase Agreement | March 22, 2022 Five | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 1,330 | |
Amount Outstanding | 1,330 | |
Amount of Collateral | $ 1,788 | |
Percentage of Collateral Coverage | 134.00% | |
Interest rate | 1.41% | |
Master Repurchase Agreement | March 25, 2022 One | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 15,443 | |
Amount Outstanding | 15,443 | |
Amount of Collateral | $ 20,367 | |
Percentage of Collateral Coverage | 132.00% | |
Interest rate | 1.41% | |
Master Repurchase Agreement | March 25, 2022 Two | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 4,444 | |
Amount Outstanding | 4,444 | |
Amount of Collateral | $ 6,413 | |
Percentage of Collateral Coverage | 144.00% | |
Interest rate | 1.81% | |
Master Repurchase Agreement | April 1, 2022 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 28,482 | |
Amount Outstanding | 28,482 | |
Amount of Collateral | $ 36,200 | |
Percentage of Collateral Coverage | 127.00% | |
Interest rate | 1.36% | |
Master Repurchase Agreement | April 19, 2022 One | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 7,909 | |
Amount Outstanding | 7,909 | |
Amount of Collateral | $ 9,279 | |
Percentage of Collateral Coverage | 117.00% | |
Interest rate | 1.02% | |
Master Repurchase Agreement | April 19, 2022 Two | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 6,215 | |
Amount Outstanding | 6,215 | |
Amount of Collateral | $ 7,276 | |
Percentage of Collateral Coverage | 117.00% | |
Interest rate | 1.02% | |
Master Repurchase Agreement | April 19, 2022 Three | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 5,090 | |
Amount Outstanding | 5,090 | |
Amount of Collateral | $ 6,063 | |
Percentage of Collateral Coverage | 119.00% | |
Interest rate | 1.02% | |
Master Repurchase Agreement | June 10, 2022 One | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 13,992 | |
Amount Outstanding | 13,992 | |
Amount of Collateral | $ 20,151 | |
Percentage of Collateral Coverage | 144.00% | |
Interest rate | 1.49% | |
Master Repurchase Agreement | June 10, 2022 Two | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 6,220 | |
Amount Outstanding | 6,220 | |
Amount of Collateral | $ 8,203 | |
Percentage of Collateral Coverage | 132.00% | |
Interest rate | 1.29% | |
Master Repurchase Agreement | July 8, 2022 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 150,000 | |
Amount Outstanding | 13,824 | |
Amount of Collateral | $ 20,856 | |
Percentage of Collateral Coverage | 151.00% | |
Interest rate | 2.60% | |
Master Repurchase Agreement | September 22, 2022 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 400,000 | |
Amount Outstanding | 228,523 | |
Amount of Collateral | $ 300,324 | |
Percentage of Collateral Coverage | 131.00% | |
Interest rate | 2.36% | |
Master Repurchase Agreement | January 6, 2021 | ||
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 Two | ||
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 Three | ||
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 6, 2021 Four | ||
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 Five | ||
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 Six | ||
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 11, 2021 | ||
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 14, 2021 | ||
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 | ||
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 | ||
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 Two | ||
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 | ||
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 Two | ||
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 Three | ||
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 Four | ||
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 Five | ||
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 Six | ||
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 Seven | ||
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 | ||
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 | ||
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 Two | ||
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 | ||
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 Two | ||
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 Three | ||
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 Four | ||
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 | ||
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 | March 24, 2021 Two | ||
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 Three | ||
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 | April 9, 2021 | ||
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 Outstanding | 53,256 | |
Amount of Collateral | $ 84,337 | |
Percentage of Collateral Coverage | 158.00% | |
Interest rate | 2.64% | |
Master Repurchase Agreement | September 23, 2021 | ||
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, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Gross amount of recognized liabilities | $ 546,054 | $ 421,132 |
Gross amount of loans and securities pledged as collateral | 711,252 | 595,599 |
Other prepaid collateral | 6,902 | 4,653 |
Net collateral amount | $ 172,100 | $ 179,120 |
Debt - Schedule of Securitizati
Debt - Schedule of Securitization Notes Outstanding (Details) - Mortgage loans - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Deferred issuance costs | $ 7.3 | $ 5.4 |
Class A-1 Notes | 2019-D | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 140.4 | |
Interest rate | 2.96% | |
Class A-1 Notes | 2019-F | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 110.1 | |
Interest rate | 2.86% | |
Class A-1 Notes | 2020-B | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 97.2 | |
Interest rate | 1.70% | |
Class A-1 Notes | 2021-A | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 146.2 | |
Interest rate | 1.07% | |
Class A-2 Notes | 2019-D | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 6.1 | |
Interest rate | 3.50% | |
Class A-2 Notes | 2019-F | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 12.5 | |
Interest rate | 3.50% | |
Class A-2 Notes | 2020-B | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 17.3 | |
Interest rate | 2.86% | |
Class A-2 Notes | 2021-A | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 21.1 | |
Interest rate | 2.35% | |
Class A-3 Notes | 2019-D | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 10.1 | |
Interest rate | 3.50% | |
Class A-3 Notes | 2019-F | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 5.1 | |
Interest rate | 3.50% | |
Class M1 Notes | 2019-D | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 9.3 | |
Interest rate | 3.50% | |
Class M1 Notes | 2019-F | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 6.1 | |
Interest rate | 3.50% | |
Class M1 Notes | 2020-B | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 7.3 | |
Interest rate | 3.70% | |
Class M1 Notes | 2021-A | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 7.8 | |
Interest rate | 3.15% | |
Class B 1 Notes | 2019-D | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 7.5 | |
Interest rate | 3.50% | |
Class B 1 Notes | 2019-F | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 11.5 | |
Interest rate | 3.50% | |
Class B 1 Notes | 2020-B | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 5.9 | |
Interest rate | 3.70% | |
Class B 1 Notes | 2021-A | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 5 | |
Interest rate | 3.80% | |
Class B 2 Notes | 2019-D | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 7.1 | |
Class B 2 Notes | 2019-F | ||
Debt Instrument [Line Items] | ||
Aggregate principal | 10.4 | |
Class B 2 Notes | 2020-B | ||
Debt Instrument [Line Items] | ||
Aggregate principal | 5.1 | |
Class B 2 Notes | 2021-A | ||
Debt Instrument [Line Items] | ||
Aggregate principal | 5 | |
Class B-3 Notes | 2019-D | ||
Debt Instrument [Line Items] | ||
Aggregate principal | 12.8 | |
Class B-3 Notes | 2019-F | ||
Debt Instrument [Line Items] | ||
Aggregate principal | 15.1 | |
Class B-3 Notes | 2020-B | ||
Debt Instrument [Line Items] | ||
Aggregate principal | 23.6 | |
Class B-3 Notes | 2021-A | ||
Debt Instrument [Line Items] | ||
Aggregate principal | 21.5 | |
Class A Notes | 2021-B | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 215.9 | |
Interest rate | 2.24% | |
Class B Notes | 2021-B | ||
Debt Instrument [Line Items] | ||
Aggregate principal | $ 20.2 | |
Interest rate | 4.00% | |
Deferred issuance costs | 2019-D | ||
Debt Instrument [Line Items] | ||
Deferred issuance costs | $ 2.7 | |
Deferred issuance costs | 2019-F | ||
Debt Instrument [Line Items] | ||
Deferred issuance costs | 1.8 | |
Deferred issuance costs | 2020-B | ||
Debt Instrument [Line Items] | ||
Deferred issuance costs | 1.8 | |
Deferred issuance costs | 2021-A | ||
Debt Instrument [Line Items] | ||
Deferred issuance costs | 2.5 | |
Deferred issuance costs | 2021-B | ||
Debt Instrument [Line Items] | ||
Deferred issuance costs | $ 4.3 |
Debt - Schedule of Status of No
Debt - Schedule of Status of Notes and Securitizations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Debt Instrument [Line Items] | |||
Mortgage loans held-for-investment, net | [1],[2] | $ 1,080,434 | $ 1,119,372 |
Mortgage loans | |||
Debt Instrument [Line Items] | |||
Mortgage loans held-for-investment, net | 756,787 | 842,177 | |
Bond principal balance | $ 582,907 | $ 590,761 | |
Percentage of collateral coverage | 130.00% | 143.00% | |
Original balances at securitization cutoff date Mortgage UPB | $ 1,606,934 | ||
Original balances at securitization cutoff date Bond principal balance | 1,162,564 | ||
Debt issuance costs, net | 7,300 | $ 5,400 | |
Mortgage loans | 2017-B | |||
Debt Instrument [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | 110,062 | |
Bond principal balance | $ 0 | $ 68,729 | |
Percentage of collateral coverage | 0.00% | 160.00% | |
Original balances at securitization cutoff date Mortgage UPB | $ 165,850 | ||
Original balances at securitization cutoff date Bond principal balance | 115,846 | ||
Mortgage loans | 2017-D | |||
Debt Instrument [Line Items] | |||
Mortgage loans held-for-investment, net | 0 | $ 133,897 | |
Bond principal balance | $ 0 | $ 51,256 | |
Percentage of collateral coverage | 0.00% | 261.00% | |
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 held-for-investment, net | 0 | $ 173,221 | |
Bond principal balance | $ 0 | $ 131,983 | |
Percentage of collateral coverage | 0.00% | 131.00% | |
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 held-for-investment, net | 118,075 | $ 148,641 | |
Bond principal balance | $ 92,778 | $ 125,008 | |
Percentage of collateral coverage | 127.00% | 119.00% | |
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 held-for-investment, net | 115,571 | $ 139,996 | |
Bond principal balance | $ 81,026 | $ 108,184 | |
Percentage of collateral coverage | 143.00% | 129.00% | |
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 held-for-investment, net | 119,184 | $ 136,360 | |
Bond principal balance | $ 86,011 | $ 105,601 | |
Percentage of collateral coverage | 139.00% | 129.00% | |
Original balances at securitization cutoff date Mortgage UPB | $ 156,468 | ||
Original balances at securitization cutoff date Bond principal balance | 114,534 | ||
Mortgage loans | 2021-A | |||
Debt Instrument [Line Items] | |||
Mortgage loans held-for-investment, net | 161,766 | $ 0 | |
Bond principal balance | $ 141,435 | $ 0 | |
Percentage of collateral coverage | 114.00% | 0.00% | |
Original balances at securitization cutoff date Mortgage UPB | $ 206,506 | ||
Original balances at securitization cutoff date Bond principal balance | 175,116 | ||
Mortgage loans | 2021-B | |||
Debt Instrument [Line Items] | |||
Mortgage loans held-for-investment, net | 242,191 | $ 0 | |
Bond principal balance | $ 181,657 | $ 0 | |
Percentage of collateral coverage | 133.00% | 0.00% | |
Original balances at securitization cutoff date Mortgage UPB | $ 287,882 | ||
Original balances at securitization cutoff date Bond principal balance | $ 215,912 | ||
Class A notes | Mortgage loans | 2017-D | |||
Debt Instrument [Line Items] | |||
Aggregate principal | $ 102,600 | ||
Secured borrowings | 51,300 | ||
Class A Notes | Mortgage loans | 2018-C | |||
Debt Instrument [Line Items] | |||
Aggregate principal | 132,700 | ||
Secured borrowings | 126,100 | ||
Class B Notes | Mortgage loans | 2018-C | |||
Debt Instrument [Line Items] | |||
Aggregate principal | 15,900 | ||
Secured borrowings | $ 5,900 | ||
[1] | As of December 31, 2021, balances for Mortgage loans held-for-investment, net includes $1.4 million from the 50.0% owned joint ventures. As of December 31, 2020, balances for Mortgage loans held-for-investment, net include $307.1 million and Secured borrowings, net of deferred costs includes $250.6 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 held-for-investment, net include $756.8 million and $842.2 million of loans at December 31, 2021 and December 31, 2020, 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 held-for-investment, net include $7.1 million and $13.7 million of allowance for loan losses at December 31, 2021 and December 31, 2020, respectively. (2) As of December 31, 2021, balances for Mortgage loans held-for-investment, net includes $1.4 million from the 50.0% owned joint ventures. As of December 31, 2020, balances for Mortgage loans held-for-investment, net include $307.1 million and Secured borrowings, net of deferred costs includes |
Related Party Transactions - Sc
Related Party Transactions - Schedule Statement of Income of Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Equity securities gain (loss) | $ 201 | $ 145 | $ 8 |
Related party expense – loan servicing fees | 7,433 | 7,678 | 9,133 |
Related party expense – management fee | 9,116 | 8,456 | 7,356 |
Gain (loss) on sale of mortgage loans | 122 | (705) | 7,123 |
Various non-consolidated joint ventures | Interest Income | Earnings From Securities and Beneficial Interests in Trusts | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | 31,058 | 24,153 | 13,081 |
Various non-consolidated joint ventures | Other Income | Gain on Sale of Securities | |||
Related Party Transaction [Line Items] | |||
Equity securities gain (loss) | 201 | 145 | 8 |
Thetis | Management fee | Management fee | |||
Related Party Transaction [Line Items] | |||
Related party expense – management fee | 9,116 | 8,456 | 7,356 |
Thetis | Income/(loss) from investment in affiliates | Income From Equity Investment | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | 653 | 928 | |
Thetis | Income/(loss) from investment in affiliates | Loss From Equity Investment | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | (137) | ||
Servicer | Interest Income | Affiliate Loan Interest Income | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | 37 | ||
Servicer | Loan servicing fees | Loan servicing fees | |||
Related Party Transaction [Line Items] | |||
Related party expense – loan servicing fees | 7,433 | 7,678 | 9,133 |
Gaea | Interest Income | Affiliate Loan Interest Income | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | 248 | ||
Gaea | Income/(loss) from investment in affiliates | Income From Equity Investment | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | 51 | 165 | |
Gaea | Income/(loss) from investment in affiliates | Loss From Equity Investment | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | (5) | ||
Gaea | (Loss)/income on sale of mortgage loans | (Loss)/income on sale of mortgage loans | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | (705) | ||
2021-C | Other Income | Gain on Sale of Mortgage Loans | |||
Related Party Transaction [Line Items] | |||
Gain (loss) on sale of mortgage loans | 122 | ||
As Ajax E LLC | Income/(loss) from investment in affiliates | Income From Equity Investment | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | 33 | 34 | |
Loan pool LLCs | Income/(loss) from investment in affiliates | Loss From Equity Investment | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | (51) | (54) | (4) |
Great Ajax F S | Income/(loss) from investment in affiliates | Income From Equity Investment | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | 179 | ||
Great Ajax F S | Income/(loss) from investment in affiliates | Loss From Equity Investment | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | $ (109) | $ (312) | |
Great Ajax FS LLC | Income/(loss) from investment in affiliates | Income From Equity Investment | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | 49 | ||
2019-C | Other Income | (Loss)/income on sale of mortgage loans | |||
Related Party Transaction [Line Items] | |||
Equity securities gain (loss) | $ 7,014 |
Related Party Transactions - _2
Related Party Transactions - Schedule of Balance Sheet of Related Party Transaction (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Investments in beneficial interests | [1] | $ 139,588 | $ 91,418 |
2019-C | Mortgage loans held-for-investment, net | Purchase of mortgage loans | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 152,883 | ||
Servicer | Mortgage loans held-for-investment, net | Affiliate Loan Purchase | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 1,838 | ||
Servicer | Receivables from Servicer | Receivables from Servicer | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 20,899 | 15,755 | |
Servicer | Prepaid expenses and other assets | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 3,500 | ||
Servicer | Prepaid expenses and other assets | Advances to Servicer | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 3,509 | ||
Servicer | Prepaid expenses and other assets | Expense reimbursement receivable | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 12 | ||
Servicer | Accrued expenses and other liabilities | Expense reimbursements | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 78 | 44 | |
Thetis | Management fee payable | Management fee payable | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 2,279 | 2,247 | |
Thetis | Prepaid expenses and other assets | Expense reimbursement receivable | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 18 | ||
Gaea | Mortgage loans held-for-investment, net | Affiliate Loan Receivable | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 11,000 | ||
Gaea | Prepaid expenses and other assets | Affiliate loan receivable interest | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | 21 | ||
Various non-consolidated joint ventures | Investment in beneficial interests | |||
Related Party Transaction [Line Items] | |||
Investments in beneficial interests | 139,588 | 91,418 | |
Various non-consolidated joint ventures | Prepaid expenses and other assets | Expense reimbursement receivable | |||
Related Party Transaction [Line Items] | |||
Amount of transaction | $ 1,211 | $ 876 | |
[1] | Investments in beneficial interests includes allowance for credit losses of $0.6 million at $4.5 million at December 31, 2021 and December 31, 2020, respectively. |
Related party Transactions - Na
Related party Transactions - Narrative (Details) | Nov. 22, 2019USD ($)shares | Jun. 30, 2020USD ($) | Dec. 31, 2021USD ($)loancalendarQuarter | Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)counterparty | Dec. 09, 2021USD ($) | Jun. 21, 2021USD ($) | Mar. 14, 2016 | |
Related Party Transaction [Line Items] | |||||||||
Number of sold loans | loan | 760 | 26 | |||||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 133,800,000 | $ 26,200,000 | |||||||
Collateral values | 44,200,000 | ||||||||
Sale of mortgage loans | 129,200,000 | 26,100,000 | |||||||
Investment in securities | 342,900,000 | 144,700,000 | |||||||
Investment in debt securities at fair value | [1] | 355,178,000 | 273,834,000 | ||||||
Investments in beneficial interests | [2] | 139,588,000 | 91,418,000 | ||||||
Securities past due | 0 | 0 | |||||||
Proceeds from issuance of preferred stock and warrants, net of offering costs | $ 125,000,000 | 0 | 124,976,000 | $ 0 | |||||
Management fee payable | $ 2,279,000 | $ 2,247,000 | |||||||
Percentage of incentive fees payable in cash | 100.00% | ||||||||
Incentive fee expense | $ 0 | $ 700,000 | |||||||
Period of termination of license agreement | 30 days | ||||||||
Loan pool LLCs | |||||||||
Related Party Transaction [Line Items] | |||||||||
Ownership percentage | 40.40% | ||||||||
Number of entities | counterparty | 3 | ||||||||
Cash payment in business acquisition | $ 1,000,000 | ||||||||
Ajax E Master Trust | As Ajax E LLC | |||||||||
Related Party Transaction [Line Items] | |||||||||
Ownership interest in real estate trust, percentage | 5.00% | ||||||||
As Ajax E LLC | |||||||||
Related Party Transaction [Line Items] | |||||||||
Ownership percentage | 16.50% | 16.50% | 24.20% | ||||||
Gaea | |||||||||
Related Party Transaction [Line Items] | |||||||||
Proceeds from issuance of preferred stock and warrants, net of offering costs | $ 66,300,000 | ||||||||
Private placement share issuance (in shares) | shares | 4,419,641 | ||||||||
Ownership percentage | 23.20% | 22.80% | |||||||
Beneficial interests in securitization trusts | |||||||||
Related Party Transaction [Line Items] | |||||||||
Investments in beneficial interests | $ 53,100,000 | $ 19,300,000 | |||||||
Senior Notes | |||||||||
Related Party Transaction [Line Items] | |||||||||
Investment in debt securities at fair value | 254,200,000 | 115,600,000 | |||||||
Subordinated Debt | |||||||||
Related Party Transaction [Line Items] | |||||||||
Investment in debt securities at fair value | $ 35,600,000 | 9,800,000 | |||||||
Gaea | |||||||||
Related Party Transaction [Line Items] | |||||||||
Mortgage loan amount | $ 11,000,000 | $ 11,000,000 | |||||||
Fixed interest rate | 4.25% | ||||||||
SBC loan count | loan | 20 | ||||||||
Great Ajax F S | |||||||||
Related Party Transaction [Line Items] | |||||||||
Number of purchased loans | loan | 15 | ||||||||
Purchase Price | $ 1,800,000 | ||||||||
Aggregate unpaid principal balance of mortgage loans on real estate | 2,100,000 | ||||||||
Collateral values | 3,700,000 | ||||||||
Servicer | |||||||||
Related Party Transaction [Line Items] | |||||||||
Mortgage loan amount | $ 3,500,000 | ||||||||
Fixed interest rate | 7.20% | 7.20% | |||||||
Maximum borrowing capacity | $ 12,000,000 | ||||||||
Servicer | Prepaid Expenses and Other Current Assets [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Amount of transaction | 3,500,000 | ||||||||
Servicer | Prepaid Expenses and Other Current Assets [Member] | Receivable from Servicer for REO acquisitions | |||||||||
Related Party Transaction [Line Items] | |||||||||
Amount of transaction | $ 0 | $ 0 | |||||||
Servicer | Servicing Agreement [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Percentage of fair market value of REO | 1.00% | ||||||||
Percentage of purchase price of REO | 1.00% | ||||||||
Servicer | Servicing Agreement [Member] | Minimum [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Annual servicing fee percentage | 0.65% | ||||||||
Servicer | Servicing Agreement [Member] | Maximum [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Annual servicing fee percentage | 1.25% | ||||||||
Thetis | Management Agreement [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Percentage of base management fee | 1.50% | ||||||||
Percentage of management fees payable in cash, minimum | 50.00% | ||||||||
Percentage of management fees payable in cash, maximum | 100.00% | ||||||||
Thetis | Amended And Restated Management Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Management fee payable | $ 1,000,000 | ||||||||
Percentage of base management fees payable in cash | 75.00% | ||||||||
Percentage of base management fee payable in shares | 25.00% | ||||||||
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 in excess of book value | 8.00% | ||||||||
Number of calender quarters | calendarQuarter | 8 | ||||||||
Percentage of remaining incentive fee payable in shares | 20.00% | ||||||||
Fraction of independent directors | 66.67% | ||||||||
2019-C | |||||||||
Related Party Transaction [Line Items] | |||||||||
Number of sold loans | loan | 772 | ||||||||
Carrying value of loans | $ 152,900,000 | ||||||||
Third Party | Gaea | |||||||||
Related Party Transaction [Line Items] | |||||||||
Ownership percentage by noncontrolling owners | 76.80% | 77.20% | |||||||
[1] | As of December 31, 2021 and December 31, 2020 Investments in securities at fair value include amortized cost basis of $354.2 million and $273.4 million, respectively, and net unrealized gains of $1.0 million and $0.4 million, respectively. | ||||||||
[2] | Investments in beneficial interests includes allowance for credit losses of $0.6 million at $4.5 million at December 31, 2021 and December 31, 2020, respectively. |
Stock-based Payments and Dire_3
Stock-based Payments and Director Fees - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Management fees | $ 9,100,000 | $ 8,400,000 | $ 6,700,000 |
Number of shares (in shares) | 15,020 | 17,064 | 195,629 |
Incentive fee expense | $ 0 | $ 700,000 | |
Restricted stock | Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | 3 years | |
2014 Director Equity Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual retainer, percentage in shares | 40.00% | ||
2014 Director Equity Plan | Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual retainer payable | $ 100,000 | ||
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 | ||
Management fee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 0 | $ 2,500,000 | |
Number of shares (in shares) | 0 | 0 | 184,681 |
Incentive fees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 100,000 | ||
Common Stock | Management fee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares (in shares) | 175,211 | ||
Common Stock | Incentive fees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares (in shares) | 9,470 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares (in shares) | 15,020 | 17,064 | 195,629 |
Amount of expense recognized | $ 200 | $ 152 | $ 2,758 |
Independent director fees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares (in shares) | 15,020 | 17,064 | 10,948 |
Amount of expense recognized | $ 200 | $ 152 | $ 158 |
Management fees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares (in shares) | 0 | 0 | 184,681 |
Amount of expense recognized | $ 0 | $ 0 | $ 2,600 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee and Service Provider Grants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares, nonvested (in shares) | 228,365 | 163,083 | 114,334 | 110,389 |
Per share grant fair value (in dollars per share) | $ 12.05 | $ 11.07 | $ 13.83 | $ 13.59 |
Number of shares vested (in shares) | (65,750) | (50,334) | (70,555) | |
Per share grant fair value, shares vested (in dollars per share) | $ 11.72 | $ 13.86 | $ 13.60 | |
Number of shares forfeited (in shares) | (21,668) | (9,667) | (4,500) | |
Per share grant fair value, shares forfeited (in dollars per share) | $ 11.41 | $ 12.06 | $ 13.58 | |
Shares granted during the year (in shares) | 152,700 | 108,750 | 79,000 | |
Per share grant fair value, shares granted during the year ( in dollars per share) | $ 12.79 | $ 9.55 | $ 13.94 | |
Director Grants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares, nonvested (in shares) | 8,000 | 0 | 0 | 6,000 |
Per share grant fair value (in dollars per share) | $ 12.53 | $ 0 | $ 0 | $ 13.48 |
Number of shares vested (in shares) | (10,000) | 0 | (6,000) | |
Per share grant fair value, shares vested (in dollars per share) | $ 12.53 | $ 0 | $ 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) | 18,000 | 0 | 0 | |
Per share grant fair value, shares granted during the year ( in dollars per share) | $ 12.53 | $ 0 | $ 0 |
Stock-based Payments and Dire_6
Stock-based Payments and Director Fees - Schedule of restricted stock plan grants, expense (Details) - Restricted stock - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant expense recognized for the year | $ 1,092 | $ 728 | $ 852 |
Employee and Service Provider Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant expense recognized for the year | 900 | 728 | 839 |
Director Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant expense recognized for the year | $ 192 | $ 0 | $ 13 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)entity | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Tax Credit Carryforward [Line Items] | |||
Distribution percentage of REIT taxable income (at least) | 90.00% | ||
Number of taxable subsidiaries | entity | 2 | ||
Taxable income | $ 35,400,000 | $ 12,400,000 | $ 23,300,000 |
Provision for income taxes (benefit) | 234,000 | (125,000) | 124,000 |
Interest and penalties | 0 | 0 | $ 0 |
Assets | |||
Tax Credit Carryforward [Line Items] | |||
Deferred income tax assets | $ 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, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basic EPS | |||||||||||
Net Income (Loss) Attributable to Common Stockholders | $ 7,362 | $ 9,313 | $ 10,378 | $ 7,004 | $ 10,834 | $ 5,280 | $ 6,242 | $ 400 | $ 34,057 | $ 22,756 | $ 34,705 |
Allocation of earnings to participating restricted shares | (304) | (140) | (336) | ||||||||
Consolidated net income attributable to unrestricted common stockholders | 33,753 | 22,616 | 34,369 | ||||||||
Effect of dilutive securities | |||||||||||
Operating Partnership units | 346 | ||||||||||
Interest expense (add back) and assumed conversion of shares from convertible senior notes | 9,065 | 10,200 | |||||||||
Diluted EPS | |||||||||||
Consolidated income attributable to common stockholders and dilutive securities | $ 42,818 | $ 22,616 | $ 44,915 | ||||||||
Basic EPS | |||||||||||
Allocation of earnings to participating restricted shares (in shares) | 0 | 0 | 0 | ||||||||
Weighted Average Number of Shares Outstanding, Basic | 22,852,948 | 22,641,636 | 19,710,482 | ||||||||
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) | 7,409,519 | 8,221,642 | |||||||||
Diluted EPS | |||||||||||
Consolidated net income attributable to common stockholders and dilutive securities (in shares) | 30,262,467 | 22,641,636 | 28,173,217 | ||||||||
Per Share Amount | |||||||||||
Consolidated net income attributable to unrestricted common stockholders (in dollars per share) | $ 0.32 | $ 0.40 | $ 0.45 | $ 0.30 | $ 0.47 | $ 0.23 | $ 0.27 | $ 0.02 | $ 1.48 | $ 1 | $ 1.74 |
Consolidated net income attributable to common stockholders and dilutive securities (in dollars per share) | $ 0.32 | $ 0.38 | $ 0.42 | $ 0.30 | $ 0.41 | $ 0.23 | $ 0.27 | $ 0.02 | $ 1.41 | $ 1 | $ 1.59 |
Warrants (in shares) | 6,500,000 |
Equity - Narrative (Details)
Equity - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021loan | Jun. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2021USD ($)entity$ / sharesshares | Dec. 31, 2020USD ($)entity$ / sharesshares | Dec. 31, 2019USD ($)shares | Feb. 28, 2020USD ($) | Dec. 31, 2018shares | |
Class of Stock [Line Items] | |||||||
Common stock shares outstanding (in shares) | 23,146,775 | 22,978,339 | |||||
Common stock par value per share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||
Common stock shares authorized (in shares) | 125,000,000 | 125,000,000 | |||||
Proceeds from issuance of private placement | $ | $ 130,000 | ||||||
Preferred stock par value per share (in dollars per share) | $ / shares | $ 25 | $ 0.01 | $ 0.01 | ||||
Warrants (in shares) | 6,500,000 | ||||||
Warrants exercise price (in dollars per share) | $ / shares | $ 10 | ||||||
Preferred stock shares authorized (in shares) | 25,000,000 | 25,000,000 | |||||
Common stock authorized | $ | $ 25,000 | ||||||
Treasury stock (in shares) | 147,370 | 107,243 | |||||
Sale of common stock pursuant to dividend reinvestment plan | $ | $ 241 | $ 131 | $ 280 | ||||
Sale of common stock, net of offering costs | $ | $ 251 | $ 0 | $ 34,301 | ||||
Number of non controlling interest subsidiaries | entity | 3 | 4 | |||||
Number of remaining loans | loan | 22 | ||||||
Third party purchaser | |||||||
Class of Stock [Line Items] | |||||||
Treasury stock (in shares) | 49,684 | 48,464 | |||||
Stock Buyback Plan | |||||||
Class of Stock [Line Items] | |||||||
Treasury stock (in shares) | 1,220 | ||||||
At-the-Market Program | |||||||
Class of Stock [Line Items] | |||||||
Common stock authorized | $ | $ 100,000 | ||||||
Common stock shares issued (in shares) | 24,951 | 0 | |||||
Sale of common stock, net of offering costs | $ | $ 300 | ||||||
Series A Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock issued (in shares) | 2,307,400 | 2,307,400 | 2,307,400 | ||||
Preferred stock dividend rate percentage | 7.25% | ||||||
Series B Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock issued (in shares) | 2,892,600 | 2,892,600 | 2,892,600 | ||||
Preferred stock dividend rate percentage | 5.00% | ||||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock shares outstanding (in shares) | 22,142,143 | 18,909,874 | |||||
Issuance of shares under dividend reinvestment (in shares) | 18,750 | 14,502 | 20,107 | ||||
Sale of common stock pursuant to dividend reinvestment plan | $ | $ 200 | $ 100 | |||||
AS Ajax E II LLC | Third Party | |||||||
Class of Stock [Line Items] | |||||||
Ownership percentage by noncontrolling owners | 46.90% | ||||||
AS Ajax E II LLC | Great Ajax Corp | |||||||
Class of Stock [Line Items] | |||||||
Percentage of ownership interests in joint venture | 53.10% | 53.10% | |||||
2017-D | Great Ajax Corp | |||||||
Class of Stock [Line Items] | |||||||
Ownership percentage by noncontrolling owners | 50.00% | ||||||
Ownership percentage by parent | 50.00% | 50.00% | |||||
Great Ajax II REIT | Great Ajax Corp | |||||||
Class of Stock [Line Items] | |||||||
Ownership percentage by noncontrolling owners | 0.10% | 0.10% | |||||
Ownership percentage by parent | 99.90% | 99.90% | |||||
2018-C | Third Party | |||||||
Class of Stock [Line Items] | |||||||
Ownership percentage by noncontrolling owners | 0.00% | ||||||
2018-C | Great Ajax Corp | |||||||
Class of Stock [Line Items] | |||||||
Ownership percentage by parent | 100.00% | 63.00% | |||||
2018-C | Third Party Institutional Investor | |||||||
Class of Stock [Line Items] | |||||||
Ownership percentage by noncontrolling owners | 37.00% | ||||||
Thetis | |||||||
Class of Stock [Line Items] | |||||||
Treasury stock (in shares) | 97,686 | 58,779 |
Equity - Schedule of Accumulate
Equity - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income | $ 1,020 | $ 375 | |
AOCI Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income | 1,020 | 375 | $ 1,277 |
Investment in debt securities | Accumulated Net Investment Gain (Loss) Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized gains | 1,822 | 1,152 | 1,643 |
Unrealized losses | $ (802) | $ (777) | $ (366) |
Equity - Non-controlling intere
Equity - Non-controlling interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Noncontrolling Interest [Line Items] | ||||
Issuance of non-controlling interest in subsidiaries | $ 22 | |||
Decrease from redemption of OP units by third party investor | $ 0 | $ 0 | (10,816) | |
Change in non-controlling interest | (25,492) | 0 | (10,838) | |
2018-C | ||||
Noncontrolling Interest [Line Items] | ||||
Issuance of non-controlling interest in subsidiaries | (8,306) | 0 | 0 | |
2017-D | ||||
Noncontrolling Interest [Line Items] | ||||
Issuance of non-controlling interest in subsidiaries | (17,186) | 0 | 0 | |
Gaea | ||||
Noncontrolling Interest [Line Items] | ||||
Decrease due to deconsolidation of Gaea | $ 0 | $ 0 | $ (22) | |
Common Stock | ||||
Noncontrolling Interest [Line Items] | ||||
Conversion of Operating Partnership Units (in shares) | 624,106 | 624,106 |
Quarterly Financial Informati_3
Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total revenue, net | $ 19,397 | $ 18,991 | $ 19,794 | $ 19,766 | $ 22,505 | $ 16,742 | $ 16,327 | $ 8,037 | $ 77,948 | $ 63,611 | $ 64,919 |
Income before provision for income taxes | 9,310 | 10,786 | 11,237 | 10,676 | 14,492 | 8,876 | 8,938 | 1,177 | 42,009 | 33,483 | 37,213 |
Consolidated net income attributable to common stockholders | $ 7,362 | $ 9,313 | $ 10,378 | $ 7,004 | $ 10,834 | $ 5,280 | $ 6,242 | $ 400 | $ 34,057 | $ 22,756 | $ 34,705 |
Basic earnings per common share (in dollars per share) | $ 0.32 | $ 0.40 | $ 0.45 | $ 0.30 | $ 0.47 | $ 0.23 | $ 0.27 | $ 0.02 | $ 1.48 | $ 1 | $ 1.74 |
Diluted earnings per common share (in dollars per share) | $ 0.32 | $ 0.38 | $ 0.42 | $ 0.30 | $ 0.41 | $ 0.23 | $ 0.27 | $ 0.02 | $ 1.41 | $ 1 | $ 1.59 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Thousands | Feb. 22, 2022USD ($) | Jan. 31, 2022USD ($)$ / sharesshares | Mar. 04, 2022USD ($)loanPoolFacility | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020USD ($)$ / shares | Mar. 03, 2022$ / shares | Sep. 30, 2021$ / shares | Jun. 30, 2021$ / shares | Mar. 31, 2021$ / shares | Sep. 30, 2020$ / shares | Jun. 30, 2020$ / shares | Mar. 31, 2020$ / shares | Dec. 31, 2019$ / shares | Nov. 22, 2019 |
Subsequent Event [Line Items] | ||||||||||||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 133,800 | $ 26,200 | ||||||||||||
Collateral values | $ 44,200 | |||||||||||||
Warrants exercise price (in dollars per share) | $ / shares | $ 10 | |||||||||||||
Warrants term | 5 years | |||||||||||||
Dividends payable, amount per share (in dollars per share) | $ / shares | $ 0.10 | $ 0.17 | $ 0.24 | $ 0.21 | $ 0.19 | $ 0.17 | $ 0.17 | $ 0.32 | $ 0.32 | |||||
Independent Directors | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Annual retainer payable | $ 100 | |||||||||||||
Gaea | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Ownership percentage | 22.80% | 23.20% | ||||||||||||
Subsequent events | Independent Directors | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Annual retainer payable | $ 140 | |||||||||||||
Annual compensation received in cash | 50.00% | |||||||||||||
Annual compensation received in shares | 50.00% | |||||||||||||
Subsequent events | Committee Heads | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Increase in annual compensation received in cash | $ 5 | |||||||||||||
Subsequent events | Gaea | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Shares acquired (in shares) | shares | 371,103 | |||||||||||||
Ownership percentage | 22.20% | |||||||||||||
Subsequent events | Gaea | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Private capital raise amount | $ 30,000 | |||||||||||||
Private capital raise shares (in shares) | shares | 1,828,153 | |||||||||||||
Private capital raise price (in dollars per share) | $ / shares | $ 16.41 | |||||||||||||
Warrants exercise price (in dollars per share) | $ / shares | $ 16.41 | |||||||||||||
Warrants term | 24 months | |||||||||||||
Subsequent events | Board of Directors Chairman | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Dividends payable, amount per share (in dollars per share) | $ / shares | $ 0.26 | |||||||||||||
Two Sellers | Subsequent events | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Number of transactions | loanPool | 2 | |||||||||||||
Number of sellers | loanPool | 2 | |||||||||||||
Reperforming Mortgage Loans On Real Estate | Subsequent events | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Number of mortgage loans on real estate | loanPool | 23 | |||||||||||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 5,600 | |||||||||||||
Number of transactions | Facility | 5 | |||||||||||||
Percentage of UPB | 98.30% | |||||||||||||
Percentage of estimated market value underlying collateral | 39.70% | |||||||||||||
Collateral values | $ 13,800 | |||||||||||||
Reperforming Mortgage Loans On Real Estate | Two Sellers | Subsequent events | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Number of mortgage loans on real estate | loanPool | 2 | |||||||||||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 400 | |||||||||||||
Percentage of UPB | 89.00% | |||||||||||||
Percentage of estimated market value underlying collateral | 57.90% | |||||||||||||
Collateral values | $ 500 | |||||||||||||
Residential NPLs | Subsequent events | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Number of mortgage loans on real estate | loanPool | 39 | |||||||||||||
Aggregate unpaid principal balance of mortgage loans on real estate | $ 7,400 | |||||||||||||
Number of transactions | Facility | 3 | |||||||||||||
Percentage of UPB | 99.20% | |||||||||||||
Percentage of estimated market value underlying collateral | 49.90% | |||||||||||||
Collateral values | $ 14,700 |
Schedule IV Mortgage loans on_2
Schedule IV Mortgage loans on real estate - Schedule of Mortgage Loans (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($) | ||
Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loans held-for-investment, net | [1],[2] | $ 1,080,434,000 | $ 1,119,372,000 |
Aggregate cost for federal income tax purposes | 1,000,000,000 | ||
Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Principal amount subject to delinquent principal and interest | $ 5,000,000 | ||
Mortgage Loans | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan count | loan | 5,941 | ||
Mortgage loans held-for-investment, net | $ 1,110,006,000 | ||
Principal amount subject to delinquent principal and interest | 531,258,000 | ||
Amount of balloon payments at maturity | $ 39,213,000 | ||
$0 – 49,999 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan count | loan | 630 | ||
Mortgage loans held-for-investment, net | $ 18,438,000 | ||
Principal amount subject to delinquent principal and interest | 7,590,000 | ||
Amount of balloon payments at maturity | $ 615,000 | ||
$0 – 49,999 | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest rate | 0.00% | ||
$0 – 49,999 | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest rate | 18.00% | ||
$50,000 – 99,999 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan count | loan | 1,213 | ||
Mortgage loans held-for-investment, net | $ 90,450,000 | ||
Principal amount subject to delinquent principal and interest | 40,821,000 | ||
Amount of balloon payments at maturity | $ 1,958,000 | ||
$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 | 12.99% | ||
$100,000 – 149,999 | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan count | loan | 1,179 | ||
Mortgage loans held-for-investment, net | $ 141,133,000 | ||
Principal amount subject to delinquent principal and interest | 67,745,000 | ||
Amount of balloon payments at maturity | $ 2,135,000 | ||
$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 | 802 | ||
Mortgage loans held-for-investment, net | $ 133,444,000 | ||
Principal amount subject to delinquent principal and interest | 63,080,000 | ||
Amount of balloon payments at maturity | $ 1,845,000 | ||
$150,000 – 199,999 | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest rate | 0.00% | ||
$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 | 569 | ||
Mortgage loans held-for-investment, net | $ 122,094,000 | ||
Principal amount subject to delinquent principal and interest | 64,396,000 | ||
Amount of balloon payments at maturity | $ 2,843,000 | ||
$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 | 9.65% | ||
$250,000+ | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan count | loan | 1,548 | ||
Mortgage loans held-for-investment, net | $ 604,447,000 | ||
Principal amount subject to delinquent principal and interest | 287,626,000 | ||
Amount of balloon payments at maturity | $ 29,817,000 | ||
$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 | 10.13% | ||
[1] | As of December 31, 2021, balances for Mortgage loans held-for-investment, net includes $1.4 million from the 50.0% owned joint ventures. As of December 31, 2020, balances for Mortgage loans held-for-investment, net include $307.1 million and Secured borrowings, net of deferred costs includes $250.6 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 held-for-investment, net include $756.8 million and $842.2 million of loans at December 31, 2021 and December 31, 2020, 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 held-for-investment, net include $7.1 million and $13.7 million of allowance for loan losses at December 31, 2021 and December 31, 2020, respectively. (2) As of December 31, 2021, balances for Mortgage loans held-for-investment, net includes $1.4 million from the 50.0% owned joint ventures. As of December 31, 2020, balances for Mortgage loans held-for-investment, net include $307.1 million and Secured borrowings, net of deferred costs includes |
Schedule IV Mortgage loans on_3
Schedule IV Mortgage loans on real estate - Schedule of Mortgage Loan Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Movement in Mortgage Loans on Real Estate [Roll Forward] | ||||
Beginning balance | [1],[2] | $ 1,119,372 | ||
Sale of mortgage loans | (129,200) | $ (26,100) | ||
Decrease in net present value of expected credit losses on mortgage loans | (13,668) | (9,345) | $ 803 | |
Ending balance | [1],[2] | 1,080,434 | 1,119,372 | |
Mortgage loans held-for-investment, net | ||||
Movement in Mortgage Loans on Real Estate [Roll Forward] | ||||
Beginning balance | 1,119,372 | |||
Mortgage loans acquired | 286,219 | |||
Draws on SBC loans | 20,689 | |||
Accretion recognized | 65,953 | |||
Payments received on loans, net | (264,713) | |||
Net reclassifications to mortgage loans held-for-sale, net | (159,733) | |||
Reclassifications to REO | (3,511) | |||
Sale of mortgage loans | 0 | |||
Decrease in net present value of expected credit losses on mortgage loans | 13,668 | |||
Other | 2,490 | |||
Ending balance | 1,080,434 | 1,119,372 | ||
Mortgage loans held-for-sale, net | ||||
Movement in Mortgage Loans on Real Estate [Roll Forward] | ||||
Beginning balance | 0 | |||
Mortgage loans acquired | 0 | |||
Draws on SBC loans | 0 | |||
Accretion recognized | 460 | |||
Payments received on loans, net | (1,851) | |||
Net reclassifications to mortgage loans held-for-sale, net | 159,733 | |||
Reclassifications to REO | 0 | |||
Sale of mortgage loans | (128,770) | |||
Decrease in net present value of expected credit losses on mortgage loans | 0 | |||
Other | 0 | |||
Ending balance | $ 29,572 | $ 0 | ||
[1] | As of December 31, 2021, balances for Mortgage loans held-for-investment, net includes $1.4 million from the 50.0% owned joint ventures. As of December 31, 2020, balances for Mortgage loans held-for-investment, net include $307.1 million and Secured borrowings, net of deferred costs includes $250.6 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 held-for-investment, net include $756.8 million and $842.2 million of loans at December 31, 2021 and December 31, 2020, 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 held-for-investment, net include $7.1 million and $13.7 million of allowance for loan losses at December 31, 2021 and December 31, 2020, respectively. (2) As of December 31, 2021, balances for Mortgage loans held-for-investment, net includes $1.4 million from the 50.0% owned joint ventures. As of December 31, 2020, balances for Mortgage loans held-for-investment, net include $307.1 million and Secured borrowings, net of deferred costs includes |