Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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 | 46-5211870 | |
Entity Address, Address Line One | 799 Broadway | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10003 | |
City Area Code | 212 | |
Local Phone Number | 850-7770 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | AJX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 45,607,549 | |
Entity Central Index Key | 0001614806 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
ASSETS | |||
Cash and cash equivalents | $ 72,026 | $ 52,834 | |
Mortgage loans held-for-sale, net | [1] | 108,868 | 55,718 |
Mortgage loans held-for-investment, net | [1],[2] | 413,916 | 864,551 |
Real estate owned properties, net | [3] | 4,309 | 3,785 |
Investments in securities available-for-sale | [4] | 140,614 | 131,558 |
Investments in securities held-to-maturity | [5] | 48,050 | 59,691 |
Investments in beneficial interests | [6] | 88,269 | 104,162 |
Receivable from servicer | 3,594 | 7,307 | |
Investments in affiliates | 24,771 | 28,000 | |
Prepaid expenses and other assets | 7,099 | 28,685 | |
Total assets | 911,516 | 1,336,291 | |
Liabilities: | |||
Secured borrowings, net | [1],[7] | 276,458 | 411,212 |
Borrowings under repurchase transactions | 246,497 | 375,745 | |
Convertible senior notes | [7] | 0 | 103,516 |
Notes payable, net | [7] | 107,216 | 106,844 |
Management fee payable | 1,572 | 1,998 | |
Warrant liability | 0 | 16,644 | |
Accrued expenses and other liabilities | 25,292 | 9,437 | |
Total liabilities | 657,035 | 1,025,396 | |
Commitments and contingencies – see Note 8 | |||
Equity: | |||
Common stock $0.01 par value; 125,000,000 shares authorized, 45,605,549 shares issued and outstanding at June 30, 2024 and 27,460,161 shares issued and outstanding at December 31, 2023 | 466 | 285 | |
Additional paid-in capital | 423,899 | 352,060 | |
Treasury stock | (9,557) | (9,557) | |
Retained deficit | (147,361) | (54,382) | |
Accumulated other comprehensive loss | (13,895) | (14,027) | |
Equity attributable to stockholders | 253,552 | 308,933 | |
Non-controlling interests | [8] | 929 | 1,962 |
Total equity | 254,481 | 310,895 | |
Total liabilities and equity | 911,516 | 1,336,291 | |
7.25% Series A preferred stock | |||
Equity: | |||
Preferred stock $0.01 par value, 25,000,000 shares authorized | [9] | 0 | 9,411 |
5.00% Series B preferred stock | |||
Equity: | |||
Preferred stock $0.01 par value, 25,000,000 shares authorized | [9] | $ 0 | $ 25,143 |
[1] Mortgage loans held-for-sale, net and mortgage loans held-for-investment, net include $411.4 million and $628.6 million of loans at June 30, 2024 and December 31, 2023, 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 zero and $3.4 million of allowance for expected credit losses at June 30, 2024 and December 31, 2023, respectively. As of June 30, 2024 and December 31, 2023, balances for Mortgage loans held-for-investment, net include zero and $0.6 million, respectively, from a 50.0% owned joint venture, which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP" or "GAAP"). As of June 30, 2024, there is a balance for Mortgage loans held-for-sale, net of $0.5 million. Real estate owned properties, net, are presented net of valuation allowances of $1.7 million and $1.2 million at June 30, 2024 and December 31, 2023, respectively. Investments in securities available-for-sale (“AFS”) are presented at fair value. As of June 30, 2024, Investments in securities AFS include an amortized cost basis of $150.1 million and a net unrealized loss of $9.5 million. As of December 31, 2023, Investments in securities AFS include an amortized cost basis of $139.6 million and net unrealized loss of $8.0 million. On January 1, 2023, the Company transferred certain of its investments in securities to held-to-maturity ("HTM") due to European risk retention regulations. As of June 30, 2024, Investments in securities HTM includes an allowance for expected credit losses of zero and remaining discount of $4.4 million related to the unamortized unrealized loss in Accumulated other comprehensive income ("AOCI"). As of December 31, 2023, Investments in securities HTM includes an allowance for expected credit losses of zero and remaining discount of $6.0 million related to the unamortized unrealized loss in AOCI. Investments in beneficial interests includes allowance for expected credit losses of $9.1 million and $6.9 million at June 30, 2024 and December 31, 2023, respectively. As of June 30, 2024, non-controlling interests includes $0.8 million from a 50.0% owned joint venture, zero from a 53.1% owned subsidiary and $0.1 million from a 99.9% owned subsidiary which the Company consolidates. As of December 31, 2023, non-controlling interests includes $0.8 million from a 50.0% owned joint venture, $1.0 million from a 53.1% owned subsidiary and $0.1 million from a 99.9% owned subsidiary which the Company consolidates. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | ||
Preferred stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 | 25,000,000 | |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 | 125,000,000 | |
Common stock, shares issued (in shares) | 45,605,549 | 45,605,549 | 27,460,161 | |
Common stock, shares outstanding (in shares) | 45,605,549 | 45,605,549 | 27,460,161 | |
Allowance for beneficial interests credit losses | $ 0 | $ 0 | $ 3,426,000 | |
Mortgage loans held-for-sale, net | [1] | 108,868,000 | 108,868,000 | 55,718,000 |
Property held-for-sale, valuation allowances | 1,700,000 | 1,700,000 | 1,200,000 | |
HTM, allowance for expected credit losses | 0 | 0 | 0 | |
Unrealized losses on debt securities available-for-sale transferred to held-to-maturity | 1,482,000 | 1,482,000 | 629,000 | |
Noncontrolling interest | [2] | 929,000 | 929,000 | 1,962,000 |
Debt securities available-for-sale, at fair value | ||||
Basis | 150,100,000 | 150,100,000 | 139,600,000 | |
Debt securities accumulated unrealized loss | 9,500,000 | 9,500,000 | $ 8,000,000 | |
2017-D | ||||
Mortgage loans held-for-sale, net | $ 500,000 | $ 500,000 | ||
Ownership percentage by parent (as percent) | 50% | 50% | 50% | |
Ownership percentage by third parties (as percent) | 50% | 50% | 50% | |
AS Ajax E II LLC | ||||
Ownership percentage by parent (as percent) | 0% | 0% | 53.10% | |
Great Ajax II REIT | ||||
Ownership percentage by parent (as percent) | 99.90% | 99.90% | 99.90% | |
Mortgage loans | ||||
Mortgage loans held-for-sale and held-for-investment | $ 411,427,000 | $ 411,427,000 | $ 628,615,000 | |
Secured Debt | ||||
Debt issuance costs, net | 1,700,000 | 1,700,000 | 3,100,000 | |
Convertible Debt | ||||
Debt issuance costs, net | 0 | 0 | 0 | |
Notes Payable | ||||
Debt issuance costs, net | 2,800,000 | 2,800,000 | 3,200,000 | |
Consolidated entities | ||||
Mortgage loans held-for-sale, net | 0 | 0 | 600,000 | |
Consolidated entities | 2017-D | ||||
Noncontrolling interest | 800,000 | 800,000 | 800,000 | |
Consolidated entities | AS Ajax E II LLC | ||||
Noncontrolling interest | 0 | 0 | 1,000,000 | |
Consolidated entities | Great Ajax II REIT | ||||
Noncontrolling interest | 100,000 | 100,000 | 100,000 | |
Beneficial interests in securitization trusts | ||||
Allowance for beneficial interests credit losses | 9,100,000 | 9,100,000 | 6,900,000 | |
Accumulated net investment gain (loss) attributable to parent | ||||
Unrealized losses on debt securities available-for-sale transferred to held-to-maturity | $ 4,424,000 | $ 4,424,000 | $ 5,989,000 | |
Common stock, par value $0.01 per share | ||||
Common stock, shares outstanding (in shares) | 45,605,549 | 45,605,549 | 27,460,161 | |
Exchange of shares (in shares) | 2,581,694 | |||
Preferred stock, shares exchanged, shares issued and to be issued (in shares) | 12,046,218 | |||
Preferred stock - series A shares | ||||
Preferred stock, fixed-to-floating rate cumulative redeemable | 7.25% | 7.25% | ||
Preferred stock, liquidation preference per share (in dollars per share) | $ 25 | $ 25 | $ 25 | |
Preferred stock, shares issued (in shares) | 0 | 0 | 424,949 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | 424,949 | |
Preferred stock - series A shares | Preferred Stock | ||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 424,949 | |
Exchange of shares (in shares) | 424,949 | |||
Preferred stock - series B shares | ||||
Preferred stock, fixed-to-floating rate cumulative redeemable | 5% | 5% | ||
Preferred stock, liquidation preference per share (in dollars per share) | $ 25 | $ 25 | $ 25 | |
Preferred stock, shares issued (in shares) | 0 | 0 | 1,135,590 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | 1,135,590 | |
Preferred stock - series B shares | Preferred Stock | ||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 1,135,590 | |
Exchange of shares (in shares) | 1,135,590 | |||
[1] Mortgage loans held-for-sale, net and mortgage loans held-for-investment, net include $411.4 million and $628.6 million of loans at June 30, 2024 and December 31, 2023, 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 zero and $3.4 million of allowance for expected credit losses at June 30, 2024 and December 31, 2023, respectively. As of June 30, 2024, non-controlling interests includes $0.8 million from a 50.0% owned joint venture, zero from a 53.1% owned subsidiary and $0.1 million from a 99.9% owned subsidiary which the Company consolidates. As of December 31, 2023, non-controlling interests includes $0.8 million from a 50.0% owned joint venture, $1.0 million from a 53.1% owned subsidiary and $0.1 million from a 99.9% owned subsidiary which the Company consolidates. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
INCOME | ||||
Interest income | $ 11,915 | $ 18,340 | $ 27,653 | $ 36,796 |
Interest expense | (11,567) | (15,039) | (25,673) | (29,964) |
Net interest income | 348 | 3,301 | 1,980 | 6,832 |
Net change in the allowance for credit losses | 0 | 2,866 | (4,230) | 3,487 |
Net interest income/(loss) after the net change in the allowance for credit losses | 348 | 6,167 | (2,250) | 10,319 |
Loss from investments in affiliates | (974) | (265) | (453) | (363) |
Loss on joint venture refinancing on beneficial interests | 0 | (8,814) | 0 | (9,809) |
Mark to market loss on mortgage loans held-for-sale, net | (6,488) | 0 | (53,795) | 0 |
Other (loss)/income | (1,844) | 498 | (1,841) | (2,021) |
Total loss, net | (8,958) | (2,414) | (58,339) | (1,874) |
EXPENSE | ||||
Related party expense – loan servicing fees | 1,324 | 1,827 | 3,058 | 3,687 |
Related party expense – management fee | 2,173 | 2,001 | 19,632 | 3,829 |
Professional fees | 855 | 989 | 1,560 | 1,923 |
Fair value adjustment on mark to market liabilities | (4,430) | 1,839 | (3,077) | 3,461 |
Other expense | 4,753 | 2,211 | 7,198 | 3,825 |
Total expense | 4,675 | 8,867 | 28,371 | 16,725 |
Gain on debt extinguishment | 0 | 0 | 0 | (47) |
Loss before provision for income taxes | (13,633) | (11,281) | (86,710) | (18,552) |
(Benefit)/provision for income taxes | (772) | 181 | 143 | 274 |
Consolidated net loss | (12,861) | (11,462) | (86,853) | (18,826) |
Less: consolidated net (loss)/income attributable to the non-controlling interest | (119) | 24 | (133) | 54 |
Consolidated net loss attributable to the Company | (12,742) | (11,486) | (86,720) | (18,880) |
Less: dividends on preferred stock | 0 | 548 | 341 | 1,095 |
Consolidated net loss attributable to common stockholders | $ (12,742) | $ (12,034) | $ (87,061) | $ (19,975) |
Basic loss per common share (in dollars per share) | $ (0.32) | $ (0.51) | $ (2.47) | $ (0.85) |
Diluted loss per common share (in dollars per share) | $ (0.32) | $ (0.51) | $ (2.47) | $ (0.85) |
Weighted average shares - basic (in shares) | 39,344,128 | 23,250,725 | 35,021,845 | 23,087,717 |
Weighted average shares - diluted (in shares) | 39,344,128 | 23,565,351 | 35,021,845 | 23,087,717 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Consolidated net loss attributable to common stockholders | $ (12,742) | $ (12,034) | $ (87,061) | $ (19,975) |
Other comprehensive loss: | ||||
Unrealized (loss)/gain on available-for-sale securities | (1,807) | (906) | (1,433) | 2,947 |
Amortization of unrealized gain/(loss) on debt securities available-for-sale transferred to held-to-maturity | 770 | 1,139 | 1,565 | 3,172 |
Income tax expense related to items of other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive loss | $ (13,779) | $ (11,801) | $ (86,929) | $ (13,856) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Consolidated net loss | $ (86,853) | $ (18,826) |
Adjustments to reconcile net income to net cash from operating activities | ||
Stock-based management termination fee and compensation expense | 16,952 | 892 |
Mark to market on mortgage loans held-for-sale, net | 53,795 | 0 |
Discount accretion on mortgage loans | (2,367) | (3,281) |
Interest and discount accretion on investment in debt securities | (2,745) | (4,946) |
Discount accretion on investment in beneficial interests | (1,479) | (4,055) |
Loss on sale of mortgage loans | 2,971 | 0 |
Gain on debt extinguishment | 0 | (47) |
Gain on sale of real estate owned properties | (454) | (73) |
Loss on sale of securities | 0 | 2,974 |
Impairment of real estate owned | 516 | 796 |
Credit loss expense on mortgage loans and beneficial interests | 53 | 114 |
Net increase/(decrease) in the net present value of expected credit losses | 4,230 | (3,487) |
Loss on loans and joint venture refinancing on beneficial interests | 0 | 9,809 |
Amortization of debt discount and prepaid financing costs | 4,615 | 1,544 |
Undistributed loss from investment in affiliates | 453 | 363 |
Fair value adjustment on put option liability and warrants | (3,077) | 3,461 |
Net change in operating assets and liabilities | ||
Prepaid expenses and other assets | 21,527 | (9,646) |
Receivable from servicer | 4,384 | (64) |
Accrued expenses, management fee payable, and other liabilities | (4,502) | 836 |
Net cash from operating activities | 8,019 | (23,636) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of mortgage loans and related balances | 0 | (14,088) |
Principal paydowns on mortgage loans | 27,928 | 48,541 |
Proceeds from sale of mortgage loans | 311,279 | 0 |
Proceeds from refinancing and sale of securities available-for-sale and beneficial interests | 0 | 29,413 |
Purchase of securities available-for-sale and beneficial interests | 0 | (16,335) |
Principal and interest collection on debt securities available-for-sale and beneficial interests | 31,357 | 24,046 |
Principal and interest collection on debt securities held-to-maturity | 8,307 | 15,038 |
Proceeds from sale of property held-for-sale | 1,456 | 1,874 |
Write-off/(investment) in equity method investments | 2,521 | (726) |
Distribution from affiliates | 255 | 495 |
Net cash from investing activities | 383,103 | 88,258 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from repurchase transactions | 91,450 | 24,095 |
Repayments on repurchase transactions | (220,698) | (56,824) |
Repayments on secured borrowings | (136,204) | (29,630) |
Repurchase of the Company's senior convertible notes | 0 | (952) |
Redemption of senior convertible notes | (103,516) | 0 |
Payment of prepaid financing costs on notes payable | 0 | (55) |
Payment of transaction costs | (10,144) | 0 |
Sale of common stock, net of offering costs | 14,000 | 2,954 |
Distribution to non-controlling interests | (900) | (62) |
Dividends paid on common stock and preferred stock | (5,918) | (11,677) |
Net cash from financing activities | (371,930) | (72,151) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 19,192 | (7,529) |
CASH AND CASH EQUIVALENTS, beginning of period | 52,834 | 47,845 |
CASH AND CASH EQUIVALENTS, end of period | 72,026 | 40,316 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid for interest | 20,096 | 28,481 |
Cash paid for income taxes | 97 | 215 |
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 | 428,029 | 0 |
Preferred stock and warrants redeemed for common stock | 58,031 | 0 |
Conversion of 2020 warrants for common shares | 18,677 | 0 |
Common stock settled for management fee and compensation expense | 16,952 | 892 |
Issuance of Rithm Warrants | 2,734 | 0 |
Net transfer of loans to property held-for-sale | 2,041 | 9 |
Amortization of unrealized loss on debt securities transferred to held-to-maturity | 1,565 | 3,172 |
Other non-cash loan charges | 671 | 0 |
Transfer of debt securities from investments in securities available-for-sale to investments in securities held-to-maturity | 0 | 83,052 |
Other non-cash beneficial interest charges | 0 | 504 |
Treasury stock received through distributions from investment in Former Manager | 0 | 25 |
Unrealized (loss)/gain on available-for-sale securities | $ (1,433) | $ 2,947 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Total stockholders' equity | Common stock | Treasury stock | Additional paid-in capital | Retained earnings/(deficit) | Accumulated other comprehensive loss | Non-controlling interest | Preferred stock - series A shares | Preferred stock - series A shares Preferred Stock | Preferred stock - series B shares | Preferred stock - series B shares Preferred Stock |
Beginning balance (in shares) at Dec. 31, 2022 | 424,949 | 1,135,590 | ||||||||||
Beginning balance at Dec. 31, 2022 | $ 337,465 | $ 335,328 | $ 241 | $ (9,532) | $ 322,439 | $ 13,275 | $ (25,649) | $ 2,137 | $ 9,411 | $ 25,143 | ||
Beginning balance (in shares) at Dec. 31, 2022 | 23,130,956 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net loss | (7,364) | (7,394) | (7,394) | 30 | ||||||||
Sale of shares (in shares) | 345,578 | |||||||||||
Sale of shares | 2,427 | 2,427 | $ 4 | 2,423 | ||||||||
Stock-based compensation expense (in shares) | 32,912 | |||||||||||
Stock-based compensation expense | 600 | 600 | 600 | |||||||||
Dividends declared and distributions | (6,459) | (6,425) | (6,425) | (34) | ||||||||
Amortization of unrealized gain/(loss) on debt securities available-for-sale transferred to held-to-maturity | 2,033 | 2,033 | 2,033 | |||||||||
Other comprehensive income (loss) | 3,853 | 3,853 | 3,853 | |||||||||
Ending balance (in shares) at Mar. 31, 2023 | 424,949 | 1,135,590 | ||||||||||
Ending balance at Mar. 31, 2023 | 332,555 | 330,422 | $ 245 | (9,532) | 325,462 | (544) | (19,763) | 2,133 | $ 9,411 | $ 25,143 | ||
Ending balance (in shares) at Mar. 31, 2023 | 23,509,446 | |||||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 424,949 | 1,135,590 | ||||||||||
Beginning balance at Dec. 31, 2022 | 337,465 | 335,328 | $ 241 | (9,532) | 322,439 | 13,275 | (25,649) | 2,137 | $ 9,411 | $ 25,143 | ||
Beginning balance (in shares) at Dec. 31, 2022 | 23,130,956 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net loss | $ (18,826) | |||||||||||
Exchange of preferred shares and warrants (in shares) | 0 | |||||||||||
Ending balance (in shares) at Jun. 30, 2023 | 424,949 | 1,135,590 | ||||||||||
Ending balance at Jun. 30, 2023 | $ 316,840 | 314,711 | $ 247 | (9,557) | 326,279 | (17,282) | (19,530) | 2,129 | $ 9,411 | $ 25,143 | ||
Ending balance (in shares) at Jun. 30, 2023 | 23,627,677 | |||||||||||
Beginning balance (in shares) at Mar. 31, 2023 | 424,949 | 1,135,590 | ||||||||||
Beginning balance at Mar. 31, 2023 | 332,555 | 330,422 | $ 245 | (9,532) | 325,462 | (544) | (19,763) | 2,133 | $ 9,411 | $ 25,143 | ||
Beginning balance (in shares) at Mar. 31, 2023 | 23,509,446 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net loss | $ (11,462) | (11,486) | (11,486) | 24 | ||||||||
Exchange of preferred shares and warrants (in shares) | 0 | |||||||||||
Sale of shares (in shares) | 94,012 | |||||||||||
Sale of shares | $ 527 | 527 | $ 1 | 526 | ||||||||
Stock-based compensation expense (in shares) | 28,395 | |||||||||||
Stock-based compensation expense | 292 | 292 | $ 1 | 291 | ||||||||
Dividends declared and distributions | (5,280) | (5,252) | (5,252) | (28) | ||||||||
Amortization of unrealized gain/(loss) on debt securities available-for-sale transferred to held-to-maturity | 1,139 | 1,139 | 1,139 | |||||||||
Other comprehensive income (loss) | (906) | (906) | (906) | |||||||||
Treasury stock (in shares) | (4,176) | |||||||||||
Treasury stock | (25) | (25) | (25) | |||||||||
Ending balance (in shares) at Jun. 30, 2023 | 424,949 | 1,135,590 | ||||||||||
Ending balance at Jun. 30, 2023 | 316,840 | 314,711 | $ 247 | (9,557) | 326,279 | (17,282) | (19,530) | 2,129 | $ 9,411 | $ 25,143 | ||
Ending balance (in shares) at Jun. 30, 2023 | 23,627,677 | |||||||||||
Beginning balance (in shares) at Dec. 31, 2023 | 424,949 | 424,949 | 1,135,590 | 1,135,590 | ||||||||
Beginning balance at Dec. 31, 2023 | $ 310,895 | 308,933 | $ 285 | (9,557) | 352,060 | (54,382) | (14,027) | 1,962 | $ 9,411 | $ 25,143 | ||
Beginning balance (in shares) at Dec. 31, 2023 | 27,460,161 | 27,460,161 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net loss | $ (73,992) | (73,978) | (73,978) | (14) | ||||||||
Exchange of preferred shares and warrants (in shares) | 9,464,524 | (424,949) | (1,135,590) | |||||||||
Exchange of preferred shares and warrants | 6,095 | 6,095 | $ 95 | 40,895 | (341) | $ (9,411) | $ (25,143) | |||||
Stock-based management termination fee expense | 15,506 | 15,506 | 15,506 | |||||||||
Stock-based compensation expense (in shares) | 67,334 | |||||||||||
Stock-based compensation expense | 271 | 271 | 271 | |||||||||
Dividends declared and distributions | (3,708) | (3,699) | (3,699) | (9) | ||||||||
Amortization of unrealized gain/(loss) on debt securities available-for-sale transferred to held-to-maturity | 795 | 795 | 795 | |||||||||
Other comprehensive income (loss) | 374 | 374 | 374 | |||||||||
Ending balance (in shares) at Mar. 31, 2024 | 0 | 0 | ||||||||||
Ending balance at Mar. 31, 2024 | 256,236 | 254,297 | $ 380 | (9,557) | 408,732 | (132,400) | (12,858) | 1,939 | $ 0 | $ 0 | ||
Ending balance (in shares) at Mar. 31, 2024 | 36,992,019 | |||||||||||
Beginning balance (in shares) at Dec. 31, 2023 | 424,949 | 424,949 | 1,135,590 | 1,135,590 | ||||||||
Beginning balance at Dec. 31, 2023 | $ 310,895 | 308,933 | $ 285 | (9,557) | 352,060 | (54,382) | (14,027) | 1,962 | $ 9,411 | $ 25,143 | ||
Beginning balance (in shares) at Dec. 31, 2023 | 27,460,161 | 27,460,161 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net loss | $ (86,853) | |||||||||||
Ending balance (in shares) at Jun. 30, 2024 | 0 | 0 | 0 | 0 | ||||||||
Ending balance at Jun. 30, 2024 | $ 254,481 | 253,552 | $ 466 | (9,557) | 423,899 | (147,361) | (13,895) | 929 | $ 0 | $ 0 | ||
Ending balance (in shares) at Jun. 30, 2024 | 45,605,549 | 45,605,549 | ||||||||||
Beginning balance (in shares) at Mar. 31, 2024 | 0 | 0 | ||||||||||
Beginning balance at Mar. 31, 2024 | $ 256,236 | 254,297 | $ 380 | (9,557) | 408,732 | (132,400) | (12,858) | 1,939 | $ 0 | $ 0 | ||
Beginning balance (in shares) at Mar. 31, 2024 | 36,992,019 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net loss | (12,861) | (12,742) | (12,742) | (119) | ||||||||
Exchange of preferred shares and warrants (in shares) | 2,581,694 | |||||||||||
Exchange of preferred shares and warrants | 49 | 49 | $ 25 | 24 | 0 | |||||||
Sale of shares (in shares) | 2,874,744 | |||||||||||
Sale of shares | 14,029 | 14,029 | $ 29 | 14,000 | ||||||||
Stock-based management termination fee expense (in shares) | 3,174,645 | |||||||||||
Stock-based management termination fee expense | 0 | 0 | $ 32 | (32) | ||||||||
Stock-based compensation expense (in shares) | (17,553) | |||||||||||
Stock-based compensation expense | 1,175 | 1,175 | $ 0 | 1,175 | ||||||||
Dividends declared and distributions | (3,110) | (2,219) | (2,219) | (891) | ||||||||
Amortization of unrealized gain/(loss) on debt securities available-for-sale transferred to held-to-maturity | 770 | 770 | 770 | |||||||||
Other comprehensive income (loss) | (1,807) | (1,807) | (1,807) | |||||||||
Ending balance (in shares) at Jun. 30, 2024 | 0 | 0 | 0 | 0 | ||||||||
Ending balance at Jun. 30, 2024 | $ 254,481 | $ 253,552 | $ 466 | $ (9,557) | $ 423,899 | $ (147,361) | $ (13,895) | $ 929 | $ 0 | $ 0 | ||
Ending balance (in shares) at Jun. 30, 2024 | 45,605,549 | 45,605,549 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends payable (in dollars per share) | $ 0.06 | $ 0.10 | $ 0.20 | $ 0.25 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Great Ajax Corp., a Maryland corporation ("Great Ajax" or the “Company”), is an externally managed real estate investment trust ("REIT") 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 REIT. Historically, the Company primarily targeted acquisitions of (i) 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 and (ii) non-performing loans ("NPLs"), which are residential mortgage loans on which the most recent three payments have not been made. The Company acquired RPLs and NPLs either directly or in joint ventures with institutional accredited investors. The joint ventures are structured as securitization trusts, of which the Company acquires debt securities and beneficial interests. The Company also historically acquired and originated small balance commercial loans (“SBC loans”). The SBC loans that the Company opportunistically targeted 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. On June 11, 2024, the Company completed its previously announced strategic transaction with Rithm Capital Corp. ("Rithm") (such transactions together, the "Strategic Transaction"). Such Strategic Transaction included the approval on May 20, 2024, by the Company's stockholders of (i) the sale of $14.0 million of the Company's common stock at a price of $4.87 per share (which represents the trailing five-day average closing price of the Company's common stock on the New York Stock Exchange ("NYSE") as of the date of the Securities Purchase Agreement, entered into on February 26, 2024 by the Company, the Operating Partnership (as defined herein), Thetis Asset Management LLC (the "Former Manager") and Rithm (the “Securities Purchase Agreement”)) and (ii) a new management agreement (the "Management Agreement") with RCM GA Manager LLC, an affiliate of Rithm (“RCM GA” or the "New Manager"), under which, RCM GA would become the Company's new external manager. Additionally, on February 26, 2024, the Company entered into a $70.0 million term loan (the "Credit Agreement") with NIC RMBS LLC (“NIC RMBS”), an affiliate of Rithm Capital Corp. (together with its subsidiaries, "Rithm"). For a full description of the Credit Agreement’s terms, conditions and covenants, see the section titled “The Transaction — Credit Agreement” in the Company’s Definitive Proxy Statement filed with the Securities and Exchange Commission on April 10, 2024. The term loan was accompanied by the Company’s agreement to issue a certain number of warrants to Rithm or one of its affiliates to purchase Company common stock, which warrants are detachable. See Note 8 — Commitments and Contingencies. Concurrently with entry into the Credit Agreement with NIC RMBS, the Company terminated its existing management contract with the Former Manager primarily in exchange for approximately 3,174,645 shares of the Company’s common stock. The Company currently owns 19.8% of the Former Manager. The Former Manager is expected to liquidate in the fourth quarter of 2024 and distribute its assets to its members, including the Company. In connection with the transactions described above, the Company terminated its agreement with Gregory Funding LLC ("Gregory" or Former Servicer"), the former loan servicer for the Company. The Company previously owned a 9.72% interest in Great Ajax FS LLC ("GAFS"), the parent company of Gregory, but disposed of its interest in the second quarter of 2024. On June 1, 2024, the Company assigned all of the servicing agreements for its mortgage loans and real property (the "Servicing Agreements") to Newrez LLC ("Newrez" or "Servicer"), an affiliate of Rithm. The terms of the Servicing Agreements remain unchanged. 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, Great Ajax Operating LLC, 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 Former Manager and previously owned an equity interest in the Former 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 (“REO”) properties acquired upon the foreclosure or other settlement of its owned NPLs, as well as through outright purchases. GAJX Real Estate Corp. ("GAJX") 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 as a TRS under the code. The Operating Partnership, through interests in certain entities, as of June 30, 2024, 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. Similarly, as of June 30, 2024, the Operating Partnership wholly-owned Great Ajax III Depositor LLC, which was formed to act as the depositor into Ajax Mortgage Loan Trust 2021-E ("2021-E"), which is a real estate mortgage investment conduit ("REMIC"). The Company has securitized mortgage loans through these securitization trusts and retained subordinated securities from the secured borrowings. These trusts are considered to be VIEs, and the Company has determined that it is the primary beneficiary of the VIEs. In 2018, the Company formed Gaea Real Estate Corp. ("Gaea") to invest in multifamily properties with a focus on property appreciation and triple net lease veterinary clinics. The Company elected to treat Gaea 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 LP, a wholly-owned subsidiary of Gaea, to hold investments in commercial real estate assets, and Gaea Real Estate Operating LLC, to act as its general partner. The Company also formed Gaea Veterinary Holdings LLC, BFLD Holdings LLC, Gaea Commercial Properties LLC, Gaea Commercial Finance LLC and Gaea RE Holdings LLC as subsidiaries of Gaea Real Estate Operating Partnership. In 2019, the Company formed DG Brooklyn Holdings LLC, also a subsidiary of Gaea Real Estate Operating Partnership LP, 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 its common stock to third parties to allow Gaea to continue to advance its investment strategy. Additionally, in January 2022, Gaea completed a second private capital raise in which it raised approximately $30.0 million from the issuance of its common stock and warrants. Also, during the year ended December 31, 2023, GA-TRS received an additional 20,991 shares of Gaea common stock for $0.3 million due to the termination of Gaea's management agreement, which increased the Company's ownership. At June 30, 2024, the Company owned approximately 22.2% of Gaea's total shares outstanding. The Company accounts for its investment in Gaea under the equity method. Basis of Presentation and Use of Estimates The consolidated interim financial statements should be read in conjunction with the Company's consolidated financial statements and the notes thereto for the year ended December 31, 2023, included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on February 28, 2024. Interim financial statements are unaudited and prepared in accordance with U.S. GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X. In the opinion of management, all adjustments, consisting solely of normal recurring accruals considered necessary for the fair presentation of consolidated financial statements for the interim period presented, have been included. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending December 31, 2024. The consolidated interim financial statements have been prepared in accordance with 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 interim financial statements. The Company consolidates the results and balances of three subsidiaries with non-controlling ownership interests held by third parties. The Company owned a 53.1% interest in AS Ajax E LLC II ("AS Ajax E LLC II"), which in turn held a 5.0% interest in a Delaware trust that owned residential mortgage loans and residential real estate assets. The Company received a liquidating distribution from AS Ajax E LLC II in June 2024 and its remaining investment at June 30, 2024 is zero. 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. wholly owns Great Ajax II Depositor LLC, which acts as the depositor of mortgage loans into securitization trusts and holds the subordinated securities issued by such trusts and certain additional trusts the Company may form for additional secured borrowings, and is 99.9% owned by the Company as of June 30, 2024 and December 31, 2023. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
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 typically 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. 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 risks 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 unpaid principal balance (“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. Expected cash flows from acquired loans include all cash flows directly related to the 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 as compared to contractual amounts due, 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. Additionally, slower than expected prepayments can result in lower yields as the Company's mortgage loans were acquired at discounts. 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. Non-PCD Loans While the Company generally acquires loans that have experienced deterioration in credit quality, from time to time, it may acquire loans that have not experienced a deterioration in credit quality or originate 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. Non-performing collateral dependent loans are carried at net realizable value of collateral. Mortgage Loans Held-for-sale From time to time the Company will identify specific loans that it will sell. When the loans are identified and a plan to sell the loans is in place, the Company will reclassify the loans from Mortgage Loans held-for-investment, net to Mortgage loans held-for-sale, net. When a loan is designated as held-for-sale, it is held at the lower of amortized cost or fair value with any mark to market adjustment recorded in the Company's consolidated statements of operations. Investments in Securities The Company’s Investments in Securities Available-for-Sale ("AFS") and Investments in Securities Held-to-Maturity ("HTM") consist of investments in senior and subordinated notes issued by joint ventures which the Company forms with third party institutional accredited investors. Investments in debt securities for which the Company does not have the positive intent and ability to hold to maturity are classified as AFS. Investments in debt securities for which the Company has the positive intent, ability, or is required to hold to maturity are classified as HTM. The Company recognizes income on the AFS debt securities using the effective interest method. Historically, the notes have been classified as AFS and are carried at fair value with changes in fair value reflected in the Company's consolidated statements of comprehensive loss. The Company marks its investments to fair value using prices received from its financing counterparties and third-party pricing vendors 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 operations. On January 1, 2023, the Company transferred a carrying value of $83.0 million of investment securities from AFS to HTM due to sale restrictions pursuant to Article 6(1) of Regulation (EU) 2017/2402 of the European Parliament and of the Council (as amended, the “EU Securitization Regulation” and, together with applicable regulatory and implementing technical standards in relation thereto, the “EU Securitization Rules”). Pursuant to the terms of these debt securities, the Company must hold at least 5.01% of the nominal value of each class of securities offered or sold to investors (the EU Retained Interest) subject to the EU Securitization Rules. Under the EU Securitization Rules, the Company is prohibited from selling, transferring or otherwise surrendering all or part of the EU Retained Interest until all such classes are paid in full or redeemed. Transfers of securities from AFS to HTM are non-cash transactions and are recorded at fair value. Unrealized gains or losses recorded to accumulated other comprehensive loss for the transferred securities continue to be reported in accumulated other comprehensive loss and are amortized into interest income on a level-yield basis over the remaining life of the securities. This amortization will offset the effect on interest income of the amortization of the discount resulting from the transfer recorded at fair value. The Company accounts for its investments in securities HTM under CECL and carries them at amortized cost. Interest income is recognized using the effective interest method and is based upon the Company having a reasonable expectation of the amount and timing of the cash flows expected to be collected. The Company’s expectation of the amount of undiscounted cash flows to be collected, and the corresponding need for an allowance for credit loss, is evaluated at the end of each calendar quarter and takes into consideration past events, current conditions, and supportable forecasts about the future. The net present value of changes in expected cash flows as compared to contractual amounts due, whether caused by timing or investment performance, is reported in the period in which it arises and is reflected as an increase or decrease in the allowance for credit loss to the extent an allowance for credit loss is recorded against the investments. If no allowance for credit loss is recorded against the investment, the increase in expected future cash flows is recognized prospectively as an increase in yield. 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. Additionally, slower prepayments can result in lower yields on the Company's debt securities acquired at a discount. Investments in Beneficial Interests The Company’s Investments in Beneficial Interests consist of the residual investment in the securitization trusts which the Company forms with third party institutional accredited investors. The Company accounts for its Investments in Beneficial Interests under CECL, which it adopted using the prospective transition approach. Each beneficial interest is accounted for individually, and the Company recognizes its ratable share of gain, loss, income or expense based on its percentage ownership interest. The Company's Investments in Beneficial Interests are carried at amortized cost. Upon acquisition, the investments are recorded as three separate elements: (i) the amount of purchase discount which the Company expects to recover through eventual repayment of the investment, (ii) an allowance for future expected credit loss and (iii) the par value of the investment. The purchase discount which the Company expects to recover through eventual repayment of the investment gives rise to an accretable yield. The Company recognizes this accretable yield as interest income on a prospective level yield basis over the life of the investment. The Company’s recognition of interest income 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 these expected cash flows to apply the effective interest method of income recognition. 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 as compared to contractual amounts due, whether caused by timing or investment performance, is reported in the period in which it arises and is reflected as an increase or decrease in the allowance for expected credit losses to the extent a provision for expected credit losses is recorded against the investment. If no provision for expected credit losses is recorded against the investment, the increase in expected future cash flows is recognized prospectively as an increase in yield. Risks inherent in the Company's beneficial interest portfolio 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. Additionally, lower than expected prepayments could reduce the Company's yields on its beneficial interest portfolio. The Company monitors the credit quality of the mortgage loans underlying its beneficial interests 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. Real Estate The Company generally acquires real estate properties through one of three instances, either directly through purchases, when it forecloses on a borrower and takes title to the underlying property, or when 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. Preferred Stock During the year ended December 31, 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. The shares had a liquidation preference of $25.00 per share. During the year ended December 31, 2022, the Company completed a series of preferred share repurchases. The Company repurchased and retired 1,882,451 shares of its 7.25% Series A Fixed-to-Floating Rate Preferred Stock and 1,757,010 shares of its 5.00% Series B Fixed-to-Floating Rate Preferred Stock. During the six months ended June 30, 2024, the Company exchanged the remaining 424,949 shares of its outstanding 7.25% Series A Fixed-to-Floating Rate Preferred Stock and 1,135,590 shares of its outstanding 5.00% Series B Fixed-to-Floating Rate Preferred Stock and the associated warrants for newly issued shares of its common stock. Of the 12,046,218 shares, 9,464,524 shares of its common stock were issued during the three months ended March 31, 2024 and the remaining 2,581,694 shares of its common stock were issued during the three months ended June 30, 2024 following the approval of the Company's stockholders on May 20, 2024. Warrants As part of the Company’s capital raise transactions during the three months 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. The warrants included 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 warrants as if the put option will be exercised by the holders. The warrants were recorded as a liability on the Company's consolidated balance sheets with an original basis of $9.5 million. Because the warrants have been substantially out of the money since issuance, the Company assumed the put option would be exercised and accreted the liability to the initial redemption value. During the year ended December 31, 2022, the Company repurchased and retired a portion of its warrants. The remaining warrants continued to accrete to their redemption value in July 2023. During the six months ended June 30, 2024, the Company entered into exchange agreements with the current holders of the remaining outstanding warrants, pursuant to which the Company acquired all of the remaining outstanding warrants in exchange for its common shares. Pursuant to the Credit Agreement, the Company issued to Rithm five-year warrants that may be exercised for common stock of the Company at an exercise price of $5.36 per share (the "Rithm Warrants"). The Company recorded the warrants at fair value on the transaction date with an offset to deferred issuance costs. The warrants will be accounted for as a liability at fair value with any changes in fair value recorded in earnings. The deferred issuance costs will be amortized over the 125 days draw period as an expense and fully expensed at June 30, 2024. On May 20, 2024, the warrants were reclassified to equity at fair value of $0.9 million. During the six months ended June 30, 2024, the Company exchanged the remaining 424,949 shares of its outstanding 7.25% Series A Fixed-to-Floating Rate Preferred Stock and 1,135,590 shares of its outstanding 5.00% Series B Fixed-to-Floating Rate Preferred Stock and the associated warrants for newly issued shares of its common stock. A total of 12,046,218 common shares were issued pursuant to the exchange with 9,464,524 shares of common stock exchanged during the quarter ended March 31, 2024 and 2,581,694 shares of common stock exchanged subsequent to the approval of the Company's shareholders on May 20, 2024. No preferred stock or warrants were exchanged during the three and six months ended June 30, 2023. 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's unrated securitizations have a call provision and 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 its convertible senior notes due 2024 (the "2024 Notes"). At June 30, 2024 and December 31, 2023, the UPB of the debt was zero and $103.5 million, respectively. The 2024 Notes had an interest at a rate of 7.25% per annum and were payable quarterly in arrears on January 15, April 15, July 15 and October 15 of each year. Coupon interest on the 2024 Notes was recognized using the accrual method of accounting. Discount and deferred issuance costs were carried on the Company’s consolidated balance sheets as a reduction of the carrying value of the 2024 Notes, and were amortized to interest expense on an effective yield basis. The 2024 Notes matured on April 30, 2024 and the Company redeemed the notes in full for an aggregate amount of $103.5 million and 15 days of accrued interest. Notes Payable During August 2022, the Operating Partnership issued $110.0 million aggregate principal amount of 8.875% senior unsecured notes due September 2027 (the "2027 Notes"). The 2027 Notes have a five year term and were issued at 99.009% of par value and are fully and unconditionally guaranteed by the Company and two of its subsidiaries: Great Ajax Operating LLC (the "GP Guarantor") and Great Ajax II Operating Partnership L.P. (the "Subsidiary Guarantor," and together with the Company and the GP Guarantor, the "Guarantors"). The 2027 Notes are included in the Company's liabilities in its consolidated balance sheet at June 30, 2024 and December 31, 2023. Interest on the 2027 Notes is payable semi-annually on March 1 and September 1, with the first payment due and payable on March 1, 2023. The 2027 Notes will mature on September 1, 2027. Net proceeds from the sale of the 2027 Notes totaled approximately $106.1 million, after deducting the discount, commissions, and offering expenses which will be amortized over the term of the 2027 Notes using the effective interest method. The Company used $90.0 million of the proceeds to repurchase and retire a portion of its outstanding 7.25% Series A and 5.00% Series B Fixed-to-Floating Rate Preferred Stock at a discount, and a proportionate amount of outstanding warrants. The remainder of the proceeds was used for general corporate purposes. At both June 30, 2024 and December 31, 2023, the UPB of the 2027 Notes was $110.0 million. On June 30, 2024, the Company received notification that the 2027 Notes were downgraded from BBB- to BB+. Under the terms of the indenture governing the 2027 Notes, the downgrade results in a 100 basis point increase in the interest rate from 8.875% to 9.875% effective September 1, 2024. Management Fee and Expense Reimbursement On June 11, 2024, the Company entered into a Management Agreement with RCM GA in the form previously agreed upon with RCM GA and filed with the Company's Current Report on Form 8-K dated February 26, 2024. The Management Agreement, which has an effective date of June 11, 2024, shall be in effect until June 11, 2027 and shall be automatically renewed for a successive two-year term each anniversary date thereafter unless terminated by a party. Under the Management Agreement, RCM GA 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, RCM GA 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. Under the Management Agreement, the Company pays both a base management fee and an incentive fee to the New Manager calculated and payable quarterly with respect to each calendar quarter (or partial quarter that the agreement is in effect) in arrears in cash. 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. Also, under the Management Agreement, the Company's quarterly base management fee will include, in its computation of equity managed, its unsecured debt securities to the extent the proceeds were used to repurchase the Company's preferred stock. The New Manager will be entitled to the Incentive Fee, which is payable quarterly in arrears in cash in an amount equal to 20% of the dollar amount by which (i) Earnings Available for Distribution (as defined below) exceeds the product of (A) the average common book value per share (excluding fair value marks, impairments, transaction/deal expenses and associated tax impact and such other items that in the judgment of the Company officers should be excluded) of the common stock of Ajax (“Ajax Common Stock”) during such calendar quarter and (B) 8%. Notwithstanding either of the foregoing, no Incentive Fee will be payable to the New Manager with respect to any period unless the Company’s cumulative Earnings Available for Distribution is greater than zero for the most recently completed four calendar quarters (which cumulative Earnings Available for Distribution shall be reset at the completion of every fourth quarter following the date hereof and each subsequent fourth quarter thereafter (each, a “Reset Date”) so as not to take into account prior calendar quarters), or, if less, (i) the number of completed calendar quarters since the date hereof or (ii) the number of completed calendar quarters since the last Reset Date. “Earnings Available for Distribution” is a non-GAAP financial measure and is defined as net income (loss) as determined according to GAAP, excluding tax-effected, non-cash equity compensation expense and any unrealized gains or losses from mark-to-market valuation changes (including impairments) that are included in net income for the applicable period. The amount will be adjusted to exclude on a tax-effected basis (A) one-time events pursuant to changes in GAAP, (B) transaction and deal expenses that in the opinion of the Manager should be excluded for purposes of calculating Earnings Available for Distribution and be amortized over the life of the related investment / transaction, and (C) non-cash items (including depreciation and amortization) that in the judgment of the Company’s officers should not be included in Earnings Available for Distribution, which adjustments in clauses (A), (B) and (C) shall only be excluded after discussions between the Manager and the Ajax Independent Directors and after approval by a majority of the Ajax Independent Directors. Book value per share of Ajax Common Stock shall be as set forth in the consolidated financial statements of the Company prepared in accordance with GAAP. Management fees are expensed in the quarter incurred. See Note 10 — Related Party Transactions. Servicing Fees The Company is a party to the Servicing Agreements with Newrez. The servicing agreements are identical to the servicing agreements the Company was previously a party to with its former Servicer. Under the Servicing Agreements, the Company pays a fee ranging from 0.42% annually for loans that are in rated securitizations, 0.65% annually for loans that are not in rated securitizations that were re-performing at acquisition and 1.25% annually for loans that were non-performing at acquisition. Servicing fees are paid monthly and are calculated based on UPB. 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 New 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 Company accrues the servicing fees pursuant to the terms of the agreement. Such fees are then netted against the monthly remittance due to the Company by the Servicer. Stock-based Payments and Directors’ Fees 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 35,000 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. Stock-based expense for the directors’ annual fee and the committee chairperson’s annual fee is expensed as earned, in equal quarterly amounts during the year, and accrued at quarter end. Each of the Company’s independent directors receives an annual retainer of $140,000, payable quarterly in shares of the Company's common stock and/or in cash at the directors discretion. The committee chairpersons also receive annual fees for their services. The chairpersons of the Compensation and Corporate Governance committees each received an annual retainer of $15,000, payable quarterly, 100% in cash. The chairperson of the Audit committee received an annual fee of $20,000, payable quarterly, 100% in cash. During the second quarter of 2023, the Board approved the appointment of a lead director and an additional payment to the lead director of $20,000 per year, payable quarterly, 100% in cash. Also, during the second quarter of 2023, due to conflicts of interests by certain Board members, the Board established a special committee, comprised solely of independent directors (the "Special Committee") to evaluate and review the merger agreement with Ellington Financial (the "Merger Agreement"), the Merger and the other transactions contemplated by the Merger Agreement, as well as other strategic opportunities. The directors on the Special Committee r |
Mortgage Loans
Mortgage Loans | 6 Months Ended |
Jun. 30, 2024 | |
Mortgage Loans [Abstract] | |
Mortgage Loans | Mortgage Loans The following table presents information regarding the carrying value for the Company's RPLs, NPLs and SBC loans as of June 30, 2024 and December 31, 2023 ($ in thousands): June 30, 2024 December 31, 2023 Loan portfolio basis by asset type Mortgage loans held-for-investment, net Mortgage loans held-for-sale, net Mortgage loans held-for-investment, net Mortgage loans held-for-sale, net Residential RPLs $ 411,012 $ 92,296 $ 787,700 $ 34,359 Residential NPLs 2,904 12,757 71,075 20,894 SBC loans — 3,815 5,776 465 Total $ 413,916 $ 108,868 $ 864,551 $ 55,718 Included on the Company’s consolidated balance sheets as of June 30, 2024 and December 31, 2023 are approximately $413.9 million and $864.6 million, respectively, of RPLs, NPLs, and SBC loans that are held-for-investment and approximately $108.9 million and $55.7 million, respectively, of RPLs, NPLs and SBC loans held-for-sale. During the three and six months ended June 30, 2024, the Company transferred an additional 90 and 2,199 loans from Mortgage loans held-for-investment, net to Mortgage loans held-for-sale, net and marked the loans to lower of cost or market by $6.5 million and $53.8 million, respectively. The categorization of RPLs, NPLs and SBC loans is determined at acquisition. The carrying value of RPLs, NPLs and SBC loans reflects the original investment amount, plus accretion of interest income as well as credit and non-credit discount, less principal and interest cash flows received. The carrying values at June 30, 2024 and December 31, 2023, for the Company's loans that are held-for-investment in the table above, are presented net of a cumulative allowance for expected credit losses of zero and $3.4 million, respectively, reflected in the appropriate lines in the table by loan type. 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 a pandemic and damage to or delay in realizing the value of the underlying collateral. Additionally, slower than expected prepayments can result in lower yields as the Company's mortgage loans were acquired at discounts. 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 three and six months ended June 30, 2024, the Company purchased no RPLs. Comparatively, during the three and six months ended June 30, 2023, the Company purchased 68 and 71 RPLs with UPB of $16.3 million and $17.1 million, respectively. During both the three and six months ended June 30, 2024 and 2023, the Company purchased no NPLs. During the three and six months ended June 30, 2024, the Company sold 1,477 and 1,712, respectively, mortgage loans held-for-sale with a carrying value of $263.7 million and $314.3 million, respectively, and UPB of $304.9 million and $355.0 million, respectively, to a third party resulting in the removal of the related loans from the consolidated balance sheet. During the three and six months ended June 30, 2024, the Company recognized a $2.5 million and $3.0 million, respectively, loss related to the sale. Comparatively, during the three and six months ended June 30, 2023, the Company sold no mortgage loans. For the three and six months ended June 30, 2024, the Company recognized accretable yield of $8.2 million and $20.1 million, respectively, with respect to its RPL, NPL and SBC loans. Comparatively, for the three and six months ended June 30, 2023, the Company recognized accretable yield of $12.9 million and $26.2 million, respectively, with respect to its RPL, NPL and SBC loans. Effective June 30, 2024, all loans held at the Operating Partnership are designated as held-for-sale and accordingly no longer subject to CECL. Conversely, all loans held at Great Ajax REIT II continue to be held-for-investment and subject to CECL. The Company uses the following three CECL pools: 1. Loans that have made at least seven of the last seven payments, either sequentially or in bulk and that have at least $50.0 thousand in absolute dollars of borrower equity; 2. Loans that have made at least seven of the last seven payments, either sequentially or in bulk and that have less than $50.0 thousand in absolute dollars of borrower equity; and 3. Loans that have not made at least seven of the last seven payments. Based on historical data, the Company has observed that borrowers that make at least seven of the last seven payments, either sequentially or in bulk, are significantly less likely to default. Additionally, the Company has similarly observed that $50.0 thousand absolute dollars of equity similarly drives a lower default rate and reduces loss severity in the event of foreclosure. The following table presents information regarding the year of origination of the Company's mortgage loan portfolio by basis ($ in thousands): June 30, 2024 Mortgage loans held-for-investment, net 2024 2023 2022 2021 2020 2019 2009-2018 2006-2008 2005 and prior Total Great Ajax II REIT - 7f7 >50 $ — $ — $ — $ — $ 725 $ 752 $ 34,599 $ 238,076 $ 81,924 $ 356,076 Great Ajax II REIT - 7f7 <50 — — — — — 71 2,650 22,205 6,418 31,344 Great Ajax II REIT - 6f6 and below — — — — — — 4,929 15,933 5,634 26,496 Total $ — $ — $ — $ — $ 725 $ 823 $ 42,178 $ 276,214 $ 93,976 $ 413,916 December 31, 2023 Mortgage loans held-for-investment, net 2023 2022 2021 2020 2019 2018 2009-2017 2006-2008 2005 and prior Total GAOP - 7f7 >50 $ — $ 2,473 $ 2,597 $ 1,370 $ 6,598 $ 658 $ 30,891 $ 190,106 $ 79,110 $ 313,803 GAOP - 7f7 <50 — 546 137 — 215 — 2,356 27,368 6,530 37,152 GAOP - 6f6 and below — 591 1,415 — 737 1,134 13,343 55,452 14,642 87,314 Great Ajax II REIT - 7f7 >50 — — — 730 764 795 34,864 243,034 84,634 364,821 Great Ajax II REIT - 7f7 <50 — — — — 71 14 2,658 22,360 6,508 31,611 Great Ajax II REIT - 6f6 and below — — — — — — 5,326 17,772 6,752 29,850 Total $ — $ 3,610 $ 4,149 $ 2,100 $ 8,385 $ 2,601 $ 89,438 $ 556,092 $ 198,176 $ 864,551 The following table presents a reconciliation between the purchase price and par value for the Company's loan acquisitions and originations for the three and six months ended June 30, 2024 and 2023 ($ in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Par $ — $ 16,312 $ — $ 17,140 Discount — (2,609) — (2,800) Increase in allowance — (219) — (252) Purchase Price $ — $ 13,484 $ — $ 14,088 The Company performs an analysis of its expectation of the amount of undiscounted cash flows expected to be collected from its mortgage loan pools at the end of each calendar quarter. 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 constant prepayment rate assumption. Expected cash flows are based on the New 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, change and rate of change of borrower credit rating, servicing notes, interest rate, monthly payment amount and neighborhood rents. Under CECL, the Company adjusts its allowance for expected credit losses when there are changes in its expectation of future cash flows as compared to the amounts expected to be contractually received. An increase to the allowance for expected credit losses will occur when there is a reduction in the Company's expected future cash flows as compared to its contractual amounts due. 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 three and six months ended June 30, 2024, the Company recorded a zero and $0.3 million, respectively, reclassification to non-credit discount from the allowance for expected credit losses. This was followed by a zero and $1.1 million, respectively, increase of the allowance for expected credit losses due to decreases in the net present value of expected cash flows. During the three and six months ended June 30, 2024, the Company reclassified $0.4 million and $4.3 million, respectively, of allowance to non-credit discount to reflect the impact of moving mortgage loans to a held-for-sale, net classification on the balance sheet. Comparatively, during the three and six months ended June 30, 2023, the Company recorded a $4.2 million and $3.0 million, respectively, reclassification from non-credit discount to the allowance for expected credit losses. This was followed by a $2.9 million and $3.5 million, respectively, reduction of the allowance for expected credit losses due to increases in the net present value of expected cash flows. During the three and six months ended June 30, 2023, the Company also recorded a $0.2 million and $0.3 million, respectively, increase in the allowance for expected credit losses due to new acquisitions. An analysis of the balance in the allowance for expected credit losses on loans account follows ($ in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Allowance for expected credit losses, beginning of period $ (403) $ (4,338) $ (3,426) $ (6,107) Reclassification to/(from) non-credit discount from/(to) the allowance for changes in payment timing expectations — (4,224) 310 (2,999) Increase in allowance for expected credit losses for loan acquisitions during the period — (219) — (252) Credit loss expense on mortgage loans (10) (70) (53) (114) Net change in the allowance for credit losses — 2,866 (1,112) 3,487 Reversal of allowance upon reclass of mortgage loans held-for-sale, net 413 — 4,281 — Allowance for expected credit losses, end of period $ — $ (5,985) $ — $ (5,985) The following table sets forth the carrying value of the Company’s mortgage loans by delinquency status as of June 30, 2024 and December 31, 2023 ($ in thousands): June 30, 2024 Mortgage loans held-for-investment, net Current 30 60 90 Foreclosure Total Great Ajax II REIT - 7f7 >50 $ 287,327 $ 43,191 $ 8,366 $ 16,455 $ 737 $ 356,076 Great Ajax II REIT - 7f7 <50 24,997 3,558 443 2,346 — 31,344 Great Ajax II REIT - 6f6 and below 4,226 3,483 3,239 8,836 6,712 26,496 Total $ 316,550 $ 50,232 $ 12,048 $ 27,637 $ 7,449 $ 413,916 June 30, 2024 Mortgage loans held-for-sale, net Current 30 60 90 Foreclosure Total Held-for-sale $ 33,232 $ 20,148 $ 20,466 $ 27,954 $ 7,068 $ 108,868 Total $ 33,232 $ 20,148 $ 20,466 $ 27,954 $ 7,068 $ 108,868 December 31, 2023 Mortgage loans held-for-investment, net Current 30 60 90 Foreclosure Total GAOP - 7f7 >50 $ 199,229 $ 49,868 $ 283 $ 63,498 $ 925 $ 313,803 GAOP - 7f7 <50 20,514 7,516 78 9,044 — 37,152 GAOP - 6f6 and below 8,565 6,906 421 45,058 26,364 87,314 Great Ajax II REIT - 7f7 >50 300,506 36,277 801 26,600 637 364,821 Great Ajax II REIT - 7f7 <50 25,592 3,846 42 2,131 — 31,611 Great Ajax II REIT - 6f6 and below 4,374 2,144 — 14,788 8,544 29,850 Total $ 558,780 $ 106,557 $ 1,625 $ 161,119 $ 36,470 $ 864,551 December 31, 2023 Mortgage loans held-for-sale, net Current 30 60 90 Foreclosure Total Held-for-sale $ 1,284 $ 592 $ — $ 26,243 $ 27,599 $ 55,718 Total $ 1,284 $ 592 $ — $ 26,243 $ 27,599 $ 55,718 |
Real Estate Assets, Net
Real Estate Assets, Net | 6 Months Ended |
Jun. 30, 2024 | |
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 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 As of June 30, 2024 and December 31, 2023, the Company’s net investments in real estate owned properties was $4.3 million and $3.8 million, respectively, all of which related to properties held-for-sale. 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 June 30, 2024 and December 31, 2023, was zero and $0.2 million, respectively, for properties undergoing renovation or which are otherwise in the process of being brought to market. As of June 30, 2024 and December 31, 2023, the Company had a total of 22 and 20 real estate owned properties, respectively. For the three and six months ended June 30, 2024 and 2023, the majority of the additions to REO held-for-sale were acquired through foreclosure or deed in lieu of foreclosure, and reclassified out of the mortgage loan portfolio. The following table presents the activity in the Company’s carrying value of property held-for-sale for the three and six months ended June 30, 2024 and 2023 ($ in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Property Held-for-Sale Count Amount Count Amount Count Amount Count Amount Balance at beginning of period 24 $ 5,191 32 $ 5,092 20 $ 3,785 39 $ 6,333 Net transfers from mortgage loans 1 26 3 178 7 2,041 1 9 Adjustments to record at lower of cost or fair value — (120) — (685) — (516) — (796) Disposals (3) (788) (7) (840) (5) (1,001) (12) (1,801) Balance at end of period 22 $ 4,309 28 $ 3,745 22 $ 4,309 28 $ 3,745 Dispositions |
Investments
Investments | 6 Months Ended |
Jun. 30, 2024 | |
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. Beneficial interests may be trust certificates and/or subordinated notes depending on the structure of the securitization. The Company's debt securities and beneficial interests are issued by securitization trusts, which are VIEs that the Company does not consolidate since it has determined it is not the primary beneficiary. The Company designated its debt securities as AFS or HTM based on the intent and ability to hold each security to maturity. The Company carries its AFS debt securities at fair value using prices provided by financing counterparties and believes any unrealized losses to be temporary. The Company carries its investments in securities HTM at amortized cost, net of any required allowance for credit losses. The Company carries its investments in beneficial interests at amortized cost. As described in Note 2 — Summary of Significant Accounting Policies, on January 1, 2023, the Company transferred $83.0 million of investment securities from AFS to HTM due to sale restrictions pursuant to Article 6(1) of Regulation (EU) 2017/2402 of the European Parliament and of the Council (as amended, the "EU Securitization Regulation" and, together with applicable regulatory and implementing technical standards in relation thereto, the "EU Securitization Rules"). Pursuant to the terms of these debt securities, the Company must hold at least 5.01% of the nominal value of each class of securities offered or sold to investors (the "EU Retained Interest") subject to the EU Securitization Rules. Under the EU Securitization Rules, the Company is prohibited from selling, transferring or otherwise surrendering all or part of the EU Retained Interest until all such classes are paid in full or redeemed. Transfers of securities from AFS to HTM are non-cash transactions and are recorded at fair value. On the date of transfer, accumulated other comprehensive income included unrealized losses of $10.9 million, which continues to be reported in accumulated other comprehensive loss and is amortized into interest income on a level-yield basis over the remaining life of the securities. This amortization will offset the effect on interest income of the amortization of the discount resulting from the transfer recorded at fair value. During the three and six months ended June 30, 2024, the Company recorded amortization of $0.8 million and $1.6 million, respectively, of unrealized losses in accumulated other comprehensive loss and of unamortized discount related to transfers of securities from AFS to HTM. Comparatively, during the three and six months ended June 30, 2023, the Company recorded amortization of $1.1 million and $3.2 million, respectively, of unrealized losses in accumulated other comprehensive loss and of unamortized discount related to transfers of securities from AFS to HTM. Risks inherent in the Company's debt securities portfolio, affecting both the valuation of its securities as well as the portfolio's interest income include the risk of default, delays and inconsistency in the frequency and amount of payments, interest rate risk, risks affecting borrowers such as man-made or natural disasters and damage to or delay in realizing the value of the underlying collateral. Additionally, slower prepayments can result in lower yields on the Company's debt securities acquired at a discount and on its beneficial interests. The Company monitors the credit quality of the mortgage loans underlying its debt securities on an ongoing basis, principally by considering loan payment activity or delinquency status. In addition, the Company assesses the expected cash flows from the mortgage loans, the fair value of the underlying collateral and other factors, and evaluates whether and when it becomes probable that all amounts contractually due will not be collected. The following table presents information regarding the Company's investments in debt securities and investments in beneficial interests ($ in thousands): As of June 30, 2024 Basis (1) Gross unrealized gains Gross unrealized losses Fair value Debt securities available-for-sale, at fair value $ 150,085 $ 275 $ (9,746) $ 140,614 Debt securities held-to-maturity at amortized cost, net of allowance for credit losses of zero 48,050 25 (1,482) 46,593 Investment in beneficial interests at amortized cost, net of allowance for credit losses of $9,082 88,269 3,876 (20,588) 71,557 Total investments $ 286,404 $ 4,176 $ (31,816) $ 258,764 (1) Basis amount is net of amortized discount, principal paydowns and interest receivable on securities AFS and HTM of $78 thousand and $17 thousand, respectively. As of December 31, 2023 Basis (1) Gross unrealized gains Gross unrealized losses Fair value Debt securities available-for-sale, at fair value $ 139,596 $ 637 $ (8,675) $ 131,558 Debt securities held-to-maturity at amortized cost, net of allowance for credit losses of zero 59,691 111 (629) 59,173 Investment in beneficial interests at amortized cost, net of allowance for credit losses of $6,880 104,162 3,631 (26,477) 81,316 Total investments $ 303,449 $ 4,379 $ (35,781) $ 272,047 (1) Basis amount is net of amortized discount, principal paydowns and interest receivable on securities AFS and HTM of $87 thousand and $24 thousand, respectively. The following table presents a breakdown of the Company's gross unrealized losses on its investments in debt securities AFS ($ in thousands): As of June 30, 2024 Step-up date(s) (1) Basis (2) Gross unrealized losses Fair value Debt securities due February 2028 (3) February 2026 $ 4,814 $ (14) $ 4,800 Debt securities due November 2051 (4) March 2025 3,766 (106) 3,660 Debt securities due March 2060 (4) February 2025 5,583 (365) 5,218 Debt securities due December 2060 (4) July 2029 20,893 (5,074) 15,819 Debt securities due January 2061 (4) September 2024 4,886 (551) 4,335 Debt securities due June 2061 (5) January 2025/February 2025 12,655 (1,071) 11,584 Debt securities due October 2061 (4) April 2029 11,448 (1,048) 10,400 Debt securities due March 2062 (4) May 2029 9,842 (741) 9,101 Debt securities due July 2062 (3) February 2030 12,390 (776) 11,614 Total $ 86,277 $ (9,746) $ 76,531 (1) Step-up date is the date at which the coupon interest rate on the security increases. (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 security has been in an unrealized loss position for 12 months or longer. (5) This line is comprised of two securities that are both due June 2061. Both securities have a balance of $0.5 million and have been in an unrealized loss position for 12 months or longer. As of December 31, 2023 Step-up date(s) (1) Basis (2) Gross unrealized losses Fair value Debt securities due February 2028 (4) February 2026 $ 4,717 $ (6) $ 4,711 Debt securities due November 2051 (4) March 2025 3,764 (215) 3,549 Debt securities due March 2060 (4) February 2025 5,805 (678) 5,127 Debt securities due December 2060 (4) July 2029 21,411 (4,242) 17,169 Debt securities due January 2061 (4) September 2024 4,886 (478) 4,408 Debt securities due June 2061 (5) January 2025/February 2025 12,992 (1,243) 11,749 Debt securities due October 2061 (4) April 2029 11,815 (842) 10,973 Debt securities due March 2062 (4) May 2029 10,315 (793) 9,522 Debt securities due July 2062 (3) February 2030 12,668 (41) 12,627 Debt securities due October 2062 (3) October 2026 17,174 (137) 17,037 Total $ 105,547 $ (8,675) $ 96,872 (1) Step-up date is the date at which the coupon interest rate on the security increases. (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 security has been in an unrealized loss position for 12 months or longer. (5) This line is comprised of two securities that are both due June 2061. One security with a balance of $0.3 million has been in an unrealized loss position for 12 months or longer and has a step-up date in January 2025, and the other security of $0.9 million has been in a loss position for 12 months or longer and has a step-up date in February 2025. As of June 30, 2024, the Company had a gross unrealized loss of $9.7 million and $0.3 million gross unrealized gains in fair valuation adjustments in accumulated other comprehensive loss on the consolidated balance sheet on total investments AFS with a fair value of $140.6 million, which includes $78 thousand in interest receivable. As of December 31, 2023, the Company had a gross unrealized loss of $8.7 million and $0.6 million gross unrealized gains in fair valuation adjustments in accumulated other comprehensive loss on the consolidated balance sheet on total investments AFS with a fair value of $131.6 million, which includes $87 thousand in interest receivable. During the three months ended June 30, 2023, the Company acquired no debt securities and beneficial interests; however, during the six months ended June 30, 2023, the Company re-securitized, with an institutional accredited investor, Ajax Mortgage Loan Trust 2019-E, 2019-G and 2019-H ("2019-E, -G and -H") joint ventures into Ajax Mortgage Loan Trust 2023-A ("2023-A") and retained 8.6% or $16.1 million of varying classes of agency rated securities and equity. 2023-A acquired 1,085 RPLs and NPLs with UPB of $205.1 million and an aggregate property value of $497.4 million. The AAA through A rated securities represent 79.8% of the UPB of the underlying mortgage loans and carry a weighted average coupon of 3.46%. All of the debt securities retained from 2023-A are classified as AFS. Although the Company continues to own a proportionate interest in the underlying loans, the transaction is treated as a redemption of the bonds and beneficial interests in the original trusts and the Company recorded a $1.0 million loss on the transaction. During the three and six months ended June 30, 2024, the Company sold no senior notes. Comparatively, during the three months ended June 30, 2023, the Company sold no senior notes; however, during the six months ended June 30, 2023, the Company sold senior notes issued by certain joint ventures and recognized a loss of $3.0 million, which was recorded net to accumulated other comprehensive loss. As of June 30, 2024 and December 31, 2023, the Company had no securities that were past due. The following table presents a reconciliation between the purchase price and par value for the Company's beneficial interests acquisitions for the three and six months ended June 30, 2024 and 2023 ($ in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Par $ — $ — $ — $ 2,051 Premium — — — 963 Purchase Price $ — $ — $ — $ 3,014 The Company generally recognizes accretable yield and increases and decreases in the net present value of expected cash flows in earnings in the period they occur. For the three and six months ended June 30, 2024, the Company recognized accretable yield of $0.7 million and $1.5 million, respectively, on its beneficial interest. Comparatively, for the three and six months ended June 30, 2023, the Company recognized accretable yield of $2.0 million and $4.1 million, respectively, on its beneficial interest. For the three and six months ended June 30, 2024, the Company recognized accretable yield of $0.4 million and $0.8 million, respectively, on its investments in securities HTM. Comparatively, for the three and six months ended June 30, 2023, the Company recognized accretable yield of $0.6 million and $1.2 million, respectively, on its investments in securities HTM. 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 or investments in securities HTM. If there is no allowance for expected credit losses recorded against a beneficial interest or investments in securities HTM, 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 the three and six months ended June 30, 2024 and 2023, the Company had no activity and balance related to the allowance for expected credit losses for investments in securities HTM. During the three and six months ended June 30, 2024, the Company recorded a zero and $0.9 million, respectively, reclassification to non-credit discount from the allowance for changes in payment expectations and a zero and $3.1 million, respectively, increase in the allowance for expected credit losses due to decreases in the net present value of expected cash flows. The decrease was primarily attributable to lower expected loan prices at redemption due to the expectation that the Federal Reserve will not reduce interest rates during 2024. Comparatively, during the three and six months ended June 30, 2023, the Company had no activity related to the balance in the allowance for expected credit losses for beneficial interests. An analysis of the balance in the allowance for expected credit losses for beneficial interests account follows ($ in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Allowance for expected credit losses, beginning balance $ (9,082) $ — $ (6,880) $ — Reclassification to non-credit discount from the allowance for changes in payment expectations — — 916 — Net change in the allowance for credit losses — — (3,118) — Allowance for expected credit losses, ending balance $ (9,082) $ — $ (9,082) $ — |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value For a discussion on the Company's fair value policy see Note 2 — Summary of Significant Accounting Policies. Recurring financial assets and liabilities measured and carried at fair value by level within the fair value hierarchy as of June 30, 2024 and December 31, 2023 ($ in thousands): Level 1 Level 2 Level 3 June 30, 2024 Carrying value Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Recurring financial assets Investment in debt securities available-for-sale $ 140,614 $ — $ 140,614 $ — Recurring financial liabilities Warrant liability $ — $ — $ — $ — Level 1 Level 2 Level 3 December 31, 2023 Carrying value Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Recurring financial assets Investment in debt securities available-for-sale $ 131,558 $ — $ 131,558 $ — Recurring financial liabilities Warrant liability $ 16,644 $ — $ — $ 16,644 The following tables set forth the fair value of financial instruments by level within the fair value hierarchy as of June 30, 2024 and December 31, 2023 ($ in thousands): Level 1 Level 2 Level 3 June 30, 2024 Carrying value Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Financial assets Mortgage loans held-for-investment, net $ 413,916 $ — $ — $ 367,023 Mortgage loans held-for-sale, net $ 108,868 $ — $ — $ 108,868 Investment in debt securities held-to-maturity $ 48,050 $ — $ 46,593 $ — Investment in beneficial interests $ 88,269 $ — $ — $ 71,557 Investment in Former Manager $ 2,786 $ — $ — $ 2,319 Investment in AS Ajax E LLC $ — $ — $ — $ — Investment in Gaea $ 21,805 $ — $ — $ 22,376 Investment in Loan pool LLCs $ 180 $ — $ — $ 62 Financial liabilities Secured borrowings, net $ 276,458 $ — $ 244,385 $ — Borrowings under repurchase transactions $ 246,497 $ — $ 246,497 $ — Notes payable, net $ 107,216 $ — $ 105,822 $ — Level 1 Level 2 Level 3 December 31, 2023 Carrying value Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Financial assets Mortgage loans held-for-investment, net $ 864,551 $ — $ — $ 770,419 Mortgage loans held-for-sale, net $ 55,718 $ — $ — $ 60,444 Investment in debt securities held-to-maturity $ 59,691 $ — $ 59,173 $ — Investment in beneficial interests $ 104,162 $ — $ — $ 81,316 Investment in Former Manager $ 440 $ — $ — $ 4,527 Investment in AS Ajax E LLC $ 407 $ — $ 471 $ — Investment in Ajax E Master Trust $ 2,100 $ — $ 1,864 $ — Investment in GAFS, including warrants $ 2,618 $ — $ — $ — Investment in Gaea $ 22,241 $ — $ — $ 21,678 Investment in Loan pool LLCs $ 194 $ — $ — $ 674 Financial liabilities Secured borrowings, net $ 411,212 $ — $ 370,882 $ — Borrowings under repurchase transactions $ 375,745 $ — $ 375,745 $ — Convertible senior notes $ 103,516 $ 101,777 $ — $ — Notes payable, net $ 106,844 $ — $ 103,697 $ — |
Affiliates
Affiliates | 6 Months Ended |
Jun. 30, 2024 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Affiliates | Affiliates Unconsolidated Affiliates At both June 30, 2024 and December 31, 2023, and for the three and six months ended June 30, 2024 and 2023, the Company had ownership interests in five affiliated entities accounted for under the equity method of accounting. At both June 30, 2024 and December 31, 2023, the Company’s ownership interest in the Former Manager, a privately held company for which there is no public market for its securities, was approximately 19.8%. The Company accounts for its ownership interest in the Former Manager using the equity method. At June 30, 2024 the Company's ownership of GAFS was zero. At December 31, 2023, the Company's ownership interest was approximately 9.72% in GAFS. The Company accounted for its investment in GAFS using the equity method. At both June 30, 2024 and December 31, 2023, the Company owned approximately 22.2% of Gaea. The Company accounts for its ownership interest in Gaea using the equity method. At June 30, 2024 and December 31, 2023, the Company’s ownership interest in AS Ajax E LLC, a Delaware trust formed to own residential mortgage loans and residential real estate assets, was approximately zero and 16.5%, respectively. AS Ajax E LLC owned a 5.0% equity interest in Ajax E Master Trust which held a portfolio of RPLs. The Company accounted for its ownership interest using the equity method. The Company received a liquidating distribution in AS Ajax E LLC in the second quarter of 2024 that reduced its investment to zero. At both June 30, 2024 and December 31, 2023, the Company owned a 40.0% interest in one loan pool LLC managed by the Servicer, which hold investments in RPLs and NPLs. The Company accounts for its ownership interest using the equity method. The table below shows the net income/(loss), 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% Three months ended June 30, Six months ended June 30, Net income/(loss) at 100% 2024 2023 2024 2023 AS Ajax E LLC $ 18 $ 56 $ 81 $ 122 Great Ajax FS LLC $ — $ (211) $ (269) $ (974) Loan pool LLCs $ (18) $ (16) $ (34) $ (40) Gaea Real Estate Corp. $ (481) $ (1,227) $ (594) $ (2,332) Thetis Asset Management LLC $ (3,866) $ (147) $ 11,856 $ (136) June 30, 2024 December 31, 2023 Assets and liabilities at 100% Assets Liabilities Assets Liabilities AS Ajax E LLC $ — $ — $ 2,553 $ 39 Great Ajax FS LLC $ — $ — $ 71,477 $ 59,949 Loan pool LLCs $ 1,200 $ 267 $ 1,200 $ 232 Gaea Real Estate Corp. $ 161,365 $ 69,768 $ 167,591 $ 73,499 Thetis Asset Management LLC $ 15,085 $ 202 $ 4,643 $ 1,305 Net income/(loss), assets and liabilities of unconsolidated affiliates at the Company's share Three months ended June 30, Six months ended June 30, Net income/(loss) at the Company's share 2024 2023 2024 2023 AS Ajax E LLC $ 3 $ 9 $ 13 $ 20 Great Ajax FS LLC $ — $ (20) $ (26) $ (87) Loan pool LLCs $ (7) $ (6) $ (14) $ (16) Gaea Real Estate Corp. $ (107) $ (270) $ (108) $ (513) Thetis Asset Management LLC $ (765) $ (29) $ 2,348 $ (27) June 30, 2024 December 31, 2023 Assets and liabilities at the Company's share Assets Liabilities Assets Liabilities AS Ajax E LLC $ — $ — $ 420 $ 6 Great Ajax FS LLC $ — $ — $ 6,854 $ 5,748 Loan pool LLCs $ 480 $ 107 $ 480 $ 93 Gaea Real Estate Corp. $ 35,888 $ 15,516 $ 37,272 $ 16,346 Thetis Asset Management LLC $ 2,987 $ 40 $ 919 $ 258 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. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
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 or other assets 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 June 30, 2024, the Company had no commitments to acquire additional mortgage loans. On February 26, 2024, the Company entered into the Credit Agreement with Rithm. For a full description of the Credit Agreement's terms, conditions and covenants, see Note 1 — Organization and Basis of Presentation and the section titled "The Transaction — Credit Agreement" in the Company's Definitive Proxy Statement filed with the Securities and Exchange Commission on April 10, 2024. The term loan is accompanied by the Company's agreement to issue a certain number of warrants to Rithm or one of its affiliates to purchase Company common stock, which warrants are detachable. The Company recorded the initial $2.7 million fair value of the Rithm Warrants in Accrued expenses and other liabilities with an offset to deferred issuance costs in Prepaid expenses and other assets. At June 30, 2024, the Credit Agreement had an outstanding balance of zero and the draw period expired. The Company amortized $2.0 million and $2.7 million of the deferred issuance costs, respectively, during the three and six months ended June 30, 2024. Additionally, during the three and six months ended June 30, 2024, the Company recorded a $1.2 million and $1.9 million mark to market gain, respectively, on the warrants. At June 30, 2024, the warrants were reclassified to equity at a fair value of $0.9 million. The following table sets forth the details of the Company's warrant liabilities ($ in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Beginning balance $ 2,054 $ 13,775 $ 16,644 $ 12,153 Issuance of Rithm Warrants — — 2,734 — Fair value adjustment of 2020 warrants — 1,839 2,033 3,461 Fair value adjustment of Rithm Warrants (1,203) — (1,883) — Redemption of 2020 warrants — — (18,677) — Reclassification of Rithm Warrants to Equity (851) — (851) — Ending balance $ — $ 15,614 $ — $ 15,614 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 June 30, 2024, 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 | 6 Months Ended |
Jun. 30, 2024 | |
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 SOFR, 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 75% and 90% of the asset’s acquisition price, depending upon the facility being utilized and/or the quality of the underlying collateral. The obligations of the Trust to repurchase these mortgage loans at a future date are guaranteed by the Company's Operating Partnership. The difference between the market value of the asset and the amount of the repurchase agreement is generally the amount of equity in the position and is intended to provide the buyer with some protection against fluctuations in the value of the collateral, and/or a failure by the Company to repurchase the asset and repay the borrowing at maturity. The Company has also entered into four repurchase facilities, as of June 30, 2024, substantially similar to the mortgage loan repurchase facilities, but where the pledged assets are bonds 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 the Servicing Agreements by and between the Servicer and each buyer. Each Servicing Agreement has the same fees and expenses terms as the Servicing Agreements 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): June 30, 2024 Maturity Date Amount Outstanding Amount of Collateral Interest Rate Barclays - bonds (1) $ 85,724 $ 121,941 6.45 % A Bonds July 26, 2024 35,855 46,748 6.21 % September 20, 2024 28,158 39,663 6.40 % November 1, 2024 5,786 7,424 6.56 % B Bonds September 20, 2024 10,155 18,541 6.85 % November 1, 2024 4,078 6,232 7.58 % M Bonds July 26, 2024 479 878 6.55 % September 20, 2024 932 1,943 6.65 % November 1, 2024 281 512 6.93 % Nomura - bonds (1) $ 79,085 $ 61,255 6.71 % A Bonds September 27, 2024 22,613 34,200 6.88 % B Bonds July 5, 2024 27,238 88 6.60 % September 27, 2024 7,180 13,224 6.88 % M Bonds September 27, 2024 22,054 13,743 6.59 % Nomura - loans (2) October 5, 2024 $ 76,336 $ 114,131 7.79 % JP Morgan - loans (3) July 10, 2024 $ 5,352 $ 8,229 8.38 % Totals/weighted averages $ 246,497 $ 305,556 6.99 % (1) Maximum borrowing capacity subject to pledging sufficient collateral is the equivalent of the amount outstanding as of June 30, 2024. (2) Maximum borrowing capacity subject to pledging sufficient collateral as of June 30, 2024 was $400.0 million. (3) Maximum borrowing capacity subject to pledging sufficient collateral as of June 30, 2024 was $150.0 million. December 31, 2023 Maturity Date Amount Outstanding Amount of Collateral Interest Rate Barclays - bonds (1) $ 70,095 $ 101,041 7.03 % A Bonds January 3, 2024 10,850 15,572 6.90 % January 19, 2024 21,762 28,503 6.79 % May 3, 2024 9,628 12,329 6.87 % May 22, 2024 2,134 3,358 6.97 % B Bonds January 26, 2024 3,027 4,998 7.68 % March 13, 2024 13,398 20,121 7.13 % May 3, 2024 3,608 6,185 7.70 % May 22, 2024 4,312 7,565 7.57 % M Bonds May 3, 2024 281 499 7.05 % May 22, 2024 1,095 1,911 7.17 % Nomura - bonds (1) $ 68,623 $ 98,448 6.98 % A Bonds January 26, 2024 35,184 47,149 7.02 % February 15, 2024 5,079 7,449 6.93 % March 28, 2024 17,019 23,238 6.74 % B Bonds January 26, 2024 1,024 1,761 7.31 % February 15, 2024 3,002 5,149 7.33 % December 31, 2023 Maturity Date Amount Outstanding Amount of Collateral Interest Rate March 28, 2024 3,900 6,413 7.30 % M Bonds January 26, 2024 2,307 5,177 7.30 % March 28, 2024 1,108 2,112 6.90 % JP Morgan - bonds (1) $ 33,564 $ 53,978 6.90 % A Bonds February 28, 2024 9,632 12,633 6.73 % B Bonds February 28, 2024 6,598 11,140 7.13 % M Bonds January 4, 2024 13,541 22,813 6.82 % January 22, 2024 3,290 6,497 7.23 % February 28, 2024 503 895 7.03 % Nomura - loans (2) October 5, 2024 $ 193,060 $ 277,632 7.79 % JP Morgan - loans (3) July 10, 2024 $ 10,403 $ 14,656 8.38 % Totals/weighted averages $ 375,745 $ 545,755 (4) 7.44 % (1) Maximum borrowing capacity subject to pledging sufficient collateral is the equivalent of the amount outstanding as of December 31, 2023. (2) Maximum borrowing capacity subject to pledging sufficient collateral as of December 31, 2023 was $400.0 million. (3) Maximum borrowing capacity subject to pledging sufficient collateral as of December 31, 2023 was $150.0 million. (4) Includes $42.8 million of bonds that are consolidated on the Company's balance sheet for GAAP as of December 31, 2023. 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 June 30, 2024 and December 31, 2023, the Company had $0.1 million and $3.8 million, respectively, of cash collateral on deposit with financing counterparties. This cash is included in Prepaid expenses and other assets on its consolidated balance sheets and is not netted against its Borrowings under repurchase agreements. The amount outstanding on the Company’s repurchase facilities and the carrying value of the Company’s loans pledged as collateral are presented as gross amounts in the Company’s consolidated balance sheets at June 30, 2024 and December 31, 2023 in the table below ($ in thousands): Gross amounts not offset in balance sheet June 30, 2024 December 31, 2023 Gross amount of recognized liabilities $ 246,497 $ 375,745 Gross amount of loans and securities pledged as collateral 305,446 541,999 Other prepaid collateral 110 3,756 Net collateral amount $ 59,059 $ 170,010 Secured Borrowings The Company uses securitization as a primary financing structure and refers to the transactions as secured borrowings. The secured borrowings are generally structured as debt financings. T he 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 currently has no non-rated secured borrowing outstanding at June 30, 2024. 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 outstanding at June 30, 2024. The following table sets forth the original terms of notes from the Company's secured borrowings outstanding at June 30, 2024 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) 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) Issuing Trust/Issue Date Interest Rate Step-up Date Security Original Principal Interest Rate None Class B-3 notes due 2065 (2) $21.5 million variable (3) Deferred issuance costs $(2.5) million — % (1) The Class M notes are subordinated, sequential pay, fixed rate notes. The Company has retained the Class M notes, with the exception of Ajax Mortgage Loan Trust 2021-A. (2) The Class B notes are subordinated, sequential pay, with B-2 and B-3 notes having variable interest rates and are subordinate to the Class B-1 notes. The Class B-1 notes are fixed rate notes. The Company has retained the Class B notes. (3) The interest rate is effectively the rate equal to the spread between the gross average rate of interest the trust collects on its mortgage loan portfolio minus the rate derived from the sum of the servicing fee and other expenses of the trust. Servicing for the mortgage loans in the Company’s secured borrowings is provided by the Servicer at servicing fee rates between 0.42% of outstanding UPB and 1.25% of outstanding UPB at acquisition, and is paid monthly. The determination of RPL or NPL status, which determines the servicing fee rates, is based on the status of the loan at acquisition and does not change regardless of the loan's subsequent performance. The following table sets forth the status of the notes held by others at June 30, 2024 and December 31, 2023, and the securitization cutoff date ($ in thousands): Balances at June 30, 2024 Balances at December 31, 2023 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 2019-D $ 96,939 $ 65,127 149 % $ 99,367 $ 67,739 147 % $ 193,301 $ 156,670 2019-F 92,853 54,056 172 % 96,870 57,936 167 % 170,876 127,673 2020-B 98,191 60,697 162 % 100,245 63,574 158 % 156,468 114,534 2021-A 123,444 98,254 126 % 127,250 102,057 125 % 206,506 175,116 2021-B — — — % 204,883 123,032 167 % 287,882 215,912 $ 411,427 $ 278,134 (1) 148 % $ 628,615 $ 414,338 (1) 152 % $ 1,015,033 $ 789,905 (1) This represents the gross amount of Secured borrowings and excludes the impact of deferred issuance costs of $1.7 million and $3.1 million as of June 30, 2024 and December 31, 2023. Notes 2024 Notes (Convertible Senior Notes) At June 30, 2024 and December 31, 2023, the Company's 2024 Notes had carrying values of zero and $103.5 million, respectively. The 2024 Notes had an interest rate of 7.25% per annum and were payable quarterly in arrears on January 15, April 15, July 15 and October 15 of each year. The 2024 Notes matured on April 30, 2024 and the Company redeemed the notes in full for an aggregate amount of $103.5 million and 15 days of accrued interest. At June 30, 2024 and December 31, 2023, the outstanding aggregate principal amount of the 2024 Notes was zero and $103.5 million, respectively. During the three and six months ended June 30, 2024, the Company recognized interest expense on its 2024 Notes of zero and $2.4 million, respectively, which includes no amortization of discount and deferred expenses, respectively. During the three and six months ended June 30, 2023, the Company recognized interest expense on its 2024 Notes of $1.9 million and $4.0 million, respectively, which includes $0.1 million and $0.3 million, of amortization of discount and deferred expenses, respectively. The effective interest rates of the 2024 Notes for the three months June 30, 2024 and 2023, were 8.52% and 7.51%, respectively. During both the three and six months ended June 30, 2024, there were no 2024 Notes repurchases. Comparatively, during the three and six months ended June 30, 2023, the Company completed a repurchase of zero and $1.0 million, respectively, aggregate principal of its 2024 Notes for a total purchase price of zero and $1.0 million, respectively. Coupon interest on the 2024 Notes was recognized using the accrual method of accounting. Discount and deferred issuance costs were carried on the Company’s consolidated balance sheets as a reduction of the carrying value of the 2024 Notes, and were amortized to interest expense on an effective yield basis through April 30, 2023. 2027 Notes (Unsecured Notes) In August 2022, the Operating Partnership issued $110.0 million aggregate principal amount of 8.875% 2027 Notes. The 2027 Notes have a five year term and were issued at 99.009% of par value and are fully and unconditionally guaranteed by the Company and are included in the Company's liabilities in its consolidated balance sheet at June 30, 2024 . Interest on the 2027 Notes is payable semi-annually on March 1 and September 1, with the first payment due and payable on March 1, 2023. The 2027 Notes will mature on September 1, 2027. Net proceeds from the sale of the 2027 Notes totaled approximately $106.1 million, after deducting the discount, commissions, and offering expenses which will be amortized over the term of the 2027 Notes using the effective interest method. The Company used $90.0 million of the proceeds to repurchase and retire a portion of its outstanding 7.25% Series A and 5.00% Series B Fixed-to-Floating Rate Preferred Stock at a discount, and a proportionate amount of outstanding warrants. The remainder of the proceeds were used for general corporate purposes. On June 30, 2024, the Company received notification that the 2027 Notes were downgraded from BBB- to BB+. Under the terms of the indenture governing the 2027 Notes, the downgrade results in a 100 basis point increase in the interest rate from 8.875% to 9.875% beginning on September 1, 2024. At June 30, 2024, the outstanding aggregate principal amount of the 2027 Notes was $110.0 million, and discount and deferred expenses in aggregate were $2.8 million. At December 31, 2023, the outstanding aggregate principal amount of the 2027 Notes was $110.0 million, and discount and deferred expenses in aggregate were $3.2 million. During the three and six months ended June 30, 2024, the Company recognized interest expense on the 2027 Notes of $2.7 million and $5.3 million, respectively, which includes $0.2 million and $0.4 million, respectively, of amortization of discount and deferred expenses. During the three and six months ended June 30, 2023, the Company recognized interest expense on the 2027 Notes of $2.7 million and $5.3 million, respectively, which includes $0.2 million and $0.4 million, respectively, of amortization of discount and deferred expenses. The effective interest rate for the 2027 Notes for the three months ended June 30, 2024 and 2023 were 9.92% and 9.98%, respectively. Rithm Credit Agreement On February 26, 2024, the Company entered into the Credit Agreement with NIC RMBS LLC, an affiliate of Rithm, as sole lender, administrative agent and collateral agent. The Credit Agreement provides, subject to certain conditions, for a delayed draw term loan facility (the “Facility”), in an aggregate amount of up to $70.0 million. The Facility matures on February 25, 2025. Outstanding loans under the Facility will accrue interest at a rate equal to 10.0% per annum. The obligations of the Company under the Credit Agreement are guaranteed by substantially all of the Company’s non-special purpose vehicle subsidiaries (the “Subsidiary Guarantors”) and are secured by a first-priority lien on substantially all of the assets of the Company and the Subsidiary Guarantors. The Credit Agreement contains customary conditions, representations and warranties, affirmative and negative covenants and events of default. As of June 30, 2024, the balance on the Credit Agreement was zero and the draw period has expired. The following table summarizes the Company's long term maturities ($ in thousands): Year Debt instrument As of June 30, 2024 2024 $ — 2025 $ — 2026 $ — 2027 2027 Notes (Unsecured Notes) $ 110,000 2028 $ — |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions A party is considered to be related to the Company if the party, directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners, management and directors, as well as members of their immediate families or any other parties with which the Company may deal if one party to a transaction controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. Loan Agreements During November 2023, the Company renewed a promissory note with Gregory (see Servicing Agreements below) under which Gregory can borrow up to $12.0 million, secured by real property owned by a subsidiary of securitization trusts. Interest on the arrangement accrues at SOFR plus 300 basis points annually. At June 30, 2024 and December 31, 2023, the amount outstanding on the note and interest was zero and $9.3 million, respectively. Also during November 2023, the Company renewed a promissory note with Gregory under which Gregory can borrow up to $3.5 million secured by equity in servicing advances owned by Gregory, which are first in priority for reimbursement from loan payments. Interest on the arrangement accrues at SOFR plus 300 basis points. The note was originally executed on December 9, 2021 and was secured by securities held by Gregory. At June 30, 2024 and December 31, 2023, the amount outstanding on the note and interest was zero and $3.3 million, respectively. Also during November 2023, the Company renewed a promissory note with Gaea under which Gaea can borrow up to $11.0 million secured by small balance commercial real estate loans. Interest on the arrangement accrues at SOFR plus 300 basis points. The note was originally executed on December 30, 2020. At June 30, 2024 and December 31, 2023, the amount outstanding on the note and interest was $1.3 million and $7.5 million, respectively. Management Agreement Former Management Agreement The Company was a party to the Third Amended and Restated Management Agreement with the Former Manager (the "Former Management Agreement") by and between the Company and the Manager. Under the Former Management Agreement, the Manager implemented the Company’s business strategy and managed 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 provided the Company with a management team and necessary administrative and support personnel. Additionally, the Company paid directly for the internal audit function that reported directly to the Audit Committee and the Board of Directors. Under the Former Management Agreement, the Company paid a quarterly base management fee based on its stockholders' equity, including equity equivalents such as the Company's issuance of convertible senior notes. Also, under the First Amendment to the Third Amended and Restated Management Agreement with the Former Manager, which had an effective date of March 1, 2023, the Company's quarterly base management fee included, in its computation of equity managed, its unsecured debt securities to the extent the proceeds were used to repurchase the Company's preferred stock. The Company was periodically required to pay a quarterly incentive management fee based on its cash distributions to its stockholders and the change in book value, and had the option to pay up to 100% of the base and incentive fees in cash or in shares of the Company's common stock. Management fees were expensed in the quarter incurred and the portion payable in common stock, if any, was accrued at quarter end. On February 26, 2024, the Company issued a termination notice to the Manager, in connection with the Rithm transaction, and on June 11, 2024, we terminated the Former Management Agreement, entered into a termination and release agreement with the Former Manager and issued 3,174,645 shares of common stock to the Former Manager in connection with the termination. New Management Agreement On June 11, 2024, the Company entered into the Management Agreement in the form previously agreed upon with RCM GA and filed with the Company's Current Report on Form 8-K dated February 26, 2024. The Management Agreement shall be in effect until June 11, 2027 and shall be automatically renewed for a successive two-year term each anniversary date thereafter unless terminated by a party. Under the Management Agreement, RCM GA 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 RCM GA 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, the RCM GA. Under the Management Agreement, the Company pays both a base management fee and an incentive fee to the New Manager calculated and payable quarterly with respect to each calendar quarter (or partial quarter that the agreement is in effect) in arrears in cash. 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. Also, under the Management Agreement, which has an effective date of June 11, 2024, the Company's quarterly base management fee will include, in its computation of equity managed, its unsecured debt securities to the extent the proceeds were used to repurchase the Company's preferred stock. The New Manager will be entitled to the Incentive Fee, which is payable quarterly in arrears in cash in an amount equal to 20% of the dollar amount by which (i) Earnings Available for Distribution (as defined below) exceeds the product of (A) the average common book value per share (excluding fair value marks, impairments, transaction/ deal expenses and associated tax impact and such other items that in the judgment of the Company officers should be excluded) of the common stock of Ajax (“Ajax Common Stock”) during such calendar quarter and (B) 8%. Notwithstanding either of the foregoing, no Incentive Fee will be payable to the New Manager with respect to any period unless the Company’s cumulative Earnings Available for Distribution is greater than zero for the most recently completed four calendar quarters (which cumulative Earnings Available for Distribution shall be reset at the completion of every fourth quarter following the date hereof and each subsequent fourth quarter thereafter (each, a “Reset Date”) so as not to take into account prior calendar quarters), or, if less, (i) the number of completed calendar quarters since the date hereof or (ii) the number of completed calendar quarters since the last Reset Date. “Earnings Available for Distribution” is a non-GAAP financial measure and is defined as net income (loss) as determined according to GAAP, excluding tax-effected, non-cash equity compensation expense and any unrealized gains or losses from mark-to-market valuation changes (including impairments) that are included in net income for the applicable period. The amount will be adjusted to exclude on a tax-effected basis (A) one-time events pursuant to changes in GAAP, (B) transaction and deal expenses that in the opinion of the New Manager should be excluded for purposes of calculating Earnings Available for Distribution and be amortized over the life of the related investment / transaction, and (C) non-cash items (including depreciation and amortization) that in the judgment of the Company’s officers should not be included in Earnings Available for Distribution, which adjustments in clauses (A), (B) and (C) shall only be excluded after discussions between the New Manager and the Ajax Independent Directors and after approval by a majority of the Ajax Independent Directors. Book value per share of Ajax Common Stock shall be as set forth in the consolidated financial statements of the Company prepared in accordance with GAAP. The Company also reimburses the New Manager for all third party, out-of-pocket costs incurred by the New 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 New 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 New 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 New Manager in violation of investment guidelines approved by the Company’s Board of Directors), or (iv) a termination by the New 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 three times the combined base fee and incentive fees payable to the New 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 Agreements Until June 1, 2024, the Company was a party to a Servicing Agreement with the Former Servicer. The Company owned a 9.72% interest in the Former Servicer which was disposed of in the quarter ending June 30, 2024. On June 1, 2024, the Company transferred the Servicing Agreements to Newrez, an affiliate of the New Manager. The terms of the Servicing Agreements remain substantially the same. Servicing fees for mortgage loans range from 0.42% to 1.25% annually of 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 or 1.00% annually of the purchase price of any REO otherwise purchased by the Company. Newrez 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 to foreclosed property 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, for fees based on mortgage loans, and property values, previous UPB of the relevant loan, and the number of REO properties for fees based on REO properties. If any 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 applicable Servicing Agreement for the immediately preceding 12-month period. Trademark Licenses |
Stock-based Payments and Direct
Stock-based Payments and Director Fees | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Payments and Director Fees | Stock-based Payments and Director Fees Each of the Company’s independent directors received an annual retainer of $140,000, payable quarterly, 50% of which is payable in shares of the Company's common stock and 50% in cash. However, the Company has the option to pay the annual retainer with up to 100% in cash at its discretion, and pay the remainder in shares of its common stock. During the six months ended June 30, 2024, the Company's lead director of the special committee received an additional one-time payment of $15,000, paid as a lump sum, 100% of which was paid in shares of the Company's common stock. The following table sets forth the Company’s stock-based independent director fees ($ in thousands): Stock-based Director Fees For the three months ended June 30, 2024 2023 Number of shares Amount of expense recognized Number of shares Amount of expense recognized Independent director fees — $ — — $ — Totals — $ — — $ — For the six months ended June 30, 2024 2023 Number of shares Amount of expense recognized Number of shares Amount of expense recognized Independent director fees 3,080 $ 15 13,020 $ 88 3,080 $ 15 13,020 $ 88 Restricted Stock The Company may periodically issue equity or equity-based incentive awards to RCM GA, which may in turn issue incentives to the directors, managers, officers, employees of, or advisors or consultants to, RCM GA or its affiliate. The Company previously granted shares of its common stock to employees of the Former Manager and the Former Servicer. The Company granted no shares of its common stock during the three months ended June 30, 2024; however, during the six months ended June 30, 2024 the Company granted 66,421 shares of its common stock, which have vesting periods of up to one year. Comparatively, the Company granted 22,459 and 25,459 shares of its common stock to employees of the Former Manager and the Former Servicer during the three and six months ended June 30, 2023, respectively, which have vesting periods of four years. Grants of restricted stock use grant date fair value of the stock as the basis for measuring the cost of the grant. All restricted stock granted to employees of the Former Manager and the Former Servicer vested as of May 20, 2024 in connection with stockholder approval of the change in external manager. The Company may issue grants of its shares of common stock from time to time to its directors. Also, in connection with the Rithm transaction, any former Board of Director's shares that did not fully vest as of the transaction date were forfeited. The two remaining Directors that remained on the reconstituted Board of Directors remain on the same vesting terms. 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 the Former Manager and the Former Servicer as set forth in the table below: Employee and Service Provider Grants Director Grants Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Six months ended June 30, 2023 December 31, 2022 outstanding unvested share grants 310,262 $ 10.98 — $ — Shares vested (30,515) 11.56 — — Shares forfeited (5,668) 10.30 — — Shares granted 3,000 7.34 25,000 7.15 March 31, 2023 outstanding unvested share grants 277,079 $ 10.88 25,000 $ 7.15 Shares vested (9,475) 11.25 — — Shares forfeited (7,084) 11.16 — — Shares granted 22,459 6.50 — — June 30, 2023 outstanding unvested share grants 282,979 (1) $ 10.52 25,000 (2) $ 7.15 (1) Weighted average remaining life of unvested shares for employee and service provider grants at June 30, 2023 is 2.0 years. (2) Weighted average remaining life of unvested shares for director grants at June 30, 2023 is 1.7 years. Employee and Service Provider Grants Director Grants Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Six months ended June 30, 2024 December 31, 2023 outstanding unvested share grants 159,142 $ 10.33 25,000 $ 7.15 Shares vested (3,250) 10.74 — — Shares forfeited (2,167) 7.89 — — Shares granted 66,421 3.59 — — March 31, 2024 outstanding unvested share grants 220,146 $ 8.29 25,000 $ 7.15 Shares vested (210,093) 9.40 (12,500) 7.15 Shares forfeited (10,053) 8.79 (7,500) 7.15 Shares granted — — — — June 30, 2024 outstanding unvested share grants — $ — 5,000 (1) $ 7.15 (1) Weighted average remaining life of unvested shares for employee and service provider grants at June 30, 2024 is 0.7 years. The following table presents the expenses for the Company's equity incentive plans ($ in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Restricted stock grants $ 1,156 $ 284 $ 1,409 $ 801 Director grants 18 7 40 14 Total expenses for plan grants $ 1,174 $ 291 $ 1,449 $ 815 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
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, which are subject to U.S. federal, state and local income taxes on their taxable income. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2024 | |
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): Three months ended June 30, 2024 Three months ended June 30, 2023 Income Shares Per Share Income Shares Per Share Basic EPS Consolidated net loss attributable to common stockholders $ (12,742) 39,344,128 $ (12,034) 23,250,725 Allocation of loss to participating restricted shares 78 — 161 — Consolidated net loss attributable to unrestricted common stockholders $ (12,664) 39,344,128 $ (0.32) $ (11,873) 23,250,725 $ (0.51) Effect of dilutive securities (1,2) Restricted stock grants and Former Manager and director fee shares (3) — — (161) 314,626 Diluted EPS Consolidated net loss attributable to common stockholders and dilutive securities $ (12,664) 39,344,128 $ (0.32) $ (12,034) 23,565,351 $ (0.51) (1) The Company's outstanding warrants for an additional 1,950,672 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 three months ended June 30, 2023 and has not been included in the calculation. (2) The effect of interest expense and assumed conversion of shares from convertible notes on the Company's diluted EPS calculation for the three months ended June 30, 2024 and 2023 would have been anti-dilutive and have been removed from the calculation. (3) The effect of restricted stock grants and manager and director fee shares on the Company's diluted EPS calculation for the three months ended June 30, 2024 would have been anti-dilutive and have been removed from the calculation. Six months ended June 30, 2024 Six months ended June 30, 2023 Income Shares Per Share Income Shares Per Share Basic EPS Consolidated net loss attributable to common stockholders $ (87,061) 35,021,845 $ (19,975) 23,087,717 Allocation of loss to participating restricted shares 452 — 272 — Consolidated net loss attributable to unrestricted common stockholders $ (86,609) 35,021,845 $ (2.47) $ (19,703) 23,087,717 $ (0.85) Effect of dilutive securities (1,2) Restricted stock grants and Former Manager and director fee shares (3) — — — — Diluted EPS Consolidated net loss attributable to common stockholders and dilutive securities $ (86,609) 35,021,845 $ (2.47) $ (19,703) 23,087,717 $ (0.85) (1) The Company's warrants, which were partially outstanding for the six months ended June 30, 2024 and outstanding for the entire six months ended June 30, 2023, for an additional 1,950,672 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 six months ended June 30, 2024 and 2023 and have not been included in the calculation. (2) The effect of interest expense and assumed conversion of shares from convertible notes on the Company's diluted EPS calculation for the six months ended June 30, 2024 and 2023 would have been anti-dilutive and have been removed from the calculation. (3) The effect of restricted stock grants and manager and director fee shares on the Company's diluted EPS calculation for the six months ended June 30, 2023 would have been anti-dilutive and have been removed from the calculation. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Equity | Equity Common Stock As of June 30, 2024 and December 31, 2023, the Company had 45,605,549 and 27,460,161 shares, respectively, of $0.01 par value common stock outstanding with 125,000,000 shares authorized at each period end. During the quarter ended June 30, 2024, the Company issued 8,631,083 shares in the following transaction: 1. 2,874,744 shares of common stock to Rithm at a purchase price of $4.87 per share, for aggregate proceeds of approximately $14.0 million. 2. 3,174,645 shares of common stock to the Former Manager in connection with the termination of the Former Management Agreement. 3. 2,581,694 shares of common stock to preferred shareholders in connection with the settlement of the common stock payable liability related to the exchange of preferred shares for common stock. Preferred Stock The Company issued shares of preferred stock which were issued to institutional accredited investors in a series of private placements during the year ended December 31, 2020. 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. The shares had a liquidation preference of $25.00 per share. During the year ended December 31, 2022, the Company repurchased and retired 1,882,451 shares of its series A preferred stock and 1,757,010 shares of its series B preferred stock in a series of repurchase transactions. The series A and series B preferred stock were repurchased for an aggregate of $88.7 million at an average price of $24.37 per share, representing a discount of approximately 2.5% to the face value of $25.00 per share. The repurchase of the preferred stock caused the recognition of $8.2 million of preferred stock discount during the year ended December 31, 2022. There were no repurchases of preferred stock in the three and six months ended June 30, 2024 and 2023. During the six months ended June 30, 2024, the Company exchanged the remaining 424,949 shares of its outstanding 7.25% Series A Fixed-to-Floating Rate Preferred Stock and 1,135,590 shares of its outstanding 5.00% Series B Fixed-to-Floating Rate Preferred Stock and the associated warrants for newly issued shares of its common stock. A total of 12,046,218 common shares were issued pursuant to the exchange with 9,464,524 shares of common stock exchanged during the quarter ended March 31, 2024 and 2,581,694 shares of common stock exchanged subsequent to the approval of the Company's shareholders on May 20, 2024. No preferred stock or warrants were exchanged during the three and six months ended June 30, 2023. At June 30, 2024 and December 31, 2023, the Company had zero and 424,949 shares of Series A preferred stock and zero and 1,135,590 shares of Series B preferred stock outstanding, respectively. There were 25,000,000 shares, cumulative for all series, authorized as of both June 30, 2024 and December 31, 2023. 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 depends 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 both June 30, 2024 and December 31, 2023, the Company held 1,035,785 shares of treasury stock consisting of 148,834 shares received through distributions of the Company's shares previously held by the Former Manager, 361,912 shares received through Gregory and 525,039 shares acquired through open market purchases. 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. The Company issued no shares under the plan during the three and six months ended June 30, 2024 and 2023. At the Market Offering The Company has entered into an equity distribution agreement under which the Company may sell shares of its common stock having 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 three and six months ended June 30, 2024, no shares were sold under the At the Market program. Comparatively, during the three and six months ended June 30, 2023, 94,012 and 439,590 shares were sold, respectively, under the At the Market program for total net proceeds of approximately $0.5 million and $3.0 million, respectively. Accumulated Other Comprehensive Loss The Company recognizes unrealized gains or losses on its investment in debt securities AFS as components of other comprehensive loss. Additionally, other comprehensive loss includes unrealized gains or losses associated with the transfer of the Company's investment in debt securities from AFS to HTM. These amounts are subsequently amortized from other comprehensive loss into earnings over the same period as the related unamortized discount. Total accumulated other comprehensive loss on the Company’s balance sheet at June 30, 2024 and December 31, 2023 was as follows ($ in thousands): Investments in securities: June 30, 2024 December 31, 2023 Unrealized gains on debt securities available-for-sale $ 275 $ 637 Unrealized losses on debt securities available-for-sale (9,746) (8,675) Unrealized losses on debt securities available-for-sale transferred to held-to-maturity (4,424) (5,989) Accumulated other comprehensive loss $ (13,895) $ (14,027) Non-controlling Interest At June 30, 2024 the Company had non-controlling interests attributable to ownership interest for two legal entities and at December 31, 2023, the Company had non-controlling interests attributable to ownership interests for three legal entities. At June 30, 2024 and December 31, 2023, the Company's ownership interest is approximately zero and 53.1% of AS Ajax E II, respectively, and it previously consolidated the assets, liabilities, revenues and expenses of the entity. At both June 30, 2024 and December 31, 2023, the Company's ownership interest is approximately 50.0% of 2017-D and it consolidates the assets, liabilities, revenues and expenses of the trust. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 23, 2024, the Company’s Board of Directors declared a cash dividend of $0.06 per share to be paid on August 30, 2024, to stockholders of record as of August 15, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (12,742) | $ (11,486) | $ (86,720) | $ (18,880) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | The consolidated interim financial statements should be read in conjunction with the Company's consolidated financial statements and the notes thereto for the year ended December 31, 2023, included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on February 28, 2024. Interim financial statements are unaudited and prepared in accordance with U.S. GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X. In the opinion of management, all adjustments, consisting solely of normal recurring accruals considered necessary for the fair presentation of consolidated financial statements for the interim period presented, have been included. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending December 31, 2024. The consolidated interim financial statements have been prepared in accordance with 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 interim financial statements. |
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 typically 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. 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 risks 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 unpaid principal balance (“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. Expected cash flows from acquired loans include all cash flows directly related to the 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 as compared to contractual amounts due, 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. Additionally, slower than expected prepayments can result in lower yields as the Company's mortgage loans were acquired at discounts. 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. |
Non-PCD Loans | Non-PCD Loans While the Company generally acquires loans that have experienced deterioration in credit quality, from time to time, it may acquire loans that have not experienced a deterioration in credit quality or originate 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. Non-performing collateral dependent loans are carried at net realizable value of collateral. Mortgage Loans Held-for-sale |
Investments in Securities | Investments in Securities The Company’s Investments in Securities Available-for-Sale ("AFS") and Investments in Securities Held-to-Maturity ("HTM") consist of investments in senior and subordinated notes issued by joint ventures which the Company forms with third party institutional accredited investors. Investments in debt securities for which the Company does not have the positive intent and ability to hold to maturity are classified as AFS. Investments in debt securities for which the Company has the positive intent, ability, or is required to hold to maturity are classified as HTM. The Company recognizes income on the AFS debt securities using the effective interest method. Historically, the notes have been classified as AFS and are carried at fair value with changes in fair value reflected in the Company's consolidated statements of comprehensive loss. The Company marks its investments to fair value using prices received from its financing counterparties and third-party pricing vendors 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 operations. On January 1, 2023, the Company transferred a carrying value of $83.0 million of investment securities from AFS to HTM due to sale restrictions pursuant to Article 6(1) of Regulation (EU) 2017/2402 of the European Parliament and of the Council (as amended, the “EU Securitization Regulation” and, together with applicable regulatory and implementing technical standards in relation thereto, the “EU Securitization Rules”). Pursuant to the terms of these debt securities, the Company must hold at least 5.01% of the nominal value of each class of securities offered or sold to investors (the EU Retained Interest) subject to the EU Securitization Rules. Under the EU Securitization Rules, the Company is prohibited from selling, transferring or otherwise surrendering all or part of the EU Retained Interest until all such classes are paid in full or redeemed. Transfers of securities from AFS to HTM are non-cash transactions and are recorded at fair value. Unrealized gains or losses recorded to accumulated other comprehensive loss for the transferred securities continue to be reported in accumulated other comprehensive loss and are amortized into interest income on a level-yield basis over the remaining life of the securities. This amortization will offset the effect on interest income of the amortization of the discount resulting from the transfer recorded at fair value. The Company accounts for its investments in securities HTM under CECL and carries them at amortized cost. Interest income is recognized using the effective interest method and is based upon the Company having a reasonable expectation of the amount and timing of the cash flows expected to be collected. The Company’s expectation of the amount of undiscounted cash flows to be collected, and the corresponding need for an allowance for credit loss, is evaluated at the end of each calendar quarter and takes into consideration past events, current conditions, and supportable forecasts about the future. The net present value of changes in expected cash flows as compared to contractual amounts due, whether caused by timing or investment performance, is reported in the period in which it arises and is reflected as an increase or decrease in the allowance for credit loss to the extent an allowance for credit loss is recorded against the investments. If no allowance for credit loss is recorded against the investment, the increase in expected future cash flows is recognized prospectively as an increase in yield. |
Investments in Beneficial Interests | Investments in Beneficial Interests The Company’s Investments in Beneficial Interests consist of the residual investment in the securitization trusts which the Company forms with third party institutional accredited investors. The Company accounts for its Investments in Beneficial Interests under CECL, which it adopted using the prospective transition approach. Each beneficial interest is accounted for individually, and the Company recognizes its ratable share of gain, loss, income or expense based on its percentage ownership interest. The Company's Investments in Beneficial Interests are carried at amortized cost. Upon acquisition, the investments are recorded as three separate elements: (i) the amount of purchase discount which the Company expects to recover through eventual repayment of the investment, (ii) an allowance for future expected credit loss and (iii) the par value of the investment. The purchase discount which the Company expects to recover through eventual repayment of the investment gives rise to an accretable yield. The Company recognizes this accretable yield as interest income on a prospective level yield basis over the life of the investment. The Company’s recognition of interest income 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 these expected cash flows to apply the effective interest method of income recognition. 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 as compared to contractual amounts due, whether caused by timing or investment performance, is reported in the period in which it arises and is reflected as an increase or decrease in the allowance for expected credit losses to the extent a provision for expected credit losses is recorded against the investment. If no provision for expected credit losses is recorded against the investment, the increase in expected future cash flows is recognized prospectively as an increase in yield. |
Real Estate | Real Estate The Company generally acquires real estate properties through one of three instances, either directly through purchases, when it forecloses on a borrower and takes title to the underlying property, or when 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. |
Preferred Stock | Preferred Stock During the year ended December 31, 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. The shares had a liquidation preference of $25.00 per share. During the year ended December 31, 2022, the Company completed a series of preferred share repurchases. The Company repurchased and retired 1,882,451 shares of its 7.25% Series A Fixed-to-Floating Rate Preferred Stock and 1,757,010 shares of its 5.00% Series B Fixed-to-Floating Rate Preferred Stock. During the six months ended June 30, 2024, the Company exchanged the remaining 424,949 shares of its outstanding 7.25% Series A Fixed-to-Floating Rate Preferred Stock and 1,135,590 shares of its outstanding 5.00% Series B Fixed-to-Floating Rate Preferred Stock and the associated warrants for newly issued shares of its common stock. Of the 12,046,218 shares, 9,464,524 shares of its common stock were issued during the three months ended March 31, 2024 and the remaining 2,581,694 shares of its common stock were issued during the three months ended June 30, 2024 following the approval of the Company's stockholders on May 20, 2024. |
Warrants | Warrants As part of the Company’s capital raise transactions during the three months 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. The warrants included 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 warrants as if the put option will be exercised by the holders. The warrants were recorded as a liability on the Company's consolidated balance sheets with an original basis of $9.5 million. Because the warrants have been substantially out of the money since issuance, the Company assumed the put option would be exercised and accreted the liability to the initial redemption value. During the year ended December 31, 2022, the Company repurchased and retired a portion of its warrants. The remaining warrants continued to accrete to their redemption value in July 2023. During the six months ended June 30, 2024, the Company entered into exchange agreements with the current holders of the remaining outstanding warrants, pursuant to which the Company acquired all of the remaining outstanding warrants in exchange for its common shares. Pursuant to the Credit Agreement, the Company issued to Rithm five-year warrants that may be exercised for common stock of the Company at an exercise price of $5.36 per share (the "Rithm Warrants"). The Company recorded the warrants at fair value on the transaction date with an offset to deferred issuance costs. The warrants will be accounted for as a liability at fair value with any changes in fair value recorded in earnings. The deferred issuance costs will be amortized over the 125 days draw period as an expense and fully expensed at June 30, 2024. On May 20, 2024, the warrants were reclassified to equity at fair value of $0.9 million. |
Secured Borrowings | Secured Borrowings The Company, through securitization trusts which are VIEs, issues callable debt secured by its mortgage loans in the ordinary course of business. The secured borrowings facilitated by the trusts are structured as debt financings, and the mortgage loans used as collateral remain on the Company’s consolidated balance sheet as the Company is the primary beneficiary of the securitization trusts. These secured borrowing VIEs are structured as pass through entities that receive principal and interest on the underlying mortgages and distribute those payments to the holders of the notes. The Company’s exposure to the obligations of the VIEs is generally limited to its investments in the entities; the creditors do not have recourse to the primary beneficiary. Coupon interest expense on the debt is recognized using the accrual method of accounting. Deferred issuance costs, including original issue discount and debt issuance costs, are carried on the Company’s consolidated balance sheets as a deduction from Secured borrowings, and are amortized to interest expense on an effective yield basis based on the underlying cash flow of the mortgage loans serving as collateral. The Company's unrated securitizations have a call provision and the Company assumes the debt will be called at the specified call date for purposes of amortizing discount and issuance costs because the Company believes it will have the intent and ability to call the debt on the call date. Changes in the actual or projected underlying cash flows are reflected in the timing and amount of deferred issuance cost amortization. See Note 8 — Commitments and Contingencies. |
Repurchase Facilities | Repurchase Facilities The Company enters into repurchase financing facilities under which it nominally sells assets to a counterparty and simultaneously enters into an agreement to repurchase the sold assets at a price equal to the sold amount plus an interest factor. Despite being legally structured as sales and subsequent repurchases, repurchase transactions are generally accounted for as 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 its convertible senior notes due 2024 (the "2024 Notes"). At June 30, 2024 and December 31, 2023, the UPB of the debt was zero and $103.5 million, respectively. The 2024 Notes had an interest at a rate of 7.25% per annum and were payable quarterly in arrears on January 15, April 15, July 15 and October 15 of each year. Coupon interest on the 2024 Notes was recognized using the accrual method of accounting. Discount and deferred issuance costs were carried on the Company’s consolidated balance sheets as a reduction of the carrying value of the 2024 Notes, and were amortized to interest expense on an effective yield basis. The 2024 Notes matured on April 30, 2024 and the Company redeemed the notes in full for an aggregate amount of $103.5 million and 15 days of accrued interest. |
Notes Payable | Notes Payable |
Management Fee and Expense Reimbursement | Management Fee and Expense Reimbursement On June 11, 2024, the Company entered into a Management Agreement with RCM GA in the form previously agreed upon with RCM GA and filed with the Company's Current Report on Form 8-K dated February 26, 2024. The Management Agreement, which has an effective date of June 11, 2024, shall be in effect until June 11, 2027 and shall be automatically renewed for a successive two-year term each anniversary date thereafter unless terminated by a party. Under the Management Agreement, RCM GA 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, RCM GA 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. Under the Management Agreement, the Company pays both a base management fee and an incentive fee to the New Manager calculated and payable quarterly with respect to each calendar quarter (or partial quarter that the agreement is in effect) in arrears in cash. 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. Also, under the Management Agreement, the Company's quarterly base management fee will include, in its computation of equity managed, its unsecured debt securities to the extent the proceeds were used to repurchase the Company's preferred stock. The New Manager will be entitled to the Incentive Fee, which is payable quarterly in arrears in cash in an amount equal to 20% of the dollar amount by which (i) Earnings Available for Distribution (as defined below) exceeds the product of (A) the average common book value per share (excluding fair value marks, impairments, transaction/deal expenses and associated tax impact and such other items that in the judgment of the Company officers should be excluded) of the common stock of Ajax (“Ajax Common Stock”) during such calendar quarter and (B) 8%. Notwithstanding either of the foregoing, no Incentive Fee will be payable to the New Manager with respect to any period unless the Company’s cumulative Earnings Available for Distribution is greater than zero for the most recently completed four calendar quarters (which cumulative Earnings Available for Distribution shall be reset at the completion of every fourth quarter following the date hereof and each subsequent fourth quarter thereafter (each, a “Reset Date”) so as not to take into account prior calendar quarters), or, if less, (i) the number of completed calendar quarters since the date hereof or (ii) the number of completed calendar quarters since the last Reset Date. “Earnings Available for Distribution” is a non-GAAP financial measure and is defined as net income (loss) as determined according to GAAP, excluding tax-effected, non-cash equity compensation expense and any unrealized gains or losses from mark-to-market valuation changes (including impairments) that are included in net income for the applicable period. The amount will be adjusted to exclude on a tax-effected basis (A) one-time events pursuant to changes in GAAP, (B) transaction and deal expenses that in the opinion of the Manager should be excluded for purposes of calculating Earnings Available for Distribution and be amortized over the life of the related investment / transaction, and (C) non-cash items (including depreciation and amortization) that in the judgment of the Company’s officers should not be included in Earnings Available for Distribution, which adjustments in clauses (A), (B) and (C) shall only be excluded after discussions between the Manager and the Ajax Independent Directors and after approval by a majority of the Ajax Independent Directors. Book value per share of Ajax Common Stock shall be as set forth in the consolidated financial statements of the Company prepared in accordance with GAAP. |
Servicing Fees | Servicing Fees |
Stock-based Payments and Directors' Fees | Stock-based Payments and Directors’ Fees 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 35,000 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. Stock-based expense for the directors’ annual fee and the committee chairperson’s annual fee is expensed as earned, in equal quarterly amounts during the year, and accrued at quarter end. Each of the Company’s independent directors receives an annual retainer of $140,000, payable quarterly in shares of the Company's common stock and/or in cash at the directors discretion. The committee chairpersons also receive annual fees for their services. The chairpersons of the Compensation and Corporate Governance committees each received an annual retainer of $15,000, payable quarterly, 100% in cash. The chairperson of the Audit committee received an annual fee of $20,000, payable quarterly, 100% in cash. During the second quarter of 2023, the Board approved the appointment of a lead director and an additional payment to the lead director of $20,000 per year, payable quarterly, 100% in cash. Also, during the second quarter of 2023, due to conflicts of interests by certain Board members, the Board established a special committee, comprised solely of independent directors (the "Special Committee") to evaluate and review the merger agreement with Ellington Financial (the "Merger Agreement"), the Merger and the other transactions contemplated by the Merger Agreement, as well as other strategic opportunities. The directors on the Special Committee received a one-time cash payment of $20,000, except for the lead director who received a one-time cash payment of $30,000 and a one-time stock payment of $15,000, paid in the shares of the Company's common stock. The expense related to directors’ fees is accrued, and the portion payable in common stock is accrued in the period in which it is incurred. Under the Company's 2016 Equity Incentive Plan (the “2016 Plan”) the Company may make stock-based awards 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 any outstanding 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. Share grants vest over the relevant service periods. The grant shares may not be sold by the recipient until the end of the service period, even if certain of the shares were subject to a ratable vesting and were fully vested before completion of the service period. In connection with the Rithm transaction, on March 25, 2024, the Company’s Board of Directors approved an amendment to the 2016 Plan that would permit the issuance of equity or equity-based incentive awards to RCM GA, which may in turn issue incentives to the directors, managers, officers, employees of, or advisors or consultants to, RCM GA or its affiliates. The Amendment was approved by the Company’s stockholders on May 20, 2024. |
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. |
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 Former 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 values from the Company's financing counterparties and its Manager. The Company relies on the Manager's proprietary pricing model to estimate the underlying cash flows expected to be collected on the loans as a comparison to the estimates received from financing counterparties. The fair value of investments in debt securities AFS and HTM are determined using estimates provided by the Company's financing counterparties and third party pricing vendors which are then reviewed to ensure the resulting yield is comparable to market yields for similar securities. The fair value of investments in beneficial interests represent the residual investment in securitization trusts the Company forms with joint venture partners. The Company relies on pricing from third party pricing vendors and its financing counterparties. The fair value of the Company's ownership interest in the Former Manager has historically been valued by applying an earnings multiple to base fee revenue, however, beginning the quarter ending September 30, 2023, the Company valued the Former Manager in an amount equal to the termination payment required to terminate the Former Manager plus the fair value of the Former Manager's assets. The Company expects to receive a liquidating distribution in the Former Manager in the fourth quarter of 2024. Previously, the fair value of the Company's ownership interest in AS Ajax E LLC was historically valued using publicly available information. The Company received a liquidating distribution from AS Ajax E LLC in June 2024 and its remaining investment at June 30, 2024 is zero. The fair value of the Company's ownership interest in GAFS, including warrants, was historically determined by applying an earnings multiple to expected earnings. In June 2024, the Company divested of its investment in GAFS. The fair value of the Company's ownership interest in Gaea is estimated using an implied capitalization rate applied to the value of the underlying properties and the Manager's propriety pricing model for loans. For properties under contract or listed for sale, the contract or listing price is used, respectively. 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 proprietary pricing model. The fair value of secured borrowings is estimated using prices provided by the Company's financing counterparties and third party pricing vendors; which are then reviewed to ensure the resulting yield is comparable to market yields for similar securities. Historically, the fair value of the Company's 2020 warrant liability was adjusted to approximate market value through earnings. The warrant liability was a fixed amount that may have been settled in cash or shares of the Company’s common stock at the option of the Company. Fair value was determined using the discounted cash flow method using a rate to accrete the initial basis, adjusted for subsequent repurchases, to the future warrant liability over the 39-month term. The Company's 2020 warrant liability was settled for shares of the Company's common stock in February 2024. The fair value of the Rithm Warrants is determined using a Black Scholes model. The Rithm Warrants were initially recorded as a liability marked to fair value through earnings using the Black Scholes approach. On May 20, 2024, the warrants were reclassified to equity due to changes in redemption features due to shareholder approval of the transaction at the annual meeting of shareholders. The Company’s borrowings under its repurchase agreements are short-term in nature, and the New 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 2024 Notes were publicly traded on the NYSE under the ticker symbol "AJXA"; the debt’s fair value was determined from the closing price on the balance sheet date. The 2024 Notes were redeemed in full on April 30, 2024. The 2027 Notes payable fair value is determined using estimates provided by third party valuation services using observed transactions for similar financing arrangements. The 2027 Notes will mature on September 1, 2027, unless earlier repurchased or redeemed. The fair value of property held-for-sale is determined using 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, 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 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. |
Estimates | Estimates 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. |
Reclassifications | Reclassifications |
Segment Information | Segment Information |
Mortgage Loans (Tables)
Mortgage Loans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Mortgage Loans [Abstract] | |
Schedule Of Loan Portfolio Basis By Asset Type | The following table presents information regarding the carrying value for the Company's RPLs, NPLs and SBC loans as of June 30, 2024 and December 31, 2023 ($ in thousands): June 30, 2024 December 31, 2023 Loan portfolio basis by asset type Mortgage loans held-for-investment, net Mortgage loans held-for-sale, net Mortgage loans held-for-investment, net Mortgage loans held-for-sale, net Residential RPLs $ 411,012 $ 92,296 $ 787,700 $ 34,359 Residential NPLs 2,904 12,757 71,075 20,894 SBC loans — 3,815 5,776 465 Total $ 413,916 $ 108,868 $ 864,551 $ 55,718 |
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): June 30, 2024 Mortgage loans held-for-investment, net 2024 2023 2022 2021 2020 2019 2009-2018 2006-2008 2005 and prior Total Great Ajax II REIT - 7f7 >50 $ — $ — $ — $ — $ 725 $ 752 $ 34,599 $ 238,076 $ 81,924 $ 356,076 Great Ajax II REIT - 7f7 <50 — — — — — 71 2,650 22,205 6,418 31,344 Great Ajax II REIT - 6f6 and below — — — — — — 4,929 15,933 5,634 26,496 Total $ — $ — $ — $ — $ 725 $ 823 $ 42,178 $ 276,214 $ 93,976 $ 413,916 December 31, 2023 Mortgage loans held-for-investment, net 2023 2022 2021 2020 2019 2018 2009-2017 2006-2008 2005 and prior Total GAOP - 7f7 >50 $ — $ 2,473 $ 2,597 $ 1,370 $ 6,598 $ 658 $ 30,891 $ 190,106 $ 79,110 $ 313,803 GAOP - 7f7 <50 — 546 137 — 215 — 2,356 27,368 6,530 37,152 GAOP - 6f6 and below — 591 1,415 — 737 1,134 13,343 55,452 14,642 87,314 Great Ajax II REIT - 7f7 >50 — — — 730 764 795 34,864 243,034 84,634 364,821 Great Ajax II REIT - 7f7 <50 — — — — 71 14 2,658 22,360 6,508 31,611 Great Ajax II REIT - 6f6 and below — — — — — — 5,326 17,772 6,752 29,850 Total $ — $ 3,610 $ 4,149 $ 2,100 $ 8,385 $ 2,601 $ 89,438 $ 556,092 $ 198,176 $ 864,551 |
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 three and six months ended June 30, 2024 and 2023 ($ in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Par $ — $ 16,312 $ — $ 17,140 Discount — (2,609) — (2,800) Increase in allowance — (219) — (252) Purchase Price $ — $ 13,484 $ — $ 14,088 |
Allowance for credit losses on mortgage loans | An analysis of the balance in the allowance for expected credit losses on loans account follows ($ in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Allowance for expected credit losses, beginning of period $ (403) $ (4,338) $ (3,426) $ (6,107) Reclassification to/(from) non-credit discount from/(to) the allowance for changes in payment timing expectations — (4,224) 310 (2,999) Increase in allowance for expected credit losses for loan acquisitions during the period — (219) — (252) Credit loss expense on mortgage loans (10) (70) (53) (114) Net change in the allowance for credit losses — 2,866 (1,112) 3,487 Reversal of allowance upon reclass of mortgage loans held-for-sale, net 413 — 4,281 — Allowance for expected credit losses, end of period $ — $ (5,985) $ — $ (5,985) |
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 June 30, 2024 and December 31, 2023 ($ in thousands): June 30, 2024 Mortgage loans held-for-investment, net Current 30 60 90 Foreclosure Total Great Ajax II REIT - 7f7 >50 $ 287,327 $ 43,191 $ 8,366 $ 16,455 $ 737 $ 356,076 Great Ajax II REIT - 7f7 <50 24,997 3,558 443 2,346 — 31,344 Great Ajax II REIT - 6f6 and below 4,226 3,483 3,239 8,836 6,712 26,496 Total $ 316,550 $ 50,232 $ 12,048 $ 27,637 $ 7,449 $ 413,916 June 30, 2024 Mortgage loans held-for-sale, net Current 30 60 90 Foreclosure Total Held-for-sale $ 33,232 $ 20,148 $ 20,466 $ 27,954 $ 7,068 $ 108,868 Total $ 33,232 $ 20,148 $ 20,466 $ 27,954 $ 7,068 $ 108,868 December 31, 2023 Mortgage loans held-for-investment, net Current 30 60 90 Foreclosure Total GAOP - 7f7 >50 $ 199,229 $ 49,868 $ 283 $ 63,498 $ 925 $ 313,803 GAOP - 7f7 <50 20,514 7,516 78 9,044 — 37,152 GAOP - 6f6 and below 8,565 6,906 421 45,058 26,364 87,314 Great Ajax II REIT - 7f7 >50 300,506 36,277 801 26,600 637 364,821 Great Ajax II REIT - 7f7 <50 25,592 3,846 42 2,131 — 31,611 Great Ajax II REIT - 6f6 and below 4,374 2,144 — 14,788 8,544 29,850 Total $ 558,780 $ 106,557 $ 1,625 $ 161,119 $ 36,470 $ 864,551 December 31, 2023 Mortgage loans held-for-sale, net Current 30 60 90 Foreclosure Total Held-for-sale $ 1,284 $ 592 $ — $ 26,243 $ 27,599 $ 55,718 Total $ 1,284 $ 592 $ — $ 26,243 $ 27,599 $ 55,718 |
Real Estate Assets, Net (Tables
Real Estate Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Real Estate [Abstract] | |
Schedule Of Activity In The Company's Carrying Value Held-for-sale | The following table presents the activity in the Company’s carrying value of property held-for-sale for the three and six months ended June 30, 2024 and 2023 ($ in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Property Held-for-Sale Count Amount Count Amount Count Amount Count Amount Balance at beginning of period 24 $ 5,191 32 $ 5,092 20 $ 3,785 39 $ 6,333 Net transfers from mortgage loans 1 26 3 178 7 2,041 1 9 Adjustments to record at lower of cost or fair value — (120) — (685) — (516) — (796) Disposals (3) (788) (7) (840) (5) (1,001) (12) (1,801) Balance at end of period 22 $ 4,309 28 $ 3,745 22 $ 4,309 28 $ 3,745 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule Of Investments In Debt Securities And Beneficial Interests | The following table presents information regarding the Company's investments in debt securities and investments in beneficial interests ($ in thousands): As of June 30, 2024 Basis (1) Gross unrealized gains Gross unrealized losses Fair value Debt securities available-for-sale, at fair value $ 150,085 $ 275 $ (9,746) $ 140,614 Debt securities held-to-maturity at amortized cost, net of allowance for credit losses of zero 48,050 25 (1,482) 46,593 Investment in beneficial interests at amortized cost, net of allowance for credit losses of $9,082 88,269 3,876 (20,588) 71,557 Total investments $ 286,404 $ 4,176 $ (31,816) $ 258,764 (1) Basis amount is net of amortized discount, principal paydowns and interest receivable on securities AFS and HTM of $78 thousand and $17 thousand, respectively. As of December 31, 2023 Basis (1) Gross unrealized gains Gross unrealized losses Fair value Debt securities available-for-sale, at fair value $ 139,596 $ 637 $ (8,675) $ 131,558 Debt securities held-to-maturity at amortized cost, net of allowance for credit losses of zero 59,691 111 (629) 59,173 Investment in beneficial interests at amortized cost, net of allowance for credit losses of $6,880 104,162 3,631 (26,477) 81,316 Total investments $ 303,449 $ 4,379 $ (35,781) $ 272,047 (1) Basis amount is net of amortized discount, principal paydowns and interest receivable on securities AFS and HTM of $87 thousand and $24 thousand, respectively. |
Schedule Of Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | The following table presents a breakdown of the Company's gross unrealized losses on its investments in debt securities AFS ($ in thousands): As of June 30, 2024 Step-up date(s) (1) Basis (2) Gross unrealized losses Fair value Debt securities due February 2028 (3) February 2026 $ 4,814 $ (14) $ 4,800 Debt securities due November 2051 (4) March 2025 3,766 (106) 3,660 Debt securities due March 2060 (4) February 2025 5,583 (365) 5,218 Debt securities due December 2060 (4) July 2029 20,893 (5,074) 15,819 Debt securities due January 2061 (4) September 2024 4,886 (551) 4,335 Debt securities due June 2061 (5) January 2025/February 2025 12,655 (1,071) 11,584 Debt securities due October 2061 (4) April 2029 11,448 (1,048) 10,400 Debt securities due March 2062 (4) May 2029 9,842 (741) 9,101 Debt securities due July 2062 (3) February 2030 12,390 (776) 11,614 Total $ 86,277 $ (9,746) $ 76,531 (1) Step-up date is the date at which the coupon interest rate on the security increases. (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 security has been in an unrealized loss position for 12 months or longer. (5) This line is comprised of two securities that are both due June 2061. Both securities have a balance of $0.5 million and have been in an unrealized loss position for 12 months or longer. As of December 31, 2023 Step-up date(s) (1) Basis (2) Gross unrealized losses Fair value Debt securities due February 2028 (4) February 2026 $ 4,717 $ (6) $ 4,711 Debt securities due November 2051 (4) March 2025 3,764 (215) 3,549 Debt securities due March 2060 (4) February 2025 5,805 (678) 5,127 Debt securities due December 2060 (4) July 2029 21,411 (4,242) 17,169 Debt securities due January 2061 (4) September 2024 4,886 (478) 4,408 Debt securities due June 2061 (5) January 2025/February 2025 12,992 (1,243) 11,749 Debt securities due October 2061 (4) April 2029 11,815 (842) 10,973 Debt securities due March 2062 (4) May 2029 10,315 (793) 9,522 Debt securities due July 2062 (3) February 2030 12,668 (41) 12,627 Debt securities due October 2062 (3) October 2026 17,174 (137) 17,037 Total $ 105,547 $ (8,675) $ 96,872 (1) Step-up date is the date at which the coupon interest rate on the security increases. (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 security has been in an unrealized loss position for 12 months or longer. (5) This line is comprised of two securities that are both due June 2061. One security with a balance of $0.3 million has been in an unrealized loss position for 12 months or longer and has a step-up date in January 2025, and the other security of $0.9 million has been in a loss position for 12 months or longer and has a step-up date in February 2025. |
Schedule Of Securities Acquisition Reconciliation Between Purchase Price And Par Value | The following table presents a reconciliation between the purchase price and par value for the Company's beneficial interests acquisitions for the three and six months ended June 30, 2024 and 2023 ($ in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Par $ — $ — $ — $ 2,051 Premium — — — 963 Purchase Price $ — $ — $ — $ 3,014 |
Schedule Of 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): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Allowance for expected credit losses, beginning balance $ (9,082) $ — $ (6,880) $ — Reclassification to non-credit discount from the allowance for changes in payment expectations — — 916 — Net change in the allowance for credit losses — — (3,118) — Allowance for expected credit losses, ending balance $ (9,082) $ — $ (9,082) $ — |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023 ($ in thousands): Level 1 Level 2 Level 3 June 30, 2024 Carrying value Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Recurring financial assets Investment in debt securities available-for-sale $ 140,614 $ — $ 140,614 $ — Recurring financial liabilities Warrant liability $ — $ — $ — $ — Level 1 Level 2 Level 3 December 31, 2023 Carrying value Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Recurring financial assets Investment in debt securities available-for-sale $ 131,558 $ — $ 131,558 $ — Recurring financial liabilities Warrant liability $ 16,644 $ — $ — $ 16,644 |
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 June 30, 2024 and December 31, 2023 ($ in thousands): Level 1 Level 2 Level 3 June 30, 2024 Carrying value Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Financial assets Mortgage loans held-for-investment, net $ 413,916 $ — $ — $ 367,023 Mortgage loans held-for-sale, net $ 108,868 $ — $ — $ 108,868 Investment in debt securities held-to-maturity $ 48,050 $ — $ 46,593 $ — Investment in beneficial interests $ 88,269 $ — $ — $ 71,557 Investment in Former Manager $ 2,786 $ — $ — $ 2,319 Investment in AS Ajax E LLC $ — $ — $ — $ — Investment in Gaea $ 21,805 $ — $ — $ 22,376 Investment in Loan pool LLCs $ 180 $ — $ — $ 62 Financial liabilities Secured borrowings, net $ 276,458 $ — $ 244,385 $ — Borrowings under repurchase transactions $ 246,497 $ — $ 246,497 $ — Notes payable, net $ 107,216 $ — $ 105,822 $ — Level 1 Level 2 Level 3 December 31, 2023 Carrying value Quoted prices in active markets Observable inputs other than Level 1 prices Unobservable inputs Financial assets Mortgage loans held-for-investment, net $ 864,551 $ — $ — $ 770,419 Mortgage loans held-for-sale, net $ 55,718 $ — $ — $ 60,444 Investment in debt securities held-to-maturity $ 59,691 $ — $ 59,173 $ — Investment in beneficial interests $ 104,162 $ — $ — $ 81,316 Investment in Former Manager $ 440 $ — $ — $ 4,527 Investment in AS Ajax E LLC $ 407 $ — $ 471 $ — Investment in Ajax E Master Trust $ 2,100 $ — $ 1,864 $ — Investment in GAFS, including warrants $ 2,618 $ — $ — $ — Investment in Gaea $ 22,241 $ — $ — $ 21,678 Investment in Loan pool LLCs $ 194 $ — $ — $ 674 Financial liabilities Secured borrowings, net $ 411,212 $ — $ 370,882 $ — Borrowings under repurchase transactions $ 375,745 $ — $ 375,745 $ — Convertible senior notes $ 103,516 $ 101,777 $ — $ — Notes payable, net $ 106,844 $ — $ 103,697 $ — |
Affiliates (Tables)
Affiliates (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Schedule Of Equity Method Investments | The table below shows the net income/(loss), 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% Three months ended June 30, Six months ended June 30, Net income/(loss) at 100% 2024 2023 2024 2023 AS Ajax E LLC $ 18 $ 56 $ 81 $ 122 Great Ajax FS LLC $ — $ (211) $ (269) $ (974) Loan pool LLCs $ (18) $ (16) $ (34) $ (40) Gaea Real Estate Corp. $ (481) $ (1,227) $ (594) $ (2,332) Thetis Asset Management LLC $ (3,866) $ (147) $ 11,856 $ (136) June 30, 2024 December 31, 2023 Assets and liabilities at 100% Assets Liabilities Assets Liabilities AS Ajax E LLC $ — $ — $ 2,553 $ 39 Great Ajax FS LLC $ — $ — $ 71,477 $ 59,949 Loan pool LLCs $ 1,200 $ 267 $ 1,200 $ 232 Gaea Real Estate Corp. $ 161,365 $ 69,768 $ 167,591 $ 73,499 Thetis Asset Management LLC $ 15,085 $ 202 $ 4,643 $ 1,305 Net income/(loss), assets and liabilities of unconsolidated affiliates at the Company's share Three months ended June 30, Six months ended June 30, Net income/(loss) at the Company's share 2024 2023 2024 2023 AS Ajax E LLC $ 3 $ 9 $ 13 $ 20 Great Ajax FS LLC $ — $ (20) $ (26) $ (87) Loan pool LLCs $ (7) $ (6) $ (14) $ (16) Gaea Real Estate Corp. $ (107) $ (270) $ (108) $ (513) Thetis Asset Management LLC $ (765) $ (29) $ 2,348 $ (27) June 30, 2024 December 31, 2023 Assets and liabilities at the Company's share Assets Liabilities Assets Liabilities AS Ajax E LLC $ — $ — $ 420 $ 6 Great Ajax FS LLC $ — $ — $ 6,854 $ 5,748 Loan pool LLCs $ 480 $ 107 $ 480 $ 93 Gaea Real Estate Corp. $ 35,888 $ 15,516 $ 37,272 $ 16,346 Thetis Asset Management LLC $ 2,987 $ 40 $ 919 $ 258 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Other Commitments | The following table sets forth the details of the Company's warrant liabilities ($ in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Beginning balance $ 2,054 $ 13,775 $ 16,644 $ 12,153 Issuance of Rithm Warrants — — 2,734 — Fair value adjustment of 2020 warrants — 1,839 2,033 3,461 Fair value adjustment of Rithm Warrants (1,203) — (1,883) — Redemption of 2020 warrants — — (18,677) — Reclassification of Rithm Warrants to Equity (851) — (851) — Ending balance $ — $ 15,614 $ — $ 15,614 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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): June 30, 2024 Maturity Date Amount Outstanding Amount of Collateral Interest Rate Barclays - bonds (1) $ 85,724 $ 121,941 6.45 % A Bonds July 26, 2024 35,855 46,748 6.21 % September 20, 2024 28,158 39,663 6.40 % November 1, 2024 5,786 7,424 6.56 % B Bonds September 20, 2024 10,155 18,541 6.85 % November 1, 2024 4,078 6,232 7.58 % M Bonds July 26, 2024 479 878 6.55 % September 20, 2024 932 1,943 6.65 % November 1, 2024 281 512 6.93 % Nomura - bonds (1) $ 79,085 $ 61,255 6.71 % A Bonds September 27, 2024 22,613 34,200 6.88 % B Bonds July 5, 2024 27,238 88 6.60 % September 27, 2024 7,180 13,224 6.88 % M Bonds September 27, 2024 22,054 13,743 6.59 % Nomura - loans (2) October 5, 2024 $ 76,336 $ 114,131 7.79 % JP Morgan - loans (3) July 10, 2024 $ 5,352 $ 8,229 8.38 % Totals/weighted averages $ 246,497 $ 305,556 6.99 % (1) Maximum borrowing capacity subject to pledging sufficient collateral is the equivalent of the amount outstanding as of June 30, 2024. (2) Maximum borrowing capacity subject to pledging sufficient collateral as of June 30, 2024 was $400.0 million. (3) Maximum borrowing capacity subject to pledging sufficient collateral as of June 30, 2024 was $150.0 million. December 31, 2023 Maturity Date Amount Outstanding Amount of Collateral Interest Rate Barclays - bonds (1) $ 70,095 $ 101,041 7.03 % A Bonds January 3, 2024 10,850 15,572 6.90 % January 19, 2024 21,762 28,503 6.79 % May 3, 2024 9,628 12,329 6.87 % May 22, 2024 2,134 3,358 6.97 % B Bonds January 26, 2024 3,027 4,998 7.68 % March 13, 2024 13,398 20,121 7.13 % May 3, 2024 3,608 6,185 7.70 % May 22, 2024 4,312 7,565 7.57 % M Bonds May 3, 2024 281 499 7.05 % May 22, 2024 1,095 1,911 7.17 % Nomura - bonds (1) $ 68,623 $ 98,448 6.98 % A Bonds January 26, 2024 35,184 47,149 7.02 % February 15, 2024 5,079 7,449 6.93 % March 28, 2024 17,019 23,238 6.74 % B Bonds January 26, 2024 1,024 1,761 7.31 % February 15, 2024 3,002 5,149 7.33 % December 31, 2023 Maturity Date Amount Outstanding Amount of Collateral Interest Rate March 28, 2024 3,900 6,413 7.30 % M Bonds January 26, 2024 2,307 5,177 7.30 % March 28, 2024 1,108 2,112 6.90 % JP Morgan - bonds (1) $ 33,564 $ 53,978 6.90 % A Bonds February 28, 2024 9,632 12,633 6.73 % B Bonds February 28, 2024 6,598 11,140 7.13 % M Bonds January 4, 2024 13,541 22,813 6.82 % January 22, 2024 3,290 6,497 7.23 % February 28, 2024 503 895 7.03 % Nomura - loans (2) October 5, 2024 $ 193,060 $ 277,632 7.79 % JP Morgan - loans (3) July 10, 2024 $ 10,403 $ 14,656 8.38 % Totals/weighted averages $ 375,745 $ 545,755 (4) 7.44 % (1) Maximum borrowing capacity subject to pledging sufficient collateral is the equivalent of the amount outstanding as of December 31, 2023. (2) Maximum borrowing capacity subject to pledging sufficient collateral as of December 31, 2023 was $400.0 million. (3) Maximum borrowing capacity subject to pledging sufficient collateral as of December 31, 2023 was $150.0 million. (4) Includes $42.8 million of bonds that are consolidated on the Company's balance sheet for GAAP as of December 31, 2023. |
Schedule Of Amount Outstanding On Repurchase Transactions And Carrying Value Collateral | The amount outstanding on the Company’s repurchase facilities and the carrying value of the Company’s loans pledged as collateral are presented as gross amounts in the Company’s consolidated balance sheets at June 30, 2024 and December 31, 2023 in the table below ($ in thousands): Gross amounts not offset in balance sheet June 30, 2024 December 31, 2023 Gross amount of recognized liabilities $ 246,497 $ 375,745 Gross amount of loans and securities pledged as collateral 305,446 541,999 Other prepaid collateral 110 3,756 Net collateral amount $ 59,059 $ 170,010 |
Schedule Of Securitization Of Notes | The following table sets forth the original terms of notes from the Company's secured borrowings outstanding at June 30, 2024 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) 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) Issuing Trust/Issue Date Interest Rate Step-up Date Security Original Principal Interest Rate None Class B-3 notes due 2065 (2) $21.5 million variable (3) Deferred issuance costs $(2.5) million — % (1) The Class M notes are subordinated, sequential pay, fixed rate notes. The Company has retained the Class M notes, with the exception of Ajax Mortgage Loan Trust 2021-A. (2) The Class B notes are subordinated, sequential pay, with B-2 and B-3 notes having variable interest rates and are subordinate to the Class B-1 notes. The Class B-1 notes are fixed rate notes. The Company has retained the Class B notes. (3) The interest rate is effectively the rate equal to the spread between the gross average rate of interest the trust collects on its mortgage loan portfolio minus the rate derived from the sum of the servicing fee and other expenses of the trust. |
Schedule Of Status Of Mortgage Loans | The following table sets forth the status of the notes held by others at June 30, 2024 and December 31, 2023, and the securitization cutoff date ($ in thousands): Balances at June 30, 2024 Balances at December 31, 2023 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 2019-D $ 96,939 $ 65,127 149 % $ 99,367 $ 67,739 147 % $ 193,301 $ 156,670 2019-F 92,853 54,056 172 % 96,870 57,936 167 % 170,876 127,673 2020-B 98,191 60,697 162 % 100,245 63,574 158 % 156,468 114,534 2021-A 123,444 98,254 126 % 127,250 102,057 125 % 206,506 175,116 2021-B — — — % 204,883 123,032 167 % 287,882 215,912 $ 411,427 $ 278,134 (1) 148 % $ 628,615 $ 414,338 (1) 152 % $ 1,015,033 $ 789,905 (1) |
Schedule Of Long Term Maturities | The following table summarizes the Company's long term maturities ($ in thousands): Year Debt instrument As of June 30, 2024 2024 $ — 2025 $ — 2026 $ — 2027 2027 Notes (Unsecured Notes) $ 110,000 2028 $ — |
Stock-based Payments and Dire_2
Stock-based Payments and Director Fees (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule Of Management Fees And Director Fees | The following table sets forth the Company’s stock-based independent director fees ($ in thousands): Stock-based Director Fees For the three months ended June 30, 2024 2023 Number of shares Amount of expense recognized Number of shares Amount of expense recognized Independent director fees — $ — — $ — Totals — $ — — $ — For the six months ended June 30, 2024 2023 Number of shares Amount of expense recognized Number of shares Amount of expense recognized Independent director fees 3,080 $ 15 13,020 $ 88 3,080 $ 15 13,020 $ 88 |
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 the Former Manager and the Former Servicer as set forth in the table below: Employee and Service Provider Grants Director Grants Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Six months ended June 30, 2023 December 31, 2022 outstanding unvested share grants 310,262 $ 10.98 — $ — Shares vested (30,515) 11.56 — — Shares forfeited (5,668) 10.30 — — Shares granted 3,000 7.34 25,000 7.15 March 31, 2023 outstanding unvested share grants 277,079 $ 10.88 25,000 $ 7.15 Shares vested (9,475) 11.25 — — Shares forfeited (7,084) 11.16 — — Shares granted 22,459 6.50 — — June 30, 2023 outstanding unvested share grants 282,979 (1) $ 10.52 25,000 (2) $ 7.15 (1) Weighted average remaining life of unvested shares for employee and service provider grants at June 30, 2023 is 2.0 years. (2) Weighted average remaining life of unvested shares for director grants at June 30, 2023 is 1.7 years. Employee and Service Provider Grants Director Grants Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Six months ended June 30, 2024 December 31, 2023 outstanding unvested share grants 159,142 $ 10.33 25,000 $ 7.15 Shares vested (3,250) 10.74 — — Shares forfeited (2,167) 7.89 — — Shares granted 66,421 3.59 — — March 31, 2024 outstanding unvested share grants 220,146 $ 8.29 25,000 $ 7.15 Shares vested (210,093) 9.40 (12,500) 7.15 Shares forfeited (10,053) 8.79 (7,500) 7.15 Shares granted — — — — June 30, 2024 outstanding unvested share grants — $ — 5,000 (1) $ 7.15 (1) |
Schedule Of Restricted Stock Plan Grants, Expense | The following table presents the expenses for the Company's equity incentive plans ($ in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Restricted stock grants $ 1,156 $ 284 $ 1,409 $ 801 Director grants 18 7 40 14 Total expenses for plan grants $ 1,174 $ 291 $ 1,449 $ 815 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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): Three months ended June 30, 2024 Three months ended June 30, 2023 Income Shares Per Share Income Shares Per Share Basic EPS Consolidated net loss attributable to common stockholders $ (12,742) 39,344,128 $ (12,034) 23,250,725 Allocation of loss to participating restricted shares 78 — 161 — Consolidated net loss attributable to unrestricted common stockholders $ (12,664) 39,344,128 $ (0.32) $ (11,873) 23,250,725 $ (0.51) Effect of dilutive securities (1,2) Restricted stock grants and Former Manager and director fee shares (3) — — (161) 314,626 Diluted EPS Consolidated net loss attributable to common stockholders and dilutive securities $ (12,664) 39,344,128 $ (0.32) $ (12,034) 23,565,351 $ (0.51) (1) The Company's outstanding warrants for an additional 1,950,672 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 three months ended June 30, 2023 and has not been included in the calculation. (2) The effect of interest expense and assumed conversion of shares from convertible notes on the Company's diluted EPS calculation for the three months ended June 30, 2024 and 2023 would have been anti-dilutive and have been removed from the calculation. (3) The effect of restricted stock grants and manager and director fee shares on the Company's diluted EPS calculation for the three months ended June 30, 2024 would have been anti-dilutive and have been removed from the calculation. Six months ended June 30, 2024 Six months ended June 30, 2023 Income Shares Per Share Income Shares Per Share Basic EPS Consolidated net loss attributable to common stockholders $ (87,061) 35,021,845 $ (19,975) 23,087,717 Allocation of loss to participating restricted shares 452 — 272 — Consolidated net loss attributable to unrestricted common stockholders $ (86,609) 35,021,845 $ (2.47) $ (19,703) 23,087,717 $ (0.85) Effect of dilutive securities (1,2) Restricted stock grants and Former Manager and director fee shares (3) — — — — Diluted EPS Consolidated net loss attributable to common stockholders and dilutive securities $ (86,609) 35,021,845 $ (2.47) $ (19,703) 23,087,717 $ (0.85) (1) The Company's warrants, which were partially outstanding for the six months ended June 30, 2024 and outstanding for the entire six months ended June 30, 2023, for an additional 1,950,672 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 six months ended June 30, 2024 and 2023 and have not been included in the calculation. (2) The effect of interest expense and assumed conversion of shares from convertible notes on the Company's diluted EPS calculation for the six months ended June 30, 2024 and 2023 would have been anti-dilutive and have been removed from the calculation. (3) The effect of restricted stock grants and manager and director fee shares on the Company's diluted EPS calculation for the six months ended June 30, 2023 would have been anti-dilutive and have been removed from the calculation. |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income | Total accumulated other comprehensive loss on the Company’s balance sheet at June 30, 2024 and December 31, 2023 was as follows ($ in thousands): Investments in securities: June 30, 2024 December 31, 2023 Unrealized gains on debt securities available-for-sale $ 275 $ 637 Unrealized losses on debt securities available-for-sale (9,746) (8,675) Unrealized losses on debt securities available-for-sale transferred to held-to-maturity (4,424) (5,989) Accumulated other comprehensive loss $ (13,895) $ (14,027) |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
May 20, 2024 USD ($) $ / shares shares | Nov. 22, 2019 USD ($) | Jan. 31, 2022 USD ($) | Jun. 30, 2024 USD ($) payment entity shares | Dec. 31, 2023 USD ($) entity shares | Dec. 31, 2020 USD ($) | Jun. 11, 2024 shares | Feb. 26, 2024 USD ($) | |
Organization And Basis Of Presentation [Line Items] | ||||||||
Number of payments made on RPL mortgage loans (at least) | payment | 5 | |||||||
Number of payments not made on NPL mortgage loans | payment | 3 | |||||||
SBC loans principal amount | $ 5,000,000 | |||||||
Issued of common stock (in shares) | shares | 45,605,549 | 27,460,161 | ||||||
Proceeds from issuance of private placement | $ 125,000,000 | |||||||
Number of non controlling interest subsidiaries | entity | 2 | 3 | ||||||
Common stock | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Private capital raise, number common stock and warrants issued (in shares) | shares | 8,631,083 | |||||||
Former Management Agreement | Common stock | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Issued of common stock (in shares) | shares | 3,174,645 | |||||||
Great Ajax F S | Carrying value | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Investments, fair value disclosure | $ 0 | $ 2,618,000 | ||||||
Investment in Ajax E Master Trust | AS Ajax E LLC | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Ownership interest in real estate trust (in percent) | 5% | |||||||
AS Ajax E II LLC | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Ownership percentage by parent (as percent) | 0% | 53.10% | ||||||
2017-D | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Ownership percentage by parent (as percent) | 50% | 50% | ||||||
Ownership percentage by parent (in percent) | 50% | 50% | ||||||
2017-D | Third party | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Ownership percentage by parent (in percent) | 50% | |||||||
Great Ajax II REIT | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Ownership percentage by parent (as percent) | 99.90% | 99.90% | ||||||
Thetis Asset Management LLC | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Ownership percentage (in percent) | 19.80% | 19.80% | ||||||
Great Ajax FS LLC | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Ownership percentage (in percent) | 0% | 9.72% | ||||||
Gaea Real Estate Corp. | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Ownership percentage (in percent) | 22.20% | 22.20% | ||||||
Proceeds from issuance of private placement | $ 66,300,000 | $ 30,000,000 | ||||||
Gaea Real Estate Corp. | GA-TRS | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Sale of stock, consideration received on transaction | $ 300,000 | |||||||
Private capital raise, number common stock and warrants issued (in shares) | shares | 20,991 | |||||||
Rithm | Common stock | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Private capital raise, number common stock and warrants issued (in shares) | shares | 2,874,744 | |||||||
Rithm | Secured Debt | Line of Credit | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Sale of stock, consideration received on transaction | $ 14,000,000 | |||||||
Stock price of common stock (in dollars per share) | $ / shares | $ 4.87 | |||||||
Sale of stock, average trailing closing price, period (in days) | 5 days | |||||||
Original Principal | $ 70,000,000 | |||||||
Residential RPLs | ||||||||
Organization And Basis Of Presentation [Line Items] | ||||||||
Number of recent payments made on RPL mortgage loans | payment | 7 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies- Investments in Securities (Details) $ in Millions | Jan. 01, 2023 USD ($) |
Accounting Policies [Abstract] | |
Reclassification of available for sale debt securities to held to maturity | $ 83 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Preferred Stock (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 $ / shares shares | Mar. 31, 2024 shares | Jun. 30, 2024 $ / shares shares | Dec. 31, 2023 $ / shares shares | Dec. 31, 2022 shares | Dec. 31, 2020 USD ($) series $ / shares shares | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Proceeds from issuance of private placement | $ | $ 125 | |||||
Number of preferred stock series issued | series | 2 | |||||
Common stock | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Exchange of shares (in shares) | 2,581,694 | 9,464,524 | ||||
Preferred stock, shares exchanged, shares issued and to be issued (in shares) | 12,046,218 | |||||
Series A Preferred Stock | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Preferred Stock, Shares Issued | 0 | 0 | 424,949 | 2,307,400 | ||
Preferred stock, fixed-to-floating rate cumulative redeemable | 7.25% | 7.25% | 7.25% | |||
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares | $ 25 | $ 25 | $ 25 | $ 25 | ||
Series A Preferred Stock | Preferred Stock | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Stock repurchased and retired during period, shares (in shares) | 1,882,451 | |||||
Exchange of shares (in shares) | 424,949 | |||||
Series B Preferred Stock | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Preferred Stock, Shares Issued | 0 | 0 | 1,135,590 | 2,892,600 | ||
Preferred stock, fixed-to-floating rate cumulative redeemable | 5% | 5% | 5% | 5% | ||
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares | $ 25 | $ 25 | $ 25 | $ 25 | ||
Series B Preferred Stock | Preferred Stock | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Stock repurchased and retired during period, shares (in shares) | 1,757,010 | |||||
Exchange of shares (in shares) | 1,135,590 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Warrants (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2024 USD ($) shares | Mar. 31, 2024 USD ($) shares | Jun. 30, 2023 USD ($) shares | Jun. 30, 2020 USD ($) loanPool $ / shares shares | Jun. 30, 2024 USD ($) shares | Jun. 30, 2023 USD ($) shares | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2020 | May 20, 2024 USD ($) | Feb. 26, 2024 $ / shares | Mar. 31, 2023 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Number of warrants series issued | loanPool | 2 | |||||||||||
Warrant term (in years) | 39 months | 5 years | 39 months | |||||||||
Class of warrant or right, outstanding (in shares) | 1,950,672 | 1,950,672 | 6,500,000 | 1,950,672 | 1,950,672 | |||||||
Investment warrants, exercise price (in dollars per share) | $ / shares | $ 10 | |||||||||||
Warrants original basis | $ | $ 9,500 | |||||||||||
Proceeds used to repurchase and retire securities | $ | $ 0 | $ 2,054 | $ 15,614 | $ 0 | $ 15,614 | $ 16,644 | $ 12,153 | $ 13,775 | ||||
Exchange of preferred shares and warrants (in shares) | 0 | 0 | ||||||||||
Common stock, par value $0.01 per share | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Exchange of shares (in shares) | 2,581,694 | 9,464,524 | ||||||||||
Preferred stock, shares exchanged, shares issued and to be issued (in shares) | 12,046,218 | |||||||||||
Exchange of preferred shares and warrants (in shares) | 2,581,694 | 9,464,524 | ||||||||||
Series A Preferred Stock | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Preferred stock, fixed-to-floating rate cumulative redeemable | 7.25% | 7.25% | 7.25% | |||||||||
Series A Preferred Stock | Preferred Stock | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Exchange of shares (in shares) | 424,949 | |||||||||||
Exchange of preferred shares and warrants (in shares) | (424,949) | |||||||||||
Series B Preferred Stock | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Preferred stock, fixed-to-floating rate cumulative redeemable | 5% | 5% | 5% | 5% | ||||||||
Series B Preferred Stock | Preferred Stock | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Exchange of shares (in shares) | 1,135,590 | |||||||||||
Exchange of preferred shares and warrants (in shares) | (1,135,590) | |||||||||||
Rithm | ||||||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||||||
Warrant term (in years) | 5 years | |||||||||||
Investment warrants, exercise price (in dollars per share) | $ / shares | $ 5.36 | |||||||||||
Draw period (in days) | 125 days | |||||||||||
Proceeds used to repurchase and retire securities | $ | $ 900 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Convertible Senior Notes (Details) - Convertible notes payable - USD ($) | Apr. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 |
Summary Of Significant Accounting Policies [Line Items] | |||
Unpaid principal balance | $ 0 | $ 103,500,000 | |
Interest rate (in percent) | 7.25% | ||
Repayments of debt | $ 103,500,000 | ||
Accrued interest period (in days) | 15 days |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Notes Payable (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Aug. 31, 2022 USD ($) subsidiary | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2020 | Mar. 31, 2024 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Proceeds used to repurchase and retire securities | $ 0 | $ 16,644 | $ 12,153 | $ 2,054 | $ 15,614 | $ 13,775 | ||
Series A Preferred Stock | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Preferred stock, fixed-to-floating rate cumulative redeemable | 7.25% | 7.25% | 7.25% | |||||
Series B Preferred Stock | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Preferred stock, fixed-to-floating rate cumulative redeemable | 5% | 5% | 5% | 5% | ||||
Senior notes | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Basis points | 1% | |||||||
8.875% Senior Unsecured Notes Due September 2027 | Senior notes | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Original Principal | $ 110,000 | |||||||
Interest rate (in percent) | 8.875% | |||||||
Debt instrument, term (in years) | 5 years | |||||||
Issuance amount, amount of par value (percent) | 0.99009 | |||||||
Number of subsidiaries (the "Guarantors") | subsidiary | 2 | |||||||
Proceeds from unsecured notes payable | $ 106,100 | |||||||
Proceeds used to repurchase and retire securities | $ 90,000 | |||||||
Amount Outstanding | $ 110,000 | $ 110,000 | ||||||
9.875% Senior Unsecured Notes Due September 2027 | Senior notes | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Interest rate (in percent) | 9.875% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Management Fee and Expense Reimbursement (Details) | 6 Months Ended |
Jun. 30, 2024 calendarQuarter | |
Management agreement | |
Summary Of Significant Accounting Policies [Line Items] | |
Percentage of base management fee (in percent) | 1.50% |
Management agreement | Thetis Asset Management LLC | |
Summary Of Significant Accounting Policies [Line Items] | |
Percentage of base management fee (in percent) | 1.50% |
Amended and restated management agreement | Thetis Asset Management LLC | |
Summary Of Significant Accounting Policies [Line Items] | |
Percentage of incentive fees payable in quarterly (in percent) | 20% |
Percentage of remaining incentive fee in excess of book value (in percent) | 8% |
Number of calendar quarters | 4 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Servicing Fees (Details) - Servicing agreement - Gregory | 6 Months Ended |
Jun. 30, 2024 | |
Summary Of Significant Accounting Policies [Line Items] | |
Percentage of fair market value of REO (in percent) | 1% |
Percentage of purchase price of REO (in percent) | 1% |
Minimum | |
Summary Of Significant Accounting Policies [Line Items] | |
Servicing fee rate, loans securitization | 0.42% |
Servicing fee rate of unpaid principal balance for mortgage loan | 0.65% |
Maximum | |
Summary Of Significant Accounting Policies [Line Items] | |
Servicing fee rate of unpaid principal balance for mortgage loan | 1.25% |
Summary of Significant Accou_10
Summary of Significant Accounting Policies -Stock-based Payments And Directors' Fees (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Number of shares available for distribution under the Director Plan (in shares) | 35,000 | ||
Percentage of shares vesting | 5% | ||
Board of Directors | Restricted stock | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Shares granted (in shares) | 2,000 | ||
Independent Directors | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Annual retainer received in shares and cash amount | $ 140 | ||
Percentage of annual retainer received in cash (in percent) | 50% | ||
Independent Directors | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of annual retainer received in cash (in percent) | 100% | ||
Heads of Compensation and Corporate Governance Committees | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Annual retainer received in shares and cash amount | $ 15 | ||
Percentage of annual retainer received in cash (in percent) | 100% | ||
Audit Committee | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Annual retainer received in shares and cash amount | $ 20 | ||
Percentage of annual retainer received in cash (in percent) | 100% | ||
Lead Director | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Annual retainer received in shares and cash amount | $ 20 | ||
Percentage of annual retainer received in cash (in percent) | 100% | ||
Special Committee | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Annual retainer received in shares and cash amount | $ 20 | ||
Lead Director of Special Committee | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Annual retainer received in shares and cash amount | 30 | ||
Annual retainer received in stock payment | $ 15 | $ 15 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) $ in Billions | Jun. 30, 2024 USD ($) |
Accounting Policies [Abstract] | |
Minimum assets with banking institutions | $ 1 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2020 |
Summary Of Significant Accounting Policies [Line Items] | |||
Warrant liability term (in months) | 39 months | 5 years | |
Carrying value | AS Ajax E LLC | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Investments, fair value disclosure | $ 0 | $ 2,618,000 |
Mortgage Loans - Schedule of lo
Mortgage Loans - Schedule of loan portfolio basis by asset type (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Mortgage Loans on Real Estate | |||
Mortgage loans held-for-investment, net | [1],[2] | $ 413,916 | $ 864,551 |
Mortgage loans held-for-sale, net | [2] | 108,868 | 55,718 |
RPLs, NPLs, and Originated SBCs | |||
Mortgage Loans on Real Estate | |||
Mortgage loans held-for-investment, net | 413,916 | 864,551 | |
Mortgage loans held-for-sale, net | 108,868 | 55,718 | |
SBC loans | |||
Mortgage Loans on Real Estate | |||
Mortgage loans held-for-investment, net | 0 | 5,776 | |
Mortgage loans held-for-sale, net | 3,815 | 465 | |
Residential RPLs | |||
Mortgage Loans on Real Estate | |||
Mortgage loans held-for-investment, net | 411,012 | 787,700 | |
Mortgage loans held-for-sale, net | 92,296 | 34,359 | |
Residential NPLs | |||
Mortgage Loans on Real Estate | |||
Mortgage loans held-for-investment, net | 2,904 | 71,075 | |
Mortgage loans held-for-sale, net | $ 12,757 | $ 20,894 | |
[1] As of June 30, 2024 and December 31, 2023, balances for Mortgage loans held-for-investment, net include zero and $0.6 million, respectively, from a 50.0% owned joint venture, which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP" or "GAAP"). As of June 30, 2024, there is a balance for Mortgage loans held-for-sale, net of $0.5 million. Mortgage loans held-for-sale, net and mortgage loans held-for-investment, net include $411.4 million and $628.6 million of loans at June 30, 2024 and December 31, 2023, 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 zero and $3.4 million of allowance for expected credit losses at June 30, 2024 and December 31, 2023, respectively. |
Mortgage Loans - Narrative (Det
Mortgage Loans - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2024 USD ($) payment loan loanPool | Jun. 30, 2023 USD ($) loan | Jun. 30, 2024 USD ($) payment loan loanPool | Jun. 30, 2023 USD ($) loan | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | ||
Mortgage Loans on Real Estate | |||||||||
Mortgage loans held-for-investment, net | [1],[2] | $ 413,916,000 | $ 413,916,000 | $ 864,551,000 | |||||
Number of loans classified to mortgage loan held-for sale | loan | 90 | 2,199 | |||||||
Financing receivable, adjustment, lower of cost or market | $ (6,500,000) | $ (53,800,000) | |||||||
Allowance for loan credit losses | $ 0 | $ 5,985,000 | $ 0 | $ 5,985,000 | $ 403,000 | 3,426,000 | $ 4,338,000 | $ 6,107,000 | |
Number of sold loans | loan | 1,477 | 0 | 1,712 | 0 | |||||
Mortgage loans held for sale | $ 263,700,000 | $ 314,300,000 | |||||||
Mortgage loans unpaid principal balance | 304,900,000 | 355,000,000 | |||||||
Gain (loss) on sale of mortgage loans | (2,500,000) | (3,000,000) | |||||||
Accretable yield | $ 8,200,000 | $ 12,900,000 | $ 20,100,000 | $ 26,200,000 | |||||
Number of loan pools established | loanPool | 3 | 3 | |||||||
Gross amount of loans and securities pledged as collateral | $ 305,446,000 | $ 305,446,000 | 541,999,000 | ||||||
Reclassification to/(from) non-credit discount from/(to) the allowance for changes in payment timing expectations | 0 | (4,224,000) | 310,000 | (2,999,000) | |||||
Net change in the allowance for credit losses | 0 | (2,866,000) | 1,112,000 | (3,487,000) | |||||
Reversal of allowance upon reclass of mortgage loans held-for-sale, net | 413,000 | 0 | 4,281,000 | 0 | |||||
Increase in allowance for expected credit losses for loan acquisitions during the period | 0 | $ (219,000) | 0 | $ (252,000) | |||||
Residential RPLs | |||||||||
Mortgage Loans on Real Estate | |||||||||
Mortgage loans held-for-investment, net | $ 411,012,000 | $ 411,012,000 | 787,700,000 | ||||||
Number of mortgage loans on real estate | loan | 0 | 68 | 0 | 71 | |||||
Unpaid principal balance | $ 16,300,000 | $ 17,100,000 | |||||||
Number of recent payments made on RPL mortgage loans | payment | 7 | 7 | |||||||
Gross amount of loans and securities pledged as collateral | $ 50,000 | $ 50,000 | |||||||
Residential NPLs | |||||||||
Mortgage Loans on Real Estate | |||||||||
Mortgage loans held-for-investment, net | $ 2,904,000 | $ 2,904,000 | 71,075,000 | ||||||
Number of mortgage loans on real estate | loan | 0 | 0 | 0 | 0 | |||||
RPLs, NPLs, and Originated SBCs | |||||||||
Mortgage Loans on Real Estate | |||||||||
Mortgage loans held-for-investment, net | $ 413,916,000 | $ 413,916,000 | 864,551,000 | ||||||
Mortgage loans held-for-sale | $ 108,900,000 | $ 108,900,000 | $ 55,700,000 | ||||||
[1] As of June 30, 2024 and December 31, 2023, balances for Mortgage loans held-for-investment, net include zero and $0.6 million, respectively, from a 50.0% owned joint venture, which the Company consolidates under U.S. Generally Accepted Accounting Principles ("U.S. GAAP" or "GAAP"). As of June 30, 2024, there is a balance for Mortgage loans held-for-sale, net of $0.5 million. Mortgage loans held-for-sale, net and mortgage loans held-for-investment, net include $411.4 million and $628.6 million of loans at June 30, 2024 and December 31, 2023, 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 zero and $3.4 million of allowance for expected credit losses at June 30, 2024 and December 31, 2023, respectively. |
Mortgage Loans - Schedule of _2
Mortgage Loans - Schedule of loan basis by year of origination (Details) - Mortgage loans held-for-investment, net - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Mortgage Loans [Line Items] | ||
Year one | $ 0 | $ 0 |
Year two | 0 | 3,610 |
Year three | 0 | 4,149 |
Year four | 0 | 2,100 |
Year five | 725 | 8,385 |
Year six | 823 | 2,601 |
Prior years, range 1 | 42,178 | 89,438 |
Prior years range 2 | 276,214 | 556,092 |
Prior years range 3 | 93,976 | 198,176 |
Total | 413,916 | 864,551 |
GAOP - 7f7 >50 | ||
Mortgage Loans [Line Items] | ||
Year one | 0 | |
Year two | 2,473 | |
Year three | 2,597 | |
Year four | 1,370 | |
Year five | 6,598 | |
Year six | 658 | |
Prior years, range 1 | 30,891 | |
Prior years range 2 | 190,106 | |
Prior years range 3 | 79,110 | |
Total | 313,803 | |
GAOP 7f7 Less Than 50 | ||
Mortgage Loans [Line Items] | ||
Year one | 0 | |
Year two | 546 | |
Year three | 137 | |
Year four | 0 | |
Year five | 215 | |
Year six | 0 | |
Prior years, range 1 | 2,356 | |
Prior years range 2 | 27,368 | |
Prior years range 3 | 6,530 | |
Total | 37,152 | |
GAOP - 6f6 and below | ||
Mortgage Loans [Line Items] | ||
Year one | 0 | |
Year two | 591 | |
Year three | 1,415 | |
Year four | 0 | |
Year five | 737 | |
Year six | 1,134 | |
Prior years, range 1 | 13,343 | |
Prior years range 2 | 55,452 | |
Prior years range 3 | 14,642 | |
Total | 87,314 | |
Great Ajax II REIT - 7f7 >50 | ||
Mortgage Loans [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 730 |
Year five | 725 | 764 |
Year six | 752 | 795 |
Prior years, range 1 | 34,599 | 34,864 |
Prior years range 2 | 238,076 | 243,034 |
Prior years range 3 | 81,924 | 84,634 |
Total | 356,076 | 364,821 |
Great Ajax II REIT 7f7 Less Than 50 | ||
Mortgage Loans [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 0 | 71 |
Year six | 71 | 14 |
Prior years, range 1 | 2,650 | 2,658 |
Prior years range 2 | 22,205 | 22,360 |
Prior years range 3 | 6,418 | 6,508 |
Total | 31,344 | 31,611 |
Great Ajax II REIT - 6f6 and below | ||
Mortgage Loans [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Year six | 0 | 0 |
Prior years, range 1 | 4,929 | 5,326 |
Prior years range 2 | 15,933 | 17,772 |
Prior years range 3 | 5,634 | 6,752 |
Total | $ 26,496 | $ 29,850 |
Mortgage Loans - Schedule of _3
Mortgage Loans - Schedule of loan acquisition reconciliation between purchase price and par value (Details) - PCD loans - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Mortgage Loans on Real Estate | ||||
Par | $ 0 | $ 16,312 | $ 0 | $ 17,140 |
Discount | 0 | (2,609) | 0 | (2,800) |
Increase in allowance | 0 | (219) | 0 | (252) |
Purchase Price | $ 0 | $ 13,484 | $ 0 | $ 14,088 |
Mortgage Loans - Allowance for
Mortgage Loans - Allowance for loan losses (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for expected credit losses, beginning of period | $ (403,000) | $ (4,338,000) | $ (3,426,000) | $ (6,107,000) |
Reclassification to/(from) non-credit discount from/(to) the allowance for changes in payment timing expectations | 0 | (4,224,000) | 310,000 | (2,999,000) |
Increase in allowance for expected credit losses for loan acquisitions during the period | 0 | (219,000) | 0 | (252,000) |
Credit loss expense on mortgage loans | (10,000) | (70,000) | (53,000) | (114,000) |
Net change in the allowance for credit losses | 0 | 2,866,000 | (1,112,000) | 3,487,000 |
Reversal of allowance upon reclass of mortgage loans held-for-sale, net | 413,000 | 0 | 4,281,000 | 0 |
Allowance for expected credit losses, end of period | $ 0 | $ (5,985,000) | $ 0 | $ (5,985,000) |
Mortgage Loans - Schedule of ca
Mortgage Loans - Schedule of carrying value of mortgage loans (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | $ 413,916 | $ 864,551 |
Mortgage loans held-for-sale, net | ||
Mortgage Loans on Real Estate | ||
Total | 108,868 | 55,718 |
GAOP - 7f7 >50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 313,803 | |
GAOP - 7f7 >50 | Mortgage loans held-for-sale, net | ||
Mortgage Loans on Real Estate | ||
Total | 108,868 | 55,718 |
GAOP 7f7 Less Than 50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 37,152 | |
GAOP - 6f6 and below | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 87,314 | |
Great Ajax II REIT - 7f7 >50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 356,076 | 364,821 |
Great AJAX REIT 7f7 less than 50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 31,344 | 31,611 |
Great Ajax II REIT - 6f6 and below | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 26,496 | 29,850 |
Current | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 316,550 | 558,780 |
Current | Mortgage loans held-for-sale, net | ||
Mortgage Loans on Real Estate | ||
Total | 33,232 | 1,284 |
Current | GAOP - 7f7 >50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 199,229 | |
Current | GAOP - 7f7 >50 | Mortgage loans held-for-sale, net | ||
Mortgage Loans on Real Estate | ||
Total | 33,232 | 1,284 |
Current | GAOP 7f7 Less Than 50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 20,514 | |
Current | GAOP - 6f6 and below | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 8,565 | |
Current | Great Ajax II REIT - 7f7 >50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 287,327 | 300,506 |
Current | Great AJAX REIT 7f7 less than 50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 24,997 | 25,592 |
Current | Great Ajax II REIT - 6f6 and below | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 4,226 | 4,374 |
30 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 50,232 | 106,557 |
30 | Mortgage loans held-for-sale, net | ||
Mortgage Loans on Real Estate | ||
Total | 20,148 | 592 |
30 | GAOP - 7f7 >50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 49,868 | |
30 | GAOP - 7f7 >50 | Mortgage loans held-for-sale, net | ||
Mortgage Loans on Real Estate | ||
Total | 20,148 | 592 |
30 | GAOP 7f7 Less Than 50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 7,516 | |
30 | GAOP - 6f6 and below | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 6,906 | |
30 | Great Ajax II REIT - 7f7 >50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 43,191 | 36,277 |
30 | Great AJAX REIT 7f7 less than 50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 3,558 | 3,846 |
30 | Great Ajax II REIT - 6f6 and below | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 3,483 | 2,144 |
60 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 12,048 | 1,625 |
60 | Mortgage loans held-for-sale, net | ||
Mortgage Loans on Real Estate | ||
Total | 20,466 | 0 |
60 | GAOP - 7f7 >50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 283 | |
60 | GAOP - 7f7 >50 | Mortgage loans held-for-sale, net | ||
Mortgage Loans on Real Estate | ||
Total | 20,466 | 0 |
60 | GAOP 7f7 Less Than 50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 78 | |
60 | GAOP - 6f6 and below | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 421 | |
60 | Great Ajax II REIT - 7f7 >50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 8,366 | 801 |
60 | Great AJAX REIT 7f7 less than 50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 443 | 42 |
60 | Great Ajax II REIT - 6f6 and below | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 3,239 | 0 |
90 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 27,637 | 161,119 |
90 | Mortgage loans held-for-sale, net | ||
Mortgage Loans on Real Estate | ||
Total | 27,954 | 26,243 |
90 | GAOP - 7f7 >50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 63,498 | |
90 | GAOP - 7f7 >50 | Mortgage loans held-for-sale, net | ||
Mortgage Loans on Real Estate | ||
Total | 27,954 | 26,243 |
90 | GAOP 7f7 Less Than 50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 9,044 | |
90 | GAOP - 6f6 and below | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 45,058 | |
90 | Great Ajax II REIT - 7f7 >50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 16,455 | 26,600 |
90 | Great AJAX REIT 7f7 less than 50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 2,346 | 2,131 |
90 | Great Ajax II REIT - 6f6 and below | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 8,836 | 14,788 |
Foreclosure | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 7,449 | 36,470 |
Foreclosure | Mortgage loans held-for-sale, net | ||
Mortgage Loans on Real Estate | ||
Total | 7,068 | 27,599 |
Foreclosure | GAOP - 7f7 >50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 925 | |
Foreclosure | GAOP - 7f7 >50 | Mortgage loans held-for-sale, net | ||
Mortgage Loans on Real Estate | ||
Total | 7,068 | 27,599 |
Foreclosure | GAOP 7f7 Less Than 50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 0 | |
Foreclosure | GAOP - 6f6 and below | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 26,364 | |
Foreclosure | Great Ajax II REIT - 7f7 >50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 737 | 637 |
Foreclosure | Great AJAX REIT 7f7 less than 50 | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | 0 | 0 |
Foreclosure | Great Ajax II REIT - 6f6 and below | Mortgage loans held-for-investment, net | ||
Mortgage Loans on Real Estate | ||
Total | $ 6,712 | $ 8,544 |
Real Estate Assets, Net - Narra
Real Estate Assets, Net - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2024 USD ($) property | Jun. 30, 2023 USD ($) property | Jun. 30, 2024 USD ($) property | Jun. 30, 2023 USD ($) property | Dec. 31, 2023 USD ($) property | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | ||||
Real Estate [Line Items] | |||||||||||
Net investments in real estate | $ 4,309,000 | [1] | $ 3,745,000 | $ 4,309,000 | [1] | $ 3,745,000 | $ 3,785,000 | [1] | $ 5,191,000 | $ 5,092,000 | $ 6,333,000 |
Property held-for-sale | $ 0 | $ 0 | $ 200,000 | ||||||||
Number of properties owned | property | 22 | 20 | |||||||||
Number of held-for-sale residential properties disposed | property | 3 | 7 | 5 | 12 | |||||||
Gain (loss) on sale of property | $ 454,000 | $ 73,000 | |||||||||
Real estate impairment (recovery) | $ (100,000) | $ (700,000) | (500,000) | (800,000) | |||||||
Other income | |||||||||||
Real Estate [Line Items] | |||||||||||
Gain (loss) on sale of property | $ 400,000 | $ (18,000) | $ 500,000 | $ 100,000 | |||||||
[1] Real estate owned properties, net, are presented net of valuation allowances of $1.7 million and $1.2 million at June 30, 2024 and December 31, 2023, respectively. |
Real Estate Assets, Net - Sched
Real Estate Assets, Net - Schedule of ROE Held-For-Sale (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 USD ($) property | Jun. 30, 2023 USD ($) property | Jun. 30, 2024 USD ($) property | Jun. 30, 2023 USD ($) property | |||
Count | ||||||
Balance at beginning of period | property | 24 | 32 | 20 | 39 | ||
Net transfers from mortgage loans | property | 1 | 3 | 7 | 1 | ||
Adjustments to record at lower of cost or fair value | property | 0 | 0 | 0 | 0 | ||
Disposals | property | (3) | (7) | (5) | (12) | ||
Balance at end of period | property | 22 | 28 | 22 | 28 | ||
Amount | ||||||
Balance at beginning of period | $ | $ 5,191 | $ 5,092 | $ 3,785 | [1] | $ 6,333 | |
Net transfers from mortgage loans | $ | 26 | 178 | 2,041 | 9 | ||
Adjustments to record at lower of cost or fair value | $ | (120) | (685) | (516) | (796) | ||
Disposals | $ | (788) | (840) | (1,001) | (1,801) | ||
Balance at end of period | $ | $ 4,309 | [1] | $ 3,745 | $ 4,309 | [1] | $ 3,745 |
[1] Real estate owned properties, net, are presented net of valuation allowances of $1.7 million and $1.2 million at June 30, 2024 and December 31, 2023, respectively. |
Investments - Narrative (Detail
Investments - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||||
Jan. 01, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) loan | Dec. 31, 2023 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||||||
Reclassification of available for sale debt securities to held to maturity | $ 83,000,000 | |||||
Unrealized losses on debt securities available-for-sale transferred to held-to-maturity | $ 1,482,000 | $ 1,482,000 | $ 629,000 | |||
Amortization of unrealized gain/(loss) on debt securities available-for-sale transferred to held-to-maturity | 770,000 | $ 1,139,000 | 1,565,000 | $ 3,172,000 | ||
Gross unrealized losses | (8,700,000) | |||||
Gross unrealized gains | 600,000 | |||||
Interest receivable on securities, on available for sale debt securities | 78,000 | 78,000 | 87,000 | |||
Debt securities and beneficial interests acquired | 0 | |||||
Securities past due | 0 | 0 | 0 | |||
Beneficial interest, accretable yield | 700,000 | 2,000,000 | 1,500,000 | 4,100,000 | ||
Held-to-maturity securities, accretable yield | 400,000 | 600,000 | 800,000 | 1,200,000 | ||
Reclassification to non-credit discount from the allowance for changes in payment expectations | 0 | $ 0 | 900,000 | $ 0 | ||
Ajax Mortgage Loan Trust 2023-A | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Securities retained, percentage from trust (in percent) | 8.60% | 8.60% | ||||
Securities retained, value | $ 16,100,000 | |||||
Securities retained, number of re-performing loans and non-performing loans acquired | loan | 1,085 | |||||
Securities retained, re-performing loans and non-performing loans acquired, unpaid principal balance | $ 205,100,000 | |||||
Securities retained, re-performing loans and non-performing loans acquired, amount | $ 497,400,000 | |||||
Securities retained, rated securities with unpaid principal balance percentage (in percent) | 79.80% | |||||
Securities retained, weighted average coupon (in percent) | 3.46% | 3.46% | ||||
Securities retained, redemption, transaction costs | $ 1,000,000 | $ 1,000,000 | ||||
Accumulated net investment gain (loss) attributable to parent | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Unrealized losses on debt securities available-for-sale transferred to held-to-maturity | $ 10,900,000 | 4,424,000 | 4,424,000 | 5,989,000 | ||
Debt securities available-for-sale, at fair value | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Gross unrealized losses | (9,746,000) | (9,746,000) | (8,675,000) | |||
Gross unrealized gains | 275,000 | 275,000 | 637,000 | |||
Fair value | 140,614,000 | 140,614,000 | 131,558,000 | |||
Investments in securities | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Fair value | 140,600,000 | 140,600,000 | 131,600,000 | |||
Senior notes | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt securities, realized loss | 0 | 0 | 0 | 3,000,000 | ||
Investment in beneficial interests | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Gross unrealized losses | (20,588,000) | (20,588,000) | (26,477,000) | |||
Gross unrealized gains | 3,876,000 | 3,876,000 | 3,631,000 | |||
Fair value | 71,557,000 | 71,557,000 | $ 81,316,000 | |||
Reclassification to non-credit discount from the allowance for changes in payment expectations | 0 | $ 0 | 916,000 | $ 0 | ||
Reversal of provision for credit losses | $ 0 | $ (3,100,000) |
Investments - Debt Securities a
Investments - Debt Securities and Beneficial Interests (Details) - USD ($) | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Abstract] | ||||||
Gross unrealized gains | $ 600,000 | |||||
Gross unrealized losses | (8,700,000) | |||||
Debt Securities, Held-to-Maturity, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | ||||||
HTM, allowance for expected credit losses | $ 0 | 0 | ||||
Basis | 48,050,000 | 59,691,000 | ||||
Gross unrealized gains | 25,000 | 111,000 | ||||
Gross unrealized losses | (1,482,000) | (629,000) | ||||
Fair value | 46,593,000 | 59,173,000 | ||||
Total Investments, basis | 286,404,000 | 303,449,000 | ||||
Total Investments, gross unrealized gains | 4,176,000 | 4,379,000 | ||||
Total Investments, gross unrealized losses | (31,816,000) | (35,781,000) | ||||
Total Investments, carrying value | 258,764,000 | 272,047,000 | ||||
Interest receivable on securities, on available for sale debt securities | 78,000 | 87,000 | ||||
Interest receivable on held to maturity debt securities | 17,000 | 24,000 | ||||
Investment in beneficial interests | ||||||
Debt Securities, Available-for-sale [Abstract] | ||||||
Basis | 88,269,000 | 104,162,000 | ||||
Gross unrealized gains | 3,876,000 | 3,631,000 | ||||
Gross unrealized losses | (20,588,000) | (26,477,000) | ||||
Fair value | 71,557,000 | 81,316,000 | ||||
Debt Securities, Held-to-Maturity, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract] | ||||||
Debt securities, available-for-sale, allowance for credit loss | 9,082,000 | $ 9,082,000 | 6,880,000 | $ 0 | $ 0 | $ 0 |
Debt securities available-for-sale, at fair value | ||||||
Debt Securities, Available-for-sale [Abstract] | ||||||
Basis | 150,085,000 | 139,596,000 | ||||
Gross unrealized gains | 275,000 | 637,000 | ||||
Gross unrealized losses | (9,746,000) | (8,675,000) | ||||
Fair value | $ 140,614,000 | $ 131,558,000 |
Investments - Debt Securities_2
Investments - Debt Securities Available-for-sale, Unrealized Loss Position, Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Investments, Debt and Equity Securities [Line Items] | ||
Gross unrealized losses | $ (8,700) | |
Debt securities due February 2028 | ||
Investments, Debt and Equity Securities [Line Items] | ||
Basis | $ 4,814 | 4,717 |
Gross unrealized losses | (14) | (6) |
Fair value | 4,800 | 4,711 |
Debt securities due November 2051 | ||
Investments, Debt and Equity Securities [Line Items] | ||
Basis | 3,766 | 3,764 |
Gross unrealized losses | (106) | (215) |
Fair value | 3,660 | 3,549 |
Debt securities due March 2060 | ||
Investments, Debt and Equity Securities [Line Items] | ||
Basis | 5,583 | 5,805 |
Gross unrealized losses | (365) | (678) |
Fair value | 5,218 | 5,127 |
Debt securities due December 2060 | ||
Investments, Debt and Equity Securities [Line Items] | ||
Basis | 20,893 | 21,411 |
Gross unrealized losses | (5,074) | (4,242) |
Fair value | 15,819 | 17,169 |
Debt securities due January 2061 | ||
Investments, Debt and Equity Securities [Line Items] | ||
Basis | 4,886 | 4,886 |
Gross unrealized losses | (551) | (478) |
Fair value | 4,335 | 4,408 |
Debt securities due June 2061 | ||
Investments, Debt and Equity Securities [Line Items] | ||
Basis | 12,655 | 12,992 |
Gross unrealized losses | (1,071) | (1,243) |
Fair value | 11,584 | 11,749 |
Debt Securities due June 2061, Security One | ||
Investments, Debt and Equity Securities [Line Items] | ||
Gross unrealized losses | (500) | (300) |
Debt Securities due June 2061, Security Two | ||
Investments, Debt and Equity Securities [Line Items] | ||
Gross unrealized losses | (500) | (900) |
Debt securities due October 2061 | ||
Investments, Debt and Equity Securities [Line Items] | ||
Basis | 11,448 | 11,815 |
Gross unrealized losses | (1,048) | (842) |
Fair value | 10,400 | 10,973 |
Debt securities due March 2062 | ||
Investments, Debt and Equity Securities [Line Items] | ||
Basis | 9,842 | 10,315 |
Gross unrealized losses | (741) | (793) |
Fair value | 9,101 | 9,522 |
Debt Securities Due July 2062 | ||
Investments, Debt and Equity Securities [Line Items] | ||
Basis | 12,390 | 12,668 |
Gross unrealized losses | (776) | (41) |
Fair value | 11,614 | 12,627 |
Debt Securities Due October 2062 | ||
Investments, Debt and Equity Securities [Line Items] | ||
Basis | 17,174 | |
Gross unrealized losses | (137) | |
Fair value | 17,037 | |
Total basis | ||
Investments, Debt and Equity Securities [Line Items] | ||
Basis | 86,277 | 105,547 |
Total gross unrealized losses | ||
Investments, Debt and Equity Securities [Line Items] | ||
Gross unrealized losses | (9,746) | (8,675) |
Total carrying value (fair value) | ||
Investments, Debt and Equity Securities [Line Items] | ||
Fair value | $ 76,531 | $ 96,872 |
Investments - Schedule of secur
Investments - Schedule of securities at acquisition reconciliation between purchase price and par value (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Par | $ 0 | $ 0 | $ 0 | $ 2,051 |
Premium | 0 | 0 | 0 | 963 |
Purchase Price | $ 0 | $ 0 | $ 0 | $ 3,014 |
Investments - Allowance for Cre
Investments - Allowance for Credit Loss on Beneficial Interests (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Reclassification to non-credit discount from the allowance for changes in payment expectations | $ 0 | $ 0 | $ 900,000 | $ 0 |
Investment in beneficial interests | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for expected credit losses, beginning balance | (9,082,000) | 0 | (6,880,000) | 0 |
Reclassification to non-credit discount from the allowance for changes in payment expectations | 0 | 0 | 916,000 | 0 |
Net change in the allowance for credit losses | 0 | 0 | (3,118,000) | 0 |
Allowance for expected credit losses, ending balance | $ (9,082,000) | $ 0 | $ (9,082,000) | $ 0 |
Fair Value - Schedule of Recurr
Fair Value - Schedule of Recurring Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Warrant liability | $ 0 | $ 2,054 | $ 16,644 | $ 15,614 | $ 13,775 | $ 12,153 |
Fair value, recurring | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment in debt securities available-for-sale | 0 | 0 | ||||
Warrant liability | 0 | 0 | ||||
Fair value, recurring | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment in debt securities available-for-sale | 140,614 | 131,558 | ||||
Warrant liability | 0 | 0 | ||||
Fair value, recurring | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment in debt securities available-for-sale | 0 | 0 | ||||
Warrant liability | 0 | 16,644 | ||||
Fair value, recurring | Carrying value | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment in debt securities available-for-sale | 140,614 | 131,558 | ||||
Warrant liability | $ 0 | $ 16,644 |
Fair Value - Schedule of Assets
Fair Value - Schedule of Assets and Liabilities at Fair Value (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | |
Financial assets | |||
Mortgage loans held-for-sale, net | [1] | $ 108,868,000 | $ 55,718,000 |
Investment in debt securities held-to-maturity | 46,593,000 | 59,173,000 | |
Financial liabilities | |||
Borrowings under repurchase transactions | 246,497,000 | 375,745,000 | |
Level 1 - Quoted prices in active markets | |||
Financial assets | |||
Mortgage loans held-for-investment, net | 0 | 0 | |
Mortgage loans held-for-sale, net | 0 | 0 | |
Investment in debt securities held-to-maturity | 0 | 0 | |
Financial liabilities | |||
Secured borrowings, net | 0 | 0 | |
Borrowings under repurchase transactions | 0 | 0 | |
Convertible senior notes | 101,777,000 | ||
Notes payable, net | 0 | 0 | |
Level 1 - Quoted prices in active markets | Investment in Former Manager | |||
Financial assets | |||
Investments, fair value disclosure | 0 | 0 | |
Level 1 - Quoted prices in active markets | Investment in AS Ajax E LLC | |||
Financial assets | |||
Investments, fair value disclosure | 0 | 0 | |
Level 1 - Quoted prices in active markets | Investment in Ajax E Master Trust | |||
Financial assets | |||
Investments, fair value disclosure | 0 | ||
Level 1 - Quoted prices in active markets | Investment in GAFS, including warrants | |||
Financial assets | |||
Investments, fair value disclosure | 0 | ||
Level 1 - Quoted prices in active markets | Investment in Gaea | |||
Financial assets | |||
Investments, fair value disclosure | 0 | 0 | |
Level 1 - Quoted prices in active markets | Investment in Loan pool LLCs | |||
Financial assets | |||
Investments, fair value disclosure | 0 | 0 | |
Level 1 - Quoted prices in active markets | Investment in beneficial interests | |||
Financial assets | |||
Investments, fair value disclosure | 0 | 0 | |
Level 2 - Observable inputs other than Level 1 prices | |||
Financial assets | |||
Mortgage loans held-for-investment, net | 0 | 0 | |
Mortgage loans held-for-sale, net | 0 | 0 | |
Investment in debt securities held-to-maturity | 46,593,000 | 59,173,000 | |
Financial liabilities | |||
Secured borrowings, net | 244,385,000 | 370,882,000 | |
Borrowings under repurchase transactions | 246,497,000 | 375,745,000 | |
Convertible senior notes | 0 | ||
Notes payable, net | 105,822,000 | 103,697,000 | |
Level 2 - Observable inputs other than Level 1 prices | Investment in Former Manager | |||
Financial assets | |||
Investments, fair value disclosure | 0 | 0 | |
Level 2 - Observable inputs other than Level 1 prices | Investment in AS Ajax E LLC | |||
Financial assets | |||
Investments, fair value disclosure | 0 | 471,000 | |
Level 2 - Observable inputs other than Level 1 prices | Investment in Ajax E Master Trust | |||
Financial assets | |||
Investments, fair value disclosure | 1,864,000 | ||
Level 2 - Observable inputs other than Level 1 prices | Investment in GAFS, including warrants | |||
Financial assets | |||
Investments, fair value disclosure | 0 | ||
Level 2 - Observable inputs other than Level 1 prices | Investment in Gaea | |||
Financial assets | |||
Investments, fair value disclosure | 0 | 0 | |
Level 2 - Observable inputs other than Level 1 prices | Investment in Loan pool LLCs | |||
Financial assets | |||
Investments, fair value disclosure | 0 | 0 | |
Level 2 - Observable inputs other than Level 1 prices | Investment in beneficial interests | |||
Financial assets | |||
Investments, fair value disclosure | 0 | 0 | |
Level 3 - Unobservable inputs | |||
Financial assets | |||
Mortgage loans held-for-investment, net | 367,023,000 | 770,419,000 | |
Mortgage loans held-for-sale, net | 108,868,000 | 60,444,000 | |
Investment in debt securities held-to-maturity | 0 | 0 | |
Financial liabilities | |||
Secured borrowings, net | 0 | 0 | |
Borrowings under repurchase transactions | 0 | 0 | |
Convertible senior notes | 0 | ||
Notes payable, net | 0 | 0 | |
Level 3 - Unobservable inputs | Investment in Former Manager | |||
Financial assets | |||
Investments, fair value disclosure | 2,319,000 | 4,527,000 | |
Level 3 - Unobservable inputs | Investment in AS Ajax E LLC | |||
Financial assets | |||
Investments, fair value disclosure | 0 | 0 | |
Level 3 - Unobservable inputs | Investment in Ajax E Master Trust | |||
Financial assets | |||
Investments, fair value disclosure | 0 | ||
Level 3 - Unobservable inputs | Investment in GAFS, including warrants | |||
Financial assets | |||
Investments, fair value disclosure | 0 | ||
Level 3 - Unobservable inputs | Investment in Gaea | |||
Financial assets | |||
Investments, fair value disclosure | 22,376,000 | 21,678,000 | |
Level 3 - Unobservable inputs | Investment in Loan pool LLCs | |||
Financial assets | |||
Investments, fair value disclosure | 62,000 | 674,000 | |
Level 3 - Unobservable inputs | Investment in beneficial interests | |||
Financial assets | |||
Investments, fair value disclosure | 71,557,000 | 81,316,000 | |
Carrying value | |||
Financial assets | |||
Mortgage loans held-for-investment, net | 413,916,000 | 864,551,000 | |
Mortgage loans held-for-sale, net | 108,868,000 | 55,718,000 | |
Investment in debt securities held-to-maturity | 48,050,000 | 59,691,000 | |
Financial liabilities | |||
Secured borrowings, net | 276,458,000 | 411,212,000 | |
Borrowings under repurchase transactions | 246,497,000 | 375,745,000 | |
Convertible senior notes | 103,516,000 | ||
Notes payable, net | 107,216,000 | 106,844,000 | |
Carrying value | Investment in Former Manager | |||
Financial assets | |||
Investments, fair value disclosure | 2,786,000 | 440,000 | |
Carrying value | Investment in AS Ajax E LLC | |||
Financial assets | |||
Investments, fair value disclosure | 0 | 407,000 | |
Carrying value | Investment in Ajax E Master Trust | |||
Financial assets | |||
Investments, fair value disclosure | 2,100,000 | ||
Carrying value | Investment in GAFS, including warrants | |||
Financial assets | |||
Investments, fair value disclosure | 0 | 2,618,000 | |
Carrying value | Investment in Gaea | |||
Financial assets | |||
Investments, fair value disclosure | 21,805,000 | 22,241,000 | |
Carrying value | Investment in Loan pool LLCs | |||
Financial assets | |||
Investments, fair value disclosure | 180,000 | 194,000 | |
Carrying value | Investment in beneficial interests | |||
Financial assets | |||
Investments, fair value disclosure | $ 88,269,000 | $ 104,162,000 | |
[1] Mortgage loans held-for-sale, net and mortgage loans held-for-investment, net include $411.4 million and $628.6 million of loans at June 30, 2024 and December 31, 2023, 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 zero and $3.4 million of allowance for expected credit losses at June 30, 2024 and December 31, 2023, respectively. |
Affiliates - Narrative (Details
Affiliates - Narrative (Details) | Jun. 30, 2024 USD ($) affiliate loanPool | Dec. 31, 2023 USD ($) loanPool affiliate | Jun. 30, 2023 affiliate |
Schedule of Equity Method Investments [Line Items] | |||
Number of unconsolidated affiliates | affiliate | 5 | 5 | 5 |
AS Ajax E LLC | Carrying value | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments, fair value disclosure | $ | $ 0 | $ 2,618,000 | |
AS Ajax E II LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage by parent (as percent) | 0% | 53.10% | |
2017-D | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage by parent (as percent) | 50% | 50% | |
Great Ajax II REIT | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage by parent (as percent) | 99.90% | 99.90% | |
Thetis Asset Management LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage (in percent) | 19.80% | 19.80% | |
AS Ajax E LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage (in percent) | 0% | 16.50% | |
Loan pool LLCs | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage (in percent) | 40% | 40% | |
Number of entities | loanPool | 1 | 1 | |
Gaea Real Estate Corp. | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage (in percent) | 22.20% | 22.20% | |
Ajax E Master Trust | AS Ajax E LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest in real estate trust (in percent) | 5% | 5% | |
Great Ajax FS LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage (in percent) | 0% | 9.72% |
Affiliates - Schedule of Net In
Affiliates - Schedule of Net Income, Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||||
Net income/(loss) at the Company's share | $ (974) | $ (265) | $ (453) | $ (363) | |
Assets at Company's share | 911,516 | 911,516 | $ 1,336,291 | ||
Liabilities at Company's share | 657,035 | 657,035 | 1,025,396 | ||
AS Ajax E LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets at Company's share | 0 | 0 | 420 | ||
Liabilities at Company's share | 0 | 0 | 6 | ||
Great Ajax FS LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets at Company's share | 0 | 0 | 6,854 | ||
Liabilities at Company's share | 0 | 0 | 5,748 | ||
Loan pool LLCs | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets at Company's share | 480 | 480 | 480 | ||
Liabilities at Company's share | 107 | 107 | 93 | ||
Gaea Real Estate Corp. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets at Company's share | 35,888 | 35,888 | 37,272 | ||
Liabilities at Company's share | 15,516 | 15,516 | 16,346 | ||
Thetis Asset Management LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets at Company's share | 2,987 | 2,987 | 919 | ||
Liabilities at Company's share | 40 | 40 | $ 258 | ||
AS Ajax E LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Net income/(loss) at $100% | 18 | 56 | 81 | 122 | |
Net income/(loss) at the Company's share | $ 3 | 9 | $ 13 | 20 | |
Ownership percentage (in percent) | 0% | 0% | 16.50% | ||
AS Ajax E LLC | Assets | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets and liabilities at $100% | $ 0 | $ 0 | $ 2,553 | ||
AS Ajax E LLC | Liabilities | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets and liabilities at $100% | 0 | 0 | $ 39 | ||
Great Ajax FS LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Net income/(loss) at $100% | 0 | (211) | (269) | (974) | |
Net income/(loss) at the Company's share | $ 0 | (20) | $ (26) | (87) | |
Ownership percentage (in percent) | 0% | 0% | 9.72% | ||
Great Ajax FS LLC | Assets | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets and liabilities at $100% | $ 0 | $ 0 | $ 71,477 | ||
Great Ajax FS LLC | Liabilities | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets and liabilities at $100% | 0 | 0 | $ 59,949 | ||
Loan pool LLCs | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Net income/(loss) at $100% | (18) | (16) | (34) | (40) | |
Net income/(loss) at the Company's share | $ (7) | (6) | $ (14) | (16) | |
Ownership percentage (in percent) | 40% | 40% | 40% | ||
Loan pool LLCs | Assets | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets and liabilities at $100% | $ 1,200 | $ 1,200 | $ 1,200 | ||
Loan pool LLCs | Liabilities | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets and liabilities at $100% | 267 | 267 | $ 232 | ||
Gaea Real Estate Corp. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Net income/(loss) at $100% | (481) | (1,227) | (594) | (2,332) | |
Net income/(loss) at the Company's share | $ (107) | (270) | $ (108) | (513) | |
Ownership percentage (in percent) | 22.20% | 22.20% | 22.20% | ||
Gaea Real Estate Corp. | Assets | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets and liabilities at $100% | $ 161,365 | $ 161,365 | $ 167,591 | ||
Gaea Real Estate Corp. | Liabilities | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets and liabilities at $100% | 69,768 | 69,768 | $ 73,499 | ||
Thetis Asset Management LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Net income/(loss) at $100% | (3,866) | (147) | 11,856 | (136) | |
Net income/(loss) at the Company's share | $ (765) | $ (29) | $ 2,348 | $ (27) | |
Ownership percentage (in percent) | 19.80% | 19.80% | 19.80% | ||
Thetis Asset Management LLC | Assets | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets and liabilities at $100% | $ 15,085 | $ 15,085 | $ 4,643 | ||
Thetis Asset Management LLC | Liabilities | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets and liabilities at $100% | $ 202 | $ 202 | $ 1,305 | ||
Unconsolidated Affiliates | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage (in percent) | 100% | 100% | 100% | 100% | 100% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) loan | Feb. 26, 2024 USD ($) | |
Commitments and Contingencies | |||
Fair value of warrants | $ 900,000 | $ 900,000 | |
Amortization of deferred issuance costs | 2,000,000 | 2,700,000 | |
Mark to market gain | 1,200,000 | 1,900,000 | |
Rithm | |||
Commitments and Contingencies | |||
Fair value of warrants | $ 2,700,000 | ||
Rithm | Secured Debt | Line of Credit | |||
Commitments and Contingencies | |||
Amount outstanding | $ 0 | $ 0 | |
Nonperforming loans | Single And One To Four Family Residences | Purchase Commitment | |||
Commitments and Contingencies | |||
Number of mortgage loans on real estate | loan | 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Warrant Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Separate Account, Liability [Roll Forward] | ||||
Beginning balance | $ 2,054 | $ 13,775 | $ 16,644 | $ 12,153 |
Ending balance | 0 | 15,614 | 0 | 15,614 |
Rithm Warrants | ||||
Separate Account, Liability [Roll Forward] | ||||
Issuance of Rithm Warrants | 0 | 0 | 2,734 | 0 |
Fair value adjustment of warrants | (1,203) | 0 | (1,883) | 0 |
Reclassification of Rithm Warrants to Equity | (851) | 0 | (851) | 0 |
2020 Warrants | ||||
Separate Account, Liability [Roll Forward] | ||||
Fair value adjustment of warrants | 0 | 1,839 | 2,033 | 3,461 |
Redemption of 2020 warrants | $ 0 | $ 0 | $ (18,677) | $ 0 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Apr. 30, 2024 USD ($) | Aug. 31, 2022 USD ($) | Jun. 30, 2024 USD ($) securitization | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) trust facility counterparty securitization | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2020 | May 20, 2024 USD ($) | Mar. 31, 2024 USD ($) | Feb. 26, 2024 USD ($) | Nov. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | ||
Debt Instrument [Line Items] | |||||||||||||||
Percentage of guarantors beneficial interest (in percentage) | 100% | 100% | |||||||||||||
Cash collateral | $ 110,000 | $ 110,000 | $ 3,756,000 | ||||||||||||
Convertible senior notes | [1] | 0 | 0 | 103,516,000 | |||||||||||
Repurchase of the company's senior convertible notes | 0 | $ 952,000 | |||||||||||||
Proceeds used to repurchase and retire securities | 0 | $ 15,614,000 | $ 0 | 15,614,000 | $ 16,644,000 | $ 12,153,000 | $ 2,054,000 | $ 13,775,000 | |||||||
Series A Preferred Stock | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Preferred stock, fixed-to-floating rate cumulative redeemable | 7.25% | 7.25% | 7.25% | ||||||||||||
Series B Preferred Stock | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Preferred stock, fixed-to-floating rate cumulative redeemable | 5% | 5% | 5% | 5% | |||||||||||
Gregory Funding LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Ceiling for each repurchase facility | 12,000,000 | $ 12,000,000 | $ 3,500,000 | ||||||||||||
Rithm | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Proceeds used to repurchase and retire securities | $ 900,000 | ||||||||||||||
Convertible notes payable | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest expense | $ 0 | 1,900,000 | $ 2,400,000 | 4,000,000 | |||||||||||
Repurchase agreement | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate (in percent) | 6.99% | 6.99% | 7.44% | ||||||||||||
Amount outstanding | $ 246,497,000 | $ 246,497,000 | $ 375,745,000 | ||||||||||||
Servicing agreement | Minimum | Gregory Funding LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Servicing fee rate, loans securitization (in percent) | 0.42% | 0.42% | |||||||||||||
Servicing fees (in percent) | 0.65% | ||||||||||||||
Servicing agreement | Maximum | Gregory Funding LLC | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Servicing fees (in percent) | 1.25% | ||||||||||||||
Mortgage loans | Non-rated secured borrowings | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Number of securitizations outstanding | securitization | 0 | 0 | |||||||||||||
Mortgage loans | Rated secured borrowings | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Number of securitizations outstanding | securitization | 4 | 4 | |||||||||||||
Convertible notes payable | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate (in percent) | 7.25% | 7.25% | |||||||||||||
Repayments of debt | $ 103,500,000 | ||||||||||||||
Accrued interest period (in days) | 15 days | ||||||||||||||
Unpaid principal balance | $ 0 | $ 0 | 103,500,000 | ||||||||||||
Interest expense | 2,700,000 | 2,700,000 | 5,300,000 | 5,300,000 | |||||||||||
Amortization of debt discount | $ 0 | $ 100,000 | $ 0 | $ 300,000 | |||||||||||
Interest rate, effective percentage | 8.52% | 7.51% | 8.52% | 7.51% | |||||||||||
Repayments of convertible debt | $ 0 | $ 0 | $ 0 | $ 1,000,000 | |||||||||||
Repurchase of the company's senior convertible notes | 0 | 1,000,000 | |||||||||||||
Amortization of debt discount and deferred expenses | $ 200,000 | $ 200,000 | $ 400,000 | $ 400,000 | |||||||||||
Senior notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis points | 1% | ||||||||||||||
Senior notes | 8.875% Senior Unsecured Notes Due September 2027 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate (in percent) | 8.875% | ||||||||||||||
Interest rate, effective percentage | 9.92% | 9.98% | 9.92% | 9.98% | |||||||||||
Aggregate principal | $ 110,000,000 | ||||||||||||||
Debt instrument, term (in years) | 5 years | ||||||||||||||
Issuance amount, amount of par value (percent) | 0.99009 | ||||||||||||||
Proceeds from unsecured notes payable | $ 106,100,000 | ||||||||||||||
Proceeds used to repurchase and retire securities | $ 90,000,000 | $ 90,000,000 | |||||||||||||
Amount outstanding | $ 110,000,000 | $ 110,000,000 | 110,000,000 | ||||||||||||
Senior notes | 9.875% Senior Unsecured Notes Due September 2027 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate (in percent) | 9.875% | 9.875% | |||||||||||||
Notes Payable | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt issuance costs, net | $ 2,800,000 | $ 2,800,000 | $ 3,200,000 | ||||||||||||
Line of Credit | Rithm | Secured Debt | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest rate (in percent) | 10% | ||||||||||||||
Aggregate principal | $ 70,000,000 | ||||||||||||||
Amount outstanding | 0 | $ 0 | |||||||||||||
Delaware Trust | Mortgage loans | Repurchase agreement | |||||||||||||||
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 | |||||||||||||
Delaware Trust | Mortgage loans | Repurchase agreement | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Percentage of purchase price for each mortgage loan or REO (in percentage) | 75% | ||||||||||||||
Delaware Trust | Mortgage loans | Repurchase agreement | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Percentage of purchase price for each mortgage loan or REO (in percentage) | 90% | ||||||||||||||
Delaware Trust | Mortgages one | Repurchase agreement | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Ceiling for each repurchase facility | $ 400,000,000 | $ 400,000,000 | |||||||||||||
Delaware Trust | Bonds | Repurchase agreement | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Number of facilities repurchased | facility | 4 | ||||||||||||||
[1]Secured borrowings, net are presented net of deferred issuance costs of $1.7 million at June 30, 2024 and $3.1 million at December 31, 2023. Convertible senior notes are presented net of deferred issuance costs of zero at both June 30, 2024 and December 31, 2023. Notes payable, net are presented net of deferred issuance costs and discount of $2.8 million at June 30, 2024 and $3.2 million at December 31, 2023. |
Debt - Schedule of Repurchase T
Debt - Schedule of Repurchase Transactions and Facilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Amount of Collateral | $ 305,446 | $ 541,999 |
Bond repurchase transaction | 42,800 | |
Master repurchase agreement | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | 246,497 | 375,745 |
Amount of Collateral | $ 305,556 | $ 545,755 |
Interest Rate | 6.99% | 7.44% |
Master repurchase agreement | Barclays | Bonds | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 85,724 | $ 70,095 |
Amount of Collateral | $ 121,941 | $ 101,041 |
Interest Rate | 6.45% | 7.03% |
Master repurchase agreement | Barclays | Bonds | A Bonds, July 26, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 35,855 | |
Amount of Collateral | $ 46,748 | |
Interest Rate | 6.21% | |
Master repurchase agreement | Barclays | Bonds | A Bonds, September 20, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 28,158 | |
Amount of Collateral | $ 39,663 | |
Interest Rate | 6.40% | |
Master repurchase agreement | Barclays | Bonds | A Bonds, November 1 , 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 5,786 | |
Amount of Collateral | $ 7,424 | |
Interest Rate | 6.56% | |
Master repurchase agreement | Barclays | Bonds | B Bonds, September 20, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 10,155 | |
Amount of Collateral | $ 18,541 | |
Interest Rate | 6.85% | |
Master repurchase agreement | Barclays | Bonds | B Bonds, November 1 , 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 4,078 | |
Amount of Collateral | $ 6,232 | |
Interest Rate | 7.58% | |
Master repurchase agreement | Barclays | Bonds | M Bonds, July 26, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 479 | |
Amount of Collateral | $ 878 | |
Interest Rate | 6.55% | |
Master repurchase agreement | Barclays | Bonds | M Bonds, September 20, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 932 | |
Amount of Collateral | $ 1,943 | |
Interest Rate | 6.65% | |
Master repurchase agreement | Barclays | Bonds | M Bonds, November 1 , 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 281 | |
Amount of Collateral | $ 512 | |
Interest Rate | 6.93% | |
Master repurchase agreement | Barclays | Bonds | A Bonds, January 3, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 10,850 | |
Amount of Collateral | $ 15,572 | |
Interest Rate | 6.90% | |
Master repurchase agreement | Barclays | Bonds | A Bonds, January 19, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 21,762 | |
Amount of Collateral | $ 28,503 | |
Interest Rate | 6.79% | |
Master repurchase agreement | Barclays | Bonds | A Bonds, May 3, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 9,628 | |
Amount of Collateral | $ 12,329 | |
Interest Rate | 6.87% | |
Master repurchase agreement | Barclays | Bonds | A Bonds, May 22, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 2,134 | |
Amount of Collateral | $ 3,358 | |
Interest Rate | 6.97% | |
Master repurchase agreement | Barclays | Bonds | B Bonds, January 26, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 3,027 | |
Amount of Collateral | $ 4,998 | |
Interest Rate | 7.68% | |
Master repurchase agreement | Barclays | Bonds | B Bonds, March 13, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 13,398 | |
Amount of Collateral | $ 20,121 | |
Interest Rate | 7.13% | |
Master repurchase agreement | Barclays | Bonds | B Bonds, May 3, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 3,608 | |
Amount of Collateral | $ 6,185 | |
Interest Rate | 7.70% | |
Master repurchase agreement | Barclays | Bonds | B Bonds, May 22, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 4,312 | |
Amount of Collateral | $ 7,565 | |
Interest Rate | 7.57% | |
Master repurchase agreement | Barclays | Bonds | M Bonds, May 3, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 281 | |
Amount of Collateral | $ 499 | |
Interest Rate | 7.05% | |
Master repurchase agreement | Barclays | Bonds | M Bonds, May 22, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 1,095 | |
Amount of Collateral | $ 1,911 | |
Interest Rate | 7.17% | |
Master repurchase agreement | Nomura | Bonds | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 79,085 | $ 68,623 |
Amount of Collateral | $ 61,255 | $ 98,448 |
Interest Rate | 6.71% | 6.98% |
Master repurchase agreement | Nomura | Bonds | A Bonds, September 27, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 22,613 | |
Amount of Collateral | $ 34,200 | |
Interest Rate | 6.88% | |
Master repurchase agreement | Nomura | Bonds | B Bonds, July 5, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 27,238 | |
Amount of Collateral | $ 88 | |
Interest Rate | 6.60% | |
Master repurchase agreement | Nomura | Bonds | B Bonds, September 27, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 7,180 | |
Amount of Collateral | $ 13,224 | |
Interest Rate | 6.88% | |
Master repurchase agreement | Nomura | Bonds | M Bonds, September 27, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 22,054 | |
Amount of Collateral | $ 13,743 | |
Interest Rate | 6.59% | |
Master repurchase agreement | Nomura | Bonds | B Bonds, January 26, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 1,024 | |
Amount of Collateral | $ 1,761 | |
Interest Rate | 7.31% | |
Master repurchase agreement | Nomura | Bonds | A Bonds, January 26, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 35,184 | |
Amount of Collateral | $ 47,149 | |
Interest Rate | 7.02% | |
Master repurchase agreement | Nomura | Bonds | A Bonds, February 15, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 5,079 | |
Amount of Collateral | $ 7,449 | |
Interest Rate | 6.93% | |
Master repurchase agreement | Nomura | Bonds | A Bonds, March 28, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 17,019 | |
Amount of Collateral | $ 23,238 | |
Interest Rate | 6.74% | |
Master repurchase agreement | Nomura | Bonds | B Bonds, February 15, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 3,002 | |
Amount of Collateral | $ 5,149 | |
Interest Rate | 7.33% | |
Master repurchase agreement | Nomura | Bonds | B Bonds, March 28, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 3,900 | |
Amount of Collateral | $ 6,413 | |
Interest Rate | 7.30% | |
Master repurchase agreement | Nomura | Bonds | M Bonds, January 26, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 2,307 | |
Amount of Collateral | $ 5,177 | |
Interest Rate | 7.30% | |
Master repurchase agreement | Nomura | Bonds | M Bonds, March 28, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 1,108 | |
Amount of Collateral | $ 2,112 | |
Interest Rate | 6.90% | |
Master repurchase agreement | Nomura | Loan | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 76,336 | $ 193,060 |
Amount of Collateral | $ 114,131 | $ 277,632 |
Interest Rate | 7.79% | 7.79% |
Maximum borrowing capacity | $ 400,000 | $ 400,000 |
Master repurchase agreement | JP Morgan | Bonds | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | 33,564 | |
Amount of Collateral | $ 53,978 | |
Interest Rate | 6.90% | |
Master repurchase agreement | JP Morgan | Bonds | A Bonds, February 28, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 9,632 | |
Amount of Collateral | $ 12,633 | |
Interest Rate | 6.73% | |
Master repurchase agreement | JP Morgan | Bonds | B Bonds, February 28, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 6,598 | |
Amount of Collateral | $ 11,140 | |
Interest Rate | 7.13% | |
Master repurchase agreement | JP Morgan | Bonds | M Bonds, January 4, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 13,541 | |
Amount of Collateral | $ 22,813 | |
Interest Rate | 6.82% | |
Master repurchase agreement | JP Morgan | Bonds | M Bonds, January 22, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 3,290 | |
Amount of Collateral | $ 6,497 | |
Interest Rate | 7.23% | |
Master repurchase agreement | JP Morgan | Bonds | M Bonds, February 28, 2024 | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | $ 503 | |
Amount of Collateral | $ 895 | |
Interest Rate | 7.03% | |
Master repurchase agreement | JP Morgan | Loan | ||
Debt Instrument [Line Items] | ||
Amount Outstanding | 5,352 | $ 10,403 |
Amount of Collateral | $ 8,229 | $ 14,656 |
Interest Rate | 8.38% | 8.38% |
Maximum borrowing capacity | $ 150,000 | $ 150,000 |
Debt - Schedule of Netting Agre
Debt - Schedule of Netting Agreement (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
Gross amount of recognized liabilities | $ 246,497 | $ 375,745 |
Gross amount of loans and securities pledged as collateral | 305,446 | 541,999 |
Other prepaid collateral | 110 | 3,756 |
Net collateral amount | $ 59,059 | $ 170,010 |
Debt - Schedule of Securitizati
Debt - Schedule of Securitization Notes Outstanding (Details) - Mortgage loans $ in Millions | Jun. 30, 2024 USD ($) |
Class A-1 Notes | Ajax Mortgage Loan Trust 2019-D/ July 2019 | |
Debt Instrument [Line Items] | |
Original Principal | $ 140.4 |
Interest Rate | 2.96% |
Class A-1 Notes | Ajax Mortgage Loan Trust 2019-F/ November 2019 | |
Debt Instrument [Line Items] | |
Original Principal | $ 110.1 |
Interest Rate | 2.86% |
Class A-1 Notes | Ajax Mortgage Loan Trust 2020-B/ August 2020 | |
Debt Instrument [Line Items] | |
Original Principal | $ 97.2 |
Interest Rate | 1.70% |
Class A-1 Notes | Ajax Mortgage Loan Trust 2021-A/ January 2021 | |
Debt Instrument [Line Items] | |
Original Principal | $ 146.2 |
Interest Rate | 1.07% |
Class A-2 Notes | Ajax Mortgage Loan Trust 2019-D/ July 2019 | |
Debt Instrument [Line Items] | |
Original Principal | $ 6.1 |
Interest Rate | 3.50% |
Class A-2 Notes | Ajax Mortgage Loan Trust 2019-F/ November 2019 | |
Debt Instrument [Line Items] | |
Original Principal | $ 12.5 |
Interest Rate | 3.50% |
Class A-2 Notes | Ajax Mortgage Loan Trust 2020-B/ August 2020 | |
Debt Instrument [Line Items] | |
Original Principal | $ 17.3 |
Interest Rate | 2.86% |
Class A-2 Notes | Ajax Mortgage Loan Trust 2021-A/ January 2021 | |
Debt Instrument [Line Items] | |
Original Principal | $ 21.1 |
Interest Rate | 2.35% |
Class A-3 Notes | Ajax Mortgage Loan Trust 2019-D/ July 2019 | |
Debt Instrument [Line Items] | |
Original Principal | $ 10.1 |
Interest Rate | 3.50% |
Class A-3 Notes | Ajax Mortgage Loan Trust 2019-F/ November 2019 | |
Debt Instrument [Line Items] | |
Original Principal | $ 5.1 |
Interest Rate | 3.50% |
Class M-1 Notes | Ajax Mortgage Loan Trust 2019-D/ July 2019 | |
Debt Instrument [Line Items] | |
Original Principal | $ 9.3 |
Interest Rate | 3.50% |
Class M-1 Notes | Ajax Mortgage Loan Trust 2019-F/ November 2019 | |
Debt Instrument [Line Items] | |
Original Principal | $ 6.1 |
Interest Rate | 3.50% |
Class M-1 Notes | Ajax Mortgage Loan Trust 2020-B/ August 2020 | |
Debt Instrument [Line Items] | |
Original Principal | $ 7.3 |
Interest Rate | 3.70% |
Class M-1 Notes | Ajax Mortgage Loan Trust 2021-A/ January 2021 | |
Debt Instrument [Line Items] | |
Original Principal | $ 7.8 |
Interest Rate | 3.15% |
Class B-1 Notes | Ajax Mortgage Loan Trust 2019-D/ July 2019 | |
Debt Instrument [Line Items] | |
Original Principal | $ 7.5 |
Interest Rate | 3.50% |
Class B-1 Notes | Ajax Mortgage Loan Trust 2019-F/ November 2019 | |
Debt Instrument [Line Items] | |
Original Principal | $ 11.5 |
Interest Rate | 3.50% |
Class B-1 Notes | Ajax Mortgage Loan Trust 2020-B/ August 2020 | |
Debt Instrument [Line Items] | |
Original Principal | $ 5.9 |
Interest Rate | 3.70% |
Class B-1 Notes | Ajax Mortgage Loan Trust 2021-A/ January 2021 | |
Debt Instrument [Line Items] | |
Original Principal | $ 5 |
Interest Rate | 3.80% |
Class B-2 Notes | Ajax Mortgage Loan Trust 2019-D/ July 2019 | |
Debt Instrument [Line Items] | |
Original Principal | $ 7.1 |
Class B-2 Notes | Ajax Mortgage Loan Trust 2019-F/ November 2019 | |
Debt Instrument [Line Items] | |
Original Principal | 10.4 |
Class B-2 Notes | Ajax Mortgage Loan Trust 2020-B/ August 2020 | |
Debt Instrument [Line Items] | |
Original Principal | 5.1 |
Class B-2 Notes | Ajax Mortgage Loan Trust 2021-A/ January 2021 | |
Debt Instrument [Line Items] | |
Original Principal | 5 |
Class B-3 Notes | Ajax Mortgage Loan Trust 2019-D/ July 2019 | |
Debt Instrument [Line Items] | |
Original Principal | 12.8 |
Class B-3 Notes | Ajax Mortgage Loan Trust 2019-F/ November 2019 | |
Debt Instrument [Line Items] | |
Original Principal | 15.1 |
Class B-3 Notes | Ajax Mortgage Loan Trust 2020-B/ August 2020 | |
Debt Instrument [Line Items] | |
Original Principal | 23.6 |
Class B-3 Notes | Ajax Mortgage Loan Trust 2021-A/ January 2021 | |
Debt Instrument [Line Items] | |
Original Principal | $ 21.5 |
Deferred issuance costs | Ajax Mortgage Loan Trust 2019-D/ July 2019 | |
Debt Instrument [Line Items] | |
Interest Rate | 0% |
Debt issuance costs, net | $ 2.7 |
Deferred issuance costs | Ajax Mortgage Loan Trust 2019-F/ November 2019 | |
Debt Instrument [Line Items] | |
Interest Rate | 0% |
Debt issuance costs, net | $ 1.8 |
Deferred issuance costs | Ajax Mortgage Loan Trust 2020-B/ August 2020 | |
Debt Instrument [Line Items] | |
Interest Rate | 0% |
Debt issuance costs, net | $ 1.8 |
Deferred issuance costs | Ajax Mortgage Loan Trust 2021-A/ January 2021 | |
Debt Instrument [Line Items] | |
Interest Rate | 0% |
Debt issuance costs, net | $ 2.5 |
Debt - Schedule of Status of No
Debt - Schedule of Status of Notes and Securitizations (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Mortgage loans | ||
Debt Instrument [Line Items] | ||
Carrying value of mortgages | $ 411,427 | $ 628,615 |
Bond principal balance | $ 278,134 | $ 414,338 |
Percentage of collateral coverage | 148% | 152% |
Mortgage UPB | $ 1,015,033 | |
Bond principal balance | 789,905 | |
Mortgage loans | 2019-D | ||
Debt Instrument [Line Items] | ||
Carrying value of mortgages | 96,939 | $ 99,367 |
Bond principal balance | $ 65,127 | $ 67,739 |
Percentage of collateral coverage | 149% | 147% |
Mortgage UPB | $ 193,301 | |
Bond principal balance | 156,670 | |
Mortgage loans | 2019-F | ||
Debt Instrument [Line Items] | ||
Carrying value of mortgages | 92,853 | $ 96,870 |
Bond principal balance | $ 54,056 | $ 57,936 |
Percentage of collateral coverage | 172% | 167% |
Mortgage UPB | $ 170,876 | |
Bond principal balance | 127,673 | |
Mortgage loans | 2020-B | ||
Debt Instrument [Line Items] | ||
Carrying value of mortgages | 98,191 | $ 100,245 |
Bond principal balance | $ 60,697 | $ 63,574 |
Percentage of collateral coverage | 162% | 158% |
Mortgage UPB | $ 156,468 | |
Bond principal balance | 114,534 | |
Mortgage loans | 2021-A | ||
Debt Instrument [Line Items] | ||
Carrying value of mortgages | 123,444 | $ 127,250 |
Bond principal balance | $ 98,254 | $ 102,057 |
Percentage of collateral coverage | 126% | 125% |
Mortgage UPB | $ 206,506 | |
Bond principal balance | 175,116 | |
Mortgage loans | 2021-B | ||
Debt Instrument [Line Items] | ||
Carrying value of mortgages | 0 | $ 204,883 |
Bond principal balance | $ 0 | $ 123,032 |
Percentage of collateral coverage | 0% | 167% |
Mortgage UPB | $ 287,882 | |
Bond principal balance | 215,912 | |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Deferred issuance costs | $ (1,700) | $ (3,100) |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt Maturities (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 0 |
2025 | 0 |
2026 | 0 |
2027 | 110,000 |
2028 | $ 0 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) | 6 Months Ended | |||
Jun. 30, 2024 USD ($) calendarQuarter shares | Jun. 11, 2024 shares | Dec. 31, 2023 USD ($) shares | Nov. 30, 2023 USD ($) | |
Related Party Transaction [Line Items] | ||||
Note and interest outstanding | $ 3,594,000 | $ 7,307,000 | ||
Percentage of incentive fees payable in cash | 100% | |||
Issued of common stock (in shares) | shares | 45,605,549 | 27,460,161 | ||
Period of termination of license agreement (in days) | 30 days | |||
Great Ajax Financial Services LLC | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage (in percent) | 0% | 9.72% | ||
Former Management Agreement | Common stock | ||||
Related Party Transaction [Line Items] | ||||
Issued of common stock (in shares) | shares | 3,174,645 | |||
Management agreement | ||||
Related Party Transaction [Line Items] | ||||
Agreement renewable period | 2 years | |||
Percentage of base management fee (in percent) | 1.50% | |||
Gregory | ||||
Related Party Transaction [Line Items] | ||||
Maximum borrowing capacity | $ 12,000,000 | $ 3,500,000 | ||
Fixed interest rate (in percent) | 3% | |||
Gregory | Servicing agreement | ||||
Related Party Transaction [Line Items] | ||||
Percentage of fair market value of REO (in percent) | 1% | |||
Percentage of purchase price of REO (in percent) | 1% | |||
Gregory | Servicing agreement | Minimum | ||||
Related Party Transaction [Line Items] | ||||
Servicing fee rate, loans securitization (in percent) | 0.42% | |||
Servicing fees (in percent) | 0.65% | |||
Gregory | Servicing agreement | Maximum | ||||
Related Party Transaction [Line Items] | ||||
Servicing fees (in percent) | 1.25% | |||
Gregory | Related Party | ||||
Related Party Transaction [Line Items] | ||||
Due from related parties | $ 0 | $ 9,300,000 | ||
Note and interest outstanding | 0 | 3,300,000 | ||
Gaea Real Estate Corp | ||||
Related Party Transaction [Line Items] | ||||
Maximum borrowing capacity | $ 11,000,000 | |||
Fixed interest rate (in percent) | 3% | |||
Gaea Real Estate Corp | Related Party | ||||
Related Party Transaction [Line Items] | ||||
Note and interest outstanding | $ 1,300,000 | $ 7,500,000 | ||
Thetis Asset Management LLC | Management agreement | ||||
Related Party Transaction [Line Items] | ||||
Percentage of base management fee (in percent) | 1.50% | |||
Thetis Asset Management LLC | Amended and restated management agreement | ||||
Related Party Transaction [Line Items] | ||||
Percentage of incentive fees payable in quarterly (in percent) | 20% | |||
Percentage of remaining incentive fee in excess of book value (in percent) | 8% | |||
Number of calendar quarters | calendarQuarter | 4 | |||
Percentage of independent directors (in percent) | 66.67% |
Stock-based Payments and Dire_3
Stock-based Payments and Director Fees - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 shares | Mar. 31, 2024 shares | Jun. 30, 2023 USD ($) shares | Mar. 31, 2023 shares | Jun. 30, 2024 USD ($) boardOfDirector shares | Jun. 30, 2023 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of remaining board of directors | boardOfDirector | 2 | |||||
Independent Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual retainer amount | $ 140 | |||||
Percentage of annual retainer received in shares (in percent) | 50% | |||||
Percentage of annual retainer received in cash (in percent) | 50% | |||||
Independent Directors | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of annual retainer received in cash (in percent) | 100% | |||||
Lead Director of Special Committee | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual retainer amount | $ 30 | |||||
Annual retainer received in stock payment | $ 15 | $ 15 | ||||
Lead Director of Special Committee | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual retainer received in stock, percentage (in percent) | 1 | |||||
Restricted stock grants | Restricted stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted (in shares) | shares | 0 | 66,421 | 22,459 | 3,000 | 66,421 | 25,459 |
Vesting period (in years) | 4 years | 4 years |
Stock-based Payments and Dire_4
Stock-based Payments and Director Fees - Schedule of Management Fees and Director Fees (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares settled (in shares) | 0 | 0 | 3,080 | 13,020 |
Amount of expense recognized | $ 0 | $ 0 | $ 15 | $ 88 |
Independent director fees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares settled (in shares) | 0 | 0 | 3,080 | 13,020 |
Amount of expense recognized | $ 0 | $ 0 | $ 15 | $ 88 |
Stock-based Payments and Dire_5
Stock-based Payments and Director Fees - Grants of Restricted Stock Units to Directors and Employees (Details) - Restricted stock - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Employee and Service Provider Grants | ||||||
Shares | ||||||
Shares outstanding beginning (in shares) | 220,146 | 159,142 | 277,079 | 310,262 | 159,142 | 310,262 |
Shares vested (in shares) | (210,093) | (3,250) | (9,475) | (30,515) | ||
Shares forfeited (in shares) | (10,053) | (2,167) | (7,084) | (5,668) | ||
Shares granted (in shares) | 0 | 66,421 | 22,459 | 3,000 | 66,421 | 25,459 |
Shares outstanding ending (in shares) | 0 | 220,146 | 282,979 | 277,079 | 0 | 282,979 |
Weighted Average Grant Date Fair Value | ||||||
Shares outstanding beginning (in dollars per share) | $ 8.29 | $ 10.33 | $ 10.88 | $ 10.98 | $ 10.33 | $ 10.98 |
Shares vested (in dollars per share) | 9.40 | 10.74 | 11.25 | 11.56 | ||
Shares forfeited (in dollars per share) | 8.79 | 7.89 | 11.16 | 10.30 | ||
Shares granted (in dollars per share) | 0 | 3.59 | 6.50 | 7.34 | ||
Shares outstanding ending (in dollars per share) | $ 0 | $ 8.29 | $ 10.52 | $ 10.88 | $ 0 | $ 10.52 |
Weighted average remaining contractual terms (in years) | 8 months 12 days | 2 years | ||||
Director grants | ||||||
Shares | ||||||
Shares outstanding beginning (in shares) | 25,000 | 25,000 | 25,000 | 0 | 25,000 | 0 |
Shares vested (in shares) | (12,500) | 0 | 0 | 0 | ||
Shares forfeited (in shares) | (7,500) | 0 | 0 | 0 | ||
Shares granted (in shares) | 0 | 0 | 0 | 25,000 | ||
Shares outstanding ending (in shares) | 5,000 | 25,000 | 25,000 | 25,000 | 5,000 | 25,000 |
Weighted Average Grant Date Fair Value | ||||||
Shares outstanding beginning (in dollars per share) | $ 7.15 | $ 7.15 | $ 7.15 | $ 0 | $ 7.15 | $ 0 |
Shares vested (in dollars per share) | 7.15 | 0 | 0 | 0 | ||
Shares forfeited (in dollars per share) | 7.15 | 0 | 0 | 0 | ||
Shares granted (in dollars per share) | 0 | 0 | 0 | 7.15 | ||
Shares outstanding ending (in dollars per share) | $ 7.15 | $ 7.15 | $ 7.15 | $ 7.15 | $ 7.15 | $ 7.15 |
Weighted average remaining contractual terms (in years) | 1 year 8 months 12 days |
Stock-based Payments and Dire_6
Stock-based Payments and Director Fees - Restricted Stock Plan Expenses (Details) - Restricted stock - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total expenses for plan grants | $ 1,174 | $ 291 | $ 1,449 | $ 815 |
Restricted stock grants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total expenses for plan grants | 1,156 | 284 | 1,409 | 801 |
Director grants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total expenses for plan grants | $ 18 | $ 7 | $ 40 | $ 14 |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) entity | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) entity | Jun. 30, 2023 USD ($) | Dec. 31, 2023 | |
Distribution percentage of REIT taxable income (at least) (in percent) | 90% | ||||
Number of taxable subsidiaries | entity | 2 | 2 | |||
Income tax (benefit)/expense | $ (772) | $ 181 | $ 143 | $ 274 | |
Deferred tax assets | $ 1,200 | $ 500 | $ 1,200 | $ 500 | |
Thetis Asset Management LLC | |||||
Ownership percentage (in percent) | 19.80% | 19.80% | 19.80% |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2020 | |
Basic EPS | |||||
Consolidated net loss attributable to common stockholders | $ (12,742) | $ (12,034) | $ (87,061) | $ (19,975) | |
Allocation of loss to participating restricted shares | 78 | 161 | 452 | 272 | |
Consolidated net loss attributable to unrestricted common stockholders | (12,664) | (11,873) | (86,609) | (19,703) | |
Effect of dilutive securities | |||||
Restricted stock grants and Former Manager and director fee shares | 0 | (161) | 0 | 0 | |
Diluted EPS | |||||
Consolidated net loss attributable to common stockholders and dilutive securities | $ (12,664) | $ (12,034) | $ (86,609) | $ (19,703) | |
Basic EPS | |||||
Consolidated net loss attributable to (unrestricted) common stockholders (in shares) | 39,344,128 | 23,250,725 | 35,021,845 | 23,087,717 | |
Allocation of loss to participating restricted shares (in shares) | 0 | 0 | 0 | 0 | |
Effect of dilutive securities | |||||
Restricted stock grants and Former Manager and director fee shares (in shares) | 0 | 314,626 | 0 | 0 | |
Diluted EPS | |||||
Consolidated net (loss)/income attributable to common stockholders and dilutive securities (in shares) | 39,344,128 | 23,565,351 | 35,021,845 | 23,087,717 | |
Per Share Amount | |||||
Consolidated net loss attributable to unrestricted common stockholders (in dollars per share) | $ (0.32) | $ (0.51) | $ (2.47) | $ (0.85) | |
Consolidated net loss attributable to common stockholders and dilutive securities (in dollars per share) | $ (0.32) | $ (0.51) | $ (2.47) | $ (0.85) | |
Class of warrant or right, outstanding (in shares) | 1,950,672 | 1,950,672 | 1,950,672 | 1,950,672 | 6,500,000 |
Equity - Narrative (Details)
Equity - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
May 20, 2024 USD ($) $ / shares shares | Jun. 30, 2024 USD ($) entity $ / shares shares | Mar. 31, 2024 shares | Jun. 30, 2023 USD ($) shares | Jun. 30, 2024 USD ($) entity $ / shares shares | Jun. 30, 2023 USD ($) shares | Dec. 31, 2023 entity $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2020 $ / shares shares | Jun. 11, 2024 shares | Mar. 31, 2023 shares | Feb. 28, 2020 USD ($) | |
Class of Stock [Line Items] | ||||||||||||
Common stock, shares outstanding (in shares) | 45,605,549 | 45,605,549 | 27,460,161 | |||||||||
Common stock, par value per share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 | 125,000,000 | |||||||||
Issued of common stock (in shares) | 45,605,549 | 45,605,549 | 27,460,161 | |||||||||
Preferred stock, par value per share (in dollars per share) | $ / shares | $ 25 | |||||||||||
Exchange of preferred shares and warrants (in shares) | 0 | 0 | ||||||||||
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 | 25,000,000 | |||||||||
Common stock authorized | $ | $ 25,000,000 | |||||||||||
Treasury stock, common (in shares) | (1,035,785) | (1,035,785) | (1,035,785) | |||||||||
Sale of common stock, net of offering costs | $ | $ 14,000,000 | $ 2,954,000 | ||||||||||
Number of non controlling interest subsidiaries | entity | 2 | 2 | 3 | |||||||||
Open market purchases | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Treasury stock, common (in shares) | (525,039) | (525,039) | (525,039) | |||||||||
At-the-Market Program | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Sale of stock (in shares) | 0 | 94,012 | 0 | 439,590 | ||||||||
Common stock authorized | $ | $ 100,000,000 | $ 100,000,000 | ||||||||||
AS Ajax E II LLC | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Ownership percentage by parent (as percent) | 0% | 0% | 53.10% | |||||||||
2017-D | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Ownership percentage by parent (as percent) | 50% | 50% | 50% | |||||||||
Great Ajax II REIT | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Ownership percentage by parent (as percent) | 99.90% | 99.90% | 99.90% | |||||||||
Thetis Asset Management LLC | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Treasury stock, common (in shares) | (148,834) | (148,834) | (148,834) | |||||||||
Gregory | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Treasury stock, common (in shares) | (361,912) | (361,912) | (361,912) | |||||||||
7.25% Series A preferred stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | 424,949 | 2,307,400 | ||||||||
Preferred stock, fixed-to-floating rate cumulative redeemable | 7.25% | 7.25% | 7.25% | |||||||||
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares | $ 25 | $ 25 | $ 25 | $ 25 | ||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 424,949 | |||||||||
5.00% Series B preferred stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | 1,135,590 | 2,892,600 | ||||||||
Preferred stock, fixed-to-floating rate cumulative redeemable | 5% | 5% | 5% | 5% | ||||||||
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares | $ 25 | $ 25 | $ 25 | $ 25 | ||||||||
Preferred stock, discount (in percent) | 2.50% | |||||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 1,135,590 | |||||||||
At-the-Market Program | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Sale of common stock, net of offering costs | $ | $ 500,000 | $ 3,000,000 | ||||||||||
Rithm | Secured Debt | Line of Credit | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock price of common stock (in dollars per share) | $ / shares | $ 4.87 | |||||||||||
Sale of stock, consideration received on transaction | $ | $ 14,000,000 | |||||||||||
Common stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common stock, shares outstanding (in shares) | 45,605,549 | 36,992,019 | 23,627,677 | 45,605,549 | 23,627,677 | 27,460,161 | 23,130,956 | 23,509,446 | ||||
Sale of stock (in shares) | 8,631,083 | |||||||||||
Exchange of shares (in shares) | 2,581,694 | 9,464,524 | ||||||||||
Preferred stock, shares exchanged, shares issued and to be issued (in shares) | 12,046,218 | |||||||||||
Exchange of preferred shares and warrants (in shares) | 2,581,694 | 9,464,524 | ||||||||||
Issuance of shares under dividend reinvestment plan (in shares) | 0 | 0 | 0 | 0 | ||||||||
Common stock | Rithm | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Sale of stock (in shares) | 2,874,744 | |||||||||||
Common stock | Former Management Agreement | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Issued of common stock (in shares) | 3,174,645 | |||||||||||
Preferred stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock discount | $ | $ 0 | $ 0 | $ 0 | $ 0 | $ 8,200,000 | |||||||
Preferred stock | 7.25% Series A preferred stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Exchange of shares (in shares) | 424,949 | |||||||||||
Stock repurchased and retired during period, shares (in shares) | 1,882,451 | |||||||||||
Exchange of preferred shares and warrants (in shares) | (424,949) | |||||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 424,949 | 0 | 424,949 | 424,949 | 424,949 | 424,949 | ||||
Preferred stock | 5.00% Series B preferred stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Exchange of shares (in shares) | 1,135,590 | |||||||||||
Stock repurchased and retired during period, shares (in shares) | 1,757,010 | |||||||||||
Stock repurchased and retired during period | $ | $ 88,700,000 | |||||||||||
Stock repurchased and retired during period, average price per share (in dollars per share) | $ / shares | $ 24.37 | |||||||||||
Exchange of preferred shares and warrants (in shares) | (1,135,590) | |||||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 1,135,590 | 0 | 1,135,590 | 1,135,590 | 1,135,590 | 1,135,590 |
Equity - Schedule of Accumulate
Equity - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | Jan. 01, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized losses on debt securities available-for-sale transferred to held-to-maturity | $ (1,482) | $ (629) | |
Accumulated other comprehensive loss | 13,895 | 14,027 | |
Accumulated net investment gain (loss) attributable to parent | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unrealized gains on debt securities available-for-sale | 275 | 637 | |
Unrealized losses on debt securities available-for-sale | (9,746) | (8,675) | |
Unrealized losses on debt securities available-for-sale transferred to held-to-maturity | (4,424) | (5,989) | $ (10,900) |
AOCI attributable to parent | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | $ (13,895) | $ (14,027) |
Subsequent Events (Details)
Subsequent Events (Details) | Jul. 23, 2024 $ / shares |
Subsequent event | |
Subsequent Event [Line Items] | |
Dividends payable (in dollars per share) | $ 0.06 |