much. very you Thank
the Corp., to Conference Quarter Call. Great everybody Second Ajax XXXX Welcome
me our Mary Schaub here are, Also with Doyle our CFO, President. Russell and
everyone on at Before take presentation. harbor And get started, we just X the to we can and that, go I disclosure of a page X, page have look with the to safe want quickly begin.
introduction, was a XXXX second good of quarter the As an quarter.
of And funds funds further even decreased, approximately our corporate asset-based nearly overall points. cost XX basis decreasing in cost of after XXXX points Our points in in points XXXX. QX decreased QX basis XXXX, XX more, by basis QX, basis XX XX of and of
velocity A funds decrease performance quarter Our of loan the of quarter velocity to $X.X cost and cash loan to in continuing led continued cash present XXXX. has third value expectations. And payoff into of the an increase cash flow QX during continued has loans significant of it's and acceleration flow of flow proceeds additional also XXXX in as as in on the exceeded This well. loan million, continued. increase of income third of XXXX
we offensive currently June mortgage unencumbered selling good paid joint be bonds, values. prices purchased $XXX to in of are underlying XXXX, combined. At and of than locations, percentages are loans, the cash and We continue had than interest unencumbered today. million we a million property loans lower, beneficial of and approximately The more and materially mortgage of when position good venture we XXth loans and $XX unencumbered amount in prices an significant at QX primarily structures, at low
JV and loans still And million velocity have some loans. from mortgage July drag. XXXX, and create earnings our and loan mortgage unencumbered have beneficial The reduces a as XX bonds, cash securities our portfolio and flow structures significant loan As still approximately cash significant does mortgage similar leverage amount of balance a of $XX well. we of cash
for we in and that, investment well. business equipped are page And And volatility the talking good our it opportunities well out to come manager. starting about creates. the potential We X, we however overview, our pipeline with as have
in to and loans market metrics we its acquire strength ability that loan and a performance source long-standing mortgage analyzing pathways manager loans probabilities Our relationships, REIT characteristics to us enables for believe these through have in interest we different manager. the material including long-term loans in XXX probability XX.X% XXXX, We've in of REIT owned equity transactions transactions a the of continuing that Remember, quarter. six performance. since our acquired different second and
our affiliated and servicer teams managers' analytics. And probabilities resolution at and servicer working group non-regular Additionally, loan, processes the in loan, In loan is having timelines. advantage provides our maximize by strategic REIT feedback loan. loop performance for paying data manager analytics essential closely and environment the a with portfolio our non-performing today's a by to
XX% our have servicer. loan Like us enables with economic certainly ventures servicer, the affiliated reach, third-party through to have interest broaden our effectiveness QX investment velocity this increase the benefit interest joint in COVID XXXX our in seen QX XX% a investors. The and of sourcing institutional we manager and the also in our of analytics with and in manager, flow credit equity and during pandemic a cash We of the significant performance.
leverage the still leverage. have low we On side,
versus corporate X.X ratio XXXX times times X.X March was leverage June XX. XX Our at
even in acquisitions QX. average asset times made QX though of X.X in significant Our we versus XXXX, two QX was XXXX leverage base times
in page we properties, lease loans, deal expect a also invests Gaea optionality. real materially a have and half of has the On present $XX.XX of from multifamily mezzanine invested of great increase including quarter. income flow $XX that We velocity and net second Corp. triple It XXXX quarter. expectations in think Net grow and estate. about payoffs loan a million a was multifamily securities, second excess XXXX. busy second in value talk quarter. Gaea of cash REIT clinic highlights interest the the income And million Real veterinary in loans in from was Estate and of We Gaea $X.X in X, to repositioning, we the million interest approximately
but was income, of reduced interest joint cost in interest net securities, higher, funds, Our from from million from due keep approximately was shows by interest of is $XXX,XXX not our in cash in GAAP to that, than value the income interest excluding to increase item $X.X from income of up present loans. mind ventures gross lower flow expense decreased the portion income income A $X.XX velocity from million. our interest income QX,
For out these servicing for fees securities venture the are of waterfall. interests joint paid securities
of securities, our ventures joint from which So gross income ventures fees, interest net if servicing unlike joint loans, fees. is its is interest servicing income from -- of
investor performance XX portfolio corresponding our been outside At the would our least negatively June XX have XX faster XXXX first loan of time for borrowers XX made the we purchased ventures, servicing XXXX.In GAAP XX% portfolio. payments, is COVID-XX-related by XX.X% fee last last the far, by impact the economic the Thus at our by quarter loans. As up more investments. we as and investments in from of the mentioned environment approximately the servicing our stable of XX compared expected will important the joint only This our decrease has or of since interest we XXXX if loan than fees UPB the amount and growing direct purchase interest our at since that that result, year discussing we quite directly part our the percentage and impact X% of income venture on been payment An loan the loans a is QX, only than XX call, lower XXXX. XX%, than amount. GAAP XX, joint QX expense grow pre-COVID of of income at XXXX increasing performance will regular of is portfolio than -- been slowly, less expected the payment XX, of has and to of percentage of offsetting QX the portfolio. far March is
have of that The we significant prepayment significant material and delinquent. payments the increase strong in delinquent loans of full regular Approximately the XX% were XXXX were in borrowers $X.X loans million led pattern in of of continuing days payoffs equity quarter in locations. the our dollars present from excess the from previously of second expectations absolute a home had over value appreciation certain to borrower COVID-impacted subset seen of and quarter. in of loan our Additionally, strong payment prepayment pattern XXX price
they loans While portfolio regular we can at higher cash over the income. loans produce discounts, interest extend can reduce this paying the duration. loan and purchase flows of percentage because on And total loans on life yield average, the
NAV, tend loans lower monthly However, durations. our enable at increase have to Loans of regular regular are financing provide not cost pay generally funds regular and paying flow. shorter status a that cash
generally we requirements. COVID-XX that less However, resolution duration the than of expected to have this extension typical impact reduction be due certain would
reestablish and loans purchased the of our borrowers, As earlier, and to these paying. as loans team servicer as together loans paying overtime were portfolio and manager, our our regularly I have worked most non-regular mentioned
prices given for loans. and will that both likely that mortgage expect so paying higher far low non-regular continue and of rate also We paying regular housing the prepayments stability environment the
seen in this We QX have continue trend of XXXX.
and XXXX. funds QX of the by basis we was This in XXXX to QX securitizations securitizations called completed on in was in repurchased February XX lower and cost of spread QX two we QX Our six points. late than reductions due facilities and
our common XXXX called do to late our with few our in after and resecuritized We $XX.XX will of likely $X.XX bonds and cost four costs, so older in million our stockholders market. some or continue out decreasing expect was Net amortization of million couple convertible of A attributable of of open deferred We the materially, especially income older since the of of quarters. $X.XX funds of repurchasing result note. share other securitizations dividends. the QX recorded things from expense securitizations the loans of in next preferred $X acceleration to the as of per underlying other $XXX,XXX to issuance we million a subtracting
We that also the and backed three-week to calling interest previously bonds in $XXX,XXX resecuritizing timing were loans the between underlying due gap duplicate paid by approximately those loans.
June accrual XXXX, warrants treatment earnings we GAAP-required approximately million changes the QX at at bonds share The $XX.XX amounts difference of put XX, Additionally, the XXXX. versus warrant our value was from share GAAP rights value $X.XX book of in quarter versus per XXXX price. relating and on based comes from our convertible the in $XX.XX in March share of and per XX. stock first to expensed $X.X of Book preferred million issuances
Taxable flow the velocity loans related $XX.XX $X.XX March typically increases Less creation share. REO. and was at REO then income. usually the delinquent foreclosure from generate especially of sale tax loans. at losses income at in cash $XX. in Taxable loans REO on expense, price tax for stock of Our interest time XX XX gains leads income of was June driven and primarily and QX Delinquent performing and prepayment, was taxable was by lower the a a creation to at lower
generate saw prepay and many loans delinquent we gains. full However, in tax
venture we QX, four expense, structures, loans, from debt $XXX of which will for the more of and we we million XXXX, interests. increase QX, in securitizations had approximately we combined cash $XXX first income. four second points called loans our $XXX The the securitizations. should taxable $XXX have had million and and in well UPB, an million. new as the equivalent securitized of four daily contained is approximate we funds Of for million structures million million we loans XXXX, cash $XX.X these ownership four which securities approximately funding called beneficial billion for XX, million purchased costs in and of joint We $XXX venture the further the XXX cost collections of decreases, quarter. and in over XX% newly UPB Cash of structures per another new of year approximately of securitization as resecuritized totaling approximately second in importantly, from in by $XXX we $XXX that million percentage average $X.X interest Additionally is $XX balance joint newly approximately as our In foreign at the and reductions the securitizations. UPB The cash securitizations securitizations retained completed an the the quarter, quarter. reduce probably collections had increases approximately loans June approximately million basis purchased of called cash
provides decreases, as drag like cash earnings cash the quarter. we equity, return earnings over in Our related on us surplus we but tempers with time, this and the optionality get and did significant second invested
XX June $XXX mortgage million our also securities at securitizations call, this of from unpaid million in earlier we had joint mentioned of unencumbered $XX I ventures As and principal face unencumbered amount approximately approximately and loans. balance
unencumbered in XX, even $XX July. approximately of $XX even we the of As unencumbered assets million still of July cash of $XXX though have -- million we approximately invested and assets, month and million
XX. that positive migration that have payment an RPLs RPLs our analytics on have the on and can and fair RPLs earlier mentioned This made only XX.X% this We cost to UPB less loan of versus advance approximately purchased funding. with decrease our we we to portfolio to level than loan-to-value value made have you primarily suggest continue market The asset XX and on our compared approximately XX% payment property underlying structures. consecutive last seven continue will of enables On positive loan X, RPL-driven payments I embedded rates XX% It loan in On increase purchased resulted loan of related acquisition. migration at these purchased material of representing of least payments their page the securitization specifications average. and in As page to buy primarily continue in through June discount. of call, our at difference rated value own the at creates lower us funds XX purchase RPLs net X, of and the by cost loans of portfolio loans. see also certain be reducing time
an Our overall loan declined important approximately XX% page XX.X% RPL purchase loans to of X, non-performing On the price the -- Purchased time again property discussion. relative have non-performing portfolio. over and total of UPB. is value loans
and sheet on value. UPB of NPLs balance For our purchase overall property XX% is price XX.X% of our
can to average capture on on and to interest As and and velocity result rates of we purchased low borrowers accelerated will value low as the of for absolute a presentation. equity Subsequent that a This detail have receipt we prepayment QX. loan-to-value to on discount payment June purchase diligence of due rising significant approximately prices equity. higher loans discuss our XX, income the seen home more agreed this of significant the NPLs and page present $XXX NPL leads RPL loan our to cash of amount and relatively subject and velocity. have NPLs regular of in and dollars portfolios, purchase accelerating greater flow significantly mortgage XX by growing have have this in million I in
represent Our markets. target our the loan continues California segment to largest portfolio. of
California loans San in are Our and primarily mortgage counties. Angeles, Orange Los Diego
loans pandemic consistent in these outperformed period. Southern the seen far have performance expectation Performance We payment California in markets. patterns COVID-XX from and during has
all can recent May quarters. York City our in sale we and of the SALT New patterns seen suburban Since also California May see from effects and XXXX, represent of consistently Until material tax metro prepayments. law nearly prepayments home Jersey New and have We strong prepayment provisions Connecticut XX% liquidity. even XXXX, so Southern home negative of more and values in in
whether of result of for our page have is as longer-term portfolio Again XX.X% any including seeing condominiums. that effective. Atlanta a June can XX more strength of home and areas result Non-paying XX% portfolio shorter so in can XX expenses. payments Dallas, tell a We this, early seen liquidity It's talk than less at least approximately the at made approximately to lines lead more insurance of we this we extended rentals by least as purchase. result a of get of of homes also primarily though loans of metro COVID a to made time loan This We're have moratoriums. a last the number portfolio potential about becoming to also yield this it XX property lifestyle too compares be single-family of others. true or likely Florida, seen COVID-XX several a the On our as turn a short-term loans time repair our materially in is in and new in quick COVID-XX. to suburban phenomenon these law change affected At payments, and positive durations locations XX% homes which XX, demand though of to a Related prices increased usually and loans X, Charlotte, tax Phoenix, time tax, and resolution the bit XX. on in changes have as paying affects at migration. non-performing of approximately lines extended more for
in servicers history we loans past quarters of on continuing payment loans when a over borrowers non-performing shorten duration less our far However, extend rather we've so were most duration and our COVID. of QX, purchased XX with than in XXXX most time. XX discount, of of prepayment from Since for and average at the our they four seen worked
cash increase XX mortgage positive home homes impact the seen While trade have our flow in been has performance of loans it increase and significantly portfolio higher and the prices on as loan impacts our for understand increase. demand trade over loans we generally full and loans XX target on prices was too prepayment in the to our on par. in full today's COVID-XX soon far so markets market on cost low COVID-impacted significantly they basis for in velocity materially
GAAP of million with made it's be our our result, The of amortized XX% owing book value. lower June we In joint purchased loans We estimates Since June a XX% Subsequent a NPLs into busy. a of lower underlying we as the own significantly corporate UPB a that higher As this of was RPLs of securitization price XX.X% the or implied value portfolio of XX. events are at continued XXXX, $XXX and presents of XXXX property page venture joint venture. structure. purchase securitized prefunding market NAV July to and balance closed on materially related and XX in cost. of percentage at than which
directly in UPB at million underlying loans of balance $XXX of non-performing approximately underlying XX% We for the purchased of properties. and subject property price agreed purchase owning due purchase NPLs of XX% value million UPB approximately diligence. of UPB also We've to is to loans $X.X XX.X% the of of and The value. transactions five XX% XX.X% the approximately the of also
these is of in of approximately purchases properties with Dade, underlying One Counties of XXX% Broward Beach $XX and Florida. million UPB the related Miami, Palm
these XXX% and own loans. in transactions close expect We we August these interest in to to expect
to We four subject price value. have of collateral underlying XX.X% a diligence UPB of RPLs purchase XX.X% transactions to $X.X and of due agreed of at million in
XX% interest in of two loans have loans. UPB. August of we close share in of joint XXX% completed retained of holders cash couple X, We August the excluding a One AAA XX venture joint average of rated transactions of our declined joint per to be to The subset XX. venture. expect and record cash to AAA through there's increase flow August Page classes a that July, some various I'd marginally classes own venture $XXX represent B loan XX million these X.X%. by we metrics. declared of We of present with yield In XX.X% value financial August million on these structures. to through And A approximately On XXXX in a we On in $X.XX like from this represents of the dividend of a securities $XX paid UPB. to approximately securitization share.
in presented interest on how GAAP. servicing and and servicing securities is is beneficial our JV are of and Debt fees. yield beneficial is of interest yield For under debt fees gross securities that interest our net structures however loans remember
GAAP yields average being XXXX by they on fees. increased increase the of relative to did beneficial in increased. servicing will loans, the show said, yields JVs QX as XXXX asset reporting as flow amount lower the cash in velocity interest and our As That
asset Leverage increased X.Xx quarter Xx. low continues interest our to be and especially sector. and level We average Our debt -- for level as well. ended companies with was for average margin of QX asset XXXX net debt for the companies level specifically in asset
approximately level was far Our and QX than in QX of so quarter. declined our XX XXXX level third funds of points further cost asset the by basis the debt debt in has cost asset lower
did income in invested convertible we should income and net get our market repurchase in we expense further as as Also, well. in cost interest as interest quarter, continue we to funds we and As second of surplus the see interest open cash the notes increases our decreases. our
On the next and securities page agreement actually -- repurchase loan pages funding. two
debt and $XX certificates unencumbered and June agreement as beneficial concludes answer Our was Combined you senior June defense. UPB bonds million $XXX at have with XX we in whatever AX million on financing million presentation. unencumbered June ventures. non-mark-to-market unencumbered we very and equity questions significant being face was XXX That financing on related interest interest $XXX bonds, had and of resources might our my joint mortgage $XX loans. in. If as offense discussion of approximately on total XX has of Class cash million loan which $XX million for repurchase of to of was XX, have $XXX any million mortgage million At happy anybody well
