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Lawrence Mendelsohn | Chief Executive Officer |
Good day and thank you for standing by. Welcome to the Great Ajax Corp Q3 2021 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your first speaker for today, Mr. Great of CEO Mendelsohn, Ajax. Lawrence Thank you. ahead, go Please, sir.
joining you. call Ajax’s Great you, and for Thank everybody, us third for Thank presentation. quarter XXXX conference
you quarter on Before Safe jump with in. get started, was would lot can to we another of XXXX good I that, we Harbor a second the point disclosure QX page in and like the ways.
cost almost XX by funds basis decreased further of Our overall points.
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that However, the than resolution reduction be would due we less of this expected impact COVID-XX certain generally typical, duration to extension requirements.
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in cost QX primarily lower on Our XX due facilities. than funds of points. to basis reductions QX This nearly was by spread was repurchase
the securitizations or to resecuritize We in of $X.X share There’s call funds we after next to million to few income preferred was per attributable million things cost note. $X.XX a and expect our our subtracting three common of $X.XX continue other of of older out Net as quarters. decreasing dividends. couple stockholders
second from had in of increase was of lower related all bonds delinquent gains. We $XXX,XXX Taxable earnings in in tax income, of net quarters. formation XX, certain million QX QX and on allowance QX after loans REO, of were value underlying loans loans. $X.XX income in increases expect prior warrant gap We sale previously offset to which was continuing second increases an was the pick put nonperforming performance and of securities. primarily a the saw versus XXXX. many income to by dividend high in several market a credit the rights in due to also three-week expense. comes net and having our non-performing XXXX. values performing XX, We debt discount from due continue continuing cumulative cash of driven especially partially Approximately XXXX book interest and an relating is versus million the million income allowance reduction at prepay expensed share. stock flow for XXXX about those prepayment $XXX,XXX $X.X difference in approximately of in in by our to Book between quarter would estate primarily backed versus REO the that acceleration value interest in September reduction our resecuritizing We on reduction share GAAP velocity fair $XX.XX at from of up timing was calling prepayments loans and loans. since per and operating as GAAP Our the We approximately gains loans. $XX trend June The issuances credit full by generate to value XX% in other REO in required expense, this excess the quarter. Taxable preferred recoveries warrants, increase were from real $X.X million $X.X the did accrual in $X.X
purchased increase ***XX*** purchased with approximately $XX and $XX.X securitizations. of venture. of interest million million. beneficial $XX balance $XX.X of $XX One form ***XX-XX*** increased totaling million million. UPB two securitization ….beneficial paying taxable reduced of in retained approximately joint of We million decreases $XX and in joint our venture with related in approximately debt UPB balance QX, of owing a further, million funding balance The total in joint of million. with securitizations interest of million $XXX the owing $XX further million with one Additionally, total UPB interest UPB expect $XX funds and combined UPB completed prior which as in venture. and owing securities costs. on structure $XX.X transaction total in We nonperforming proceeds million $XX.X the income. nonperforming loans expense, We and approximately down was new loans million and loans the we cost reductions In in would rated we unrated leverage the
the is in had XX% and an second approximately quarter, was underlying structure in XX% with transaction underlying venture. which interest balance are of property $XXX XX, most. only million. Dade cash cash the beneficial quarter, pre-funding loans collections This July securitization is $XX transaction Florida. daily first that the debt million The and quarter, own we late of in balance of of NPLs in of million joint transaction XXXX, the buy of Beach increase and created purchased the In XX% of we for $XX All which We accounted securities was At had This mid-August. the the this an balance Broward properties third price XX% over cash we of the a third cash for and but a had of rather venture and Palm million this Miami, X% increase the into was September loans. equivalent in value. quarter. than closed UPB, joint in to in approximately average owing over $XX of of We securitized of purchase June XXXX XX% the counties
but Our over earnings time. earnings get provides significant us this and we ROE, surplus cash related the and with as the cash invested optionality tempers decreases
also unencumbered mentioned loans. as face $XXX million had this earlier of our XX, securities I had we XX, and of unencumbered million mortgage more in from And amount at ventures we and securitizations cash. call, $XX As September October joint of than
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California markets. the largest our segment continues of target Our portfolio. loan represent to
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at property time of affects the of as loans back resolution durations X. We the of lead XX% shorter least than XX last paying appreciation of true negatively our At made March primarily payments. and made time lines get loans in on moratoriums. have extended This much including XX.X% XX, so homes, approximately XX.X% seen On in payments, expenses. XX September loan a less however our at portfolio to repair single-family XXXX. the COVID-XX loans insurance this XX condominiums. XX.X% time portfolio that of Non-paying approximately and at of extended for to Page This have usually XX as result nonperforming approximately of lines can least can and more yield the last purchase which tax, compares
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par. on XX today’s basis, increase, and higher in prices so at in been mortgage market velocity the the demand has seen and well the XX for our While we our over flow in on materially on full as full cash in far our prepayment impact increase. portfolio trade COVID-XX for loan our loan understand increase of it’s loans cost home homes prices on targets’ impacted markets to too have impact soon loans performance, positive loans
of higher $XXX have market loans of As Since a subject ended, value venture result, loans purchase balance net million the XXX.X% owing including diligence. lower market joint price the our GAAP approximately values. UPB fair implied structure is amortized our and or the QX the a approximately asset loans value corporate to materially at cost. value due The of XX% XX% the arrears purchase nonperforming loan underlying portfolio book to approximately which are property of UPB, we estimates presents in approximately agreed of for and than of
transaction modeled November XX. in to this XX. retain record interest November expect be holders XX.X% a on of in XXXX November of XX of this and dividend close to a venture’s couple We November on will late paid Page On structure. to declared we on note A increase by of to we increases joint financial metrics unallocated X, cash expect $X.XX our models of have from flow marginally flow portfolio. Average credit declined significant allowance excess most cash loan reductions excluding cash on in a for loan in discount and approximately Based to of velocity, some expectations yields flow we asset seen the cash we and yields X.X%. expected increase loan
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should our increases invested, interest interest well. net as and we get cash income we in surplus income As see
$XX equity unencumbered significant at million, and loan well debt financing that, million senior as on mortgage approximately anybody offense being Class for of cash related On $XXX face I’m our bonds million to the was that million unencumbered beneficial XX in bonds certificates, might $XXX unencumbered resources of total $XXX of with financing loans. joint XX, the on September $XXX financing and million at And Combined questions which had $XXX ventures. AX XX, interest our as At million Page mortgage is have. XX, we September answer of September of $XX million defense. side repurchase have we UPB non-mark-to-market agreement on with happy was any
are no [Operator Instructions] There on queue. questions
You continue. may now
for everybody, you third extent everyone questions the Thank Thank very you. our question, the us to conference If later no evening. is have and there reach free call. date hope much, you, to out time on you thank joining at and Feel or again. enjoys quarter their
concludes conference call. today’s This for Thank you participating.
may You disconnect. now
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