Great Ajax Corp. (AJX) 10-Q Quarterly Report November 2023

•Formed two joint ventures that acquired $325.3 million in unpaid principal balance ("UPB") of mortgage loans from pre-existing joint ventures with collateral values of $718.7 million and retained $57.9 million of the varying classes of the related debt securities and beneficial interests issued by the joint venture to end the quarter with $309.2 million of investments in debt securities and beneficial interests

•Collected total cash of $39.5 million from loan payments, sales of real estate owned ("REO") properties and collections from investments in debt securities and beneficial interests

•Held $63.9 million of cash and cash equivalents at September 30, 2023; average daily cash balance for the quarter was $53.2 million

•As of September 30, 2023, approximately 81.2% of our portfolio (based on UPB at the time of acquisition) made at least 12 out of the last 12 payments

New York, NY—November 2, 2023 —Great Ajax Corp. (NYSE: AJX), a Maryland corporation that is a real estate investment trust ("REIT"), announces its results of operations for the quarter ended September 30, 2023. We focus primarily on acquiring, investing in and managing a portfolio of re-performing mortgage loans ("RPLs") and non-performing loans ("NPLs") secured by single-family residences and commercial properties. In addition to our continued focus on RPLs and NPLs, we also originate and acquire small-balance commercial loans ("SBC loans") secured by multi-family retail/residential and mixed use properties.

The following information was filed by Great Ajax Corp. (AJX) on Thursday, November 2, 2023 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Great Ajax Corp.'s 10-Q Quarterly Report:

Financial - Income Highlight
Net interest income after recording the impact of the net present value of decreases in expected credit losses decreased to $13.0 million for the nine months ended September 30, 2023 from $41.9 million for the nine months ended September 30, 2022 primarily as a result of higher interest expense and a net $3.2 million impact of the net decrease in the net present value of expected credit losses for the nine months ended September 30, 2023 compared to a $6.9 million decrease for the nine months ended September 30, 2022.

Financial - Income Highlight
Net interest income after recording the impact of the net present value of increases/decreases in expected credit losses decreased to $2.7 million for the three months ended September 30, 2023 from $10.6 million for the three months ended September 30, 2022 primarily as a result of higher interest expense, lower interest income and the net impact of a net $0.3 million increase in the net present value of expected credit losses for our mortgage loan portfolio the three months ended September 30, 2023 compared to a $1.9 million decrease for the three months ended September 30, 2022.
Other - Other Highlight
However, given the sensitivity of our consolidated financial statements to these critical accounting policies, the use of other judgments or estimates could result in material differences in our results of operations or financial condition.
Other - Other Highlight
Financing Activities - Secured Borrowings, 2024 Notes and 2027 Notes Secured Borrowings From our inception (January 30, 2014) to September 30, 2023, we have completed 18 secured borrowings, not including borrowings we completed for our non-consolidated joint ventures (See "Table 18: Investments in Joint Ventures"), through securitization trusts pursuant to Rule 144A under the Securities Act, five of which were outstanding at September 30, 2023.
Financial - Cash Flow Highlight
However, we expect market events, including inflation and the related Federal Reserve bank actions, may adversely impact our future operating cash flows due to the inability of some of our borrowers to make scheduled payments on time or at all, and through increased interest rates on secured borrowings and repurchase lines of credit.
Financial - Income
These policies relate to (i)...Read more
Other - Other
The following table sets forth...Read more
Other - Other
Our average daily cash balance...Read more
Revenue - Product
During the three months ended...Read more
Financial - Shares
We believe that investments in...Read more
Financial - Shares
63 During the three months...Read more
Financial - Cash Flow
Though the ownership of mortgage...Read more
Other - Other
We have effective control over...Read more
M & A - Other
However, when we analyze loan...Read more
Other - Other
We also held approximately $63.9...Read more
Other - Other
Although inflation has eased somewhat...Read more
Financial - Earnings
(1) Ongoing disruption in the...Read more
Financial - Expense
Interest expense for the three...Read more
Financial - Expense
For the nine months ended...Read more
Financial - Shares
Financing Activities - Equity Offerings...Read more
Other - Other
76 A summary of our...Read more
Financial - Shares
The difference between the market...Read more
Other - Other
A return to any COVID-19...Read more
Financial - Expense
A breakdown of Other expense...Read more
Financial - Shares
During the three and nine...Read more
Revenue - Product
71 Liquidity and Capital Resources...Read more
M & A - Other
We believe that there is...Read more
Financial - Expense
Those expenses may increase due...Read more
Other - Other
Comparatively, of the $6.9 million...Read more
Financial - Expense
Interest expense on our 2027...Read more
Financial - Expense
64 Expenses Total expenses decreased...Read more
Financial - Income
Other Income/Loss Other income/loss decreased...Read more
Other - Other
From time to time we...Read more
Other - Other
These facilities have no effective...Read more
Financial - Expense
Real estate operating expense consists...Read more
Other - Other
We have retained the applicable...Read more
Financial - Income
The decrease in Other income/loss...Read more
Financial - Income
60 Table 1: Results of...Read more
Financial - Expense
Additionally, our Manager incurs direct,...Read more
Financial - Dividend
Our dividend payments are driven...Read more
Other - Other
A significant decline in HPA...Read more
Financial - Income
The interest income detail for...Read more
Other - Other
As such, we are not...Read more
Financial - Shares
In accordance with the terms...Read more
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Ownership Issuing Trust/Issue Date Security...Read more
Financial - Debt
As of September 30, 2023...Read more
Other - Other
We have retained the subordinated...Read more
Other - Other
77 (1)Maximum borrowing capacity subject...Read more
Financial - Shares
We have two series of...Read more
Revenue - Product
For the nine months ended...Read more
Financial - Shares
The series A and series...Read more
Financial - Shares
The series A and series...Read more
Financial - Expense
Conversely, decreases in interest rates,...Read more
Financial - Dividend
We believe we have access...Read more
Revenue - Product
Following termination of the agreement,...Read more
Financial - Shares
The amount and timing of...Read more
Financial - Dividend
Our most recently declared quarterly...Read more
Other - Other
We have securitized mortgage loans...Read more
Other - Other
73 Our rated secured borrowings...Read more
Other - Other
Depending on market conditions, we...Read more
Financial - Debt
We believe the U.S. federal...Read more
Revenue - Product
The following table presents certain...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Great Ajax Corp. provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: AJX
CIK: 1614806
Form Type: 10-Q Quarterly Report
Accession Number: 0001628280-23-036487
Submitted to the SEC: Thu Nov 02 2023 6:11:34 PM EST
Accepted by the SEC: Fri Nov 03 2023
Period: Saturday, September 30, 2023
Industry: Real Estate Investment Trusts