NEW YORK, March 16, 2015 /PRNewswire/ — Five Oaks Investment Corp. (NYSE: OAKS) ("Five Oaks" or "the Company") today announced its financial results for the quarter and the year ended December 31, 2014. For the fourth quarter, the Company reported a GAAP net loss of $4.5 million, or $(0.31) per basic and diluted share, and core earnings* of $4.8 million, or $0.32 per basic and diluted share. For the year, the Company reported GAAP net income of $0.4 million, or $0.03 per basic and diluted share, and core earnings* of $16.0 million, or $1.30 per diluted weighted average common share. The Company also reported a net book value of $11.93 per share on a basic and diluted basis at December 31, 2014.
2014 Highlights
- A positive economic return** on the Company's common stock of 3.5% for 2014 despite a volatile interest rate environment and in a year in which the Company's total capital increased by 86.8%.
- Entered the operational phase of the Company's residential whole loan aggregation and securitization business conducted by Five Oaks Acquisition Corp., the Company's wholly owned subsidiary ("FOAC"); FOAC commenced purchasing prime jumbo loans in May 2014, and by year-end FOAC had approved 24 prime jumbo flow origination sellers, approved and purchased loans directly from 21 bulk and mini-bulk loan originators and had established $375 million in warehouse financing lines.
- $453 million in prime jumbo loans purchased by FOAC; FOAC sold $379 million of the loans into two securitizations and retained the mortgage servicing rights; the Company purchased all of the subordinated Class B certificates and the interest-only securities in both securitizations; all of the assets and liabilities of these securitization trusts were consolidated as of December 31, 2014.
- Two equity tranches totaling $78.6 million issued or backed by the Freddie Mac K-Series acquired by the Company in the secondary market; all the assets and liabilities of the two trusts were consolidated as of December 31, 2014.
- Fixed-rate Agency RMBS assets further reduced from 39.2% of the portfolio as of December 31, 2013 to 10.1% as of the close of 2014.
* Core Earnings is a non-GAAP measure that we define as GAAP net income, excluding impairment losses, realized and unrealized gains or losses on the aggregate portfolio and certain non-recurring upfront costs related to securitization transactions. As defined, Core Earnings includes interest income or expense and premium income or loss on derivative instruments.
** Economic return is a non-GAAP measure that we define as the sum of the change in net book value per common share and dividends declared on our common stock during the period over the beginning net book value per common share.
Management Observations
David Carroll, Five Oaks' Chairman and CEO commented: "2014 was a transformational year for Five Oaks. With the commencement of FOAC's operations, and our expected launch during the second quarter 2015 of a new Five Oaks proprietary securitization platform for prime jumbo loans, we are poised to move beyond the capital intensive start-up phase of our loan aggregation and securitization business and into a more efficient operating business phase. We believe a substantial amount of the upfront efforts and expenses required to develop this business are now behind us.
The market environment in 2014 was sometimes volatile. In the second half of the year, lower interest rates caused future expectations of prepayments to increase, putting pressure on mortgage-servicing rights prices, interest-only values and AAA securitization spreads. Notwithstanding these pressures, which certainly impacted our fourth quarter results, we were able to produce a positive economic return for the year of 3.5% while raising additional capital necessary to execute on our operating company strategy.
2015 has started out strongly for the prime jumbo securitization market, with over $3.3 billion in issuance to date. The expected issuance of securities via our own securitization platform will be the last piece of the puzzle for us to build a strong operating business and significant franchise value for our Company. Our ability to organically create credit investments and mortgage servicing rights is a transformative step in our company's development, and we believe that having new capital to invest, competitive loan flow and our own issuance platform also allows us to mitigate certain key business risks.
We continue selectively to invest in the multi-family sector, where strong rental growth and declining home ownership levels continue to support the strong fundamentals of the sector. Additionally, as a result of our increased investments in both multi-family and new issue prime jumbo credit, we have further reduced our exposure to fixed rate agency securities, which are now down to only 10% of our portfolio. We anticipate this trend will continue as we recycle capital into newer credit investments with typically lower leverage and less interest rate sensitivity.
We are optimistic about the opportunities we have in front of us in 2015, and are confident that the loan aggregation and securitization business we have developed, together with the credit investments it creates organically, should benefit our Company for years to come."
Capital Allocation
The following table summarizes certain characteristics of our investment portfolio and the related allocation of our equity capital on a non-GAAP combined basis as of December 31, 2014.
|
For the year ended |
Agency MBS |
Multi-Family |
Non-Agency |
Residential |
Unrestricted |
Total |
|
Amortized Cost |
312,341,969 |
163,105,006 |
366,729,712 |
54,348,737 |
32,274,285 |
928,799,709 |
|
Market Value |
314,830,685 |
165,743,896 |
374,216,615 |
58,153,526 |
32,274,285 |
945,219,007 |
|
Repurchase |
(298,783,000) |
(109,280,000) |
(285,844,000) |
(50,263,852) |
– |
(744,170,852) |
|
Hedges |
(1,626,011) |
– |
– |
(135,183) |
– |
(1,761,194) |
|
Other (4) |
1,233,679 |
129,452 |
532,795 |
593,971 |
(379,372) |
2,110,525 |
|
Restricted Cash |
7,176,205 |
229,347 |
3,638,762 |
356,330 |
– |
11,400,644 |
|
Equity Allocated |
22,831,558 |
56,822,695 |
92,544,172 |
8,704,792 |
31,894,913 |
212,798,130 |
|
Debt/Net Equity (6) |
13.09 |
1.92 |
3.09 |
5.77 |
– |
3.49 |
|
For the year ended |
Agency MBS |
Multi-Family |
Non-Agency |
Residential |
Unrestricted |
Total |
|
Yield on Earning Assets (7) |
2.69% |
8.08% |
6.81% |
4.15% |
– |
5.33% |
|
Less Cost of Funds (8) |
1.44% |
1.76% |
1.45% |
2.86% |
– |
1.59% |
|
Net Interest Margin (9) |
1.25% |
6.32% |
5.36% |
1.29% |
– |
3.74% |
|
(1) |
Information with respect to Non-Agency RMBS and Multi-Family MBS, related repurchase agreement borrowings, and the resulting total is presented on a non-GAAP basis. On a GAAP basis, which excludes the impact of Non-Agency RMBS underlying our Linked Transactions, consolidation of the FREMF 2011-K13, FREMF 2012-KF01, JPMMT 2014-OAK4 and CSMC 2014-OAK1 Trusts, and $70,864,063 of residential securitized debt obligations sold but not settled as of December 31, 2014, the fair value of our investments in Non-Agency RMBS is $53,485,000. |
||||||
|
(2) |
Includes the fair value of our net investments in the FREMF 2011-K13, FREMF 2012-KF01, JPMMT 2014-OAK4, and CSMC 2014-OAK1 Trusts, and $70,864,063 of residential securitized debt obligations sold but not settled as of December 31, 2014. |
||||||
|
(3) |
Includes cash and cash equivalents. |
||||||
|
(4) |
Includes interest receivable, goodwill, prepaid and other assets, interest payable, dividend payable and accrued expenses and other liabilities. |
||||||
|
(5) |
Information is presented on a non-GAAP basis which includes $85,497,000.00 and $63,796,000.00 of repurchase agreements that were linked to Non-Agency RMBS and Multi-Family MBS respectively. On a GAAP basis, Five Oaks had $200,347,000.00 of Non-Agency RMBS repurchase agreements and $63,796,000.00 of Multi-Family MBS repurchase agreements. |
||||||
|
(6) |
Ratio is a reflection of the average haircuts for each asset categories. It does not reflect or include the unrestricted cash that the Company set aside for these asset categories. |
||||||
|
(7) |
Information is presented on a non-GAAP basis. On a GAAP basis, which excludes the impact of Linked Transactions, the total yield on average interest earning assets is 3.44%. |
||||||
|
(8) |
Information presented on a non-GAAP basis. Our Cost of Funds includes the impact of our liability interest rate hedging activities. On a GAAP basis, which excludes the impact of Linked Transactions, the average cost of funds is 0.99%. |
||||||
|
(9) |
Net Interest Margin is the difference between our Yield on Earning Assets and our Cost of Funds. |
||||||
Comparative Expenses
The following table provides a detailed breakdown of the composition of our expenses on a non-GAAP basis for the quarter and the year ended December 31, 2014:
|
Expenses |
For the quarter ended |
For the year ended |
|
|
Management Fees |
$ 747,026 |
$ 2,627,592 |
|
|
G&A Expenses (1) |
$ 528,161 |
$ 1,770,645 |
|
|
Operating Expenses Reimbursable to Manager |
$ 864,270 |
$ 3,247,683 |
|
|
Other Operating Expenses |
$ 1,560,413 |
$ 2,504,741 |
|
|
Compensation Expenses |
$ 67,745 |
$ 253,635 |
|
|
Total Expenses |
$ 3,767,615 |
$ 10,404,296 |
|
|
Period-End Capital |
$ 212,798,130 |
$ 212,798,130 |
|
|
Management Fees |
$ 747,026 |
$ 2,627,592 |
|
|
G&A, Other Operating and Reimbursable Expenses |
$ 1,350,891 |
$ 4,916,824 |
|
|
Compensation Expenses |
$ 67,745 |
$ 253,635 |
|
|
Expenses related to Prime Jumbo Loans |
$ 1,601,953 |
$ 2,606,245 |
|
|
Management Fees as % of Capital |
1.40% |
1.23% |
|
|
G&A, Other, Reimbursable and Compensation as % of Capital |
2.67% |
2.43% |
|
|
Expenses related to Prime Jumbo Loans as % of Capital |
3.01% |
1.22% |
|
|
(1) Excludes $1,011,625 and $1,130,431 in expense attributable to the consolidated securitization trusts for the quarter and year ended December 31, 2014, respectively. |
|||
The decline in G&A, Other Operating, Reimbursable and Compensation Expenses as a percentage of Capital over the past year is a function of our increased capital base.
The increase in expenses related to the Prime Jumbo loan business is due to the increase in our investment in this asset class. The prime jumbo mortgage loan strategy typically has higher costs than a CUSIP-only business model because it is more operationally intensive.
Going forward, we anticipate that the ongoing recurring costs of our FOAC business should be covered by net interest income plus gain on sale from the disposition of such aggregated loans through securitizations or sales of whole loan packages.
Operating Performance
The following table summarizes the Company's GAAP and non-GAAP earnings measurements for the respective periods in 2014.
|
Three months Ended December 31, 2014 |
Year-Ended December 31, 2014 |
|||||||
|
Earnings |
Earnings |
Per diluted weighted share |
Annualized return on average equity |
Earnings |
Per diluted weighted share |
Annualized return on average equity |
||
|
Core Earnings * |
$ 4,769,308 |
$ 0.32 |
10.1% |
$ 16,044,059 |
$ 1.30 |
9.8% |
||
|
GAAP Net Income (Loss) |
$ (4,493,868) |
$ (0.31) |
-9.5% |
$ 426,490 |
$ 0.03 |
0.3% |
||
|
Comprehensive Income (Loss) |
$ (2,711,422) |
$ (0.18) |
-5.7% |
$ 18,729,794 |
$ 1.52 |
11.4% |
||
|
Weighted Ave Shares Outstanding |
14,718,750 |
12,358,587 |
||||||
|
Weighted Average Equity |
$ 189,857,282 |
$ 164,291,835 |
||||||
Stockholders' Equity and Book Value Per Share
As of December 31, 2014, our stockholders' equity was $212.8 million and our book value per common share was $11.93 on a basic and fully diluted basis.
Dividends
The Company declared a dividend of $0.125 per share of common stock for the months of January, February and March 2015. Based on the closing price of $10.80 as at December 31, 2014, this equates to an annualized dividend yield of 13.9%.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the U.S. securities laws that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of the Company's business, financial condition, liquidity, results of operations, plans and objectives. You can identify forward-looking statements by use of words such as "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions or other comparable terms, or by discussions of strategy, plans or intentions. Statements regarding the following subjects, among others, may be forward-looking: the return on equity; the yield on investments; the ability to borrow to finance assets; and risks associated with investing in real estate assets, including changes in business conditions and the general economy. Forward-looking statements are based on the Company's beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company. Actual results may differ from expectations, estimates and projections and, consequently, you should not rely on these forward looking statements as predictions of future events. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control. Additional information concerning these and other risk factors are contained in the Company's most recent filings with the Securities and Exchange Commission, which are available on the Securities and Exchange Commission's website at www.sec.gov.
All subsequent written and oral forward-looking statements that the Company makes, or that are attributable to the Company, are expressly qualified in their entirety by this cautionary notice. Any forward-looking statement speaks only as of the date on which it is made. Except as required by law, the Company is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
For financial statement reporting purposes, GAAP requires us to account for certain of our Non-Agency RMBS and Multi-Family MBS and the associated repurchase agreement financing as Linked Transactions, and requires us to consolidate the assets and liabilities of the FREMF 2011-K13 Trust; FREMF 2012-KF01; JPMMT 2014-OAK4 and CSMC 2014-OAK1. However, in managing and evaluating the composition and performance of our MBS portfolio, we do not view the purchase of our Non-Agency RMBS or Multi-Family MBS and the associated repurchase agreement financing as transactions that are linked, and our maximum exposure to loss from consolidation of the consolidated trusts is limited to the fair value of our net investments therein. We therefore have also presented certain information that includes the Non-Agency RMBS underlying our Linked Transactions, and Multi-Family MBS underlying both Linked Transactions and our net investments in the consolidated trusts. This information as well as core earnings, economic return and comparative expenses constitute non-GAAP financial measures within the meaning of Regulation G, as promulgated by the SEC. While we believe the non-GAAP information included in this press release provides supplemental information to assist investors in analyzing that portion of our portfolio composed of Non-Agency RMBS and Multi-Family MBS, and to assist investors in comparing our results with other peer issuers, these measures are not in accordance with GAAP, and they should not be considered a substitute for, or superior to, our financial information calculated in accordance with GAAP. Our GAAP financial results and the reconciliations from these results should be carefully evaluated.
Reconciliation of GAAP to Core Earnings
|
GAAP to Core Earnings Reconciliation |
Three months Ended |
Year-Ended |
|
|
December 31, 2014 |
December 31, 2014 |
||
|
Reconciliation of GAAP to non-GAAP Information |
|||
|
Net Income (loss) attributable to common shareholders |
$ (4,493,868) |
$ 426,490 |
|
|
Adjustments for non-core earnings |
|||
|
Realized (Gain) Loss on sale of investments, net |
$ (5,704,663) |
$ (3,271,592) |
|
|
Unrealized (Gain) Loss and net interest income from Linked Transactions |
$ 4,853,074 |
$ (10,605,848) |
|
|
Realized (Gain) Loss on derivative contracts, net |
$ 7,442,776 |
$ 18,214,460 |
|
|
Unrealized (Gain) Loss on derivative contracts, net |
$ 1,840,122 |
$ 2,931,249 |
|
|
Realized (Gain) Loss on mortgage loans held-for-sale |
$ 703,839 |
$ 776,971 |
|
|
Unrealized (Gain) Loss on mortgage loans held-for-sale |
$ 237,609 |
$ (329,728) |
|
|
Unrealized (Gain) Loss on multi-family loans held in securitization trusts |
$ (1,188,157) |
$ (1,473,485) |
|
|
Unrealized (Gain) Loss on residential loans held in securitization trusts |
$ (3,059,647) |
$ (3,059,647) |
|
|
Other income |
$ (59,590) |
$ (59,590) |
|
|
Subtotal |
$ 5,065,363 |
$ 3,122,790 |
|
|
Underlying Linked Transactions: |
|||
|
Interest income attributable to AFS |
$ 4,050,183 |
$ 15,427,633 |
|
|
Interest expense attributable to Linked repurchase agreement borrowings |
$ (766,228) |
$ (2,893,875) |
|
|
Net Interest Income for Underlying Linked Transactions |
$ 3,283,955 |
$ 12,564,372 |
|
|
Other Adjustments |
|||
|
Recognized compensation expense related to restricted common stock |
$ 32,744 |
$ 113,635 |
|
|
Net swap interest expense |
$ (720,838) |
$ (3,495,232) |
|
|
Adjustment for contractual net interest accrued on forwards |
$ – |
$ 705,049 |
|
|
Adjustment attributable to loan acquisition |
$ 1,601,953 |
$ 2,606,245 |
|
|
Core Earnings |
$ 4,769,308 |
$ 16,044,059 |
|
|
Weighted average shares outstanding – Basic and Diluted |
14,718,750 |
12,358,587 |
|
|
Core Earnings per weighted share outstanding – Basic and Diluted |
$ 0.32 |
$ 1.30 |
Additional Information
As of December 31, 2014, we have determined that we were the primary beneficiary of two Multi-Family MBS securitization trusts, the FREMF 2011-K13 Trust, and the FREMF 2012-KF01 Trust. As a result, we are required to consolidate the trusts' underlying multi-family loans together with their liabilities, income and expenses in our consolidated financial statements. We have elected the fair value option on the assets and liabilities held within the trusts, which requires that changes in valuation in the assets and liabilities of these trusts be reflected in our consolidated statements of operations.
A reconciliation of our net capital investment in multi-family investments to our financial statements as of December 31, 2014 is set forth below:
|
Multi-Family Loans held in securitization trusts, at fair value |
$ 1,756,307,072 |
|
Multi-Family Securitized Debt Obligations (non-recourse) |
$ (1,676,373,521) |
|
Net Carrying Value |
$ 79,933,551 |
|
Multi-Family MBS (1) |
$ 34,871,194 |
|
Multi-Family MBS PO |
$ 50,939,151 |
|
Cash and Other |
$ 358,799 |
|
Repurchase Agreements |
$ (109,280,000) |
|
Net Capital in Multi-Family MBS |
$ 56,822,695 |
|
(1) Excludes $23,355,149 in Multi-Family MBS that is consolidated |
|
As of December 31, 2014, we have determined that we were the primary beneficiary of two prime jumbo residential mortgage securitization trusts, JPMMT 2014-OAK4 and CSMC 2014-OAK1. As a result, we are required to consolidate the trusts' underlying prime jumbo residential loans together with their liabilities, income and expenses in our consolidated financial statements. We have elected the fair value option on the assets and liabilities held within the trusts, which requires that changes in valuation in the assets and liabilities of the trusts be reflected in our consolidated statements of operations.
A reconciliation of our net capital investment in Non-Agency RMBS to our financial statements as of December 31, 2014 is set forth below:
|
Residential Loans held in securitization trusts, at fair value (1) |
$ 630,001,885 |
|
Residential Securitized Debt Obligations (non-recourse) |
$ (504,562,700) |
|
Net Carrying Value |
$ 125,439,185 |
|
Non-Agency RMBS (2) |
$ 177,913,366 |
|
Unsettled Non-Agency RMBS sale (3) |
$ 70,864,063 |
|
Cash and Other |
$ 4,171,557 |
|
Repurchase Agreements |
$ (285,844,000) |
|
Net Capital in Non-Agency RMBS |
$ 92,544,172 |
|
(1) |
Excludes $3,475,144 in Mortgage Servicing Rights |
|
|
(2) |
Includes $53,485,053 of Non-Agency RMBS on a GAAP basis and $124,428,313 of Non-Agency RMBS that are accounted for under Linked Transactions and not consolidated |
|
|
(3) |
Settled on January 15, 2015 |
|
Five Oaks Investment Corp.
Five Oaks Investment Corp. is a real estate investment trust ("REIT"), and as a "hybrid" REIT is focused on investing in, financing and managing a portfolio of mortgage-backed securities ("MBS"), including residential mortgage-backed securities ("RMBS"), multi-family mortgage-backed securities ("Multi-Family MBS"), residential mortgage loans, mortgage servicing rights and other mortgage related investments. The Company's objective is to deliver attractive risk-adjusted returns to its investors, primarily through dividends and secondarily through capital appreciation, via an investment approach centered on taking advantage of relative value opportunities available across the whole residential mortgage market.
Five Oaks Investment Corp. is externally managed and advised by Oak Circle Capital Partners LLC.
Additional Information and Where to Find It
Investors, security holders and other interested persons may find additional information regarding the Company at the SEC's Internet site at http://www.sec.gov/ or the Company website www.fiveoaksinvestment.com or by directing requests to: Five Oaks Investment Corp., 540 Madison Avenue, 19th Floor, New York, NY 10022, Attention: Investor Relations.
|
FIVE OAKS INVESTMENT CORP. AND SUBSIDIARIES |
||||||||||
|
Consolidated Statements of Operations |
||||||||||
|
Year Ended |
Year Ended |
|||||||||
|
December 31, 2014 |
December 31, 2013 |
|||||||||
|
Revenues: |
||||||||||
|
Interest income: |
||||||||||
|
Available-for-sale securities |
$ |
16,560,338 |
$ |
16,411,730 |
||||||
|
Mortgage loans held-for-sale |
3,634,264 |
– |
||||||||
|
Multi-family loans held in securitization trusts |
21,158,102 |
– |
||||||||
|
Residential loans held in securitization trusts |
4,438,634 |
– |
||||||||
|
Cash and cash equivalents |
21,274 |
11,843 |
||||||||
|
Interest expense: |
||||||||||
|
Repurchase agreements – available-for-sale securities |
(2,661,329) |
(2,243,565) |
||||||||
|
Repurchase agreements – mortgage loans held-for-sale |
(2,203,961) |
– |
||||||||
|
Multi-family securitized debt obligations |
(19,400,851) |
– |
||||||||
|
Residential securitized debt obligations |
(3,575,168) |
– |
||||||||
|
Net interest income |
17,971,303 |
14,180,008 |
||||||||
|
Other income: |
||||||||||
|
Realized gain (loss) on sale of investments, net |
3,271,592 |
(31,581,087) |
||||||||
|
Unrealized gain and net interest income from Linked Transactions |
10,605,848 |
5,838,309 |
||||||||
|
Realized gain (loss) on derivative contracts, net |
(18,214,460) |
18,812,854 |
||||||||
|
Unrealized gain (loss) on derivative contracts, net |
(2,931,249) |
878,100 |
||||||||
|
Realized (loss) on mortgage loans held-for-sale |
(776,971) |
– |
||||||||
|
Unrealized gain on mortgage loans held-for-sale |
329,728 |
– |
||||||||
|
Unrealized gain on multi-family loans held in securitization trusts |
1,473,485 |
– |
||||||||
|
Unrealized gain on residential loans held in securitization trusts |
3,059,647 |
– |
||||||||
|
Other income |
59,590 |
– |
||||||||
|
Total other income (loss) |
(3,122,790) |
(6,051,824) |
||||||||
|
Expenses: |
||||||||||
|
Management fee |
2,627,592 |
1,287,077 |
||||||||
|
General and administrative expenses |
2,901,076 |
992,115 |
||||||||
|
Operating expenses reimbursable to Manager |
3,247,683 |
2,103,223 |
||||||||
|
Other operating expenses |
2,504,741 |
288,416 |
||||||||
|
Compensation expense |
253,635 |
230,923 |
||||||||
|
Total expenses |
11,534,727 |
4,901,754 |
||||||||
|
Net income (loss) |
$ |
3,313,786 |
$ |
3,226,430 |
||||||
|
Dividends to preferred stockholders |
(2,887,296) |
(44,827) |
||||||||
|
Net income (loss) attributable to common stockholders |
$ |
426,490 |
$ |
3,181,603 |
||||||
|
Earnings (loss) per share: |
||||||||||
|
Net income attributable to common stockholders (basic and diluted) |
$ |
426,490 |
$ |
3,181,603 |
||||||
|
Weighted average number of shares of common stock outstanding |
12,358,587 |
6,132,702 |
||||||||
|
Basic and diluted income per share |
$ |
0.03 |
$ |
0.52 |
||||||
|
Dividends declared per share of common stock |
$ |
1.47 |
$ |
1.64 |
||||||
|
FIVE OAKS INVESTMENT CORP. AND SUBSIDIARIES |
|||||
|
Consolidated Statements of Operations |
|||||
|
Three Months Ended |
|||||
|
December 31, |
|||||
|
2014 |
2013 |
||||
|
(unaudited) |
(unaudited) |
||||
|
Revenues: |
|||||
|
Interest income: |
|||||
|
Available-for-sale securities |
$ 3,656,100 |
$ 3,935,387 |
|||
|
Mortgage loans held-for-sale |
2,316,679 |
– |
|||
|
Multi-family loans held in securitization trusts |
18,724,784 |
– |
|||
|
Residential loans held in securitization trusts |
4,438,634 |
– |
|||
|
Cash and cash equivalents |
2,879 |
1,915 |
|||
|
Interest expense: |
|||||
|
Repurchase agreements – available-for-sale securities |
(864,007) |
(570,070) |
|||
|
Repurchase agreements – mortgage loans held-for-sale |
(1,476,956) |
– |
|||
|
Multi-family securitized debt obligations |
(17,161,054) |
– |
|||
|
Residential securitized debt obligations |
(3,575,168) |
– |
|||
|
Net interest income |
6,061,891 |
3,367,232 |
|||
|
Other income: |
|||||
|
Realized gain (loss) on sale of investments, net |
5,704,663 |
(222,321) |
|||
|
Unrealized gain (loss) and net interest income from Linked Transactions |
(4,853,074) |
5,726,404 |
|||
|
Realized (loss) on derivative contracts, net |
(7,442,776) |
(654,048) |
|||
|
Unrealized gain (loss) on derivative contracts, net |
(1,840,122) |
4,052,176 |
|||
|
Realized (loss) on mortgage loans held-for-sale |
(703,839) |
– |
|||
|
Unrealized (loss) on mortgage loans held-for-sale |
(237,609) |
– |
|||
|
Unrealized gain on multi-family loans held in securitization trusts |
1,188,157 |
– |
|||
|
Unrealized gain on residential loans held in securitization trusts |
3,059,647 |
– |
|||
|
Other income |
59,590 |
– |
|||
|
Total other income (loss) |
(5,065,363) |
8,902,211 |
|||
|
Expenses: |
|||||
|
Management fee |
747,026 |
345,911 |
|||
|
General and administrative expenses |
1,539,786 |
462,679 |
|||
|
Operating expenses reimbursable to Manager |
864,270 |
561,124 |
|||
|
Other operating expenses |
1,560,413 |
85,495 |
|||
|
Compensation expense |
67,745 |
71,730 |
|||
|
Total expenses |
4,779,240 |
1,526,939 |
|||
|
Net income (loss) before provision from income taxes |
$ (3,782,712) |
$ 10,742,504 |
|||
|
(Provision for) benefit from income taxes |
$ 179,136 |
$ – |
|||
|
Net income (loss) |
$ (3,603,576) |
$ 10,742,504 |
|||
|
Dividends to preferred stockholders |
(890,292) |
(42,501) |
|||
|
Net income (loss) attributable to common stockholders |
$ (4,493,868) |
$ 10,700,003 |
|||
|
Earnings (loss) per share: |
|||||
|
Net income attributable to common stockholders (basic and diluted) |
$ (4,493,868) |
$ 10,700,003 |
|||
|
Weighted average number of shares of common stock outstanding |
14,718,750 |
7,389,250 |
|||
|
Basic and diluted income per share |
$ (0.31) |
$ 1.45 |
|||
|
Dividends declared per share of common stock |
$ 0.38 |
$ 0.38 |
|||
|
FIVE OAKS INVESTMENT CORP. AND SUBSIDIARIES |
|||||||||
|
Consolidated Balance Sheets |
|||||||||
|
December 31, 2014 |
December 31, 2013 |
||||||||
|
ASSETS |
|||||||||
|
Available-for-sale securities, at fair value (includes pledged securities of $366,103,204 and $444,984,955 for December 31, 2014 and December 31, 2013, respectively) |
$ |
368,315,738 |
$ |
444,984,955 |
|||||
|
Mortgage loans held-for-sale, at fair value |
54,678,382 |
– |
|||||||
|
Multi-family loans held in securitization trusts, at fair value |
1,750,294,430 |
– |
|||||||
|
Residential loans held in securitization trusts, at fair value |
631,446,984 |
– |
|||||||
|
Linked transactions, net, at fair value |
60,818,111 |
33,352,562 |
|||||||
|
Cash and cash equivalents |
32,274,285 |
33,062,931 |
|||||||
|
Restricted cash |
11,400,645 |
13,343,173 |
|||||||
|
Deferred offering costs |
945,661 |
– |
|||||||
|
Accrued interest receivable |
10,962,663 |
1,045,191 |
|||||||
|
Investment related receivable |
979,509 |
506,892 |
|||||||
|
Derivative assets, at fair value |
21,550 |
1,839,154 |
|||||||
|
Other assets |
71,599 |
66,547 |
|||||||
|
Total assets |
$ |
2,922,209,557 |
$ |
528,201,405 |
|||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||||
|
LIABILITIES: |
|||||||||
|
Repurchase agreements: |
|||||||||
|
Available-for-sale securities |
$ |
544,614,000 |
$ |
412,172,000 |
|||||
|
Mortgage loans held-for-sale |
50,263,852 |
– |
|||||||
|
Multi-family securitized debt obligations |
1,670,573,456 |
– |
|||||||
|
Residential securitized debt obligations |
432,035,976 |
– |
|||||||
|
Derivative liabilities, at fair value |
2,289,058 |
839,413 |
|||||||
|
Accrued interest payable |
8,238,924 |
274,615 |
|||||||
|
Dividends payable |
39,132 |
42,501 |
|||||||
|
Fees and expenses payable to Manager |
1,062,000 |
330,000 |
|||||||
|
Other accounts payable and accrued expenses |
295,029 |
617,514 |
|||||||
|
Total liabilities |
2,709,411,427 |
414,276,043 |
|||||||
|
STOCKHOLDERS' EQUITY: |
|||||||||
|
Preferred Stock: par value $0.01 per share; 50,000,000 shares authorized, 8.75% Series A cumulative |
|||||||||
|
redeemable, $25 liquidation preference, 1,610,000 and 800,000 issued and outstanding at December 31, |
|||||||||
|
2014 and December 31, 2013, respectively |
37,156,972 |
18,060,898 |
|||||||
|
Common Stock: par value $0.01 per share; 450,000,000 shares authorized, 14,718,750 and 7,389,250 |
|||||||||
|
shares issued and outstanding, at December 31, 2014 and December 31, 2013, respectively |
146,953 |
73,563 |
|||||||
|
Additional paid-in capital |
189,332,874 |
110,129,489 |
|||||||
|
Accumulated other comprehensive income (loss) |
7,208,350 |
(11,094,954) |
|||||||
|
Cumulative distributions to stockholders |
(32,406,541) |
(11,289,370) |
|||||||
|
Accumulated earnings |
11,359,522 |
8,045,736 |
|||||||
|
Total stockholders' equity |
212,798,130 |
113,925,362 |
|||||||
|
Total liabilities and stockholders' equity |
$ |
2,922,209,557 |
$ |
528,201,405 |
|||||
Logo – http://photos.prnewswire.com/prnh/20130321/NY81726LOGO
SOURCE Five Oaks Investment Corp.
