AG Mortgage Investment Trust (MITT), a non-agency lender, has recently released its financial report for the quarter ending December 31, 2022. The report indicated that the REIT experienced a net loss of $3.12 per diluted common share in 2022, while its dividend per common share decreased to $0.81 per common share. Meanwhile, the adjusted book value per share at the end of the fourth quarter stood at $11.03, representing a 23% decrease from $14.32 in the previous year.

Despite the challenging market conditions in 2022, MITT demonstrated a disciplined approach by terming out its financing programmatically, resulting in a significant de-risking and sufficient liquidity as the company entered 2023. According to AG Mortgage’s CEO and president, TJ Durkin, the adjusted book value of the company improved by 3% during the fourth quarter, and this positive trend is expected to continue with modest signs of recovery in the markets.

AG Mortgage’s investment portfolio closed the year at $4.2 billion, with $2.6 billion of non-agency and agency-eligible loans purchased, $142.1 million of which were acquired in the fourth quarter. AG Mortgage’s subsidiary, Arc Homes, continued to concentrate on financing non-QM loans despite the challenges of the mortgage originations market. The subsidiary financed $1.9 billion in residential loans throughout 2022, with $1.1 billion in non-agency loans. Additionally, AG Mortgage completed a rated non-agency securitization of $271.2 million in unpaid principal balance.

Overall, while AG Mortgage Investment Trust experienced a net loss and a decrease in dividends per common share, the company’s disciplined approach and focus on non-agency loans and securitization are promising signs for the future.