NEW YORK (TheStreet) -- Shares of New York Mortgage Trust (NYMT) are down 4.89% to $7.78 after the self-advised real estate investment trust (REIT) announced today that it priced an underwritten public offering of 13 million shares of its common stock at a public offering price of $7.94 per share.
NYMT also granted the underwriters an option to purchase up to an additional 1,950,000 shares of common stock. The offering is expected to close on November 26, 2014, subject to customary closing conditions. UBS Investment Bank, Deutsche Bank Securities, Barclays, RBC Capital Markets and Credit Suisse Securities (USA) LLC are acting as joint bookrunning managers for the offering.
JMP Securities and Keefe, Bruyette & Woods, Inc., a Stifel Company, are acting as co-lead managers for the offering. Ladenburg Thalmann, Maxim Group LLC and MLV & Co. are acting as co-managers for the offering.
NYMT intends to use the net proceeds of this offering to fund a portion of the purchase price of a pool of residential mortgage loans. If such acquisition is not completed, NYMT intends to use the net proceeds to fund the acquisition of its targeted assets and for general working capital purposes. The offering is not contingent on the completion of the acquisition of the residential mortgage loan pool.
TheStreet Ratings team rates NEW YORK MORTGAGE TRUST INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEW YORK MORTGAGE TRUST INC (NYMT) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- NYMT's very impressive revenue growth greatly exceeded the industry average of 13.8%. Since the same quarter one year prior, revenues leaped by 54.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, NEW YORK MORTGAGE TRUST INC's return on equity exceeds that of both the industry average and the S&P 500.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 116.1% when compared to the same quarter one year prior, rising from $18.39 million to $39.73 million.
- NEW YORK MORTGAGE TRUST INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NEW YORK MORTGAGE TRUST INC reported lower earnings of $1.11 versus $1.25 in the prior year. This year, the market expects an improvement in earnings ($1.28 versus $1.11).
- You can view the full analysis from the report here: NYMT Ratings Report
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