|
|
|
Company Links |
 |
|
|
|
|
|
|
|
Major Stock Holders
(Prior To
Offering) |
Name |
Class A |
|
Bay Pond Partners, L.P |
7.40% |
|
Drawbridge Global Macro Master Fund Ltd |
7.30% |
|
Legg Mason Special Investment Trust, Inc |
16.80% |
|
T. Rowe Price Small-Cap Value Fund, Inc |
6.50% |
|
|
|
|
|
|
|
|
|
|
Company Strategy |
|
|
|
The Company is an externally-managed mortgage REIT formed to invest in adjustable-rate and hybrid adjustable-rate single-family residential mortgage pass-through securities guaranteed by a U.S. Government agency, or issued by a U.S. Government-sponsored entity. |
|
|
|
Product/Services Portfolio |
|
|
|
The Company invests in pass-through certificates, which are securities representing interests in pools of mortgage loans secured by residential real property in which payments of both interest and principal, including pre-paid principal, on the securities are generally made monthly, in effect, passing through monthly payments made by the individual borrowers on the mortgage loans which underlie the securities, net of fees paid to the issuer or guarantor and servicer of the securities.
The attributes of the pass-through certificates that the Company intends to acquire are:
- Ginnie Mae adjustable-rate securities: These securities, called Ginnie Mae ARMs, are pass-through certificates representing interests in FHA/VA mortgage loans. Timely payment of principal of principal and interest is guaranteed by Ginnie Mae, and the guarantee is that are backed by the full faith and credit of the United States Government. The coupon on the underlying loans generally adjusts annually at the one-year CMT plus 1.5%, with a 1.0% annual reset cap and floor and 5.0% lifetime cap.
- Fannie Mae and Freddie Mac adjustable-rate securities: Fannie Mae and Freddie Mac ARMs are generally pass-through certificates that are backed by pools of mortgage loans secured by single-family or multi-family residential properties. Fannie Mae and Freddie Mac are privately-owned U.S. government-sponsored enterprises that guarantee the timely payment of principal and interest due on the underlying pool of mortgages. The coupon on the loans underlying Fannie Mae and Freddie Mac adjustable-rate securities are generally indexed to the one-year CMT or one-year LIBOR.
- Fannie Mae and Freddie Mac hybrid adjustable-rate securities: These securities, referred to as hybrid ARMs, are backed by pools of mortgage loans that have a fixed rate for an initial period of time, typically three to seven years from issuance, and thereafter generally become adjustable-rate loans indexed at a margin to the one-year CMT and adjusted annually with a 2.0% annual reset cap and floor and 6.0% lifetime cap.
- Fixed-rate and other securities: Fixed-rate securities are securities with stated interest rates that remain fixed for the life of the security. The Company generally does not intend to purchase fixed-rate to-be- announced pools. Other securities include other adjustable-rate mortgage securities backed by loans that have interest rates indexed to the one-year CMT or LIBOR, mortgage pass-through securities, adjustable-rate mortgage loans, and other real estate related investments.
|
|
|
Investment Analysis |
 |
|
|
Net interest income for the three months ended March 31, 2008 was approximately $9.7 million, while net interest income for the period from September 19, 2007 (date of inception) to December 31, 2007 was approximately $2.0 million.
Interest income of approximately $26.0 million for the three months ended March 31, 2008, and interest income for the previous period was approximately $7.3 million.
Interest expense of approximately $16.4 million for the three months ended March 31, 2008, while interest expense for the previous period was approximately $5.3 million.
Non-interest expense was approximately $1.3 million for the period ended March 31, 2008, while non-interest expense for the previous period was approximately $0.7 million.
Net income for the three months ended March 31, 2008 was approximately $8.3 million and net income for the period from September 19, 2007 to December 31, 2007 was approximately $1.2 million.
|
|
|
|
Income Data (Thousand $ Except EPS) |
| Year |
Revenues |
Costs |
Oper Income |
Taxes |
Net Income |
EPS |
| 2007
|
0.00 |
716 |
0.00 |
0.00 |
1,248 |
0.15 |
| 2008
|
0.00 |
1,345 |
0.00 |
0.00 |
8,315 |
0.71 |
*Period from September 19, 2007 to December 31, 2007
*As of period ended March 31, 2008
| |
|
|
Balance Sheet Data
(Thousand $) |
Year |
Cash |
Acct Recv. |
Inventory |
Total Cur Assets |
Total Cur Liability |
PPE |
Total Assets |
LT Debt |
SH Equity |
|
2007 |
18,442 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
1,646,388 |
0.00 |
165,356 |
|
2008 |
10,223 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
3,074,959 |
0.00 |
329,400 |
|
*As of period ended March 31, 2008
| |
|
|
| Cash
Flow Summary
(Thousand $) |
Year |
Net Cash-Ops |
Net Cash-Inv |
Net Cash-Fin |
Net Change |
|
2007 |
-1,609 |
-1,612,515 |
1,632,566 |
18,442 |
|
2008 |
-11,081 |
-1,417,156 |
1,420,018 |
-8,219 |
*Period from September 19, 2007 to December 31, 2007
*As of period ended March 31, 2008
| |
|
| |
|
| |
|
|
- Avoid 
- Value Gap 
- Short-Term Growth
- Long-Term Growth 
- Long-Term Value 