$type=slider$meta=0$readmore=0$snippet=0$count=5$show=home

These 2 Mortgage REITs Have Yields Higher Than 15% And Are Trading Below Book Value

INDONESIAKININEWS.COM - When investing in mortgage real estate investment trusts, one advantage investors should know about is that they typ...


INDONESIAKININEWS.COM - When investing in mortgage real estate investment trusts, one advantage investors should know about is that they typically have higher yields than equity REITs, and should never trade at a premium to their book value more than the dividend yield. 

Mortgage REITs typically earn income through the interest on their mortgages, and may be exposed to higher credit risk based on the investment.

Over the past three years, mortgage REITs saw annualized returns of 10.3%, and tend to perform better than equity REITs during times of rising interest rates. This is because during times of rising interest rates the cost of capital increases, which may influence equity REITs to dilute shareholders by issuing more equity through common stock.

Furthermore, mortgage REITs have the ability to issue new debt through senior secured notes without having to issue new equity.

Here are two mortgage REITs with high yields trading below their book value.

AG Mortgage Investment Trust Inc. MITT is offering a dividend yield of 21.59% or 84 cents per share annually, using quarterly payments, with an inconsistent track record of increasing its dividends. AG Mortgage Investment is a mortgage REIT focused on investing in, acquiring and managing a diversified portfolio of residential mortgage assets, other real estate-related securities, and financial assets, which the company refers to as its target assets.

As of June 30, 2022, AG Mortgage had a book value of $11.48 compared to a book value of $13.37 as of March 31, 2022.

"The negative impact to our book value this quarter was driven by mark-to-market unrealized losses on our warehoused loan portfolio as a result of historically wide spreads. However, this challenging market environment also provides us with an improved investment opportunity which we are well positioned to take advantage of," said David Roberts, Chief Executive Officer.

Two Harbors Investment Corp.
TWO is offering a dividend yield of 21.35% or 68 cents per share annually, making quarterly payments, with a track record of increasing its dividends once in the past year. Two Harbors Investment is a real estate investment trust primarily focused on investing in, financing, and managing residential mortgage-backed securities, residential mortgage loans, mortgage servicing rights and commercial real estate.

“​​As mortgage spreads continued to widen to historically attractive levels, we deployed capital into residential mortgage backed securities and took advantage of relative value opportunities across the stack,” stated Bill Greenberg, Two Harbors’ President, CEO and CIO.

On Sept. 21, Two Harbors Board of Directors approved a 1-for-4 reverse stock split of the company’s common stock, which essentially means merging four existing shares into one.
In the second quarter, Two Harbors had a book value of $5.10 per common share, representing a 4.7% quarterly return on book value.

Time is running out... to get access to our #1 rated options trading alerts for only $0.99. Think of all the things you buy that are more than $0.99, perhaps an extra cup of coffee, or a subscription to a streaming service. But ask yourself, are those purchases really driving you to build wealth or distract you from your goals? If you are reading this then you are most likely interested in earning more to secure your financial future for your family.

Source: benzinga


Name

Berita,23255,H,151,HUMOR,7,Internasional,947,Kesehatan,29,Nasional,22328,News,1358,OPINI,81,Seleb,3,Tekno,1,
ltr
item
IndonesiaKiniNews.com: These 2 Mortgage REITs Have Yields Higher Than 15% And Are Trading Below Book Value
These 2 Mortgage REITs Have Yields Higher Than 15% And Are Trading Below Book Value
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgmVQbsaqq6ex50JyaPfED1mpFNMslFK8CrfYAfqW6BCpiP3wFrtXz2WRTmYdZtj1_GHBN33sa4y-9MkY1sQsfiXZqZ3Q11309icRIWcuyHcU64Whx0v2WEmeSVZqi0-tKtCgnXB9m6Ulf6-_v9o_HM4BU3Z7dsSEDwlZE3GDeEEbNEy-LDnVVApMzo9w/w640-h464/IMG_20221012_163901.jpg
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgmVQbsaqq6ex50JyaPfED1mpFNMslFK8CrfYAfqW6BCpiP3wFrtXz2WRTmYdZtj1_GHBN33sa4y-9MkY1sQsfiXZqZ3Q11309icRIWcuyHcU64Whx0v2WEmeSVZqi0-tKtCgnXB9m6Ulf6-_v9o_HM4BU3Z7dsSEDwlZE3GDeEEbNEy-LDnVVApMzo9w/s72-w640-c-h464/IMG_20221012_163901.jpg
IndonesiaKiniNews.com
https://www.indonesiakininews.com/2022/10/these-2-mortgage-reits-have-yields.html
https://www.indonesiakininews.com/
https://www.indonesiakininews.com/
https://www.indonesiakininews.com/2022/10/these-2-mortgage-reits-have-yields.html
true
1493314966655697463
UTF-8
Loaded All Posts Not found any posts VIEW ALL Selengkapnya Balas Cancel reply Hapus Oleh Beranda Halaman Postingan View All RECOMMENDED FOR YOU LABEL ARCHIVE CARI ALL POSTS Not found any post match with your request KEMBALI KE BERANDA Minggu Senin Selasa Rabu Kamis Jum'at Sabtu Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy