New York Mortgage Trust, Inc. (
, a real estate investment trust (REIT), recently announced
an underwritten public offering of 13.5 million shares to increase
its liquidity. To cover up over allotments, New York Mortgage also
plans to offer an option to underwriters for purchase of an
additional tranche in excess of 2 million shares.
MFA FINANCIAL (MFA): Free Stock Analysis Report
NEW YORK MTG TR (NYMT): Free Stock Analysis
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Deutsche Bank Securities Inc, part of Deutsche Bank AG (DB), is the
sole book running manager for the offering.
New York Mortgage expects to utilize the proceeds to acquire
certain assets of the company including agency residential
mortgage-backed securities (RMBS) and certain commercial
mortgage-backed securities collateralized by multi-family loans.
The remaining proceeds, if any, is intended to be used for
general working capital purposes, including purchase of residential
mortgage loans, commercial real estate-related debt investments and
repayment of debt.
Earlier in May and July 2012, New York Mortgage received net
proceeds of approximately $20.0 million and $33.1 million
respectively from two follow-up stock offerings. As of June 30,
2012, cash and cash equivalents stood at $8.6 million.
New York Mortgage acquires, invests, finances, and manages
mortgage-related and financial assets in the Untied States. These
include agency and non-agency mortgage-backed securities, high
credit quality residential adjustable rate mortgage loans,
commercial mortgage loans and other financial assets. The company
intends to generate attractive returns by managing a diversified
investment portfolio which consists of a broad class of
mortgage-related and financial assets.
New York Mortgage currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. We also have a long-term
Neutral recommendation on the stock. One of its competitors,
MFA Financial, Inc. (
currently retains a Zacks #4 Rank, which implies a Sell rating.