Fri, Aug 2, 10:16 AM (88 days ago)
Great Ajax Corp. reported significant quarterly changes, including a strategic transaction with Rithm Capital Corp. that involved a $14 million equity sale and a new management agreement. The company terminated its previous management contract, issuing 3.17 million shares to the former manager as part of the termination. The company's total assets decreased from $1.34 billion to $911.5 million, primarily due to a reduction in mortgage loans held-for-investment. Revenue and net interest income saw declines, with a net interest loss after credit loss provisions. The company sold a significant number of mortgage loans, contributing to a net loss of $12.7 million for the quarter. The company’s liabilities decreased, reflecting reduced secured borrowings and repurchase transactions. The company’s cash flow from operating activities improved, but it reported a comprehensive loss of $13.8 million. Future operations will be impacted by the new management agreement and ongoing integration with Rithm.