Angel Oak Mortgage REIT (AOMR) Q1 2025 earnings summary

Executive summary

• Net income allocable to common stockholders rose to $20.5 million for Q1 2025, up from $12.9 million in Q1 2024, driven by higher interest income and unrealized gains on loan portfolios.

• Net interest income grew 18% year-over-year to $10.1 million, with distributable earnings of $4.1 million ($0.17 per diluted share).

• Book value per share increased to $10.70 as of March 31, 2025, and economic book value per share rose to $13.41, both up from year-end 2024.

• $259 million in new non-QM loans were purchased in Q1 2025, with a weighted average coupon of 7.67%, LTV of 70%, and credit score of 751.

• A $284.3 million securitization (AOMT 2025-4) was executed post-quarter, reducing recourse debt and freeing capital for new investments.

Financial highlights

• Interest income rose to $32.9 million in Q1 2025, with net interest income up 17.6% year-over-year to $10.1 million.

• GAAP book value per share was $10.70; economic book value per share was $13.41 as of March 31, 2025.

• Distributable earnings were $4.1 million, with a return on average equity of 6.6% for Q1 2025.

• Operating expenses declined to $3.0 million, reflecting cost-saving initiatives.

• Dividend of $0.32 per share declared, payable May 30, 2025.

Outlook and guidance

• Management expects continued earnings growth through new loan purchases and ongoing securitization activity.

• Recourse debt to equity ratio is expected to remain below 2.5x, dropping to 1.3x post-securitization.

• Operating expenses anticipated to remain at current reduced levels.

• The company anticipates a constructive business environment but notes uncertainty due to new tariffs and global trade disruptions.