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Arlington Asset Investment Corp. (AAIC) CEO Rock Tonkel on Q4 2021 Results - Earnings Call Transcript

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Arlington Asset Investment Corp. (NYSE:AAIC) Q4 2021 Earnings Conference Call March 3, 2022 10:00 AM ET

Company Participants

Richard Konzmann - CFO

Rock Tonkel - President and CEO

John Murray - Portfolio Manager

Conference Call Participants

Doug Harter - Credit Suisse

Jason Stewart - JonesTrading

Christopher Nolan - Ladenburg Thalmann

Mikhail Goberman - JMP Securities


Good morning. I'd like to welcome everyone to the Arlington Asset Fourth Quarter and Full Year 2021 Earnings Call. Please be aware that each of your lines is in a listen-only mode. After the company's remarks, we will open the floor for questions. [Operator Instructions]

I would now like to turn the conference over to Richard Konzmann. Mr. Konzmann, you may begin.

Richard Konzmann

Thank you very much. Good morning, this is Richard Konzmann, Chief Financial Officer at Arlington Asset. Before we begin this morning's call, I would like to remind everyone that statements concerning future financial or business performance, market conditions, business strategies, or expectations, and any other guidance on present or future periods constitute forward-looking statements that are subject to a number of factors, risks, and uncertainties that might cause actual results to differ materially from stated expectations or current circumstances.

These forward-looking statements are based on management's beliefs, assumptions, and expectations, which are subject to change, risk, and uncertainty as a result of possible events or factors. These and other material risks are described in the Company's annual report on Form 10-K and other documents filed by the company with the SEC from time-to-time, which are available from the company and from the SEC and you should read and understand these risks when evaluating any forward-looking statement.

I would now like to turn the call over to Rock Tonkel for his remarks.

Rock Tonkel

Thank you, Rich. Good morning and welcome to the

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Comments (6)

Tumblebug profile picture
Please vote to liquidate. It will be an immediate premium payout.
Now with Prop 5 liquidation up for vote at Annual Meeting in June Q1 conference call will be really interesting! Good Luck!
doctorslernon profile picture
@278096 I'll be voting for it. Book value is so much higher than stock price and I have little to no faith in management. They remain the only REIT who isn't paying a dividend from the 2020 drop. Leverage remains very low & it seems like AAIC doesn't know what to invest in. They have been buying back stock heavily because its the only idea they have it seems.
@doctorslernon I agree. Scott Kennedy has NAV at $5.60. With the stock trading at about $3.50 it’s evident that the investment community has no interest in the stock. However, my guess is some arbs may catch wind of the liquidation vote and start buying in because it’s hard to imagine existing shareholders ( ones before the record date) not voting for liquidation. As you probably know the SFR market has been on a tear with rising interest rates forcing more potential SF home buyers into SFRs. So even though AAIC is relatively new to the SFR market their portfolio probably has appreciated in value and would sell quickly. The MSR market value portion of their portfolio has also been benefiting from rising rates. Full disclosure: Since the disclosure of Prop 5 I have started to buy more to lower my basis in the stock. Good Luck.
Rock: "Our portfolio is sort of strong from the Southeast along the South to the South, sort of the near Southwest. I think our farthest Western market is sort of Texas. So we're sort of - we sort of, our portfolio, works from Charlotte, down around the South over to Dallas that's our concentration... So we've got sort of boundless room for opportunity there."
Wow, that was one scary paragraph! Sort of!
doctorslernon profile picture
Good to see someone remind these clowns in management that rentals aren't as easy as Tonkel pretends they are. Plus this report reads like AAIC is going from a mortgage REIT to a Residential REIT akin to APTS. Laughing at the comment about having 10 people in the office total. SG&A total is $11.7 million in 2021 so 1.17 million per person. Outrageous compensation alone at $700k per person. This is pretty much a scam run for Rock Tonkel's benefit at this point.
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