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Great Ajax Corp. (AJX) Q4 2022 Earnings Call Transcript

Mar. 02, 2023 7:55 PM ETGreat Ajax Corp. (AJX), AJXA1 Comment
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Great Ajax Corp. (NYSE:AJX) Q4 2022 Earnings Conference Call March 2, 2023 5:00 PM ET

Company Participants

Larry Mendelsohn - Chief Executive Officer

Conference Call Participants

Brad Capuzzi - Piper Sandler


Ladies and gentlemen, thank you for standing by. My name is Brent, and I will be your conference operator today. At this time, I would like to welcome everyone to the Great Ajax Corp. Fourth Quarter and Year-End Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will -- question-and-answer session. [Operator Instructions]

Thank you. It is now my pleasure to turn today's call over to Mr. Larry Mendelsohn, Chief Executive Officer. Please, go ahead.

Larry Mendelsohn

Thank you, Brent. Thank you, everyone, for joining us for Great Ajax’s fourth quarter and year-end 2022 conference call. Before we get started, I'd like to point out page two on the presentation and the safe harbor disclosure. With me here is Mary Doyle, our CFO; and also on the line is Russell Schaub, our President.

A quick introduction before we get in. There's couple of things to note, before we get into the details. In Q4 2022, loan performance continued to increase and loan cash flow velocity from sales of homes by certain delinquent borrowers continued and has also continued in the first quarter of 2023.

Prepayments from borrowers, refinancing continues to be slower, as you would probably expect. The regular payment performance of our mortgage loans and our mortgage loan JV structures in excess of our modeled expectations at the time of acquisition, for loans purchased at a discount to UPB, has increased previous GAAP income by accelerating purchase discount accretion, because of the required application of CECL. This then reduces forward GAAP interest income and ROE thereafter, but not taxable income.

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Comments (1)

Trades at 53% of book value, 7/13, which seems like a bargain, but book value keeping dropping like a rock. Last quarter, investors got a $0.25 divvy, but BV dropped $0.75. Not sure that there is a bottom to this stock price.
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