AG Mortgage Investment Trust, Inc. (MITT) reported a net income of $36.4 million for the year ended December 31, 2024, a slight increase of $944,000 compared to the $35.4 million reported in 2023. The company's book value per share was $10.64, and it declared total dividends of $0.75 per common share during the year. Net interest income increased by $18.1 million to $65.9 million, driven by an expanded investment portfolio following the acquisition of Western Asset Mortgage Capital Corporation (WMC) and increased weighted average yields.
Significant changes compared to the previous year included a $10.6 million increase in interest income, offset by a $13 million increase in interest expense. Other income decreased by $24.4 million, primarily due to a $10.6 million decrease in net realized gains and a $30.2 million bargain purchase gain recognized in 2023 related to the WMC acquisition. Total expenses decreased by $3.7 million, reflecting a reduction in transaction-related expenses partially offset by increased investment-related expenses. The company's GAAP leverage ratio was 11.6x, while its economic leverage ratio was 1.4x.
A key development was the December 2023 acquisition of WMC, adding $1.2 billion to MITT's investment portfolio, primarily consisting of securitized non-agency loans. This acquisition also led to the assumption of $86.25 million in senior unsecured debt (Legacy WMC Convertible Notes), which were subsequently repurchased and paid off during 2024. Furthermore, MITT issued $99.5 million in senior unsecured notes during the year, generating net proceeds of approximately $95.2 million. The company executed four rated securitizations of agency-eligible loans totaling $1.4 billion, converting recourse financing to non-recourse financing.
MITT's investment portfolio as of December 31, 2024, consisted of $6.9 billion in residential investments and $21 million in agency RMBS. Residential investments included non-agency loans, agency-eligible loans, home equity loans, and re-performing/non-performing loans. The company also held $125.7 million in legacy WMC commercial investments. The company's investment strategy focuses on acquiring and securitizing newly originated residential mortgage loans, primarily through Arc Home, in which MITT holds a 44.6% interest.
MITT's 10-K filing included numerous risk factors, including those related to interest rate fluctuations, credit risk, prepayment rates, liquidity, competition, regulatory changes, and cybersecurity. The company noted that its ability to grow its business depends on its manager's ability to source and finance desirable assets. The filing also included forward-looking statements indicating that the company believes it has sufficient liquidity to meet its obligations, but cautioned that actual results may differ materially from expectations due to various market and economic uncertainties.
About AG Mortgage Investment Trust, Inc.
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