Unlocking Value: A Look at 8 Real Estate (REIT) Companies' Strategic Moves with Stock Buyback Programs Announced Last Quarter Q2 FY 2023
Buybacks
July 10, 2023
AG Mortgage Investment Trust, Inc. recently reported its financial results for the first quarter of 2023, showcasing positive growth in book value and adjusted book value per share. Despite the volatile market conditions, AG Mortgage Investment Trust managed to increase its book value by 4% while maintaining ample liquidity and low economic leverage. AG Mortgage Investment Trust's CEO and President, TJ Durkin, emphasized their focus on protecting book value and expressed confidence in building upon this momentum throughout the year.
AG Mortgage Investment Trust's investment, financing, and capital highlights demonstrate a robust investment portfolio and financing capacity. AG Mortgage Investment Trust's investment portfolio grew to $4.5 billion, and it acquired both Agency and Non-Agency RMBS at attractive returns on equity. With $4.1 billion of financing, consisting of non-recourse and recourse financing, AG Mortgage Investment Trust maintained a healthy leverage ratio. Additionally, AG Mortgage Investment Trust authorized a stock buyback program, repurchasing 0.9 million shares for $5.2 million, which resulted in approximately 2% accretion to the book value per share.
In May 2023, AG Mortgage Investment Trust's Board of Directors approved an additional $15.0 million common stock repurchase program, indicating AG Mortgage Investment Trust's confidence in its stock and its commitment to creating shareholder value. This decision, along with the positive financial results and growth prospects, suggests that AG Mortgage Investment Trust sees the stock buyback as a strategic move to enhance shareholder returns and capitalize on the current market conditions. Investors may find this news encouraging, as it demonstrates management's belief in AG Mortgage Investment Trust's future performance and potential for increased shareholder value.
AFC Gamma, Inc. recently announced significant updates for its operations. Firstly, AFC Gamma declared a quarterly dividend of $0.48 per outstanding share of common stock, payable on July 14, 2023, to common stockholders of record on June 30, 2023. This dividend represents an annual run rate of $1.92. AFC Gamma aims to maintain this sustainable dividend level on its current portfolio, assuming no major non-accruals or additional investments.
Additionally, AFC Gamma authorized a share repurchase program, allowing AFC Gamma to repurchase up to $20 million of its outstanding common stock. The decision comes in light of the current volatility in AFC Gamma's share price. The shares may be acquired from the open market, privately negotiated transactions, or in compliance with specific regulations. AFC Gamma has also established a trading plan that permits the repurchase of shares during restricted periods.
Recent developments and news have influenced AFC Gamma's stock buyback authorization. Certain executives of AFC Gamma have already purchased approximately $2.9 million worth of AFC Gamma stock since the beginning of 2023. The authorization of the share repurchase program provides AFC Gamma with flexibility to address the stock's volatility and potentially enhance shareholder value. The timing and exact amount of repurchases will depend on factors such as stock performance, market conditions, legal requirements, and other considerations. The share repurchase program is authorized until December 31, 2025 and may be subject to modification or suspension.
Granite Point Mortgage Trust Inc. recently announced its financial results for the first quarter of 2023, highlighting strong operating performance despite the challenging economic environment. Granite Point Mortgage Trust's distributable earnings increased to $0.20 per basic share, covering the common dividend. Emphasizing liquidity and asset management, Granite Point maintains a conservative approach to safeguard its balance sheet. Granite Point Mortgage Trust reported a GAAP net loss of $(37.5) million, inclusive of a provision for credit losses, and declared cash dividends for both common and preferred stock. Notably, Granite Point authorized a stock buyback, allowing the repurchase of up to an additional 5,000,000 shares of its common stock. This decision, made by the Board of Directors, brings the total number of shares available for repurchase to 5,157,916, including shares from the prior authorization. Granite Point Mortgage Trust intends to repurchase shares through privately negotiated or open market transactions, considering various factors such as market conditions and regulatory requirements. As of May 4, 2023, Granite Point had 51,526,039 shares of common stock issued and outstanding.
In subsequent developments during the second quarter of 2023, Granite Point funded $4.7 million on existing loan commitments and received $75.3 million in loan payoffs. Granite Point Mortgage Trust extended the maturity of its financing facility with Morgan Stanley and adjusted the borrowing capacity to $475 million, while also carrying over $215 million in unrestricted cash as of May 9th. With its solid financial position and ongoing activities, Granite Point Mortgage Trust Inc. continues to navigate the market and pursue opportunities for growth and shareholder value.
Armada Hoffler recently announced its authorization of a stock buyback program. Armada Hoffler Properties's Board of Directors has approved the repurchase of up to $50 million worth of its common stock and Series A preferred stock. This newly established share repurchase program allows Armada Hoffler the flexibility to buy back shares through various means, including open market transactions, block purchases, privately negotiated deals, or trading plans complying with Rule 10b5-1.
Chimera Investment Corporation recently announced its second quarter common stock dividend and an increase in the amount authorized for its common stock repurchase program. The Board of Directors declared a cash dividend of $0.18 per share of common stock, which will be payable on July 31, 2023, to common stockholders of record as of June 30, 2023. The ex-dividend date is set for June 29, 2023.
According to Mr. Kardis, CEO of Chimera, the dividend cut aligns with Chimera Investment's expected earnings performance over the medium term. However, he believes that the stock price does not reflect the strength of their portfolio. In response, the Board has approved an increase in the stock buyback plan from $177 million to $250 million.
Equity Commonwealth recently announced that its Board of Trustees has authorized a stock buyback program, allowing the repurchase of up to an additional $150 million of its outstanding common shares. This new authorization is in addition to the $120 million remaining from the prior program, which is set to expire on June 30, 2023. The buybacks will take place between July 1, 2023, and June 30, 2024.
Year-to-date, as of June 13, 2023, Equity Commonwealth has not repurchased any shares. The purchases under this program will be made at Equity Commonwealth's discretion, using various methods such as open market transactions or privately negotiated deals, all in compliance with federal securities laws. The decision on when, how, and at what price to make the repurchases will depend on factors like economic conditions, market dynamics, stock price, legal requirements, and other relevant considerations. It's important to note that Equity Commonwealth reserves the right to suspend or discontinue the program at any time.
Marcus & Millichap Inc. recently announced that its Board of Directors has authorized an additional $70 million for stock buybacks. This decision reflects Marcus & Millichap's commitment to enhancing shareholder value and capitalizing on favorable market conditions. With this approval, Marcus & Millichap now has approximately $80 million available for repurchasing its common stock under the program.
Since initiating the stock repurchase program in mid-2022, Marcus & Millichap has already bought back $60 million worth of shares, which equates to 1.8 million shares at an average price of $32.88 per share. The newly authorized amount allows Marcus & Millichap to continue its strategic approach of acquiring its own stock to optimize its capital structure and drive future growth. The repurchases will be carried out over time, taking into consideration general business and market conditions, as well as other potential investment opportunities. Marcus & Millichap may execute the buybacks through open market purchases or privately negotiated transactions, including via Rule 10b5-1 plans.
Manhattan Bridge Capital, Inc. recently made an important announcement regarding its common stock repurchase plan. Manhattan Bridge Capital's Board of Directors has authorized a stock buyback, allowing for the repurchase of up to 100,000 common shares over the next twelve months. This decision was driven by recent market conditions and news related to Manhattan Bridge Capital, which led to a decline in its share price.
Assaf Ran, Chairman of the Board and CEO, expressed his confidence in Manhattan Bridge Capital's portfolio and saw the decrease in share price as an opportunity. He believes that the current market price presents a favorable investment opportunity, making the purchase of its own shares the best choice for Manhattan Bridge Capital at this time. By engaging in this stock buyback plan, Manhattan Bridge Capital aims to take advantage of the market conditions and further strengthen its position.
All data was sourced from LevelFields AI
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