Arlington Asset Investment Corp. (NYSE:AAIC) Q1 2022 Earnings Conference Call May 13, 2022 10:00 AM ET

Company Participants

Richard Konzmann – Chief Financial Officer

Rock Tonkel – President and Chief Executive Officer

John Murray – Portfolio Manager

Conference Call Participants

John Kilichowski – Credit Suisse

Trevor Cranston – JMP Securities

Christopher Nolan – Ladenburg Thalmann

Operator

Good morning. I'd like to welcome everyone to the Arlington Asset First Quarter 2022 Earnings Call. [Operator Instructions]

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

Richard Konzmann

Thank you very much, and good morning. Rich Konzmann, Chief Financial Officer of 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 statements.

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 first quarter 2022 earnings call for Arlington Asset. Also joining us on the call today is John Murray, our Portfolio Manager.

Over the last 24 months, we have thoroughly repositioned Arlington. Set a course to transition the company from a primarily levered agency MBS-oriented strategy to one focused on establishing multiple, high return, non-commodity investment channels in mortgage servicing rights, single-family rental properties and select credit investments that would both diversify investment risk and improve the reliability of returns over time, to reduce leverage and diversify funding sources, including using structural leverage.

We maintained expense discipline by lowering G&A costs. We returned over $28 million of capital to shareholders, $0.68 of accretion from which represents an equivalent dividend yield of approximately 10% over that period. Today, the company is a flexible investment platform investing across primarily residential asset classes built to produce high returns with low volatility.