Great Ajax Corp. (NYSE:AJX) Q3 2024 Earnings Conference Call October 21, 2024 8:00 AM ET

Company Participants

Emma Bolla - Associate General Counsel, Rithm Capital
Michael Nierenberg - CEO & Chairman, CEO & President, Rithm Capital

Conference Call Participants

Thomas Catherwood - BTIG
Stephen Laws - Raymond James

Operator

Good day, and welcome to the Great Ajax Third Quarter 2024 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Emma Bolla, Associate General Counsel. Please go ahead.

Emma Bolla

Thank you, and good morning, everyone. I would like to thank you for joining us today for Great Ajax's third quarter 2024 earnings call.

Joining me today are Michael Nierenberg, Chairman, CEO and President of Rithm Capital, and CEO of Great Ajax; and Mary Doyle, Principal Financial Officer of Great Ajax. Throughout the call, we are going to reference the earnings supplement that was posted this morning to the Great Ajax website, www.greatajax.com. If you've not already done so, I'd encourage you to download the presentation now.

I would like to point out that certain statements made today will be forward-looking statements. These statements by their nature are uncertain and may differ materially from actual results. I encourage you to review the disclaimers in our press release and earnings supplement regarding forward-looking statements and to review the risk factors contained in our annual and quarterly reports filed with the SEC.

In addition, we will be discussing some non-GAAP financial measures during today's call. Reconciliations of these measures to the most directly comparable GAAP measures can be found in our earnings supplement.

And with that, I will turn the call over to Michael.

Michael Nierenberg

Thanks, Emma. Good morning, everyone, and thanks for joining the Great Ajax earnings call. During the quarter, our mission is continues to be pretty much the same as what we discussed on our prior earnings call, which is to sell down legacy, what I would call, negative carry residential assets and redeploying the capital into real cash flowing CMBS with the intent for the company to get breakeven as soon as possible from an earnings perspective, which we expect to happen by the end of Q1. Obviously, this is before dividends.

Regarding the dividend, while the company does not make money today, we are hopeful that we will continue to earn our way out of this deficit, while maintaining the current dividend of $0.08. Obviously, there are no guarantees. As I mentioned in the past, our playbook will be similar to what we've done at Fortress and what some of the other large alternative asset managers have done in the past, which is to grow earnings while looking for transformational opportunity to grow the company. And as I pointed out, we've done that before while we were at Fortress and that was in 2013 when new residential was born out of a legacy mortgage REIT known as Newcastle.