UPDATE: JMP Securities Upgrades AG Mortgage Investment Trust (MITT) to Market Outperform
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JMP Securities analyst Trevor Cranston upgraded AG Mortgage Investment Trust (NYSE: MITT) from Market Perform to Market Outperform with a price target of $13.50.
The analyst comments "AG Mortgage Investment recently announced that both of its two remaining commercial loan exposures have paid off in full, which we view as a highly positive development for the company that is immediately accretive to book value and, in our view, should be accretive to forward core earnings. Commercial Loan K was a $19M UPB hotel/retail construction loan in New York, which was accruing interest and was carried at 98% of UPB as of June 30. Commercial Loan L was a $51M UPB hotel/retail loan in Chicago carried at 86% of par, and was in non-accrual status, with $26M of financing against the loan. With both loans now paid off in full, MITT’s book value will increase by $0.70 per share, a 4.8% increase from June 30 tangible book value of $14.72. In addition, these loan payoffs will free up significant capital for reinvestment into the company’s residential credit investment strategies, which should have a positive impact on core earnings given attractive returns available on new investments and the previous non-accrual status of the larger commercial loan."
Shares of AG Mortgage Investment Trust closed at $11.26 yesterday.
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