The company acquires and manages mortgage-related, consumer-related, corporate-related, and other financial assets. Enhanced Portfolio Diversification: Great Ajaxs NPL investment portfolio would enhance Ellington Financials portfolio diversification with assets that complement Ellington Financials existing investment strategy and align with Ellingtons expertise. It specializes in acquiring, investing in, and managing a residential mortgage and real estate-related assets. You can buy AAIC for $4.20 right now.. hehe To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. REITMovers tracks the stock price and other indicators for all US REITs tracked by REITNotes during normal trading hours. The closing stock prices for Ellington Financial and Arlington on May 26, 2023 imply an offer price of $4.77 per share, representing a 73% premium to Arlington's share price on Friday, and a 15% discount to diluted tangible book value per share as of March 31, 2023. Click here for more on how to use these ratings. The investor deck is also being furnished by Ellington Financial in a Current Report on Form 8-K being filed by Ellington Financial with the Securities and Exchange Commission (the "SEC") on the date hereof. REIT Sector: Mortgage, See EFC on Yahoo Finance Upon completion of the deal, expected in Q4 2023, Ellington Financial (EFC) is expected to have pro forma equity capital base of more than $1.5B. 3 Monthly Dividend Stocks to Buy in July for a Passive Income Stream Each share of Great Ajax common stock will be converted into just over one-half of . Presentations | Ellington Financial Inc. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Ellington Financial Inc. (NYSE: EFC) is an Old Greenwich, Connecticut-based mREIT that invests in a diverse number of financial assets, including residential and commercial mortgage loans, residential and commercial mortgage-backed securities, consumer loans, collateralized loan obligations, nonmortgage- and mortgage-related derivatives and other strategic debt and equity investments. These products and services are usually sold through license agreements or subscriptions. It has a market cap of $919.645 million. EFC has signed a final deal to acquire Arlington Asset Investment Corp. (AAIC) in a stock-and-cash transaction. The company has paid dividends without missing a payment for 11 years, which is longer than the 10-year industry average. Anticipated Benefits to Ellington Financial and Great Ajax Stockholders from the Acquisition: Synergistic Expansion of Existing Business Lines: Great Ajaxs investment portfolio includes over $1 billion of first-lien residential re-performing loans ("RPLs") and non-performing loans ("NPLs"), most of which are financed through term, non-mark-to-market, non-recourse securitizations, which would significantly expand Ellington Financials current RPL/NPL strategy. Try the tool that will help you invest smarter, faster, and better. Based on the closing price of EFC's common stock on May 26, the stimated pro forma market capitalization of the combined company would exceed $1.0B. Symbol: EFC Altria lost over $1 billion on Juul, and Cronos shares are down about 86% since Altrias purchase in December 2018. If you have an ad-blocker enabled you may be blocked from proceeding. Since December 15, 2010, Ellington Financial Inc. has distributed monthly dividends to its stockholders. I just started a small position at about $13 and may add to it if the price drops further. Ellington Residential Mortgage REIT Reports First Quarter 2023 Results Its total return over the past five years is negative 38.33%. Market capitalization is calculated by taking a companys share price and multiplying it by the total number of shares. The Licensed Financial Advisor can be contacted at 016-427 0233. Privacy Policy and Morningstar Quantitative ratings for equities (denoted on this page by) are generated using an algorithm that compares companies that are not under analyst coverage to Try the tool that will help you invest smarter, faster, and better, Ellington Financial Buys Two Mortgage REITs Within Two Months, Japan's 10-year yield at over 4-month high on hawkish BOJ bets, Asia stocks set for best week of 2023, dollar reels on dovish Fed bets, GLOBAL MARKETS-Asia stocks set for best week of 2023, dollar reels on dovish Fed bets, Bullock takes the reins at Reserve Bank of Australia, Australia No.3 bank reaches union deal that lets staff work from home. against its industry peers and the overall market. About Ellington Financial | Ellington Financial Inc. I have optimism regarding the companys long-term viability because, in my opinion, mergers and acquisitions are among the most significant sources of competitive advantage. Such forward-looking statements may include or relate to statements about the proposed merger, including its financial and operational impact; the benefits of the proposed merger; the scale, market presence, portfolio diversification, liquidity or earnings of the combined company; enhanced access to securitization markets; anticipated synergies regarding Great Ajaxs equity investments in its affiliated servicer, Gregory Funding LLC; the relationship with Gregory Funding LLC; anticipated creditworthiness of acquired assets; alignment of acquired assets with existing management platform; anticipated operating efficiencies; anticipated market capitalization; beliefs about strategic and financial benefits; expected enhancements to liquidity; anticipated operating expense efficiencies; implementation of hedging, trading, and structuring capabilities and their impact on the portfolio and returns to stockholders; capital rotation out of certain assets and redeployment into other strategies; expected accretion to earnings and the timing of the expected accretion; investment opportunities and returns of the combined company; future growth; portfolio optimization; delivery of greater returns; the timing of future events; and other statements of managements beliefs, intentions or goals. The Company invests in a range of financial assets, including residential mortgage loans, residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), consumer loans and asset-backed securities (ABS), collateralized loan obligations (CLOs), mortgage-related and non-mortgage-related derivatives, strategic investments, and other investments, including corporate debt and equity securities and corporate loans. We sell different types of products and services to both investment professionals and individual investors. The Company acquires and manages mortgage-related, consumer-related, corporate-related, and other financial assets. EFCs historical performance Ellington Financial and Great Ajax and their respective directors and executive officers and certain other affiliates of Ellington Financial and Great Ajax may be deemed to be participants in the solicitation of proxies from Great Ajax stockholders in connection with the proposed merger. Information about the directors and executive officers of Great Ajax is available in the proxy statement for its 2023 annual meeting of stockholders filed with the SEC on April 21, 2023. Ellington Financial Inc. is a real estate investment trust (REIT). The returns are higher if you know what you are doing. With respect to loans, we have tended to focus on underserved, niche market segments where inefficiencies exist, and where the segment's size or complexity could present a barrier to entry. Formerly Moonshot Equity Analysis. Considering its dividend policy, it is clear that the companys income is volatile; nevertheless, I anticipate that this will change once its recent acquisitions begin to yield positive results. Ellington Financial will also take over the outstanding preferred stock, senior unsecured notes, and trust preferred securities of Arlington. In March, SA analyst Pacifica Yield considered Ellington Financial's 16.7% yield paid monthly as risky. Assuming the prior completion of the Ellington Financial/Arlington Merger, upon the closing of the transaction, Great Ajax stockholders are expected to own approximately 14% of the combined companys stock. Ellington is a hybrid mortgage REIT with a total long credit portfolio of $2.54 billion as of the end of its last . Except as required by law, neither Ellington Financial nor Great Ajax undertakes any obligation to update or revise any forward-looking statement in this communication, whether to reflect new information, future events, changes in assumptions or circumstances or otherwise. New Finance jobs added daily. We are not licensed investment advisers, legal advisers, or financial planners, and under no circumstances does any information posted on REITNotes.com represent financial or investment advice or a recommendation to buy or sell a security. EFC has a forward dividend yield of 12.97%. As of July 5, 2023, EFCs relative dividend yield was 13.3%, which was higher than the median of 6.5% for the REITs - Specialized business. Forward-looking statements are not historical in nature and can be identified by words such as "believe," "expect," "anticipate," "estimate," "project," "plan," "continue," "intend," "should," "would," "could," "goal," "objective," "will," "may," "seek" or similar expressions or their negative forms. Ellington Financial Inc. (EFC) - Stock Analysis Under the terms of the merger deal, each share of Arlington common stock will be turned into 0.3619 shares of Ellington Financial common stock, or about 11.7 million shares of Ellington Financial common stock in total. The companys shares have lost 10.74% over the last year, slightly higher than the industry average loss of 4.06%. Ellington Residential Mortgage REIT Declares Monthly Common Dividend Wed like to share more about how we work and what drives our day-to-day business. Mergers on Wall Street have a way of creating substantial volatility. The best opportunities are found when looking where others won't. Pursuant to the merger agreement terms, each share of Great Ajax common stock will be converted into 0.5308 shares1 of Ellington Financial common stock, or approximately 12.5 million shares of Ellington Financial common stock in the aggregate.2 Ellington Financials common stock closing price on the New York Stock Exchange (the "NYSE") on June 30, 2023 implies an offer price of $7.33 per share of Great Ajax common stock, representing an approximate 19% premium to the Great Ajax common stock closing price on the NYSE on June 30, 2023.
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