Company: AOMN
Filing Date: 2025-03-24
Form Type: 10-K
Source: 0001766478-25-000019
Chunk: 129

Company: Angel Oak Mortgage REIT, Inc.
Filing Date: 2025-03-24
Form: 10-K
Item: Item 7
Chunk 129
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 we intend to attempt to pay dividends to our stockholders in an amount equal to our REIT taxable income, if and to the extent authorized by our Board of Directors. Distributable Earnings is one of a number of factors considered by our Board of Directors in declaring dividends and, while not a direct measure of REIT taxable income, over time, the measure can be considered a useful indicator of our dividends. Distributable Earnings should not be viewed in isolation and is not a substitute for net income computed in accordance with GAAP. Our methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our Distributable Earnings may not be comparable to similar measures presented by other REITs.

We also use Distributable Earnings to determine the incentive fee, if any, payable to our Manager pursuant to the Management Agreement. For information on the fees that are payable to our Manager under the Management Agreement, see Part II, Item 8, Note 12 – Related Party Transactions in our audited consolidated financial statements included in this Annual Report on Form 10-K.

Distributable Earnings were approximately $7.0 million and $(28.1) million for the years ended December 31, 2024 and 2023, respectively. The table below sets forth a reconciliation of net income allocable to common stockholders, calculated in accordance with GAAP, to Distributable Earnings for the years ended December 31, 2024 and 2023:

December 31, 2024December 31, 2023($ in thousands)Net income (loss) allocable to common stockholders$28,750 $33,714 Adjustments:Net unrealized (gains) losses on trading securities1,026 (484)Net unrealized (gains) losses on derivatives(2,849)16,985 Net unrealized (gains) losses on residential loans in securitization trusts and non-recourse securitization obligation(5,313)(15,890)Net unrealized (gains) losses on residential loans(16,598)(64,009)Net unrealized (gains) losses on commercial loans(27)(91)Non-cash equity compensation expense2,041 1,689 Distributable Earnings$7,030 $(28,086)

56

Distributable Earnings Return on Average Equity

Distributable E