Company: AOMN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001766478-25-000099
Chunk: 44

Company: Angel Oak Mortgage REIT, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 1
Chunk 44
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 881 (2,985)Net unrealized (gains) losses on residential loans in securitization trusts and non-recourse securitization obligation(3,995)(26,304)(20,199)(28,871)Net unrealized (gains) losses on residential loans(4,299)(7,935)(5,149)(17,438)Net unrealized (gains) losses on commercial loans— — $— (49)Stock compensation expense398 604 930 1,864 Distributable Earnings$529 $(3,364)$7,310 $(2,844)

Distributable Earnings Return on Average Equity

Distributable Earnings Return on Average Equity is a non-GAAP measure and is defined as annual or annualized Distributable Earnings divided by average total stockholders’ equity. We believe that the presentation of Distributable Earnings Return on Average Equity provides investors with a useful measure to facilitate comparisons of financial performance among our REIT peers, but has important limitations. Additionally, we believe Distributable Earnings Return on Average Equity provides investors with additional detail on the Distributable Earnings generated by our invested equity capital. We believe Distributable Earnings Return on Average Equity as described above helps evaluate our financial performance without the impact of certain transactions but is of limited usefulness as an analytical tool. Therefore, Distributable Earnings Return on Average Equity 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 Return on Average Equity 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 Return on Average Equity may not be comparable to similar measures presented by other REITs. Set forth below is our computation of Distributable Earnings Return on Average Equity for the three and nine months ended September 30, 2025 and 2024:

Three Months EndedNine Months EndedSeptember 30, 2025September 30, 2024September 30, 2025September 30, 2024($ in thousands)Annualized Distributable Earnings$2,116$(13,460)$9,747$(3,793)Average total stockholders’ equity$255,276$260,452$250,250$260,083Distributable Earnings Return on Average Equity0.8%(5.2)%3.9%(