Company: AOMN
Filing Date: 2025-03-24
Form Type: 10-K
Source: 0001766478-25-000019
Chunk: 128

Company: Angel Oak Mortgage REIT, Inc.
Filing Date: 2025-03-24
Form: 10-K
Item: Item 7
Chunk 128
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 2024, the Company amended its loan financing facility with Global Investment Bank 3 to extend the facility to November 1, 2025 and to update the interest rate pricing spread to a range of 1.90% to 4.75%, based on loan status, dwell time, and other factors.  This resulted in an effective decrease in interest rate pricing spread of approximately 25 basis points. Additionally, the previous 20 basis point index pricing spread was eliminated.

•In the fourth quarter of 2024, the Company amended its loan financing facility with Global Investment Bank 2 to reduce the interest rate pricing spread from a range of 2.10% - 3.35% to a range of 1.75% to 3.35%, based on collateral type, loan status, dwell time, and other factors. This resulted in an effective decrease in interest rate pricing spread of approximately 25 basis points.

Key Financial Metrics

As a real estate finance company, we believe the key financial measures and indicators for our business are Distributable Earnings, Distributable Earnings Return on Average Equity, Book Value per Share of Common Stock, and Economic Book Value per Share of Common Stock.

Distributable Earnings

Distributable Earnings is a non‑GAAP measure and is defined as net income (loss) allocable to common stockholders as calculated in accordance with generally accepted accounting principles in the United States of America (“GAAP”), excluding (1) unrealized gains and losses on our aggregate portfolio, (2) impairment losses, (3) extinguishment of debt, (4) non-cash equity compensation expense, (5) the incentive fee earned by our Manager, (6) realized gains or losses on swap terminations and (7) certain other nonrecurring gains or losses. We believe that the presentation of Distributable Earnings provides investors with a useful measure to facilitate comparisons of financial performance among our REIT peers, but has important limitations. We believe Distributable Earnings as described above helps evaluate our financial performance without the impact of certain transactions but is of limited usefulness as an analytical tool. As a REIT, we are generally required to distribute at least 90% of our annual REIT taxable income and to pay U.S. federal income tax at the regular corporate rate to the extent that we annually distribute less than 100% of such taxable income. Given these requirements and our belief that dividends are generally one of the principal reasons that stockholders invest in our common stock, generally