Mortgage REITs, or mREITs, are real estate investment trusts that finance real estate by purchasing or originating mortgages and mortgage-backed securities, earning income from the interest on these investments rather than from owning property.
Log in to followBought 1,200 shares of a mortgage REIT's fixed-to-floating preferred at $26.30. Par is $25. Fixed coupon 7.75 percent on par, so $1.9375 a year, $0.4844 a quarter. My thinking was…
I've got a brokerage account and I'm looking at putting a small slice into this corner rather than buying a rental. Two things I can't pin down. First, is there a real minimum, or…
I've narrowed to two mortgage REITs and they are almost opposites, which is the problem. Name A is agency heavy. Government backed mortgage securities, so credit loss is close to…
I put $5,000 into an agency mortgage REIT 15 months ago because the yield line said 11 percent and I wanted to see how one of these actually behaves before I put real money anywhe…
I've been sitting with the interest rate sensitivity disclosure on an agency mortgage REIT and I think it's telling me something the summary doesn't. The table gives estimated cha…
Looking at a commercial mortgage REIT, floating rate senior loans, mostly multifamily and office. Loans risk rated 4 and 5 are about 12% of carrying value. Total CECL allowance si…
Reading through a few quarterly decks and the yield is on slide 2 but the thing management spends ten minutes on is book value per share and how it moved. One deck showed GAAP boo…
Closed on a small duplex sale last month and after everything cleared there's about 90k. Two options on the table and I keep flipping. Option one is putting it against a loan on a…
The service business had a decent year and there's about 40k sitting past what I keep back for payroll gaps. I started looking at mortgage REITs because the yields on the screener…
I've been screening income names and a handful of mortgage REITs come up with yields between 11% and 15%. Everything else in the REIT list is at 4% or 5%. I read a comment somewhe…
I've been reading through an annual report for an agency focused mortgage REIT and got stuck on a page most summaries skip. The repurchase agreement table shows the borrowings by…
Running the arithmetic on an agency-heavy name. Asset yield around 5.9%, cost of funds around 4.4%, so 1.5% net interest spread. Equity of 1, borrowings of 7, so the levered piece…
I've got 62k earmarked for a roof and two unit turns on a small multifamily building, and the work is 18 months out because the tenants in place have leases running that long. It'…
A contractor I've worked with keeps asking me to fund his next rehab at 11% interest plus two points, twelve month term, first position on a house I've walked through. Meanwhile t…
I run a handful of small multifamily units and the rent covers the debt with room to spare, so the question of where the surplus goes comes up every quarter. The case for putting…
I've been working through the interest rate hedging disclosures on a handful of agency-focused mREITs and the range of approaches is wider than I expected for what's supposedly a…
I wanted income that didn't come with a phone call at 9pm about a water heater, so in the spring I put $18,000 across two mortgage REITs, one agency name and one more diversified.…
I sold two low price point single families in a small market, cleared about $60,000, and I did not want to be a landlord again for a while. I put $59,947 into one commercial mortg…
I've been building a comparison sheet for the mREIT side and the split that keeps showing up is agency versus credit. On the agency side you're holding mortgage-backed securities…
I've been sketching out how private capital gets allocated across buckets, and mortgage REITs broke my sheet. I had one line for real estate and one line for credit, and I couldn'…