ADDED
FORM 10-K SUMMARY 126 SIGNATURES 127 1 Unless otherwise indicated, the terms Angel Oak Mortgage REIT, Inc., we, us, our, our company, and the Company refer to Angel Oak Mortgage REIT, Inc.
CLTV means combined loan-to-value ratio, which is calculated for purposes of this Annual Report on Form 10-K as the total outstanding principal amount of, if applicable, the outstanding principal amount of a HELOC plus the outstanding principal amount of a loan plus any financing that is pari passu with or senior to such loan at the time of acquisition, divided by the applicable real estate value at acquisition of such loan; in the case of a non-QM loan.
Second lien mortgage loans or closed end seconds mean residential mortgage loans that are subordinate to the primary or first lien mortgage loans on a residential property.
Our strategy is to make credit-sensitive investments primarily in newly-originated non-QM loans and other mortgage assets that are primarily made to higher-quality borrowers and sourced from the proprietary mortgage lending platform of our affiliate, Angel Oak Mortgage Lending, and other originators through our relationship with Angel Oak Capital.
We may also invest in other residential mortgage loans, RMBS, and other mortgage related assets as defined in target assets below.
We are externally managed and advised by our Manager pursuant to the Management Agreement (as defined below).
On October 1, 2025, Angel Oak Companies, an affiliate of our Manager, and Brookfield Asset Management Ltd.
( Brookfield ), closed on a strategic transaction resulting in the beneficial owners of Angel Oak Companies selling approximately 51% of the outstanding beneficial ownership of Angel Oak Companies, and indirectly our Manager, to Brookfield (the Strategic Transaction ).
Angel Oak Companies has advised the Company that the Strategic Transaction is not expected to result in any material change in the day-to-day management of the Company, and will not result in any material changes to the Company s investment objectives and strategies.
As part of the Strategic Transaction, Brookfield has the right to acquire additional beneficial ownership in Angel Oak Companies beginning in 2027, which over time could result in Brookfield taking control of the board of directors of Angel Oak Companies.
REMOVED
FORM 10-K SUMMARY 124 SIGNATURES 125 Unless otherwise indicated, the terms Angel Oak Mortgage REIT, Inc., we, us, our, our company, and the Company refer to Angel Oak Mortgage REIT, Inc.
Second lien mortgage loans mean residential mortgage loans that are subordinate to the primary or first lien mortgage loans on a residential property.
Our strategy is to make credit-sensitive investments primarily in newly-originated first lien non-QM loans that are primarily made to higher-quality non-QM loan borrowers and substantially sourced from Angel Oak s proprietary mortgage lending platform, Angel Oak Mortgage Lending, which currently operates primarily through a wholesale channel and has a national origination footprint.
We also may invest in other residential mortgage loans, RMBS, and other mortgage-related assets, which, collectively with non-QM loans, we refer to as our target assets.
We are externally managed and advised by our Manager pursuant to a management agreement (the Management Agreement ).
Our Investment Strategy Our investment strategy is to make credit-sensitive investments primarily in newly-originated first lien non-QM loans that are primarily made to higher-quality non-QM loan borrowers and substantially sourced from Angel Oak Mortgage Lending, which primarily operates through a wholesale channel and has a national origination footprint.
Our objective is to generate attractive risk-adjusted returns for our stockholders, through cash distributions and capital appreciation, across interest rate and credit cycles.We expect to derive our returns primarily from the difference between the interest we earn on loans we invest in and our cost of capital, as well as the returns from bonds, including risk retention securities, that are retained after securitizing the underlying loan collateral.
Since the commencement of our operations in September 2018 through December 31, 2024, we have participated in seventeen rated securitization transactions.
We believe that our portfolio validates our strategy of making credit-sensitive investments primarily in newly-originated first lien non-QM loans that are primarily made to higher-quality non-QM loan borrowers.
Legislative or other actions affecting REITs could materially and adversely affect us.