Apollo Residential Mortgage reports loss for first months as public REIT

Apollo Residential Mortgage Inc. (AMTG) reported a loss of $1.9 million, or 18 cents a share, for July 27 through Sept. 30. The real estate investment trust sold about 10 million shares for $20 apiece in an initial public offering in late July, with another 300,000 shares sold through a private placement. The company had $1.1 billion invested in agency residential mortgage-backed securities at Sept. 30, and $107.6 million in non-agency RMBS. Apollo Residential also signed 17 repurchase agreements for more than $3.5 billion of financing capacity during the first few months as a publicly traded REIT. CEO Michael Commaroto said the company expects to use six to eight turns of leverage on agency MBS and two to three turns of leverage on non-agency securities “in order to seek to generate risk adjusted levered returns on our invested capital.” “While our pace of deployment has been measured, we have been focused and diligent in our efforts and we were very active in October as we saw attractive opportunities in the market,” he said. Write to Jason Philyaw. Follow him on Twitter: @jrphilyaw.

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