Arbor Realty Trust (ABR) ABR is the top performing publicly traded mREIT with a 5-year total return of 23.99% and a 63.39% return over the last 12 months. 91% of ABRs portfolio is comprised of bridge loans, 74% of which are on multifamily assets. ABR is the leading originator of multifamily agency loans. The REIT, which is internally managed, also manages a multibillion-dollar servicing platform specializing in servicing agency loans. The portfolio generates a consistent levered return of 13% and has consistently generated significant earnings through structured transactions and preferred equity. (ABR, 2019)
Hannon Armstrong Sustainable Infrastructure (HASI) Provides capital for companies in energy efficiency, renewable energy and other sustainable infrastructure markets. The company has more than 185 investments, with an average size of $10M and $5.3B in total assets under management. The company is internally managed. HASI has the second highest total return among mREITs over the last five years at 19.11%, and a dividend yield that slightly below mREIT peers at 5.15%. (HASI, 2019)
New Residential Investment Corp (NRZ) Focuses on investing and managing investments in the residential real estate market. NRZ invests primarily in excess mortgage servicing rights, servicer advances, non-agency residential mortgage backed securities and associated call rights. (NRZ, 2019) The externally managed mREIT is both the third best performing among peers, as well as the third largest REIT in the subsector. NRZ generates an above average dividend yield of 11.83% and has produced a total return of 18.8% over the last 5 years. (NRZ, 2019)
Chimera Investment (CIM) CIM is a hybrid mortgage REIT that focuses on acquiring residential mortgage loans, non-agency RMBS, agency RMBS and agency CMBS. The REIT was founded in 2007 and brought management in house in 2015. CIM has a total market cap of $3.5B and a $27.2B portfolio. The mREIT has produced a 17.81% total return over the last 5 years, and an above average dividend yield of 11.38%. (CIM, 2019)
Apollo Commercial Real Estate Finance (ARI) ARI is traded on the NYSE and is an affiliate of Apollo Global Management, the global alternative investment manager which has $280B in assets under management. ARI is externally managed by ACREFI Management, also an affiliate of Apollo Global Management. The commercial real estate platform has deployed $26.9B in capital, $10.7B by ARI as a direct lender. ARI has generated a 10.11% dividend yield over the last 12 months, and a 12.86% total return over the last five years. The REIT performs fifth among mREIT peers. ARI’s loan portfolio is diversified among hotels, office and multifamily assets. (ARI, 2019)
5 Largest Mortgage REITs by Market Cap
Annaly Capital Management (NLY) Listed on the NYSE as NLY, Annaly is the largest mREIT by market cap at $13,873 Billion. NLY invests in both commercial and residential loans, but predominantly invests in residential agency loans. Annaly is externally managed by Annaly Management Company, LLC. NLY generates a dividend yield of 12.01%, well above the mREIT average of 10.61%, and has generated a total return of 9.79% over the last 5 years. (Annaly, 2019)
AGNC Investment (AGNC) is traded on the NASDAQ and is the second largest publicly traded mREIT by market cap. AGNC is internally managed, and invests primarily in agency MBS, including agency residential pass thru certificates and collateralized mortgage obligations. AGNC’s portfolio consists of $102.2B in investments at FMV. AGNC has produced a total return of 8.52% over the last five years and generates an above average dividend yield of 12%. (AGNC, 2019)
New Residential Investment Corp (NRZ) NRZ, as detailed earlier, is the third highest performing mREIT and invests predominantly in residential MBS. NRZ was previously a wholly owned subsidiary of Newcastle Investment Corp in 2013 and is currently externally managed by an affiliate of Fortress Investment Group. NRZ has a market cap of $6.85B and produces a dividend of 11.83%. (NRZ, 2019)
Starwood Property Trust (STWD) is an affiliate of Starwood Capital Group, and focuses predominantly on commercial mortgage backed securities. The company is externally managed SPT Management, LLC, also an affiliate of Starwood Capital Group. 75% of STWD’s portfolio consists of US assets, the remaining 25% is diversified across Europe and Mexico. STWD is the fourth largest mREIT, and generates a dividend yield of 8.59%, and a five-year total return of 8.02%. (Starwood Property Trust, 2019)
Blackstone Mortgage Trust (BXMT) is the fifth largest mREIT with a market cap of $4.2B. BXMT is an affiliate of Blackstone, one of the world’s largest investment firms, and is externally managed by BXMT Advisors, LLC, also a subsidiary of Blackstone. BXMT is traded on the NYSE and is the fifth largest publicly traded mREIT. BXMT is a direct lender with a portfolio consisting of $16.1B of senior loans collateralized by 123 commercial real estate assets, predominantly office and hotel assets in the US, Europe and Australia. 71% of the portfolio is in gateway markets. BXMT generates a dividend yield of 7.18% well below the mREIT average dividend yield. (Blackstone Mortgage Trust, 2019)
