AOMR - Angel Oak Mortgage: A Vertically Integrated Non-QM Lender

2024-06-15 06:23:01 ET

Summary

• Angel Oak Mortgage REIT is a mortgage REIT that focuses on non-qualified mortgage loans, a niche corner of the home loan market.
• AOMR is part of the Angel Oak Ecosystem, a vertically integrated home lender that underwrites, acquires, and securitized non-QM loans.
• The outlook for AOMR is dependent on volume in the residential real estate market.
• We explore AOMR's core business including the structure of their securitization rounds.

As we know, REITs come in a variety of shapes and sizes. Most discussion of REITs is centered around the best and biggest in the industry, including blue chip landlords like Realty Income (O), Simon Property Group (SPG), or Prologis (PLD). There is good reason as these companies own massive portfolios of high quality real estate and have established impressive track records, rewarding investors along the way.

However, these REITs are more similar than one might think. These equity REITs are in the business of building, owning, managing, and leasing real estate. The business model of developing and owning real estate is fairly bland once you look beyond the specifics of each asset class. Many of these behemoth landlords, including the three above, have earned themselves places among the 500 largest companies in the United States....

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