Recent developments include the release of Q3 2026 financial results and earnings call transcripts, highlighting a net loss and missed earnings and revenue expectations for the quarter.

• Angel Oak Mortgage REIT reported third quarter 2026 financial results showing a net loss and negative earnings per share for the period ending September 30, 2026 [N2][S2].
• The Q3 2026 earnings call transcript provides detailed discussion of financial performance and operational updates [N1].
• The company’s Q3 2026 earnings and revenues were reported below expectations [N3].
• The Management Agreement was updated following a strategic transaction where Brookfield Asset Management acquired a majority stake in Angel Oak Companies, the parent of the Manager, with no expected material change to day-to-day management [S1].

Angel Oak Mortgage REIT’s vertically integrated platform and proprietary access to non-QM loans through Angel Oak Mortgage Lending provide a differentiated sourcing advantage. The company’s flexible investment guidelines and ability to adapt portfolio composition in response to market conditions allow it to pursue attractive risk-adjusted returns across interest rate and credit cycles. Its experience in securitization and use of hedging instruments to mitigate risks support its capacity to manage financing costs and credit exposure. The strategic transaction involving Brookfield Asset Management may provide additional resources and stability to the management platform.

The company’s dependency on its Manager and key personnel presents operational risks, especially if replacements are not found. Conflicts of interest with Angel Oak affiliates may restrict investment opportunities or lead to decisions not aligned with stockholder interests. The reliance on non-QM loans exposes the company to higher credit risk, including potential delinquencies and defaults. Regulatory compliance requirements and the need to maintain REIT qualification impose operational constraints. Market competition from entities with lower costs of capital or higher risk tolerance may pressure yields and returns. The company reported a net loss and negative earnings per share in Q3 2026, indicating financial challenges.

Angel Oak Mortgage REIT benefits from its affiliation with Angel Oak Capital and its vertically integrated platform, which provides proprietary access to non-QM loans and extensive expertise in mortgage credit markets. This relationship offers competitive advantages including transparency over underwriting, access to a proprietary mortgage lending platform, analytical investment tools, and capital structuring capabilities. The company’s ability to source credit-sensitive investments primarily from higher-quality borrowers through its affiliate enhances its market position. Additionally, its experience in securitization transactions and risk management through hedging instruments supports its operational resilience. However, the company operates in a competitive environment with other REITs and financial institutions that may have different risk tolerances or cost structures.

• Manager and Key Personnel Dependency: The company relies heavily on its Manager, Falcons I, LLC, and key personnel provided through the Manager. Loss of these resources could adversely affect operations.
• Conflicts of Interest: Relationships with Angel Oak affiliates may create conflicts that limit investment opportunities or result in decisions not in the best interests of stockholders.
• Credit Risk in Non-QM Loans: Investments in non-QM loans, which may have less stringent underwriting, carry higher risks of delinquencies, defaults, and foreclosures.
• Regulatory and Compliance Risks: Maintaining REIT qualification and exclusion from investment company regulation imposes complex requirements and operational constraints.
• Market Competition: Competition from other REITs and financial institutions with different cost structures and risk tolerances may reduce investment yields and opportunities.
• Financial Performance Risks: Recent financial results show net losses and negative earnings per share, reflecting challenges in profitability and operational execution.

• Angel Oak Mortgage REIT, Inc. is a real estate finance company focused on acquiring and investing in first and second lien non-QM loans and other mortgage-related assets in the U.S. mortgage market.
• The company primarily invests in newly-originated non-QM loans made to higher-quality borrowers sourced from Angel Oak Mortgage Lending and other originators through Angel Oak Capital.
• Angel Oak Mortgage REIT is externally managed and advised by Falcons I, LLC, an affiliate of Angel Oak Capital, which provides a vertically integrated platform and proprietary access to non-QM loans.
• The company completed its IPO on the NYSE on June 21, 2021, and has elected to be taxed as a REIT for U.S. federal income tax purposes starting with the 2019 taxable year.
• The investment strategy includes credit-sensitive investments in non-QM loans, RMBS, and other mortgage-related assets, with an objective to generate attractive risk-adjusted returns through cash distributions and capital appreciation across interest rate and credit cycles.
• The company uses various financing lines, including short-term loan financing and long-term securitization funding, to finance its mortgage loans and other assets.
• Angel Oak Mortgage REIT participates in securitization transactions and had a portfolio of approximately $2.7 billion as of December 31, 2025, predominantly residential mortgage loans and RMBS.
• The company employs derivative instruments and hedging strategies to mitigate interest rate risk, credit risk, and other risks.
• The company faces competition from other REITs, specialty finance companies, banks, and financial institutions, some of which may have lower costs of funds or higher risk tolerances.
• Angel Oak Mortgage REIT has no employees; executive officers and personnel are employees of its Manager or affiliates.
• The company’s significant risks include dependency on its Manager and key personnel, conflicts of interest with Angel Oak affiliates, reliance on Angel Oak Mortgage Lending for sourcing loans, and risks related to non-QM loans and regulatory compliance.
• The company’s financial snapshot as of September 30, 2026, shows cash and cash equivalents of $49.13 million and a net loss of $16.673 million for Q3 2026, with basic and diluted EPS of -$0.72 per share.
• The Management Agreement with Falcons I, LLC was updated on October 1, 2025, following a strategic transaction where Brookfield Asset Management acquired approximately 51% ownership of Angel Oak Companies, the parent of the Manager.
• Recent earnings call transcripts and financial results for Q3 2026 indicate that Angel Oak Mortgage REIT reported a net loss and missed earnings and revenue expectations for the quarter.
• The company’s investment guidelines require maintaining REIT qualification and exclusion from regulation as an investment company under the Investment Company Act.
• The company’s portfolio and strategy are adaptable to changing market conditions, with broad investment guidelines allowing flexibility in asset composition.
• Liquidity ratios such as current ratio and cash ratio are not disclosed, but cash and equivalents are reported as $49.13 million as of September 30, 2026.