New York Mortgage Trust (NYMT) has disclosed a new risk, in the Accounting & Financial Operations category.
New York Mortgage Trust faces a significant business risk as the company’s preferred stock shifts from a fixed to a floating dividend rate post-Fixed Rate Period. The floating rate, tied to a benchmark plus a spread, may lead to unpredictable and potentially steep increases in dividend costs for Series D, E, and F Preferred Stock. Such volatility in dividend expenses could severely impact the firm’s ability to sustain intended cash distributions or could negatively affect their earnings and financial stability. Additionally, the option to redeem preferred stock to mitigate rising costs could compel the company to secure funds or liquidate assets under less-than-ideal conditions.
The average NYMT stock price target is $9.33, implying 27.11% upside potential.
To learn more about New York Mortgage Trust’s risk factors, click here.
