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AG Mortgage Investment Trust (MITT) |
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
AG Mortgage Investment Trust (NYSE:MITT) is a Real Estate Investment Trust (REIT) that invests mostly in residential mortgage assets. In the long run, AG plans to invest in residential Mortgage-Backed Securities (MBS) that were not issued and are not guaranteed by an agency affiliated with or sponsored by the US government. These are known as non-Agency residential mortgage backed securities. However, AG Mortgage Investment Trust did not have any investments prior to its IPO and used the proceeds to make such purchases.[1]
Business Overview
New Updates
The company's initial public offering of stock on the NYSE occurred on June 29, 2011. The company offered 5.5M shares each for $20. This was at the proposed price. The deal raised a total of $110M. The company had originally filed for a $250M deal in April, but was postponed. The lead underwriters were Deutsche Bank AG (DB), Stifel Nicolaus Weisel, and Royal Bank Of Canada (RY).[2]
Trends & Forces
Favorable tax status as an REIT
AG receives favorable tax status while it is considered a real estate investment trust. However, as an REIT, it is limited in the amount of income and percentage of its portfolio comes from taxable REIT subsidiaries (TRS). By owning shares in TRSs, AG is able to earn untaxed dividend income that would normally be 100% taxed. In other words, AG owns shares in a TRS which undergoes the transaction on behalf of AG and passes on the dividend income. If AG had done the transaction itself, it would have been taxed. While this process of gaining portions of revenue from TRSs is profitable, it is limited by regulations. If AG surpasses this limit, it may lose its REIT status and be subject to much higher regulation.[3]
- ↑ MITT S-11/A 2011 PROSPECTUS SUMMARY "Our Company" pg 1-3
- ↑ Renaissance Capital - IPO Home "AG Mortgage Investment prices an upsized $110 million IPO" 29 June 2011
- ↑ MITT S-11/A 2011 "Risks related to our organization and structure" pg 52-56
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