Angel Oak Mortgage REIT, Inc.

Overview

Angel Oak Mortgage REIT, Inc. is a real estate finance company focused on acquiring and investing in first- and second-lien non‑QM (non‑qualified mortgage) loans and other mortgage-related assets in the U.S. market. Its strategy centers on credit-sensitive investments in newly originated non‑QM loans and related assets, largely sourced through affiliated platforms and partners. The company seeks to generate attractive risk‑adjusted returns for stockholders through cash distributions and capital appreciation across interest rate and credit cycles.

Key relationships and management

• Externally managed and advised by Falcons I, LLC (the Manager), an affiliate of Angel Oak Capital.
• Angel Oak Mortgage Lending (an affiliate platform) provides proprietary access to non‑QM loans and underwriting transparency, supporting acquisition of loans with targeted credit and return profiles.
• The company benefits from Angel Oak’s platform, analytics, industry relationships, financing and capital structuring, investment surveillance, and operations.
• On October 1, 2025, a strategic transaction between Angel Oak Companies and Brookfield Asset Management Ltd. resulted in Brookfield acquiring approximately 51% of Angel Oak Companies. Brookfield may acquire additional ownership beginning in 2027, with potential influence on the Angel Oak group over time.
• A new Management Agreement with the Manager superseded the prior agreement after the Brookfield transaction and is substantially similar to the prior arrangement.

Investment strategy and guidelines

• Primary investments are newly originated non‑QM loans and other mortgage assets sourced from Angel Oak Mortgage Lending and other originators through the Manager’s relationships.
• The company may pursue additional mortgage-related asset classes, including RMBS and ABS.
• Financing approach relies predominantly on short‑term financing lines, with an objective to securitize substantially all target assets for longer‑term funding.
• The company intends to use derivatives and other hedging instruments to mitigate interest rate, credit, and other risks.
• The company intends to qualify as a REIT for U.S. federal income tax purposes and to maintain exclusion from regulation as an investment company under the Investment Company Act.
• Investment guidelines require independent director oversight, including a committee that reviews affiliated transactions and pricing.

Target asset categories

• Residential mortgage‑related assets:
  • Non‑QM loans
  • QM loans
  • Non‑Agency mortgage loans
  • Conforming residential mortgage loans
  • Alt‑A and subprime residential mortgage loans
  • Residential bridge loans
  • HELOCs (home equity lines of credit)
  • Second‑lien mortgage loans
  • Construction loans
• Mortgage‑backed and related securities:
  • RMBS (Agency and non‑Agency)
  • CMBS
  • CRT securities
  • MSRs and excess MSRs
• Commercial real estate:
  • Senior mortgage loans
  • Commercial bridge loans
  • Mezzanine loans
  • B‑Notes
  • Small balance commercial mortgage loans
• Other investments:
  • ABS and consumer loans (non‑real estate related assets)

Portfolio and securitizations

• Since inception (September 2018) through December 31, 2025, the company participated in 21 rated securitization transactions.
• As of December 31, 2025, the portfolio of target assets was approximately $2.7 billion. The portfolio includes assets owned directly by the company, assets held in securitization trusts, and RMBS.