NEW YORK - Great Ajax Corp . (NYSE:AJX), a real estate investment trust (REIT), announced today the final conversion rate for its convertible notes approaching maturity. The notes, due on April 30, 2024, will have a conversion rate of 1.7405 shares of common stock per $25.00 principal amount, which equates to a conversion price of approximately $14.36 per share of common stock.
This announcement is a significant update for note holders as they approach the maturity date of the financial instrument. Convertible notes are a form of debt that can be converted into a predetermined number of shares. The conversion rate is particularly important for investors as it determines the number of shares they would receive upon conversion.
Great Ajax focuses on acquiring, investing in, and managing a portfolio that primarily includes re-performing (RPLs) and non-performing loans (NPLs) secured by single-family residences and commercial properties.
The company also deals with small balance commercial mortgage loans secured by multi-family, retail/residential, and mixed-use properties. Great Ajax is managed by Thetis Asset Management LLC and services its mortgage loans and real estate assets through Gregory Funding LLC, both of which are affiliated entities.
The information disclosed is based on a press release statement from Great Ajax Corp. The company's stock is traded on the New York Stock Exchange under the ticker symbol AJX. Investors holding the convertible notes will now have a clear understanding of the conversion terms as they make decisions regarding their investment ahead of the end of April deadline.
Great Ajax has not provided further details on the strategic implications of the conversion rate for its financial structure or its future operations.
InvestingPro Insights
Great Ajax Corp. (NYSE:AJX), amidst the announcement of its convertible notes' final conversion rate, exhibits a set of financial metrics and analysts' expectations that could influence investor decisions. Here are some insights from InvestingPro:
InvestingPro Data highlights a market capitalization of $128.35 million USD, signaling a relatively modest size within the REIT sector. The adjusted P/E ratio as of the last twelve months ending Q4 2023 stands at -2.63, which may reflect investor skepticism about the company's earnings potential.
Still, the notable dividend yield as of March 2024 is 11.53%, which could appeal to income-focused investors, especially considering that AJX has maintained dividend payments for 10 consecutive years.
Two InvestingPro Tips that stand out for Great Ajax are the expectation of net income growth and sales growth in the current year. These projections suggest a potential turnaround in the company's financial performance, which could be crucial for investors assessing the value of converting their notes to equity.
For those interested in a deeper analysis, InvestingPro offers additional insights and tips on Great Ajax Corp. Investors can unlock these valuable resources and save on a yearly or biyearly Pro and Pro+ subscription by using the coupon code PRONEWS24. There are 11 more InvestingPro Tips available that provide a comprehensive view of the company's financial health and future prospects.
As the conversion date for Great Ajax's convertible notes nears, these insights could be instrumental in guiding investors whether to convert their debt holdings into equity, especially in light of the company's recent stock price volatility and trading near its 52-week low.
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