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EQB Inc. (EQB)
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Blackstone Mortgage Trust Inc. (BXMT)
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STARWOOD PROPERTY TRUST INC. Starwood Property Trust Inc. (STWD)
Q: Which are the best U.S. & Canadian mortgage companies from a financial stability and dividend continuity perspective?
5i Research Answer:
BXMT appears quite stable as its distribution has held at current levels since 2015. Balance sheet does have a significant amount of debt at $19.39B but cash from operations is steady and came in at $111M in Q3.
Another high yield US mortgage name is STWD. Yield is 9.1% and the current distribution has not been changed since 2014. It has a significant amount of debt similar to BXMT at $19.62B but is more risky from a financial perspective as cash from operations has fluctuated in recent quarters even going negative in a few times in 2023.
EQB is a Canadian name we like which is more diversified financials but does have mortgage exposure as well. Yield is low at 1.77% but debt position is much lower than the US names listed at $12.52B.