Equity

3 Months Ended

Mar. 31, 2020

Common stock

As of March 31, 2020 and December 31, 2019 the Company had 22,921,935 and 22,142,143 shares, respectively, of $0.01 par value common stock outstanding with 125,000,000 shares authorized at each period end.

Preferred stock

The Company had 0 shares of preferred stock outstanding at March 31, 2020 and December 31, 2019. There were 25,000,000 shares authorized as of March 31, 2020 and December 31, 2019. See Note 15 — Subsequent events for description of the Company's issuance of preferred stock in April 2020.

Treasury stock

As of March 31, 2020 the Company held 37,278 shares of treasury stock received through distributions of the Company's shares previously held by its Manager. The Company held 33,248 shares of treasury stock at December 31, 2019.

Dividend Reinvestment Plan

The Company sponsors a dividend reinvestment plan through which stockholders may purchase additional shares of the Company’s common stock by reinvesting some or all of the cash dividends received on shares of the Company’s common stock. During the three months ended March 31, 2020 no shares were issued under the plan. Comparatively, during the three months ended March 31, 2019 5,321 shares were issued under the plan for total proceeds of approximately $0.1 million.

Stock Dividend

On March 24, 2020 the Company announced that it would pay its declared dividend of $0.32 per share in shares of the Company's common stock (value based upon the $9.14 per share closing price on the record date of March 17, 2020). The dividend was paid on March 27, 2020 through the issuance of 781,222 shares of common stock.

At-the-Market Offering

The Company has entered into an equity distribution agreement under which the Company may sell shares of its common stock having an aggregate offering price of up to $50.0 million from time to time in any method permitted by law deemed to be an “at the market” offering as defined in Rule 415 under the Securities Act of 1933, as amended, or the Securities Act. During the three months ended March 31, 2020 and 2019, no shares were sold under the at-the-market program.

Accumulated Other Comprehensive Loss

The Company recognizes unrealized gains or losses on its investment in debt securities as components of Other comprehensive income/(loss). Accumulated other comprehensive gain/(loss) at March 31, 2020 and December 31, 2019 was as follows ($ in thousands):


Investments in securities:	March 31, 2020		December 31, 2019
Unrealized gains	$	—	$	1,643
Unrealized losses	(27,167)		(366)
Accumulated other comprehensive gain/(loss)	$	(27,167)	$	1,277

Non-controlling Interest

During the Company’s second quarter of 2019, all the outstanding 624,106 OP units held by the unaffiliated holder were exchanged for shares of the Company’s common stock, resulting in a reclassification within the Company's consolidated Statement of Changes in Equity of $10.8 million from non-controlling interest to the Additional Paid-in Capital and Common Stock accounts. At March 31, 2020, the Company’s Operating Partnership was 100% owned by the Company. The Company consolidates the assets, liabilities, revenues and expenses of the Operating Partnership.

At March 31, 2020, the Company had non-controlling interests attributable to ownership interests by four legal entities.

During the year ended December 31, 2017, the Company established AS Ajax E II LLC, to purchase and hold an investment in a Delaware trust which holds single family residential real estate loans, SBC loans and other real estate assets. AS Ajax E II LLC is 46.9% held by third parties. As of March 31, 2020 the Company had retained 53.1% of AS Ajax E II LLC and consolidates the assets, liabilities, revenues and expenses of the entity.

During the year ended December 31, 2017, the Company established 2017-D, a securitization trust, which is 50% held by an accredited institutional investor. As of March 31, 2020 the Company had retained 50% of 2017-D and consolidates the assets, liabilities, revenues and expenses of the trust.

During the year ended December 31, 2018, the Company established 2018-C, a securitization trust, which is 37.0% held by an accredited institutional investor. As of March 31, 2020 the Company had retained 63.0% of 2018-C and consolidates the assets, liabilities, revenues and expenses of the trust.

During the year ended December 31, 2019 formed Great Ajax II REIT which holds an interest in Great Ajax II Depositor LLC which was formed to act as the depositor of mortgage loans into securitization trusts and to hold the subordinated securities issued by such trusts and any additional trusts the Company may form for additional secured borrowings and is 0.2% held by third parties. As of March 31, 2020, the Company had retained 99.8% of Great Ajax II REIT and consolidates the assets, liabilities, revenues and expenses of the entity.

During the year ended December 31, 2018, the Company established BFLD, to purchase and hold REO property. BFLD was 10.0% held by a third party and 90.0% retained by the Company through its Gaea subsidiary. During the year ended December 31, 2019, the Company established DG Brooklyn Holdings, to purchase and hold REO property. DG Brooklyn Holdings was 5.0% held by a third party and 95.0% owned by the Company through Gaea. On November 22, 2019, the Company undertook a private capital raise transaction for Gaea which resulted in the Company's deconsolidation of Gaea. As a result, the Company did not consolidate either BFLD or DG Brooklyn Holdings at March 31, 2020 or December 31, 2019. The Company has retained a 23.2% interest in Gaea which is accounted for under the equity method.

The following table sets forth the effects of changes in the Company's ownership interest due to transfers to or from non-controlling interest ($ in thousands):


	March 31, 2020		December 31, 2019
Decrease from redemption of OP units by third party investor	$	—	$	(10,816)
Decrease due to deconsolidation of Gaea	—		(22)
Change in non-controlling interest	$	—	$	(10,838)