Mortgage REIT Sector Primer
Mortgage REIT primer with an Excel valuation model. Covers agency carry, book value, leverage, CPR, duration risk, MSRs and CRE credit.
PDF Only
The full primer in PDF format
£25 / ~$32- ✓ 40-page sector primer
- ✓ Worked valuations
- ✓ Screening thresholds
Excel Model
Plug-and-play valuation template
£45 / ~$58- ✓ Pre-built valuation model
- ✓ Sensitivity tables
- ✓ Scenario toggles
PDF + Model
Everything you need in one package
- ✓ 40-page sector primer
- ✓ Valuation model (.xlsx)
- ✓ Save £11 vs buying separately
Three primers, three Excel models
Equity, Mortgage, and Infrastructure & Digital REITs. Everything at ~25% off
Inside the primer
The 15-section contents, a worked valuation page, and the Excel dashboard.
Table of Contents
- 01 How Mortgage REITs Make Money
- 02 Listed mREIT Types
- 03 The Rate and Credit Cycle Ladder
- 04 Segments and Sub-Markets
- 05 Revenue Drivers: Generic Spread Build
- 06 Cost Structure: Spread, Leverage and Opex
- 07 Valuation Frameworks
- 08 Worked Example: Justified Price-to-Book
- 09 Stress Tests and Real-Company Examples
- 10 Applied Cases: Agency Carry
- 11 Applied Cases: Hybrid and CRE Lending
- 12 The Companies in This Primer
- 13 Key Metrics and Screening
- 14 Risks, Benchmarks and Case Study
- 15 Glossary and Cheat Sheet
40 pages · 15 sections · 2 worked valuations
The Excel model
Educational material for professional use. This primer and its model are not investment advice or a recommendation to buy or sell any security, and they are not personalised. Worked valuations use illustrative calibrations, not fair-value estimates for any company.
Mortgage REITs own paper, not buildings. They borrow short, hold MBS, mortgage servicing rights or commercial loans, and keep the net interest or credit spread after hedges and funding. Equity REIT NAV and a generic DCF miss that story: the market prices these names on book value per share, the path of that book through rate and credit cycles, and the price-to-book multiple that votes on what comes next.
The primer separates the three earnings engines (agency carry, hybrid origination and servicing, CRE lending), then builds the valuation method around them: spread construction, leverage that is defined inconsistently across filers, CPR and duration risk, and dividend coverage that means different things on each model. A worked justified price-to-book walk and stress tests turn the framework into numbers you can recompute; applied cases put Annaly-style agency books and Rithm-style hybrids beside CRE lenders so the same screens read correctly on each book type. Screening metrics and red flags close the method.
Free guides on agency vs hybrid models, book value per share, CPR and prepayment risk, leverage definitions, and CRE office exposure teach the building blocks; research profiles for NLY, AGNC, RITM, STWD, and BXMT run the same screens on filed results. The companion Excel model spans thirteen sheets, from the spread build and justified-P/B engine to the sensitivity maps, takes its rate assumptions from one sheet, and reruns the full P/B and spread framework on any name in the sector.
Sheets: README, Assumptions, Spread Build, RI Engine, Coverage, BV Sensitivity, Spread Sensitivity, BV Bridge, Prepay Sensitivity, P-B Map, Valuation, Coverage Honesty, Dashboard.
See this methodology applied to a real company:
Annaly Capital Management (NLY) →