8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 1, 2017

GREAT AJAX CORP.

(Exact name of registrant as specified in charter)

Maryland	001 36844	47 1271842
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

9400 SW Beaverton—Hillsdale Hwy

Suite 131

Beaverton, OR 97005

(Address of principal executive offices)

Registrant’s telephone number, including area code: 

503 505 5670

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. x

Item 2.02.   Results of Operations and Financial Condition

On August 1, 2017, Great Ajax Corp., a Maryland corporation (the “Company”) issued a press release regarding its financial results for the quarter ended June 30, 2017 (the “Press Release”). A copy of the Press Release is attached hereto as Exhibit 99.1 and is available on the Company’s website.

The information provided in Item 2.02 of this report, including Exhibit 99.1, shall be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

Item 7.01.   Regulation FD Disclosure

On August 1, 2017, the Company will hold an investor conference call and webcast to discuss financial results for the second quarter ended June 30, 2017, including the Press Release and other matters relating to the Company.

The Company has also made available on its website presentation materials containing certain additional information relating to the Company and its financial results for the second quarter ended June 30, 2017 (the “Presentation Materials”). The Presentation Materials are furnished herewith as Exhibit 99.2, and are incorporated by reference in this Item 7.01. All information in Exhibit 99.2 is presented as of the particular date or dates referenced therein, and the Company does not undertake any obligation to, and disclaims any duty to, update any of the information provided.

The information provided in Item 7.01 of this report, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall the information or Exhibit 99.2 be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended.

Item 9.01. Financial Statements and Exhibits

Exhibit	Description
99.1	Press Release dated August 1, 2017
99.2	August 2017 Presentation Materials

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

GREAT AJAX CORP.
By:	/s/ Mary Doyle
Name:	Mary Doyle
Title:	Chief Financial Officer

Dated: August 1, 2017

EXHIBIT INDEX

Exhibit	Description
99.1	Press Release dated August 1, 2017
99.2	August 2017 Presentation Materials

EX-99.1

Exhibit 99.1

GREAT AJAX CORP. ANNOUNCES RESULTS FOR THE QUARTER
ENDED JUNE 30, 2017

Second Quarter Highlights

· Purchased $210.2 million of re-performing mortgage loans (“RPL”) with an aggregate unpaid principal balance (“UPB”) of $249.0 million and underlying collateral value of $357.7 million; and originated $1.7 million of small-balance commercial mortgage loans (“SBC”) to end the quarter with $1,044.7 million of mortgage loans with an aggregate UPB of $1,257.1 million.

· Issued $87.5 million of Convertible senior notes and a net increase in secured debt of $98.1 million.

· Portfolio interest income of $21.7 million; net interest income of $12.4 million.

· Net income attributable to common stockholders of $6.9 million.

· Basic earnings per share (“EPS”) of $0.38.

· Taxable income of $0.39 per share.

· Book value per share of $15.49 at June 30, 2017.

· $42.0 million of cash and cash equivalents at June 30, 2017.

New York, NY—August 1, 2017 —Great Ajax Corp. (NYSE: AJX), a Maryland corporation that is a real estate investment trust, today announces results of operations for the quarter ended June 30, 2017. We focus primarily on acquiring, investing in and managing a portfolio of RPLs secured by single-family residences and commercial properties, and, to a lesser extent, non-performing mortgage loans (“NPL”). In addition to our continued focus on residential RPLs, we intend to increase our acquisitions and originations of SBCs secured by multi-family residential and commercial mixed use retail/residential properties.

Financial Results (Unaudited)

($ in thousands except per share amounts)

	June 30, 2017		March 31, 2017		December 31, 2016		September 30, 2016		June 30, 2016
Interest income	$	21,721	$	20,807	$	19,723	$	18,707	$	16,378
Total revenue(1)	$	13,105	$	13,667	$	10,969	$	11,619	$	10,688
Consolidated net income	$	7,102	$	8,698	$	6,163	$	7,887	$	6,861
Net income per diluted share	$	0.36	$	0.46	$	0.33	$	0.42	$	0.42
Average equity	$	288,884	$	284,872	$	280,213	$	279,222	$	248,195
Average total assets	$	1,050,108	$	952,112	$	883,621	$	814,426	$	671,275
Average daily cash balance(2)	$	47,705	$	35,513	$	32,759	$	50,572	$	39,043
Average carrying value of RPLs(3)	$	917,646	$	806,982	$	751,801	$	653,699	$	539,701
Average carrying value of NPLs(3)	$	49,530	$	53,975	$	59,365	$	63,778	$	68,205
Average debt balance	$	775,717	$	669,938	$	615,103	$	537,279	$	433,595

(1)	Total revenue includes net interest income, income from investments in our manager and other income.
(2)	Average daily cash balance includes cash and cash equivalents, and excludes cash held in trust.
(3)	Average daily balances for RPLs and NPLs exclude balances for two SBC loans, and four SBC loans we originated in the three and six  months ended June 30, 2017,  respectively.

Consolidated net income decreased $1.6 million for the quarter ended June 30, 2017 compared to the quarter ended March 31, 2017, primarily due to higher interest expense resulting from our issuance of $87.5 million in Convertible senior notes, partially offset by higher interest income on our increased loan portfolio. We also recorded a $0.2 million charge on the early exinguishment of debt from calling our 2015-A securitization and $0.6 million in impairments on REO. We continue to see a steady transition of NPLs to REO from the NPLs we purchased in the second half of 2014 and the first half of 2015. The largest concentrations of REO held-for-sale remain in New Jersey, New York, Florida and Maryland.

We collected $44.5 million on our mortgage loan and REO portfolios (including our equity method investments) through payments, payoffs and sales of REO during the quarter and ended the second quarter with $42.0 million in cash and cash equivalents. Our purchased RPL portfolio continues to experience significantly lower than expected re-default rates and higher than expected pre-payments.

On April 25, 2017, we completed the public offer and sale of $87.5 million aggregate principal amount of our 7.25% Convertible senior notes due 2024. The notes bear interest at a rate of 7.25% per annum, payable quarterly. The notes will mature on April 30, 2024, unless earlier converted, redeemed or repurchased. The conversion rate initially equals 1.6267 shares of common stock per $25.00 principal amount of notes (equivalent to a conversion price of approximately $15.37 per share of common stock), a 17.5% premium over our stock price on the issue date of the notes. We used the net proceeds of the offering to acquire loan pools that we purchased in late May and June of 2017. We expect to securitize a majority of these loans in the third or fourth quarter of 2017. We intend to use the resulting net proceeds to acquire additional loan pools and thus generate additional interest income to offset the interest expense on the convertible notes.

On May 25, 2017, we completed our ninth securitization, Ajax Mortgage Loan Trust 2017-A.  An aggregate of $140.7 million of senior securities were issued in a private offering with respect to $216.4 million UPB of mortgage loans. We re-securitized $33.6 million of loans from the 2015-A securitization in the 2017-A transaction at a lower cost of funds and higher advance rate. Based on UPB, approximately 91.8% of these mortgage loans were RPLs and approximately 8.2% were NPLs. Net proceeds from the sale of the senior securities provided leverage of approximately 3.9 times the related equity.

We acquired $249.0 million UPB of RPLs and originated $1.7 million UPB of SBC loans during the quarter to end the period with $1,044.7 million of mortgage loans with an aggregate UPB of $1,257.1 million. Mortgage loans acquired during the second quarter and held as of quarter-end were on our consolidated balance sheet for a weighted average of 45 days during the quarter.

2

Portfolio Acquisitions

($ in thousands)

	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016(1)			June 30, 2016
RPLs
Count		1,218			24			729			1,416			251
UPB	$	249,000		$	3,445		$	145,720		$	259,446		$	70,262
Purchase price	$	210,204		$	3,143		$	127,200		$	216,225		$	52,128
Purchase price % of UPB		84.4	%		91.2	%		87.3	%		83.3	%		74.2	%
NPLs
Count		-			-			23			-			-
UPB	$	-		$	-		$	3,590		$	-		$	-
Purchase price	$	-		$	-		$	2,022		$	-		$	-
Purchase price % of UPB		-			-			56.3	%		-			-

(1) Includes 572 RPLs acquired for $78.2 million and aggregate UPB of $100.3 million sold to Ajax E Master Trust, an affiliate of the joint venture we established in March 2016.

The following table provides an overview of our portfolio at June 30, 2017 ($ in thousands):

No. of loans		5,866		Weighted average LTV(4)		91.9	%
Total UPB	$	1,257,055		Weighted average remaining term (months)		292.8
Interest-bearing balance	$	1,166,406		No. of first liens		5,843
Deferred balance(1)	$	90,649		No. of second liens		23
Market value of collateral(2)	$	1,606,068		No. of rental properties		9
Price/total UPB(3)		79.0	%	Market value of rental properties	$	2,336
Price/market value of collateral		62.5	%	Capital invested in rental properties	$	1,969
Re-performing loans		94.9	%	Price/market value of rental properties		84.3	%
Non-performing loans		4.4	%	No. of other REO		167
Originated SBC loans		0.7	%	Market value of other REO	$	39,876
Weighted average coupon		4.3	%

(1)	Amounts that have been deferred in connection with a loan modification on which interest does not accrue. These amounts generally become payable at maturity.
(2)	Market value of collateral as of most recent Broker Price Opinion; the dates of our Broker Price Opinions vary by loan status.
(3)	Our loan portfolio consists of fixed rate (59.4% of  UPB), ARM (11.1% of UPB) and Hybrid ARM (29.5% of UPB) mortgage loans with original terms to maturity of not more than 40 years.
(4)	UPB as of June 30, 2017 divided by market value of collateral and weighted by the UPB of the loan.

3

Subsequent Events

Since June 30, 2017, we purchased 88 RPLs with aggregate UPB of $28.8 million in two transactions from two different sellers. The loans were acquired at 80.4% of UPB and the estimated market value of the underlying collateral is $36.7 million. The purchase price equaled 63.1% of the estimated market value of the underlying collateral. We also acquired one SBC loan with UPB of $1.7 million. Our investment equaled 56.1% of the underlying collateral value of $3.0 million. The majority of the costs associated with these acquisitions were accrued as of June 30, 2017.

Additionally, we have agreed to acquire, subject to due diligence, 16 RPLs with aggregate UPB of $2.8 million in three transactions from three different sellers. The purchase price equals 86.8% of UPB and 65.0% of the estimated market value of the underlying collateral of $3.8 million. Any loans we purchase must meet our acquisition criteria, therefore there is no assurance that we will enter into a definitive agreement relating to these loans or, if such an agreement is executed, that we will actually close the acquisitions or that the terms will not change.

On July 24, 2017, our Board of Directors declared a dividend of $0.30 per share, which will be payable on August 30, 2017, to stockholders of record as of August 15, 2017.

On August 1, 2017, we issued 37,460 shares of our common stock to our manager, Thetis Asset Management LLC, in payment of the stock-based component of the management fee due for the second quarter of 2017 in a private transaction. The management fee expense associated with these shares was recorded as an expense in the second quarter of 2017.

On August 1, 2017, we issued each of our independent directors 605 shares of our common stock in payment of half of their quarterly director fees for the second quarter of 2017.

Conference Call

Great Ajax will host a conference call at 5:00 p.m. EST, Tuesday, August 1, 2017 to review our financial results for the quarter. A live Webcast of the conference call will be accessible from the Investor Relations section of our website www.great-ajax.com. An archive of the Webcast will be available for 90 days.

About Great Ajax Corp.

Great Ajax Corp. is a Maryland corporation that focuses primarily on acquiring, investing in and managing mortgage loans secured by single-family residences and, to a lesser extent, single-family properties themselves. We also invest in loans secured by multi-family residential and smaller commercial mixed use retail/residential properties, as well as in the properties directly. We are externally managed by Thetis Asset Management LLC. Our mortgage loans and other real estate assets are serviced by Gregory Funding LLC, an affiliated entity. We have elected to be taxed as a real estate investment trust under the Internal Revenue Code.

4

Forward-Looking Statements

This press release contains certain forward-looking statements. Words such as “believes,” “intends,” “expects,” “projects,” “anticipates,” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions, many of which are beyond the control of Great Ajax, including, without limitation, the risk factors and other matters set forth in our Annual Report on Form 10-K for the period ended December 31, 2016 filed with the SEC on March 2, 2017. Great Ajax undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

CONTACT:	Lawrence Mendelsohn
	Chief Executive Officer
	or
	Mary Doyle
	Chief Financial Officer
	Mary.Doyle@aspencapital.com
	503-444-4224

5

GREAT AJAX CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands except per share amounts)

	Three months ended
	June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
INCOME:
Interest income	$	21,721		$	20,807		$	19,723		$	18,707
Interest expense		(9,293	)		(7,651	)		(7,582	)		(6,941	)
Net interest income		12,428			13,156			12,141			11,766
Income from investment in Manager		142			49			60			68
Other income (expense)		535			462			92			272
Total income		13,105			13,667			12,293			12,106
EXPENSE:
Related party expense - loan servicing fees		1,935			1,904			1,850			1,556
Related party expense - management fee		1,330			1,072			1,057			1,049
Loan transaction expense		442			525			248			100
Professional fees		507			480			348			315
Real estate operating expense		637			324			1,434			644
Other expense		886			663			634			537
Total expense		5,737			4,968			5,571			4,201
Loss on debt extinguishment		218			-			565			-
Income before provision for income tax		7,150			8,699			6,157			7,905
Provision for income tax (benefit)		48			1			(6	)		18
Consolidated net income		7,102			8,698			6,163			7,887
Less: consolidated net income attributable to non-controlling interests		238			289			205			264
Consolidated net income attributable to common stockholders	$	6,864		$	8,409		$	5,958		$	7,623
Basic earnings per common share	$	0.38		$	0.46		$	0.33		$	0.42
Diluted earnings per common share	$	0.36		$	0.46		$	0.33		$	0.42
Weighted average shares – basic		18,008,499			17,976,710			17,958,517			17,937,079
Weighted average shares – diluted		23,026,679			18,791,231			18,766,938			18,664,586

6

GREAT AJAX CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands except per share amounts)

	(Unaudited)
ASSETS	June 30, 2017			December 31, 2016
Cash and cash equivalents	$	42,040		$	35,723
Cash held in trust		29			1,185
Mortgage loans(1)		1,044,745			869,091
Property held-for-sale, net(2)		28,278			23,882
Rental property, net		1,969			1,289
Investment in debt securities		6,303			6,323
Receivable from servicer		16,067			12,481
Investment in affiliate		1,862			4,253
Prepaid expenses and other assets		4,829			3,175
Total Assets	$	1,146,122		$	957,402
LIABILITIES AND EQUITY
Liabilities:
Secured borrowings, net(1)	$	522,706		$	442,670
Borrowings under repurchase agreement		245,526			227,440
Convertible senior notes, net		82,083			-
Management fee payable		750			750
Accrued expenses and other liabilities		2,697			3,819
Total liabilities		853,762			674,679
Equity:
Preferred stock $0.01 par value; 25,000,000 shares authorized, none issued or outstanding		-			-
Common stock $0.01 par value; 125,000,000 shares authorized, 18,169,424 shares issued and outstanding, and 18,122,387 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively		182			181
Additional paid-in capital		248,803			244,880
Retained earnings		32,880			27,231
Accumulated other comprehensive loss		(131	)		-
Equity attributable to common stockholders		281,734			272,292
Non-controlling interests		10,626			10,431
Total equity		292,360			282,723
Total Liabilities and Equity	$	1,146,122		$	957,402

(1)

Mortgage loans includes $699,566 and $598,643  of loans transferred to securitization trusts at June 30, 2017 and December 31, 2016, respectively, that are variable interest entities (“VIEs”) that can only be used to settle obligations of the VIEs.  Secured borrowings consist of notes issued by VIEs that can only be settled with the assets and cash flows of the VIEs. The creditors do not have recourse to the primary beneficiary (Great Ajax Corp).

(2)

Property held for sale, net, includes valuation allowances of $1,304 and $1,620  at June 30, 2017, and December 31, 2016, respectively.

7

EX-99.2

Exhibit 99.2

Second Quarter 2017 Investor Presentation August 1, 2017

Safe Harbor Disclosure 2 □ We make forward - looking statements in this presentation that are subject to risks and uncertainties. These forward - looking statements include information about possible or assumed future results of our business, financial condition, liquidity, resu lts of operations, cash flow and plans and objectives. When we use the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may” or similar expressions, we intend to identify forward - looking statements. □ Statements regarding the following subjects, among others, may be forward - looking: market trends in our industry, interest rates, real estate values, the debt financing markets or the general economy or the demand for residential and small balance commercial real estate loans; our business and investment strategy; our projected operating results; actions and initiatives of the U.S. government and changes to U.S. government policies and the execution and impact of these actions, initiatives and policies; the state of the U.S. economy generally or in specific geographic regions; economic trends and economic recoveries; our ability to obtain and maintain financing arrangements; changes in the value of our mortgage portfolio; changes to our portfolio of properties; impact of and changes in governmental regulations, tax law and rates, accounting guidance and simila r matters; our ability to satisfy the REIT qualification requirements for U.S. federal income tax purposes; availability of qua lif ied personnel; estimates relating to our ability to make distributions to our stockholders in the future; general volatility of t he capital markets and the market price of our shares of common stock; and degree and nature of our competition. □ The forward - looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. Forward - looking statements are not predictions of future events. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known t o us. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward - looking statements. Furthermore, forward - looking statements are subject to risks and uncertainties, including, among other things, those described under Item 1A of our Annual Report on Form 10 - K for the year ended December 31, 2016, which can be accessed through the link to our SEC filings on our website ( www.great - ajax.com ) or at the SEC's website ( www.sec.gov ). Other risks, uncertainties, and factors that could cause actual results to differ materially from those projected may be described from time to time in reports we file with the SEC, including reports on Forms 10 - Q, 10 - K and 8 - K. Any forward - looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict those events or how they may affect us. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward - looking statements, whether as a result of new information, future events or otherwise. Unless stated otherwise, financial information included in this presentation is as of June 30, 20 17.

Business Overview 3 □ Leverage long - standing relationships to acquire mortgage loans through privately negotiated transactions from a diverse group of customers – Over 90% of our acquisitions since inception have been privately negotiated – Acquisitions made in 206 transactions since inception. 19 transactions in Q2 2017 □ Use our manager’s proprietary analytics to price each pool on an asset - by - asset basis □ Adjust individual loan bid price to accumulate clusters of loans in attractive demographic metropolitan areas – Typical acquisitions contain 25 – 100 loans with total market value between $5 – $20 million □ Our affiliated servicer services the loans asset - by - asset and borrower - by - borrower □ Objective is to maximize returns for each asset by utilizing a full menu of loss mitigation and asset optimization techniques □ Use moderate non - mark - to - market leverage – Asset level leverage of 2.63x and corporate leverage of 2.91x – Nine securitizations since inception totaling $1.2 billion of loan unpaid principal balance (“UPB”) . Approximate leverage of 3.3x from the sale of senior bonds.

Highlights – Quarter Ended June 30, 2017 4 □ Purchased $210.2 million of re - performing mortgage loans (“RPL”) with an aggregate UPB of $249.0 million and underlying collateral value of $357.7 million; and originated $1.7 million of small balance commercial mortgage loans (“SBC”) to end the quarter with $1,044.7 million of mortgage loans with an aggregate UPB of $1,257.1 million □ Issued $87.5 million in convertible senior notes and a net increase in secured debt of $98.1 million □ Portfolio interest income of $21.7 million; net interest income of $12.4 million □ Net income attributable to common stockholders of $6.9 million □ Basic earnings per share (“EPS”) of $0.38 per share □ Taxable income of $0.39 per share □ Book value per share of $15.49 at June 30, 2017 □ $42.0 million of cash and cash equivalents at June 30, 2017

Portfolio Overview – as of June 30, 2017 5 $1,257 MM RPL: $1,194 MM NPL: $63 MM $1,648 MM RPL: $1,536 MM NPL: $ 70 MM REO & Rental: $ 42 MM 93% 4% 3% Property Value 1 RPL NPL REO 1 REO and Rental Property value is presented at estimated property fair value less expected liquidation costs 95% 5% Unpaid Principal Balance RPL NPL

Portfolio Growth 6 Re - performing Loans Re - performing loan UPB as of 6/30/2017 includes $6.7million of small balance commercial originations which are performing loa ns Re - performing loan status stays constant based on purchase status $64 $617 $994 $1,194 $73 $710 $1,210 $1,536 $49 $469 $785 $965 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Initial Assets (07/08/14) 12/31/2015 12/31/2016 6/30/2017 Millions UPB Property Value Price

Portfolio Growth 7 $111 $76 $63 $117 $84 $70 $68 $48 $39 0 20 40 60 80 100 120 140 Initial Assets (07/08/14) 12/31/2015 12/31/2016 6/30/2017 Millions UPB Property Value Price Non - performing Loans Non - performing loan status stays constant based on purchase status

Portfolio Concentrated in Attractive Markets 8 □ Clusters of loans in attractive, densely populated markets □ Stable liquidity and home prices □ Over 80% of the portfolio in our target markets Target States Target Markets Los Angeles San Diego Dallas Portland Phoenix Washington DC Metro Area Chicago Atlanta Orlando Tampa Miami, Ft. Lauderdale, W. Palm Beach New York / New Jersey Metro Area Las Vegas REIT, Servicer & Manager Headquarters Property Management Business Management

Portfolio Migration 9 □ 24 for 24: Loan that has made 24 full payments in the last 24 months □ 12 for 12: Loan that has made 12 full payments in the last 12 months □ 7 for 7 : Loan that has made 7 full payments in the last 7 months □ NPL: <1 full payment in the last three months □ $530.6 million of purchased UPB is 12 for 12 or better based on the payment history of the loans post service transfer to Gregory Funding LLC, our affiliated servicer □ Current status excludes borrower payment history prior to the date the loan was serviced by Gregory Funding LLC to the extent the prior history would result in the borrower having an acquisition status of better than 7 for 7. Including prior servicer history for these loans would result in a considerably higher number of loans that are 12 for 12 or better Count UPB Count UPB Liquidated - - 686 $137,641 24for24 318 $58,923 1,366 $303,121 12for12 10 $1,656 951 $227,441 7for7 2,456 $551,777 1,050 $224,538 4f4-6f6 992 $216,703 328 $65,941 Less Than 4f4 1,197 $256,705 454 $94,581 NPL 496 $122,195 490 $118,185 REO - - 169 $41,340 Purchased REO 34 $8,074 9 $3,245 Total 5,503 $1,216,033 5,503 $1,216,033 Total Pre-2Q 2017 Acquisitions (Dollars in thousands) Acquisition Current Based on Acquisition UPB

Real Estate Owned 10 1 Carrying value includes cumulative balance sheet impairments of $0.6 million on all active REO held - for - sale. 2 Estimated Liquidation proceeds equals fair market value less expected selling costs. Fair market value is determined based on appraisals, broker price opinions (“BPOs”) , o r other market indicators of fair value and is updated every six months. 3 Changes in expected liquidation timelines, market conditions or other factors may impact the ultimate amount realized. We can provid e n o assurance that the difference between Carrying Value and Estimated Liquidation Proceeds will be realized in that amount or at all. □ Generally Accepted Accounting Principles (“GAAP”) require us to record REO held - for - sale at the lower of cost or market. W e accelerate recognition of any potential losses but continue to defer potential gains until the property is sold. We recorded an impairment of $0.6 million on held - for - sale REO properties. □ Impairments were largely related to lower property value REO within their metropolitan statistical areas that had loan - to - value ratios in excess of 100 % as loans. □ W e believe that the earlier foreclosures out of any given loan pool typically are lower dollar value properties relative to the applicable metropolitan statistical area, with fewer or negative average dollars of equity. REO property held-for-sale (Dollars in thousands) Carrying Value at June 30, 2017¹ Estimated Liquidation Proceeds 2 Excess of Estimated Liquidation Proceeds over Carrying Value at June 30, 2017 3 Unimpaired REO $20,842 $25,278 $4,436 Impaired REO $8,891 $8,891 - Total REO held-for-sale $29,733 $34,169 $4,436

Building Net Asset Value 11 This illustration has not been prepared in accordance with GAAP and is not intended to constitute a non - GAAP financial measure, but rather an additional tool for investors to consider. In evaluating our financial results, management regularly considers the following analysis, which is intended to arrive at a “ne t asset value” equivalent. Based on the leverage from the nine securitizations, securitization investors value our loan portfolio at between $ 17.79 and $18.38 per share As shown below, at June 30, 2017, if we were to lever our whole loan portfolio through a securitization, the face value of th e e quity tranche would be approximately $289.1MM under scenario 1 where the leverage is 77% (similar to our most recent securitization) and $ 314 .3 MM under scenario 2 where the leverage is 75% (similar to a previous securitization). Given that our securitization investors curr ently value the equity tranche at between 30% - 50%, using the average 40%, the value of our equity tranche would be $115.6MM under scenario 1, wh ich is $70.8MM or $2.89 per share over the remaining basis of $44.9MM. Our current book value per share is $15.49. By contrast, our c urrent NAV based on this securitization analysis would be the sum of $15.49 and $2.89, or $18.38 per share Entire Portfolio 6/30/2017 UPB $1,257,054,915 Price $1,004,055,229 Book Value / Share $15.49 Leverage (Bond Face/UPB) Bond Face Value Bond Price Net Proceeds Equity Basis Implied value/Share Implied NAV Per Share Senior 65% $817,088,568.82 100.0% $816,998,444 B1 7% $87,988,523.70 97.3% $85,623,832 B2 5% $62,854,754.09 90% $56,569,279 Equity-Trust Certificate $289,123,069 40% $115,649,228 $44,863,675 $2.89 $18.38 Leverage (Bond Face/UPB) Bond Face Value Bond Price Net Proceeds Equity Basis Implied value/Share Implied NAV Per Share Senior 65% $817,085,947.53 100.0% $817,085,948 B1 5% $62,849,701.45 97.3% $61,160,616 B2 5% $62,849,701.45 90% $56,564,731 Equity-Trust Certificate $314,269,565 40% $125,707,826.00 $69,243,935 $2.30 $17.79

Subsequent Events 12 1 While these acquisitions are expected to close , there can be no assurance that these acquisitions will close or that the terms thereof may not change □ July Acquisitions □ RPL □ UPB: $ 28.8 MM □ Collateral Value: $ 36.7 MM □ Price/UPB: 80.4% □ Price/Collateral Value: 63.1% □ 88 loans in 2 transactions □ SBC □ UPB: $1.7 MM □ Collateral Value: $3.0 MM □ Price/Collateral Value: 56.1% □ 1 loan □ Pending Acquisitions 1 □ RPL □ UPB: $ 2.8 MM □ Collateral Value: $ 3.8 MM □ Price/UPB: 86.8 % □ Price/Collateral Value: 65.0 % □ 16 loans in 3 transactions □ A dividend of $ 0.30 per share will be payable on Aug 30, 2017 to stockholders of record as of Aug 15, 2017

Consolidated Statements of Income 13 (Dollars in thousands except per share amounts) (Unaudited) Three months ended Six months ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 INCOME: Loan interest income 21,721$ 16,378$ 42,528$ 32,258$ Interest expense (9,293) (6,063) (16,944) (11,050) Net interest income 12,428 10,315 25,584 21,208 Income from investment in Manager 142 46 191 90 Other income (loss) 535 482 997 1,001 Total income 13,105 10,843 26,772 22,299 EXPENSE: Related party expense - loan servicing fees 1,935 1,410 3,817 2,786 Related party expense - management fee 1,330 937 2,403 1,843 Loan transaction expense 442 574 967 787 Professional fees 507 407 987 821 Real estate operating expenses 637 268 961 475 Other expense 886 360 1,570 740 Total expense 5,737 3,956 10,705 7,452 (Gain) / Loss on debt extinguishment 218 - 218 - Income before provision for income tax 7,150 6,887 15,849 14,847 Provision for income tax 48 26 49 23 Consolidated net income 7,102 6,861 15,800 14,824 238 256 527 568 6,864$ 6,605$ 15,273$ 14,256$ Basic earnings per common share 0.38$ 0.42$ 0.84$ 0.92$ Diluted earnings per common share 0.36$ 0.42$ 0.82$ 0.92$ Weighted average shares - basic 18,008,499 15,742,932 17,992,692 15,524,725 Weighted average shares - diluted 23,026,679 16,389,126 18,813,549 16,174,164 Less: consolidated net income attributable to the noncontrolling interest Consolidated net income attributable to common stockholders

Consolidated Balance Sheets 14 (1) Mortgage loans includes $ 699,566 and $598,643 of loans at June 30, 2017 and December 31, 2016, respectively, transferred to securitization trusts that are variable interest entities (“VIEs”) , these loans can only be used to settle obligations of the VIEs. Secured borrowings consist of notes issued by VIEs that can only be sett led with the assets and cash flows of the VIEs. The creditors do not have recourse to the primary beneficiary (Great Ajax Corp ). (2) Property held for sale, net, includes valuation allowances of $1,304 and $1,620 at June 30, 2017, and December 31, 2016, res pec tively. (Dollars in thousands except per share amounts) (unaudited) ASSETS June 30, 2017 December 31, 2016 Cash and cash equivalents 42,040$ 35,723$ Cash held in trust 29 1,185 Mortgage loans, net (1) 1,044,745 869,091 Property held-for-sale 28,278 23,882 Rental property, net 1,969 1,289 Investment in securities 6,303 6,323 Receivable from servicer 16,067 12,481 Investment in affiliate 1,862 4,253 Prepaid expenses and other assets 4,829 3,175 Total Assets 1,146,122$ 957,402$ LIABILITIES AND EQUITY Liabilities: Secured borrowings (1) 522,706$ 442,670$ Borrowings under repurchase agreement 245,526 227,440 Senior convertible notes, net 82,083 - Management fee payable 750 750 Accrued expenses and other liabilities 2,697 3,819 Total liabilities 853,762 674,679 Commitments and contingencies (See Note 7) Equity: - - Common stock $0.01 par value; 125,000,000 shares authorized, 18,169,424 shares issued and outstanding, and 18,122,387 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively 182 181 Additional paid-in capital 248,803 244,880 Retained earnings 32,880 27,231 Accumulated other comprehensive loss (131) - Equity attributable to common stockholders 281,734 272,292 Noncontrolling interests 10,626 10,431 Total equity 292,360 282,723 Total Liabilities and Equity 1,146,122$ 957,402$ Preferred stock $0.01 par value; 25,000,000 shares authorized, none issued or outstanding