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 7, 2018

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 ý

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. ý

Item 2.02.   Results of Operations and Financial Condition

On August 7, 2018, Great Ajax Corp., a Maryland corporation (the “Company”), issued a press release regarding its financial results for the quarter ended June 30, 2018 (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 7, 2018, the Company will hold an investor conference call and webcast to discuss financial results for the second quarter ended June 30, 2018, 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, 2018 (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 7, 2018
99.2	August 2018 Presentation Materials

EXHIBIT INDEX

Exhibit	Description
99.1	Press Release dated August 7, 2018
99.2	August 2018 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 7, 2018

EX-99.1

Exhibit 99.1

GREAT AJAX CORP. ANNOUNCES RESULTS FOR THE QUARTER

ENDED JUNE 30, 2018

Second Quarter Highlights

• Purchased $14.3 million of re-performing mortgage loans (“RPLs”) with an aggregate unpaid principal balance (“UPB”) of $15.5 million and underlying collateral value of $24.8 million.

• Interest income of $26.7 million; net interest income of $13.9 million.

• Net income attributable to common stockholders of $7.5 million.

• Basic earnings per share (“EPS”) of $0.40.

• Taxable income of $0.35 per share.

• Book value per share of $15.60 at June 30, 2018.

• Collected $56.5 million of cash on our portfolio and held $34.7 million of cash and cash equivalents at June 30, 2018.

New York, NY—August 7, 2018 —Great Ajax Corp. (NYSE: AJX), a Maryland corporation that is a real estate investment trust, today announces its results of operations for the quarter ended June 30, 2018. 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 (“NPLs”). In addition to our continued focus on residential RPLs, we also originate and acquire small balance commercial loans ("SBC loans") secured by multi-family residential and commercial mixed use retail/residential properties.

Financial Results (Unaudited)

($ in thousands except per share amounts)

	June 30, 2018		March 31, 2018		December 31, 2017		September 30, 2017			June 30, 2017
Loan interest income(1,2)	$	26,158	$	25,445	$	24,231	$	24,396		$	21,682
Total revenue(1,3)	$	14,777	$	14,743	$	13,797	$	14,226		$	13,105
Consolidated net income(1)	$	8,213	$	8,322	$	6,638	$	7,716		$	7,102
Net income per basic share	$	0.40	$	0.41	$	0.34	$	0.41		$	0.38
Average equity(1)	$	319,815	$	318,839	$	302,482	$	292,640		$	288,884
Average total assets(1)	$	1,362,843	$	1,377,537	$	1,230,026	$	1,157,223		$	1,050,108
Average daily cash balance(4)	$	41,617	$	51,540	$	47,717	$	43,666		$	47,705
Average carrying value of RPLs(1)	$	1,182,904	$	1,199,638	$	1,046,126	$	998,692	(5)	$	898,749	(5)
Average carrying value of NPLs	$	40,767	$	40,593	$	43,400	$	44,919	(5)	$	48,396	(5)
Average carrying value of originated SBC loans	$	11,784	$	11,629	$	11,273	$	8,427	(5)	$	5,493	(5)
Average debt balance(1)	$	1,044,364	$	1,064,490	$	943,329	$	883,770		$	775,717

____________________________________________________________

(1) Reflects the impact of consolidating the assets, liabilities and non-controlling interest of Ajax Mortgage Loan Trust 2017-D, which is 50% owned by a third-party institutional investor.

(2) Loan interest income excludes interest income from debt securities and bank account balances.

(3) Total revenue includes net interest income, income from equity method investments and other income.

(4) Average daily cash balance includes cash and cash equivalents, and excludes cash held in trust.

(5) The 2017 quarterly average balances for mortgage loans were calculated using daily ending balances. Prior quarters of 2017 have been restated to conform to the current quarter presentation.

Our consolidated net income decreased $0.1 million for the quarter ended June 30, 2018 compared to the quarter ended March 31, 2018, primarily due to higher unrealized losses on our real estate owned (“REO”) portfolio and lower Home Affordable Modification Project ("HAMP") fees offset by higher net interest income on our mortgage loan pools and lower loan transaction expenses.

The average yield on our loan portfolio increased to 8.74% compared to 8.38% in the quarter ended March 31, 2018, resulting in a $1.1 million increase in interest income as a result increasing cash flow velocity on our mortgage loans. The prepayments also accelerated the amortization of deferred issuance costs on our secured borrowings, effectively increasing our interest expense by $0.3 million.

Our Other income was lower for the quarter ended June 30, 2018 compared to the quarter ended March 31, 2018 due to higher unrealized losses on our REO and lower HAMP fees received on HAMP eligible loans due to seasonal timing differences.

We recorded $0.7 million in impairments on our REO portfolio in Real estate operating expense for the quarter ended June 30, 2018 as compared to $0.4 million for the quarter ended March 31, 2018. The increase is primarily attributable to a single high value property that experienced significant damage during the foreclosure and eviction timeline.

During the quarter we acquired an additional 3.1% interest in Great Ajax FS LLC ("GAFS"), the parent of our servicer, and three warrants, each exercisable for a 1.55% interest in GAFS, in exchange for consideration of $0.7 million of cash and 29,063 shares of our common stock. This takes our ownership in GAFS to 8.0% with total warrants exercisable for an additional 12.0%. Income from our investment in GAFS is recorded using the equity method and is included in Income from equity method investments in our consolidated Statements of Income.

We collected $56.5 million on our mortgage loan and REO portfolios through loan payments, loan payoffs and sales of REO during the quarter, and ended the second quarter with $34.7 million in cash and cash equivalents. Of the $56.5 million in cash collections, $27.2 million was from loans paying in full where we recovered the full amount of principal, past due interest and charges.

We acquired $14.3 million of RPLs with an aggregate UPB of $15.5 million, and underlying collateral values of $24.8 million during the quarter to end the period with $1,231.2 million of mortgage loans with an aggregate UPB of $1,417.9 million. Mortgage loans purchased during the second quarter and held as of quarter-end were on our consolidated Balance Sheet for a weighted average of 34 days during the quarter.

During the quarter ended June 30, 2018, we co-invested with third-party institutional investors in two transactions. We acquired 9.36% of each class of Ajax Mortgage Loan Trust 2018-A ("2018-A"), which acquired 485 RPLs and 11 NPLs with UPB of $113.8 million and an aggregate property value of $176.1 million. We also acquired 20.0% of each class of Ajax Mortgage Loan Trust 2018-B ("2018-B"), which holds 312 NPLs and 74 RPLs with UPB of $94.8 million and a property value of $118.8 million. The remaining ownership interests in these transactions were acquired by the third-party institutional investors. We do not consolidate 2018-A or 2018-B because, under the terms of the transactions, we are not the primary beneficiary.

Portfolio Acquisitions

($ in thousands)

	June 30, 2018			March 31, 2018			December 31, 2017				September 30, 2017			June 30, 2017
RPLs
Count	64			87			1,211			(1)	109			1,218
UPB	$	15,549		$	19,699		$	241,309			$	32,718		$	249,000
Purchase price	$	14,313		$	17,566		$	219,236			$	26,645		$	210,204
Purchase price % of UPB	92.1		%	89.2		%	90.9		%		81.4		%	84.4		%

____________________________________________________________

(1) Includes the impact of 1,003 mortgage loans with a purchase price of $177.3 million and UPB of $194.3 million acquired in the fourth quarter of 2017 through a 50%-owned joint venture that we consolidate.

The following table provides an overview of our portfolio at June 30, 2018($ in thousands):

No. of loans	6,719			Weighted average LTV(4)	86.8		%
Total UPB	$	1,417,914		Weighted average remaining term (months)	319
Interest-bearing balance	$	1,326,910		No. of first liens	6,698
Deferred balance(1)	$	91,004		No. of second liens	21
Market value of collateral(2)	$	1,913,302		No. of rental properties	14
Price/total UPB(3)	81.2		%	Market value of rental properties	$	6,009
Price/market value of collateral	61.8		%	Capital invested in rental properties	$	5,661
Re-performing loans	96.0		%	Price/market value of rental properties	94.2		%
Non-performing loans	3.0		%	No. of other REO	130
Originated SBC loans	1.0		%	Market value of other REO(5)	$	25,503
Weighted average coupon	4.41		%

____________________________________________________________

(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) As of date of acquisition.

(3) Our loan portfolio consists of fixed rate (51.0% of UPB), ARM (10.8% of UPB) and Hybrid ARM (38.2% of UPB) mortgage loans.

(4) UPB as of June 30, 2018 divided by market value of collateral and weighted by the UPB of the loan.

(5) Market value of other REO is the estimated expected gross proceeds from the sale of the REO less estimated costs to sell, including repayment of servicer advances.

Subsequent Events

Since the quarter end we acquired one residential RPL and nine SBC RPLs with aggregate UPB of $0.1 million and $7.2 million, respectively, in three transactions from three sellers. The residential RPL was acquired at 85.4% of UPB and the estimated market value of the underlying collateral is $0.2 million. The purchase price equaled 43.7% of the estimated market value of the underlying collateral. The SBC RPLs were acquired at 101.8% of UPB and the estimated market value of the underlying collateral is $14.5 million. The purchase price equaled 51.2% of the estimated market value of the underlying collateral. We also acquired a 10-unit multi-family apartment building with a purchase price of $1.6 million.

Additionally, we agreed to acquire, subject to due diligence, five residential RPLs, nine SBC RPLs and 21 NPLs with UPB of $1.1 million, $9.5 million and $3.0 million, respectively, in eight transactions from eight different sellers. The purchase price of the residential RPLs equals 80.9% of UPB and 53.1% of the estimated market value of the underlying collateral of $1.6 million. The purchase price of the SBC RPLs equals 102.0% of UPB and 42.0% of the estimated market value of the underlying collateral of $23.1 million. The purchase price of the NPLs equals 77.1% of UPB and 55.5% of the estimated market value of the underlying collateral of $4.1 million.

On July 31, 2018, our Board of Directors declared a dividend of $0.30 per share, to be paid on August 30, 2018 to common stockholders of record as of August 15, 2018.

Conference Call

Great Ajax Corp. will host a conference call at 5:00 p.m. EST, Tuesday, August 7, 2018 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 is a real estate investment trust, that focuses primarily on acquiring, investing in and managing RPLs secured by single-family residences and, to a lesser extent, NPLs. We also originate 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.

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 Corp., 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, 2017 filed with the SEC on March 8, 2018. Great Ajax Corp. 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

GREAT AJAX CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands except per share amounts)  

	Three months ended
	June 30, 2018			March 31, 2018			December 31, 2017			September 30, 2017
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
INCOME:
Interest income	$	26,690		$	25,591		$	24,367		$	24,529
Interest expense	(12,799		)	(12,494		)	(11,382		)	(10,775		)
Net interest income	13,891			13,097			12,985			13,754
Income from equity method investments	197			192			163			157
Other income	689			1,454			649			315
Total income	14,777			14,743			13,797			14,226
EXPENSE:
Related party expense - loan servicing fees	2,672			2,469			2,242			2,187
Related party expense - management fee	1,440			1,532			1,510			1,428
Loan transaction expense	35			355			214			290
Professional fees	506			609			856			497
Real estate operating expense	944			449			518			1,151
Other expense	965			991			871			910
Total expense	6,562			6,405			6,211			6,463
Loss on debt extinguishment	—			—			913			—
Income before provision for income tax	8,215			8,338			6,673			7,763
Provision for income tax	2			16			35			47
Consolidated net income	8,213			8,322			6,638			7,716
Less: consolidated net income attributable to non-controlling interests	692			657			454			246
Consolidated net income attributable to common stockholders	$	7,521		$	7,665		$	6,184		$	7,470
Basic earnings per common share	$	0.40		$	0.41		$	0.34		$	0.41
Diluted earnings per common share	$	0.37		$	0.38		$	0.33		$	0.38
Weighted average shares – basic	18,595,769			18,508,089			18,236,488			18,072,045
Weighted average shares – diluted	26,476,817			26,395,158			26,111,202			25,246,764

GREAT AJAX CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands except per share amounts)

ASSETS	June 30, 2018			December 31, 2017
	(Unaudited)
Cash and cash equivalents	$	34,710		$	53,721
Cash held in trust	25			301
Mortgage loans, net(1,4)	1,231,195			1,253,541
Property held-for-sale, net(2)	22,807			24,947
Rental property, net	5,540			1,284
Investment in debt securities	32,214			6,285
Receivable from servicer	16,473			17,005
Investment in affiliates	9,536			7,020
Loans purchase deposit	—			26,740
Prepaid expenses and other assets	6,856			4,894
Total assets	$	1,359,356		$	1,395,738
LIABILITIES AND EQUITY
Liabilities:
Secured borrowings, net(1,3,4)	$	633,136		$	694,040
Borrowings under repurchase transactions	295,655			276,385
Convertible senior notes, net(3)	102,961			102,571
Management fee payable	770			750
Accrued expenses and other liabilities	4,158			4,554
Total liabilities	1,036,680			1,078,300
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, 18,770,071 shares at June 30, 2018 and 18,588,228 shares at December 31, 2017 issued and outstanding	188			186
Treasury stock	(151		)	—
Additional paid-in capital	257,836			254,847
Retained earnings	39,620			35,556
Accumulated other comprehensive loss	(396		)	(233		)
Equity attributable to stockholders	297,097			290,356
Non-controlling interests(5)	25,579			27,082
Total equity	322,676			317,438
Total liabilities and equity	$	1,359,356		$	1,395,738

___________________________________________________________

​(1) Mortgage loans, net include $930.4 million and $996.2 million of loans at June 30, 2018 and December 31, 2017, 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 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 $1.9 million and $1.8 million at June 30, 2018, and December 31, 2017, respectively.

(3) Secured borrowings and convertible senior notes are presented net of deferred issuance costs.

​(4) As of June 30, 2018 and December 31, 2017, balances for Mortgage loans, net include​s $171.2 million and $177.1 million, respectively, and Secured borrowings, net of deferred costs includes $73.5 million and $88.4 million, respectively, from a 50% owned joint venture, which we consolidate under U.S. GAAP.

​(5) Non-controlling interests includes $12.5 million and $14.0 million, at June 30, 2018 and December 31, 2017, respectively, from the 50% owned joint venture, which we consolidate under U.S. GAAP.

EX-99.2

Second Quarter Investor Presentation August 7, 2018

Safe Harbor Disclosure  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, results 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 and availability of 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 similar matters; our ability to satisfy the real estate investment trust qualification requirements for U.S. federal income tax purposes; availability of qualified personnel; estimates relating to our ability to make distributions to our stockholders in the future; general volatility of the capital markets and the market price of our shares of common stock; and the 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 to 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, 2017, which can be accessed through the link to our Securities and Exchange Commission ("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, 2018. 2

Business Overview  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 238 transactions since inception. Six transactions closed in Q2 20181  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 acquisition contains 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 1Includes transactions Great Ajax Operating Partnership L.P. made through joint venture arrangements with third-party institutional investors 3

Highlights – Quarter Ended June 30, 2018  Purchased $14.3 million of re-performing mortgage loans (“RPLs”) with an aggregate unpaid principal balance (“UPB”) of $15.5 million and underlying collateral value of $24.8 million1  Interest income of $26.7 million; net interest income of $13.9 million  Net income attributable to common stockholders of $7.5 million  Basic earnings per share (“EPS”) of $0.40  Taxable income of $0.35 per share  Book value per share of $15.60 at June 30, 2018  Cash collections of $56.5 million and held $34.7 million of cash and cash equivalents at June 30, 2018  Quarter end leverage ratios2  Asset Level : 2.8x  Corporate Level : 3.1x  Acquired an additional 3.1% interest in Great Ajax FS LLC ("GAFS"), the parent of our servicer, and three warrants, each exercisable for a 1.55% interest in GAFS in exchange for consideration of $0.7 million of cash and 29,063 shares of our common stock, which takes our total ownership in GAFS to 8.0% with warrants exercisable for an additional 12.0%  Co-invested with third-party institutional investors in two transactions. We acquired a 9.36% interest in each of the securities issued by Ajax Mortgage Loan Trust 2018-A ($113.8 MM UPB) and a 20.0% interest in each of the securities issued by Ajax Mortgage Loan Trust 2018- B ($94.8 MM UPB) 1Excludes transactions Great Ajax Operating Partnership L.P. made through joint venture arrangements with third-party institutional investors 2Excludes consolidation of the portion of Ajax Mortgage Loan Trust 2017-D that is owned by a third-party institutional investor 4

Portfolio Overview – as of June 30, 2018 Unpaid Principal Balance1 Property Value2 1% 3% 3% RPL RPL NPL NPL REO 96% 97% $1,418 MM $1,939 MM RPL: $1,372 MM RPL: $1,856.5 MM NPL: $ 46 MM NPL: $ 56.8 MM REO & Rental: $ 25.5 MM 1 Includes $186.8 million UPB in Re-performing loans included in a 50/50 joint venture with a third-party institutional investor that is required to be consolidated for GAAP purposes 2 Real estate owned (“REO”) and rental property value is presented at estimated property fair value less expected liquidation costs 5

Portfolio Growth Re-performing Loans UPB Property Value 2,000 $1,857 Price 1,800 Millions 1,600 $1,536 $1,372 1,400 $1,194 1,200 $1,152 $965 1,000 $817 800 $712 600 $541 $543 $481 $375 400 200 $64 $73 $49 0 Initial Assets (07/08/14) 6/30/2015 6/30/2016 6/30/2017 6/30/2018  Re-performing loan UPB as of 06/30/2018 includes $9.4 million of small-balance commercial originations, which are performing loans. Includes $186.8 million UPB in a 50/50 joint venture with a third-party institutional investor that is required to be consolidated for GAAP purposes  Re-performing loan status stays constant based on initial purchase status 6  Excludes a 9.36% interest in each of the securities issued by Ajax Mortgage Loan Trust 2018-A ($113.8 million UPB of re-performing loans) and a 20% interest in each of the securities issued by Ajax Mortgage Loan Trust 2018-B ($13.1 million UPB of re-performing loans)

Portfolio Growth Non-performing Loans UPB Property Value 140 Price $122 Millions $118 120 $99 100 $93 80 $70 $66 $63 $58 60 $57 $46 $39 40 $30 20 0 Initial Assets 6/30/2015 6/30/2016 6/30/2017 6/30/2018 (07/08/14)  Non-performing loan status stays constant based on initial purchase status  Excludes a 20% interest in each of the securities issued by Ajax Mortgage Loan Trust 2018-B ($81.7 million UPB of non-performing loans) 7

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

Portfolio Migration Total Pre 2Q2018 Acquisitions ($$ in thousands) Acquisition Current Based on Count UPB Count UPB Liquidated - - 1342 273,557 24for24 416 74,273 2896 639,867 12for12 305 64,002 1785 383,483 7for7 3108 696,896 399 88,742 4f4-6f6 1579 346,796 503 96,738 Less than 4f4 2168 450,651 504 102,451 REO - - 140 35,409 NPL 512 124,914 548 142,910 Purchased REO 34 8,074 5 2,448 8,122 1,765,606 8,122 1,765,606  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 9  NPL: <1 full payment in the last three months

Subsequent Events  Acquisitions Closed  Acquisitions Under Contract   RPL  RPL SBC -- Loans originated   UPB: $0.1MM  UPB: $1.1MM UPB: $5.3MM   Collateral Value: $0.2MM  Collateral Value: $1.6MM Collateral Value: $7.0MM   Price/UPB: 85.4%  Price/UPB: 80.9% 6 loans in 3 transactions  Price/Collateral Value: 43.7%  Price/Collateral Value: 53.1%  1 loan in 1 transaction  5 loans in 5 transactions  SBC  NPL  UPB: $7.2MM  UPB: $3.0MM  Collateral Value: $14.5MM  Collateral Value: $4.1MM  Price/UPB: 101.8%  Price/UPB: 77.1%  Price/Collateral Value: 51.2%  Price/Collateral Value: 55.5%  9 loans in 2 transactions  21 loans in 2 transactions  SBC – Purchased Property  SBC  Price: $1.6MM  UPB: $9.5MM  Collateral Value: $1.6MM  Collateral Value: $23.1MM  1 property in 1 transaction  Price/UPB: 102.0%  Price/Collateral Value: 42.0%  9 loans in 1 transaction  A dividend of $0.30 per share will be payable on August 30 , 2018 to our stockholders of record as of August 15, 2018 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 10

Financial Metrics – Excluding consolidation of the portion of Ajax Mortgage Loan Trust 2017-D owned by third-party institutional investors Quarter over Quarter Comparison Excluding the Impact of the Consolidation of 2017 D Excluding the consolidation of 2017 D ($ in thousands) Q2-18 Q1-18 Q4-17 Q3-17 Interest Income on Loans 24,757 24,124 23,778 24,396 Average Loans 1,149,225 1,163,970 1,071,415 1,052,038 Average Loan Yield 8.9% 8.6% 9.2% 9.6% Total Interest Expense 12,031 11,683 11,136 10,775 Asset Level Interest Expense 9,877 9,533 8,990 8,863 Average Asset Level Debt 865,787 881,587 817,316 791,261 Average Asset Level Debt Cost 4.6% 4.4% 4.5% 4.6% Asset Level Net Interest Margin 4.3% 4.2% 4.7% 5.0% Total Average Debt 968,618 984,224 919,763 883,770 Total Average Debt Cost 5.1% 4.8% 5.0% 5.0% Total Net Interest Margin 3.8% 3.7% 4.1% 4.6% Non-Interest Operating Expenses - excluding REO 5,395 5,813 5,693 5,312 Non-Interest Operating Expenses/Avg Assets 1.7% 2.1% 1.9% 1.8% ROAA - ex net REO impairments and losses 2.7% 2.7% 2.6% 3.1% ROAA - Net REO Impairments, gains and losses -0.3% 0.1% -0.4% -0.4% ROAA - Total 2.4% 2.8% 2.2% 2.7% ROAE - ex net REO impairments and losses 11.5% 10.1% 10.7% 12.7% ROAE - Net REO Impairments, gains and losses -1.2% 0.3% -1.4% -1.6% ROAE - Total 10.3% 10.4% 9.3% 11.1% Average Leverage Ratio - Asset Backed 2.8 2.9 2.7 2.7 Average Leverage Ratio - Convertible Debt 0.3 0.3 0.3 0.3 Average Leverage Ratio - Total 3.2 3.2 3.1 3.0 Ending Leverage Ratio - Asset Backed 2.8 2.8 2.9 2.6 Ending Leverage Ratio - Convertible Debt 0.3 0.3 0.3 0.3 Ending Leverage Ratio - Total 3.1 3.1 3.2 2.9 This slide includes financial metrics that are adjusted to exclude the ownership interest of Ajax Mortgage Loan Trust 2017-D by third-party institutional investors. The Company believes these financial metrics provide investors with useful supplemental information relating to the Company’s results of operation and financial performance. These adjusted financial metrics are non- GAAP financial measures and should be considered in addition to, but not as a substitute for, the financial measures prepared in accordance with GAAP as reflected on other slides in this 11 presentation. The following slide provides a reconciliation of these financial metrics to the most comparable GAAP measure.

Financial Metrics - Reconciliation of GAAP consolidated financial metrics to non-GAAP financial metrics excluding the portion of Ajax Mortgage Loan Trust 2017-D owned by third-party institutional investors Q2-18 Excluding the Q1-18 Excluding the Q2-18 GAAP Consolidation Consolidation of Q1-18 GAAP Consolidation Consolidation of ($ in thousands) Consolidated Impact of 2017 D 2017 D Consolidated Impact of 2017 D 2017 D Interest Income on Loans 26,158 1,401 24,757 25,445 1,321 24,124 Average Loans 1,235,455 86,230 1,149,225 1,251,860 87,890 1,163,970 Average Loan Yield 8.7% 0.2% 8.9% 8.4% 0.2% 8.6% Total Interest Expense 12,799 768 12,031 12,494 811 11,683 Asset Level Interest Expense 10,645 768 9,877 10,344 811 9,533 Average Asset Level Debt 941,533 75,746 865,787 961,853 80,266 881,587 Average Asset Level Debt Cost 4.6% 0.0% 4.6% 4.4% 0.0% 4.4% Asset Level Net Interest Margin 4.1% 0.1% 4.3% 4.0% 0.1% 4.2% Total Average Debt 1,044,364 75,746 968,618 1,064,490 80,266 984,224 Total Average Debt Cost 5.0% 0.1% 5.1% 4.8% 0.1% 4.8% Total Net Interest Margin 3.7% 0.1% 3.8% 3.6% 0.1% 3.7% Non-Interest Operating Expenses - excluding REO 5,618 223 5,395 5,956 143 5,813 Non-Interest Operating Expenses/Avg Assets 1.7% 0.0% 1.7% 1.7% 0.4% 2.1% ROAA - ex net REO impairments and losses 2.5% 0.2% 2.7% 2.2% 0.5% 2.7% ROAA - Net REO impairments, gains and losses -0.3% 0.0% -0.3% 0.1% 0.0% 0.1% ROAA - Total 2.2% 0.2% 2.4% 2.2% 0.6% 2.8% ROAE - ex net REO impairments and losses 11.0% 0.5% 11.5% 9.7% 0.4% 10.1% ROAE - Net REO impairments, gains and losses -1.1% 0.0% -1.2% 0.3% 0.0% 0.3% ROAE - Total 9.8% 0.5% 10.3% 10.0% 0.3% 10.4% Average Leverage Ratio - Asset Backed 2.9 (0.1) 2.8 3.0 (0.1) 2.9 Average Leverage Ratio - Convertbile Debt 0.3 0.0 0.3 0.3 0.0 0.3 Average Leverage Ratio - Total 3.3 (0.1) 3.2 3.3 (0.1) 3.2 Ending Leverage Ratio - Asset Backed 2.9 (0.1) 2.8 2.9 (0.1) 2.8 Ending Leverage Ratio - Convertible Debt 0.3 0.0 0.3 0.3 0.0 0.3 Ending Leverage Ratio - Total 3.2 (0.1) 3.1 3.2 (0.1) 3.1 12

Consolidated Statements of Income (Dollars in thousands except per share amounts) (Unaudited) Three months ended June 30, 2018 March 31, 2018 December 31, 2017 September 30, 2017 (unaudited) (unaudited) (unaudited) (unaudited) INCOME: Interest income $ 26,690 $ 25,591 $ 24,367 $ 24,529 Interest expense (12,799 ) (12,494 ) (11,382 ) (10,775 ) Net interest income 13,891 13,097 12,985 13,754 Income from equity method investments 197 192 163 157 Other income 689 1,454 649 315 Total income 14,777 14,743 13,797 14,226 EXPENSE: Related party expense - loan servicing fees 2,672 2,469 2,242 2,187 Related party expense - management fee 1,440 1,532 1,510 1,428 Loan transaction expense 35 355 214 290 Professional fees 506 609 856 497 Real estate operating expense 944 449 518 1,151 Other expense 965 991 871 910 Total expense 6,562 6,405 6,211 6,463 Loss on debt extinguishment — — 913 — Income before provision for income tax 8,215 8,338 6,673 7,763 Provision for income tax 2 16 35 47 Consolidated net income 8,213 8,322 6,638 7,716 Less: consolidated net income attributable to 692 657 454 246 non-controlling interests Consolidated net income attributable to $ 7,521 $ 7,665 $ 6,184 $ 7,470 common stockholders Basic earnings per common share $ 0.40 $ 0.41 $ 0.34 $ 0.41 Diluted earnings per common share $ 0.37 $ 0.38 $ 0.33 $ 0.38 Weighted average shares – basic 18,595,769 18,508,089 18,236,488 18,072,045 Weighted average shares – diluted 26,478,817 26,395,158 26,111,202 25,246,764 13

Consolidated Balance Sheets (Dollars in thousands except per share amounts) ASSETS June 30, 2018 December 31, 2017 (Unaudited) Cash and cash equivalents $ 34,710 $ 53,721 Cash held in trust 25 301 Mortgage loans, net(1,4) 1,231,195 1,253,541 Property held-for-sale, net(2) 22,807 24,947 Rental property, net 5,540 1,284 Investment in debt securities 32,214 6,285 Receivable from servicer 16,473 17,005 Investment in affiliates 9,536 7,020 Loans purchase deposit — 26,740 Prepaid expenses and other assets 6,856 4,894 Total assets $ 1,359,356 $ 1,395,738 LIABILITIES AND EQUITY Liabilities: Secured borrowings, net(1,3,4) $ 633,136 $ 694,040 Borrowings under repurchase transactions 295,655 276,385 Convertible senior notes, net(3) 102,961 102,571 Management fee payable 770 750 Accrued expenses and other liabilities 4,158 4,554 Total liabilities 1,036,680 1,078,300 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, 18,770,071 shares at June 30, 2018 and 18,588,228 shares at 188 186 December 31, 2017 issued and outstanding Treasury stock (151 ) — Additional paid-in capital 257,836 254,847 Retained earnings 39,620 35,556 Accumulated other comprehensive loss (396 ) (233 ) Equity attributable to stockholders 297,097 290,356 Non-controlling interests (5) 25,579 27,082 Total equity 322,676 317,438 Total liabilities and equity $ 1,359,356 $ 1,395,738 (1) Mortgage loans includes $930.4 million and $996.2 million of loans at June 30, 2018 and December 31, 2017, 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 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 $1,903 and $1,784 at June 30, 2018 , and December 31, 2017, respectively. (3) Secured borrowings and Convertible senior notes are presented net of deferred issuance costs 14 (4) As of June 30, 2018 and December 31, 2017, balances for Mortgage loans, net include​s $171.2 million and $177.1 million, respectively, and Secured borrowings, net of deferred costs includes $73.5 million and $88.4 million, respectively, from a 50% owned joint venture, which we consolidate under U.S. GAAP. (5) Non-controlling interests includes $12.5 million and $14.0 million, at June 30, 2018 and December 31, 2017, respectively, from a 50% owned joint venture, which we consolidate under U.S. GAAP.