Housing lender PennyMac Mortgage Investment Trust reported soaring profits for the fourth quarter, boosted by an increase in residential loans.
The Moorpark real estate investment trust reported net income of $49.2 million (83 cents a share) compared with $19.6 million (70 cents) in the same period a year earlier. Revenue increased 223 percent to $125 million.
A subsidiary of PennyMac Financial Services Inc., the REIT primarily deals in distressed residential mortgages and other mortgage-related assets. Chief Executive Stanford Kurland attributed the increased profit to the recovering housing market.
“Housing prices continued to stabilize during the quarter, driving valuation gains in our distressed portfolio,” he said in a statement.
For the full year, the company reported a 115 percent increase in annual profit to $138 million.
PennyMac’s parent company, PennyMac Financial Service Inc., disclosed on Thursday in a filing with the Securities and Exchange Commission plans for an initial public offering. It wants to raise up to $288 million, which the company said will be used to increase its loan operations.
Shares of PennyMac gained 41 cents, or 1.6 percent, to close Friday at $25.88 on the New York Stock Exchange.