Cherry Hill Mortgage Investment ( (CHMI) ) has released its Q3 earnings. Here is a breakdown of the information Cherry Hill Mortgage Investment presented to its investors.
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Cherry Hill Mortgage Investment Corporation is a real estate finance company specializing in acquiring, investing in, and managing residential mortgage assets in the United States.
Cherry Hill Mortgage Investment Corporation reported a challenging third quarter for 2024, with a GAAP net loss of $14.8 million, translating to a loss of $0.49 per share. Despite the loss, the company declared a regular dividend of $0.15 per share, maintaining an annualized dividend yield of 18.6%.
Key financial metrics showed that earnings available for distribution were $2.5 million, or $0.08 per diluted share, impacted by special committee-related expenses. The company’s aggregate portfolio leverage was at 5.3x, with unrestricted cash of $50.2 million. Notably, the RMBS portfolio saw an unrealized gain of $25.0 million, although this was offset by realized and unrealized losses in derivatives and investments in servicing-related assets.
The company is focusing on deploying additional capital into agency RMBS, which are seen as offering attractive risk-adjusted returns. As Cherry Hill navigates spread and volatility risks, it maintains a strategic approach to its investment portfolio.
Looking ahead, Cherry Hill’s management expresses a cautious yet strategic outlook, emphasizing opportunities in agency RMBS to enhance risk-adjusted returns, while carefully managing portfolio risks and leveraging opportunities within the residential mortgage market.
