Ellington Financial LLC ( (EFC) ) has released its Q4 earnings. Here is a breakdown of the information Ellington Financial LLC presented to its investors.
Ellington Financial LLC is a diversified financial services company that invests in a wide range of financial assets, including residential and commercial mortgage loans, mortgage-backed securities, and other strategic investments. The company is externally managed by Ellington Financial Management LLC, an affiliate of Ellington Management Group, L.L.C.
Ellington Financial LLC reported its fourth-quarter 2024 results with a net income of $22.4 million attributable to common stockholders, translating to $0.25 per common share. The company highlighted strong performance from its loan originator affiliates and securitization-related gains, contributing to an increase in adjusted distributable earnings to $40.6 million or $0.45 per common share.
Key financial metrics include a book value per common share of $13.52 and a dividend yield of 11.7%. The company maintained a recourse debt-to-equity ratio of 1.8:1 and an overall debt-to-equity ratio of 8.8:1. Ellington Financial also completed four securitization transactions and improved terms on several loan financing facilities, which helped strengthen its balance sheet.
The company’s Longbridge segment reported a net gain of $26.8 million, driven by higher origination volumes and improved margins in reverse mortgage loans. However, the Agency strategy faced challenges due to rising interest rates, resulting in a net loss of $4.0 million.
Looking forward, Ellington Financial aims to build on its achievements by maintaining securitization momentum, expanding asset sourcing channels, and exploring new financing sources to drive further portfolio and earnings growth in 2025.