Chimera Investment Reports Q1 Earnings: Dividend Covered Despite GAAP Loss
Chimera Investment reported a GAAP net loss of approximately $65 million for the first quarter, with book value per share declining 6.9% to $18.34. However, management emphasized that excluding the impact of redeeming eight securitization deals, the decline was limited to 2.5%. The company maintained its quarterly dividend at $0.45 per share, which was covered 1.2 times by earnings available for distribution (EAD) of $0.54 per share. Executives attributed the book value drop largely to strategic portfolio repositioning aimed at enhancing liquidity and future earnings potential. Chimera reduced its loan allocation from 62% to 55% while increasing Agency RMBS holdings. Additionally, its HomeXpress Mortgage platform demonstrated strong growth, funding $884 million in loans, a 39% year-over-year increase. The company ended the quarter with $675 million in cash and unencumbered assets, up from $528 million at year-end. Leadership highlighted a focus on preparedness amid structural market uncertainty, including volatile Treasury yields and geopolitical tensions, rather than attempting to predict market movements.
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Chimera Investment Reports Q1 Earnings: Dividend Covered Despite GAAP Loss
Chimera Investment reported a GAAP net loss of approximately $65 million for the first quarter, with book value per share declining 6.9% to $18.34. However, management emphasized that excluding the impact of redeeming eight securitization deals, the decline was limited to 2.5%. The company maintained its quarterly dividend at $0.45 per share, which was covered 1.2 times by earnings available for distribution (EAD) of $0.54 per share. Executives attributed the book value drop largely to strategic portfolio repositioning aimed at enhancing liquidity and future earnings potential. Chimera reduced its loan allocation from 62% to 55% while increasing Agency RMBS holdings. Additionally, its HomeXpress Mortgage platform demonstrated strong growth, funding $884 million in loans, a 39% year-over-year increase. The company ended the quarter with $675 million in cash and unencumbered assets, up from $528 million at year-end. Leadership highlighted a focus on preparedness amid structural market uncertainty, including volatile Treasury yields and geopolitical tensions, rather than attempting to predict market movements.
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