Ellington Financial (EFC) investor relations material

Management platform and expertise

• Over $20.1B in assets under management, with more than 170 employees and 31 years average experience among senior portfolio managers.

• Deep focus on mortgage and structured credit, leveraging advanced analytics and technology for investment and risk management.

• Strong alignment of interests, with management owning $54M in EFC and significant co-investment in Ellington vehicles.

• Robust infrastructure supports research, analytics, trading, risk oversight, and compliance.

• Leadership team has extensive backgrounds in structured credit and advanced mathematics, with a strong, independent board.

Investment strategy and portfolio

• Diversified mortgage REIT with an 18-year track record, focusing on credit-driven, opportunistic strategies across residential and commercial assets.

• Portfolio is 89% credit, 9% Longbridge (reverse mortgage), and 2% agency, with $4.9B in total investments and a 1.9x recourse leverage ratio.

• Flexible capital allocation targets sectors with best relative value, emphasizing short duration and strong cash flow.

• Proprietary origination channels and in-house teams provide steady, high-quality loan flow and attractive ROE profiles.

• Minimal realized credit losses across loan portfolios, demonstrating strong credit performance.

Risk management and liquidity

• Risk management is central, with sector diversification, dynamic hedging, prudent leverage, and scientific cash management.

• Dedicated risk oversight group and robust processes integrate analytics, stress testing, and liquidity modeling.

• Maintains high-quality unencumbered asset pool ($1.77B), with unencumbered assets consistently >2x unsecured debt.

• Dynamic hedging strategies reduce interest rate and credit risk, resulting in lower earnings volatility than peers.

• Strong, diversified financing relationships and disciplined internal controls support resilience through market shocks.