Cherry Hill Mortgage Investment Corporation (CHMI) Q1 2025 earnings summary

Executive summary

• Reported a GAAP net loss applicable to common stockholders of $9.3 million, or $0.29 per share, for Q1 2025, with book value per share at $3.58 as of March 31, 2025.

• Earnings available for distribution (EAD) were $5.4 million, or $0.17 per share, benefiting from lower borrowing costs and a maturing hedge.

• Completed first full quarter as an internally managed REIT, reducing operating expenses and eliminating external management fees.

• Declared a $0.15 per share common dividend for Q1 2025, with an annualized yield of 20.1%.

• Portfolio remains focused on agency RMBS and MSRs, with a $17.0 billion UPB MSR portfolio and $1.12 billion in RMBS.

Financial highlights

• Net loss applicable to common stockholders was $9.3 million for Q1 2025; comprehensive loss was $2.6 million, or $0.08 per share.

• EAD attributable to common stockholders was $5.4 million, or $0.17 per diluted share.

• Book value per common share ended at $3.58, down from $3.82 at year-end; NAV declined by $7.5 million, or 3.2%.

• Financial leverage remained steady at 5.2x; unrestricted cash was $47 million at quarter end.

• Net interest income was $2.2 million; net servicing income was $8.4 million for Q1 2025.

Outlook and guidance

• EAD is expected to trend lower in future quarters due to the maturity of a large income-generating swap.

• Management expects sufficient liquidity to meet obligations over the next twelve months, with cash and operating cash flow covering anticipated needs.

• Will continue to manage operating expenses, stress-test the portfolio, and focus on responsible portfolio growth and risk-adjusted returns.

• Federal Reserve policy, trade policy, and tariffs remain key variables for future performance.