Cherry Hill Mortgage Investment Corporation (CHMI) Q3 2025 earnings summary

Executive summary

• Book value per common share rose to $3.36 as of September 30, 2025, reflecting a 0.6% increase net of the $0.10 quarterly dividend and supported by unrealized RMBS gains and lower interest expense.

• GAAP net income applicable to common stockholders was $2 million, or $0.05 per diluted share, for Q3 2025, with EAD of $3.3 million, or $0.09 per share.

• Total quarterly economic gain was 3.6% for Q3 2025.

• Positive business momentum noted in the Real Genius strategic partnership, expected to accelerate with lower mortgage rates.

• Transitioned to a fully integrated, internally managed company as of November 14, 2024, ending its external management agreement without a termination fee.

Financial highlights

• Net income for Q3 2025 was $4.5 million, up from $1.6 million in Q2 2025, with comprehensive income attributable to common stockholders of $4.5 million, or $0.12 per share.

• EAD attributable to common stockholders was $3.3 million, or $0.09 per diluted share.

• Book value per share increased due to unrealized gains on RMBS from lower interest rates and spread tightening.

• Declared a regular common dividend of $0.10 per share, with an annualized yield of 17.0%.

• Unrestricted cash stood at $55.4 million at quarter end.

Outlook and guidance

• Management is prepared to respond tactically to a lower interest rate environment and aims to strategically grow the portfolio while delivering attractive risk-adjusted returns.

• Optimism for accelerated growth in Real Genius as mortgage rates decline, potentially boosting home purchases and refinancing.

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