Cherry Hill Mortgage Investment Corporation (CHMI) Q4 2024 earnings summary

Executive summary

• Book value per common share was $3.82 at December 31, 2024, down from $4.02 at September 30, reflecting a 5% decline after a $0.15 dividend per share.

• GAAP net income for Q4 2024 was $9.1 million ($0.29 per diluted share); EAD was $3.3 million ($0.10 per share), including $0.02 per share of special committee expenses.

• Internalization of management was completed in November 2024, expected to reduce 2025 operating expenses by $1.1–$1.6 million ($0.03–$0.05 per share) and improve alignment and transparency.

• Total quarterly economic loss was 1.2%, reflecting a challenging market environment.

• Declared a regular common dividend of $0.15 per share, with an annualized yield of 17.5% as of March 5, 2025.

Financial highlights

• Net income applicable to common stockholders was $9.1 million for Q4 2024, compared to a net loss of $14.8 million in Q3 2024.

• Comprehensive loss attributable to common stockholders was $1.5 million ($0.05 per share), down from income of $1.3 million in the prior quarter.

• EAD per diluted share increased to $0.10 from $0.08 sequentially.

• Operating expenses for the quarter were $4.5 million.

• Unrestricted cash stood at $46.3 million at quarter-end.

Outlook and guidance

• Internalization of management is expected to reduce operating expenses by 25%, with anticipated cost savings of $0.03–$0.05 per share in 2025.

• Expectation for fewer rate cuts in 2025 than previously anticipated; outlook remains data-dependent.

• Portfolio positioned for a higher-for-longer rate environment, focusing on agency RMBS and select MSRs.

• Book value at end of February 2025 was flat compared to year-end, before Q1 dividend accrual.

• Management expects internalization to strengthen shareholder alignment and reduce expenses, focusing on business growth and delivering returns in 2025 and beyond.