Chimera Investment (CIM) Q2 2026 earnings summary

Executive summary

• Earnings available for distribution (EAD) reached $0.46 per share in Q2 2026, covering the $0.45 dividend and marking a 22% increase over the prior year, despite a GAAP net loss of $4 million and a 3.2% sequential decline in book value per share to $17.75.

• HomeXpress residential origination volume grew 30% year-over-year and 24% sequentially to $1.1 billion, with EBTDA of $12 million and an annualized EBTDA ROE of 17.3%.

• Portfolio repositioning continued, with increased allocation to agency MBS and gains in Agency MBS offset by losses in non-core positions.

• Maintained strong liquidity and dividend coverage, with $444 million in cash and $212 million in unencumbered assets at quarter end.

• Strategy emphasizes portfolio diversification, risk management, and growth in fee-based income, with a focus on securitization and capital market activities.

Financial highlights

• GAAP net loss for Q2 2026 was $4 million ($-0.05/share), with comprehensive loss of $12.8 million; EAD for Q2 was $39 million or $0.46 per share.

• Book value per share declined 3.2% to $17.75, with economic return on GAAP book value at -0.8%.

• Net interest income for Q2 2026 was $70.5 million, and economic net interest income for the investment portfolio was $66.3 million.

• Total leverage was 5.6x; recourse leverage was 3.3x.

• Dividend per share was $0.45, with 102% coverage and an annualized EAD return on average common equity of 10.35%.

Outlook and guidance

• Management expects continued uncertainty for the remainder of 2026 but remains optimistic about portfolio growth, originations, and fee-based income.

• EAD for the year is projected to be at least $1.80 per share.

• Plans to execute two HomeXpress securitizations and one third-party loan securitization by year-end, with flexibility to adjust based on market conditions.

• Focus on integrating origination and investment segments and launching a Non-QM securitization program leveraging HomeXpress originations.

• Anticipates heightened competition in advisory services, potentially leading to margin compression.