Ellington Financial (EFC) Investor presentation summary

Ellington management platform and expertise

• Manages $23.0B in assets with over 170 employees and 60+ investment professionals, leveraging deep experience in mortgage and structured credit markets.

• Employs a data-driven, technology-based investment strategy with significant resources devoted to analytics, research, and risk management.

• Senior management averages 31 years of industry experience, with strong alignment through $58M invested in EFC.

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

• Infrastructure supports rigorous management of credit, interest rate, liquidity, and operational risks.

Investment strategy and portfolio highlights

• Operates as a diversified mortgage REIT with a 19-year track record, focusing on credit-driven returns from a mix of residential and commercial loans and securities.

• Portfolio is short-duration, limiting interest rate risk and generating strong cash flow with low recourse leverage (1.9x).

• Investment allocation is flexible, targeting sectors with the best relative value and leveraging proprietary origination channels.

• Major asset classes include Non-QM loans (32.9%), commercial mortgage loans (18.5%), RTLs (16.0%), and home equity loans (6.5%).

• Demonstrated strong credit performance with minimal realized losses across loan portfolios.

Financial performance and shareholder returns

• Life-to-date economic return since 2007 is 370.3% (8.5% annualized), outperforming peers by ~194% since 2011.

• Delivered consistent total returns, including through market shocks such as the COVID-19 pandemic and 2022 rate increases.

• Maintained positive quarterly net cash flows, deploying over $1B per quarter in new investments.

• Adjusted distributable earnings for H1 2026 were $155.2M, with $142.0M attributable to common stockholders ($1.15/share).

• Book value per common share as of June 30, 2026 was $13.61.