Cherry Hill Mortgage Investment Corporation Announces Third Quarter 2024 Results
Cherry Hill Mortgage Investment (NYSE: CHMI) reported Q3 2024 results with a GAAP net loss of $14.8 million ($0.49 per share). The company posted earnings available for distribution of $2.5 million ($0.08 per share). Key metrics include common book value per share of $4.02, unrestricted cash of $50.2 million, and aggregate portfolio leverage of 5.3x. The company declared a regular common dividend of $0.15 per share, representing an annualized yield of 18.6%. Net servicing income was $8.5 million, while net interest income was $0.1 million. The MSR portfolio's unpaid principal balance stood at $17.6 billion with a carrying value of $226.8 million.
Cherry Hill Mortgage Investment (NYSE: CHMI) ha riportato i risultati del terzo trimestre 2024 con una perdita netta GAAP di $14,8 milioni ($0,49 per azione). L'azienda ha registrato un utile disponibile per la distribuzione di $2,5 milioni ($0,08 per azione). I principali indicatori includono un valore contabile per azione di $4,02, liquidità non vincolata di $50,2 milioni e un leverage aggregato del portafoglio di 5,3x. La società ha dichiarato un dividendo comune regolare di $0,15 per azione, che rappresenta un rendimento annualizzato del 18,6%. Il reddito netto da servizi è stato di $8,5 milioni, mentre il reddito netto da interessi è stato di $0,1 milioni. Il saldo principale non pagato del portafoglio MSR ammontava a $17,6 miliardi con un valore di carico di $226,8 milioni.
Cherry Hill Mortgage Investment (NYSE: CHMI) informó sobre los resultados del tercer trimestre de 2024 con una pérdida neta de GAAP de $14,8 millones ($0,49 por acción). La empresa reportó ganancias disponibles para distribución de $2,5 millones ($0,08 por acción). Las métricas clave incluyen un valor contable común por acción de $4,02, efectivo sin restricciones de $50,2 millones, y un apalancamiento agregado de cartera de 5,3x. La compañía declaró un dividendo común regular de $0,15 por acción, representando un rendimiento anualizado del 18,6%. Los ingresos netos por servicios fueron de $8,5 millones, mientras que los ingresos netos por intereses fueron de $0,1 millones. El saldo principal no pagado de la cartera MSR se situó en $17,6 mil millones con un valor en libros de $226,8 millones.
체리 힐 모기지 투자 (NYSE: CHMI)는 2024년 3분기 결과를 보고하며 GAAP 기준으로 $14.8 백만의 순손실(주당 $0.49)을 기록했습니다. 회사는 배당 가능한 수익으로 $2.5 백만($0.08 주당)을 발표했습니다. 주요 지표로는 주당 4.02 달러의 일반 장부 가치, 5020만 달러의 제한 없는 현금, 그리고 5.3배의 총 포트폴리오 레버리지가 포함됩니다. 회사는 주당 0.15 달러의 정기적인 일반 배당금을 선언하였으며, 이는 연간 18.6%의 수익률을 나타냅니다. 순 서비스 수익은 850만 달러였고, 순 이자 수익은 10만 달러였습니다. MSR 포트폴리오의 미지급 원금 잔액은 176억 달러에 달하며, 장부 가치는 2억 2천680만 달러입니다.
Cherry Hill Mortgage Investment (NYSE: CHMI) a annoncé les résultats du troisième trimestre 2024 avec une perte nette GAAP de 14,8 millions de dollars (0,49 $ par action). L'entreprise a enregistré des bénéfices disponibles pour distribution de 2,5 millions de dollars (0,08 $ par action). Les indicateurs clés incluent une valeur comptable par action de 4,02 $, des liquidités non restreintes de 50,2 millions de dollars et un effet de levier agrégé du portefeuille de 5,3x. L'entreprise a déclaré un dividende commun régulier de 0,15 $ par action, représentant un rendement annualisé de 18,6 %. Les revenus nets de services s'élevaient à 8,5 millions de dollars, tandis que le revenu net d'intérêts était de 0,1 million de dollars. Le solde principal impayé du portefeuille MSR s'élevait à 17,6 milliards de dollars avec une valeur comptable de 226,8 millions de dollars.
Cherry Hill Mortgage Investment (NYSE: CHMI) hat die Ergebnisse des dritten Quartals 2024 mit einem GAAP-Nettverlust von $14,8 Millionen ($0,49 pro Aktie) veröffentlicht. Das Unternehmen berichtete von einem verfügbaren Ertrag zur Verteilung von $2,5 Millionen ($0,08 pro Aktie). Zu den wichtigsten Kennzahlen gehören der Buchwert pro Aktie von 4,02 $, unbeschränkter Bargeldbestand von 50,2 Millionen $ und eine aggregierte Portfolioverschuldung von 5,3x. Das Unternehmen erklärte eine reguläre Dividende von 0,15 $ pro Aktie, was einer annualisierten Rendite von 18,6 % entspricht. Das Netto-Service-Einkommen betrug 8,5 Millionen $, während das Netto-Zinsergebnis 0,1 Millionen $ betrug. Der ausstehende Hauptsaldo des MSR-Portfolios betrug 17,6 Milliarden $ mit einem Buchwert von 226,8 Millionen $.
- Maintained quarterly dividend of $0.15 per share with high yield of 18.6%
- Strong net servicing income of $8.5 million
- Healthy unrestricted cash position of $50.2 million
- Net unrealized gain of $16.4 million on RMBS portfolio
- GAAP net loss of $14.8 million ($0.49 per share)
- Significant decline in net interest income to $0.1 million
- Realized loss of $8.0 million on derivatives
- Unrealized loss of $21.3 million on derivatives
- Unrealized loss of $7.5 million on Servicing Related Assets
Insights
Cherry Hill Mortgage Investment 's Q3 2024 results reveal significant challenges. The company reported a
Key metrics show deterioration: net interest income dropped to just
The portfolio performance shows concerning trends in risk management. The
The narrow net interest spread of
Third Quarter 2024 Highlights
-
GAAP net loss applicable to common stockholders of
$14.8 million $0.49 -
Earnings available for distribution (“EAD”) attributable to common stockholders of
$2.5 million $0.08 -
Common book value per share of
$4.02 -
GAAP net loss applicable to common stockholders, EAD attributable to common stockholders and common book value per share were each impacted by
4.5 cents per share of special committee-related expenses. -
Declared regular common dividend of
$0.15 18.6% based on the closing sale price of the Company’s common stock as reported by the NYSE on November 11, 2024. - Aggregate portfolio leverage stood at 5.3x at September 30, 2024.
-
As of September 30, 2024, the Company had unrestricted cash of
$50.2 million
“Our portfolio remained relatively consistent in the quarter, as we continued to navigate spread and volatility risks,” said Jay Lown, President and CEO of Cherry Hill Mortgage Investment Corporation. “As we close out the year, we currently favor deploying additional capital into agency RMBS, which offers attractive risk-adjusted returns.”
Operating Results
Cherry Hill reported GAAP net loss applicable to common stockholders for the third quarter of 2024 of
Earnings available for distribution attributable to common stockholders for the third quarter of 2024 were
Three Months Ended |
|||||||
September 30, 2024 |
|
June 30, 2024 |
|||||
(unaudited) |
(unaudited) |
||||||
Income |
|
|
|
|
|
|
|
Interest income |
$ |
14,327 |
$ |
13,677 |
|||
Interest expense |
|
|
14,218 |
|
|
13,510 |
|
Net interest income |
|
109 |
|
167 |
|||
Servicing fee income |
|
|
11,681 |
|
|
12,349 |
|
Servicing costs |
3,206 |
3,455 |
|||||
Net servicing income |
|
|
8,475 |
|
|
8,894 |
|
Other income (loss) |
|||||||
Realized loss on RMBS, net |
|
|
(3,651) |
|
|
(1,859) |
|
Realized gain (loss) on investments in MSRs, net |
(237) |
741 |
|||||
Realized gain (loss) on derivatives, net |
|
|
(7,987) |
|
|
9,430 |
|
Realized gain on acquired assets, net |
2 |
- |
|||||
Unrealized gain (loss) on RMBS, measured at fair value through earnings, net |
|
|
24,990 |
|
|
(4,440) |
|
Unrealized loss on derivatives, net |
(21,311) |
(3,042) |
|||||
Unrealized loss on investments in Servicing Related Assets |
|
|
(7,467) |
|
|
(3,312) |
|
Total Income (Loss) |
|
(7,077) |
|
6,579 |
|||
Expenses |
|
|
|
|
|
|
|
General and administrative expense |
3,411 |
3,371 |
|||||
Management fee to affiliate |
|
|
1,671 |
|
|
1,760 |
|
Total Expenses |
|
5,082 |
|
5,131 |
|||
Income (Loss) Before Income Taxes |
|
|
(12,159) |
|
|
1,448 |
|
Provision for corporate business taxes |
285 |
664 |
|||||
Net Income (Loss) |
|
|
(12,444) |
|
|
784 |
|
Net (income) loss allocated to noncontrolling interests in Operating Partnership |
246 |
(19) |
|||||
Dividends on preferred stock |
|
|
(2,594) |
|
|
(2,555) |
|
Loss on repurchase and retirement of preferred stock |
- |
(74) |
|||||
Net Loss Applicable to Common Stockholders |
|
$ |
(14,792) |
|
$ |
(1,864) |
|
Net Loss Per Share of Common Stock |
|||||||
Basic |
|
$ |
(0.49) |
|
$ |
(0.06) |
|
Diluted |
$ |
(0.49) |
$ |
(0.06) |
|||
Weighted Average Number of Shares of Common Stock Outstanding |
|
|
|
|
|
|
|
Basic |
30,216,341 |
29,978,791 |
|||||
Diluted |
|
|
30,216,341 |
|
|
30,029,960 |
|
_______________ |
Dollar amounts in thousands, except per share amounts. |
Net unrealized gain on the Company’s RMBS portfolio classified as available-for-sale that are reported in accumulated other comprehensive income was approximately
Three Months Ended |
|||||||
September 30, 2024 |
|
June 30, 2024 |
|||||
(unaudited) |
(unaudited) |
||||||
Net Income (Loss) |
|
$ |
(12,444) |
|
$ |
784 |
|
Other comprehensive income (loss): |
|||||||
Unrealized gain (loss) on RMBS, available-for-sale, net |
|
|
16,400 |
|
|
(3,734) |
|
Net other comprehensive income (loss) |
|
|
16,400 |
|
(3,734) |
||
Comprehensive income (loss) |
|
$ |
3,956 |
|
$ |
(2,950) |
|
Comprehensive (income) loss attributable to noncontrolling interests in Operating Partnership |
(79) |
57 |
|||||
Dividends on preferred stock |
|
|
(2,594) |
|
|
(2,555) |
|
Loss on repurchase and retirement of preferred stock |
- |
(74) |
|||||
Comprehensive income (loss) attributable to common stockholders |
$ |
1,283 |
|
$ |
(5,522) |
|
|
_____________ |
Dollar amounts in thousands. |
Portfolio Highlights for the Quarter Ended September 30, 2024
The Company realized net servicing fee income of
The RMBS portfolio had a book value and carrying value of approximately
In order to mitigate duration risk and interest rate risk associated with the Company’s RMBS and MSRs, Cherry Hill used interest rate swaps, TBAs and Treasury futures. At quarter end September 30, 2024, the Company held interest rate swaps with a notional amount of
As of September 30, 2024, Cherry Hill’s GAAP book value was
Dividends
On September 13, 2024, the Board of Directors declared a quarterly dividend of
Earnings Available for Distribution
Earnings available for distribution (“EAD”) is a non-GAAP financial measure that we define as GAAP net income (loss), excluding realized gain (loss) on RMBS, unrealized gain (loss) on RMBS measured at fair value through earnings, realized and unrealized gain (loss) on derivatives, realized gain (loss) on acquired assets, realized and unrealized gain (loss) on investments in MSRs (net of any estimated MSR amortization) and any tax expense (benefit) on realized and unrealized gain (loss) on MSRs. MSR amortization refers to the portion of the change in fair value of the MSR that is primarily due to the realization of cashflows, runoff resulting from prepayments and an adjustment for any gain or loss on the capital used to purchase the MSR. EAD also includes interest rate swap periodic interest income (expense) and drop income on TBA dollar roll transactions, which are included in “Realized gain (loss) on derivatives, net” on the consolidated statements of income (loss). EAD is adjusted to exclude outstanding LTIP-OP Units in our Operating Partnership and dividends paid on our preferred stock.
EAD is provided for purposes of potential comparability to other issuers that invest in residential mortgage-related assets. The Company believes providing investors with EAD, in addition to related GAAP financial measures, may provide investors some insight into the Company’s ongoing operational performance. However, the concept of EAD does have significant limitations, including the exclusion of realized and unrealized gains (losses), and given the apparent lack of a consistent methodology among issuers for defining EAD, it may not be comparable to similarly titled measures of other issuers, which define EAD differently from us and each other. As a result, EAD should not be considered a substitute for the Company’s GAAP net income (loss) or as a measure of the Company’s liquidity. While EAD is one indication of the Company’s earnings capacity, it is not the only factor considered in setting a dividend and is not the same as REIT taxable income which is calculated in accordance with the rules of the IRS.
The following table provides a reconciliation of net income (loss) to EAD for the three months ended September 30, 2024 and June 30, 2024:
Three Months Ended |
|||||||
September 30, 2024 |
|
June 30, 2024 |
|||||
(unaudited) |
(unaudited) |
||||||
Net Income (Loss) |
|
$ |
(12,444) |
|
$ |
784 |
|
Realized loss on RMBS, net |
|
3,651 |
1,859 |
||||
Realized loss (gain) on derivatives, net ¹ |
|
|
17,588 |
|
|
(508) |
|
Realized loss (gain) on investments in MSRs, net |
237 |
(741) |
|||||
Realized gain on acquired assets, net |
|
|
(2) |
|
|
- |
|
Unrealized loss (gain) on RMBS, measured at fair value through earnings, net |
(24,990) |
4,440 |
|||||
Unrealized loss on derivatives, net |
|
|
21,311 |
|
|
3,042 |
|
Unrealized gain on investments in MSRs, net of estimated MSR amortization |
(1,062) |
(5,247) |
|||||
Tax expense on realized and unrealized gain on MSRs |
|
|
957 |
|
|
1,325 |
|
Total EAD: |
$ |
5,246 |
$ |
4,954 |
|||
EAD attributable to noncontrolling interests in Operating Partnership |
|
|
(105) |
|
|
(100) |
|
Dividends on preferred stock |
(2,594) |
(2,555) |
|||||
EAD Attributable to Common Stockholders |
|
$ |
2,547 |
|
$ |
2,299 |
|
EAD Attributable to Common Stockholders, per Diluted Share |
$ |
0.08 |
$ |
0.08 |
|||
GAAP Net Loss Per Share of Common Stock, per Diluted Share |
|
$ |
(0.49) |
|
$ |
(0.06) |
|
_________ |
Dollar amounts in thousands, except per share amounts. |
|
Additional Information
Additional information regarding Cherry Hill’s financial condition and results of operations can be found in its Annual Report on Form 10-Q for the quarter ended September 30, 2024 filed with the Securities and Exchange Commission on November 12, 2024. In addition, an investor presentation with supplemental information regarding Cherry Hill, its business and its financial condition as of September 30, 2024 and its results of operations for the third quarter 2024 has been posted to the Investor Relations section of Cherry Hill’s website, www.chmireit.com. Cherry Hill will discuss the investor presentation on the conference call referenced below.
Webcast and Conference Call
The Company’s management will host a conference call today at 5:00 pm Eastern Time. A copy of this earnings release and the investor presentation referenced above will be posted to the Investor Relations section of Cherry Hill’s website, www.chmireit.com. All interested parties are welcome to participate on the live call.
A live webcast of the conference call will be available in the investor relations section of the Company’s website at www.chmireit.com. To listen to the live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. An online archive of the webcast will be available on the Company’s website for one year following the call.
To Participate in the Telephone Conference Call:
Please dial into the call at least 5 minutes prior to start time.
Domestic: 1-800-715-9871
International: 1-646-307-1963
Conference ID: 9439976
About Cherry Hill Mortgage Investment Corporation
Cherry Hill Mortgage Investment Corporation is a real estate finance company that acquires, invests in and manages residential mortgage assets in
Forward-Looking Statements
This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws, including, among others, statements relating to the Company’s long-term growth opportunities and strategies, the Company's ability to complete the internalization and achieve cost savings resulting from being an internally managed company, the Company's ability to expand its market opportunities and create its own Excess MSRs and its ability to generate sustainable and attractive risk-adjusted returns for stockholders. These forward-looking statements are based upon the Company’s present expectations, but these statements are not guaranteed to occur. For a description of factors that may cause the Company's actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and other documents filed by the Company with the Securities and Exchange Commission.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241112171732/en/
Cherry Hill Mortgage Investment Corporation
Investor Relations
(877) 870-7005
InvestorRelations@chmireit.com
Source: Cherry Hill Mortgage Investment Corporation
FAQ
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