CHIMERA INVESTMENT CORPORATION REPORTS 1ST QUARTER 2021 EARNINGS

Rhea-AI Summary

Chimera Investment Corporation (NYSE:CIM) reported its Q1 2021 financial results, achieving a GAAP net income of $139 million or $0.54 per common share, with core earnings of $87 million or $0.36 per common share. The company emphasized its focus on portfolio optimization and re-securitization activities aimed at reducing financing costs and enhancing capital for future investments. CEO Mohit Marria noted that these strategies will provide long-term benefits to the portfolio.

Positive

• GAAP net income of $139 million, a strong financial performance.
• Core earnings of $87 million, indicating a solid earnings base.
• Re-securitization efforts reducing financing costs, enhancing future capital.
• CEO's optimistic outlook on long-term portfolio benefits.

Negative

• Decline in fair value of Non-Agency RMBS from $2,150,714 to $2,013,478.

Chimera Investment Corporation (NYSE:CIM) today announced its financial results for the first quarter ended March 31, 2021. The Company’s GAAP net income for the first quarter was $139 million, or $0.54 per common share. Core earnings⁽¹⁾ for the first quarter ended March 31, 2021 was $87 million, or $0.36 per common share.

“This quarter we took many proactive steps towards portfolio optimization and the expansion of Chimera’s core earnings. Through re-securitization activity, we lowered the financing cost and freed up capital for future accretive investments”, said Mohit Marria, Chimera’s CEO and Chief Investment Officer. “Securitization of our mortgage assets provides Chimera with low-cost, long-term, non-recourse financing. We expect the re-securitizations from this quarter to benefit our portfolio for a long period of time.”

(1) Core earnings per adjusted diluted common share is a non-GAAP measure. See additional discussion on page 5.

Other Information

Chimera Investment Corporation is a publicly traded real estate investment trust, or REIT, that is primarily engaged in the business of investing directly or indirectly through our subsidiaries, on a leveraged basis, in a diversified portfolio of mortgage assets, including residential mortgage loans, Non-Agency RMBS, Agency CMBS, Agency RMBS, and other real estate related securities.

CHIMERA INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands, except share and per share data)
(Unaudited)
		March 31, 2021				December 31, 2020
Cash and cash equivalents		$	317,489			$	269,090
Non-Agency RMBS, at fair value (net of allowance for credit losses of $54 thousand and $180 thousand, respectively)		2,013,478				2,150,714
Agency RMBS, at fair value		86,354				90,738
Agency CMBS, at fair value		1,355,289

FAQ

What were Chimera Investment Corporation's Q1 2021 earnings results?

Chimera reported a GAAP net income of $139 million and core earnings of $87 million for Q1 2021.

How did Chimera perform in terms of core earnings in Q1 2021?

Core earnings for Chimera in Q1 2021 were $87 million, translating to $0.36 per common share.

What steps did Chimera take to optimize its portfolio in Q1 2021?

Chimera engaged in re-securitization activities to lower financing costs and free up capital for future investments.

What is the current financial outlook for Chimera Investment Corporation?

CEO Mohit Marria expressed confidence that recent re-securitization efforts will provide long-term benefits to the portfolio.