Ellington Financial Announces Estimated Book Value Per Common Share as of January 31, 2025

Rhea-AI Summary

Ellington Financial (NYSE: EFC) has reported its estimated book value per share of common stock at $13.41 as of January 31, 2025. This estimate incorporates the previously announced monthly dividend of $0.13 per share, which was paid on February 25, 2025 to shareholders of record as of January 31, 2025.

The company notes that this estimated book value is subject to change upon completion of month-end and quarter-end valuation procedures for investment positions, and any such changes could be material. The company explicitly states that these estimates may not be indicative of results for the quarter ending March 31, 2025 or future periods.

Positive

• Monthly dividend maintained at $0.13 per share

Negative

• None.

Insights

Financial Analyst

Ellington Financial's announcement of a $13.41 estimated book value per common share as of January 31, 2025 provides a key valuation metric that warrants investor attention. With shares currently trading at $13.60, the stock is priced at approximately 1.4% premium to book value – suggesting the market is assigning a slight premium to the company's net asset value.

For mortgage REITs like EFC, book value serves as the foundational valuation benchmark, representing the liquidation value of assets after accounting for all liabilities. This close-to-book trading level indicates a market perception of fair valuation – neither significantly undervalued nor overvalued.

The company's monthly dividend of $0.13 per share equates to an annualized $1.56, yielding approximately 11.5% at current prices. This yield level is characteristic of the mortgage REIT sector, which typically offers higher income returns to compensate for their interest rate sensitivity and leveraged business models.

Notably, the estimated book value already factors in January's dividend payment, meaning this value represents the company's position after accounting for shareholder distributions. The company appropriately cautions that this figure remains subject to final month-end valuation procedures.

Without comparative historical figures in this announcement, we can't determine whether this book value represents stability or change from previous periods – an important consideration for assessing the effectiveness of the company's portfolio management amid evolving interest rate environments.

OLD GREENWICH, Conn.--(BUSINESS WIRE)-- Ellington Financial Inc. (NYSE: EFC) ("we") today announced an estimated book value per share of common stock of $13.41 as of January 31, 2025. This estimate includes the effect of the previously announced monthly dividend of $0.13 per share of common stock, paid on February 25, 2025 to holders of record on January 31, 2025, with the same ex-dividend date.

Cautionary Statement Regarding Forward-Looking Statements

Estimated book value per common share is subject to change upon completion of our month-end and quarter-end valuation procedures relating to our investment positions, and any such change could be material. There can be no assurance that our estimated book value per common share as of January 31, 2025 is indicative of what our results are likely to be for the three-month period ending March 31, 2025 or in future periods, and we undertake no obligation to update or revise our estimated book value per common share prior to issuance of financial statements for such periods.

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as "believe," "expect," "anticipate," "estimate," "project," "plan," "continue," "intend," "should," "would," "could," "goal," "objective," "will," "may," "seek" or similar expressions or their negative forms, or by references to strategy, plans, or intentions. Forward-looking statements are based on our beliefs, assumptions and expectations of our future operations, business strategies, performance, financial condition, liquidity and prospects, taking into account information currently available to us. These beliefs, assumptions, and expectations are subject to risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity, results of operations and strategies may vary materially from those expressed or implied in our forward-looking statements. The following factors are examples of those that could cause actual results to vary from our forward-looking statements: changes in interest rates and the market value of our investments, market volatility, changes in mortgage default rates and prepayment rates, our ability to borrow to finance our assets, changes in government regulations affecting our business, our ability to maintain our exclusion from registration under the Investment Company Act of 1940, our ability to maintain our qualification as a real estate investment trust, or "REIT," and other changes in market conditions and economic trends, such as changes to fiscal or monetary policy, heightened inflation, slower growth or recession, and currency fluctuations. Furthermore, forward-looking statements are subject to risks and uncertainties, including, among other things, those described under Item 1A of our Annual Report on Form 10-K, which can be accessed through our website at www.ellingtonfinancial.com or at the SEC's website (www.sec.gov). Other risks, uncertainties, and factors that could cause actual results to differ materially from those projected or implied may be described from time to time in reports we file with the SEC, including reports on Forms 10-Q, 10-K and 8-K. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

This release and the information contained herein do not constitute an offer of any securities or solicitation of an offer to purchase securities.

About Ellington Financial

Ellington Financial invests in a diverse array of financial assets, including residential and commercial mortgage loans and mortgage-backed securities, reverse mortgage loans, mortgage servicing rights and related investments, consumer loans, asset-backed securities, collateralized loan obligations, non-mortgage and mortgage-related derivatives, debt and equity investments in loan origination companies, and other strategic investments. Ellington Financial is externally managed and advised by Ellington Financial Management LLC, an affiliate of Ellington Management Group, L.L.C.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250304886061/en/

Investors:

Ellington Financial

Investor Relations

(203) 409-3575

info@ellingtonfinancial.com

or

Media:

Amanda Shpiner/Grace Cartwright

Gasthalter & Co.

for Ellington Financial

(212) 257-4170

ellington@gasthalter.com

Source: Ellington Financial Inc.

FAQ

What is Ellington Financial's (EFC) estimated book value per share as of January 31, 2025?

Ellington Financial's estimated book value per share is $13.41 as of January 31, 2025.

How much is EFC's monthly dividend payment announced in the press release?

EFC announced a monthly dividend of $0.13 per share, paid on February 25, 2025.

When was the ex-dividend date for EFC's January 2025 dividend?

The ex-dividend date was January 31, 2025.

Is EFC's estimated book value for January 2025 subject to change?

Yes, the estimated book value is subject to change upon completion of month-end and quarter-end valuation procedures, and any changes could be material.