Chimera Investment Corporation (CIM) Q3 2025 Earnings Call Transcript
HomeXpress Originations $2.4 billion by UPB, up 36% year-over-year. Reasons for change: Growth in consumer and business purpose loans.
GAAP Net Loss $22 million or $0.27 per share. Reasons for change: Not explicitly mentioned.
GAAP Book Value $20.24 per share. Reasons for change: Decline of 3.2% due to tighter non-Agency RMBS spreads and rally in short-term rates.
Economic Return on GAAP Book Value (Quarterly) Negative 1.4%. Reasons for change: Quarterly change in book value and $0.37 dividend per common share.
Year-to-Date Economic Return on GAAP Book Value 8.3%. Reasons for change: Not explicitly mentioned.
Earnings Available for Distribution (Net Income) $30 million or $0.37 per share. Reasons for change: Not explicitly mentioned.
Economic Net Interest Income $69 million. Reasons for change: Not explicitly mentioned.
Yield on Average Interest-Earning Assets 5.9%. Reasons for change: Not explicitly mentioned.
Average Cost of Funds 4.5%. Reasons for change: Not explicitly mentioned.
Net Interest Spread 1.4%. Reasons for change: Not explicitly mentioned.
Total Leverage 4.8:1. Reasons for change: Not explicitly mentioned.
Recourse Leverage 2:1. Reasons for change: Increased due to higher capital allocation to Agency RMBS securities.
Liquidity (Total Cash and Unencumbered Assets) $752 million, up from $561 million in the second quarter. Reasons for change: Raised liquidity through asset sales and issuance of senior unsecured notes.
Transaction Expenses Higher by $10 million. Reasons for change: Costs associated with HomeXpress acquisition.
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Chimera Investment Corp Anticipates 12% Annual Yield Based on Dividend History
- Yield Expectations: Chimera Investment Corp's current anticipated 12% annual yield, based on historical dividend data, reflects the company's profitability fluctuations, which may impact investor confidence and future investment decisions.
- Dividend Uncertainty: While historical data provides some guidance, the unpredictability of dividend amounts necessitates cautious evaluation by investors regarding sustainability, thereby influencing overall investment strategies.
- Market Reaction: Investor responses to Chimera's dividend policy could lead to stock price volatility, particularly in light of changes in profitability, potentially prompting a reevaluation of the stock in the market.
- Investor Focus: With the emergence of nine other dividend stocks, Chimera's dividend performance will become a focal point for investors, potentially affecting its competitive position among dividend-paying stocks.
