Cherry Hill Mortgage Investment Q1 Earnings Call Highlights

Key Points

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• Cherry Hill Mortgage Investment reported a first-quarter GAAP nett nonaccomplishment of $2 million, oregon $0.05 per share, and publication worth per communal stock fell 6.1% to $3.23 arsenic geopolitical volatility and wider owe spreads pressured results precocious successful the quarter.

• The institution said its MSR portfolio helped offset immoderate weakness, portion absorption made portfolio adjustments successful March to support publication value; leverage ended the 4th astatine a “prudently levered” 5.5x with $47 cardinal successful unrestricted cash.

• Management expects volatility to stay elevated successful the adjacent term, but sees imaginable enactment from GSE request and stabilizing owe rates, with CFOs noting publication worth improved astir 2% by April 30 from quarter-end.

Cherry Hill Mortgage Investment (NYSE:CHMI) reported a first-quarter nonaccomplishment arsenic absorption said geopolitical volatility, higher ostentation expectations and wider owe spreads weighed connected show precocious successful the period.

President and CEO Jay Lown said markets began the 4th with comparative stableness akin to the 2nd fractional of 2025, but conditions changed rapidly aft the outbreak of warfare with Iran. He said lipid and state prices spiked, ostentation expectations roseate and expectations for aboriginal complaint cuts this twelvemonth diminished. Mortgage spreads widened and the output curve flattened arsenic volatility increased.

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“Specific to Cherry Hill, arsenic the geopolitical uncertainty unfolded, we acted rapidly and we judge appropriately to support the institution by focusing connected the risks that were wrong our control,” Lown said. He added that the institution managed its involvement complaint vulnerability successful March successful a mode that absorption believes helped mitigate the interaction to publication value.

First-quarter results

The owe REIT reported a GAAP nett nonaccomplishment applicable to communal stockholders of $2 million, oregon $0.05 per diluted share, for the archetypal quarter. Comprehensive nonaccomplishment attributable to communal stockholders, including mark-to-market changes connected available-for-sale RMBS, was $4.4 million, oregon $0.12 per diluted share.

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Earnings disposable for distribution, oregon EAD, attributable to communal stockholders totaled $5.3 million, oregon $0.14 per share.

Book worth per communal stock was $3.23 arsenic of March 31, 2026, down from $3.44 astatine Dec. 31, 2025, a diminution of 6.1%. Lown said the company’s economical instrumentality for the 4th was antagonistic 3.2%. On an NAV basis, including preferred stock, NAV declined $7.9 million, oregon 3.3%, from year-end.