Chimera Investment Q1 Earnings Call Highlights

Chimera Investment (NYSE:CIM) executives said the institution covered its dividend successful the archetypal 4th of 2026 portion continuing to reposition its portfolio toward much liquid assets and expanding its HomeXpress Mortgage origination platform.

President and Chief Executive Officer Phillip Kardis said the 4th unfolded against a volatile marketplace backdrop, with Treasury yields moving higher, the output curve flattening, owe rates reversing higher aft concisely reaching a 3.5-year low, owe ground widening and geopolitical tensions adding to marketplace uncertainty.

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“We are operating successful a marketplace wherever uncertainty is not episodic, it’s structural,” Kardis said. “We don’t effort to foretell wherever the marketplace volition be. We absorption connected being prepared for wherever it goes.”

Earnings Available for Distribution Cover Dividend

Chief Financial Officer Subra Viswanathan said Chimera reported a GAAP nett nonaccomplishment of astir $65 cardinal for the quarter. Earnings disposable for distribution, oregon EAD, were astir $46 million, oregon $0.54 per share, compared with $34 million, oregon $0.41 per share, successful the archetypal 4th of 2025.

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The company’s quarterly dividend of $0.45 per stock was covered by net astatine astir 1.2 times, according to Viswanathan. Kardis noted that implicit the past 10 quarters, Chimera’s EAD has exceeded its dividend successful 9 quarters, missing erstwhile by $0.01, portion the institution has accrued its dividend from $0.33 to $0.45 per share.

GAAP publication worth per stock declined 6.9% to $18.34. Viswanathan said that excluding the interaction of the redemption of 8 securitization deals and related indebtedness sales, publication worth was down 2.5%. Economic instrumentality connected GAAP publication worth was antagonistic 4.6%, based connected the quarterly alteration successful publication worth and the first-quarter dividend.

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Viswanathan said Chimera ended the 4th with $675 cardinal successful full currency and unencumbered assets, up from $528 cardinal astatine year-end. Total leverage was 5.2 times, portion recourse leverage was 2.9 times.

Portfolio Repositioning Releases Capital

Chimera continued to displacement its concern portfolio during the quarter. Kardis said the company’s allocation to loans decreased from 62% to 55%, portion its allocation to Agency residential mortgage-backed securities accrued from 15% to 21%.

The main operator was the redemption of 8 securitizations backed by $1.5 cardinal of seasoned re-performing loans. Chimera sold $1.2 cardinal of those loans, generating $195 cardinal successful nett proceeds, and retained $287 cardinal for existent income and aboriginal securitization.