David A. Johnson is founder and principal of Endurance Capital Management, a New Jersey Limited Liability Company. As an investor entrepreneur, David invests in stocks, bonds, options, ETFs, REITs, real estate, closed end funds and alternative investment funds such as hedge funds and private credit. With over 30 years’ experience in investing, David holds a Master of Science (MS) Degree in Finance, with a concentration in Investment Analysis, from Boston University, a Certificate in Financial Planning, and ...

Group 1 - The preferred stock of Chimera (NYSE: CIM.PR.A) was recommended for purchase due to its 10.2% dividend yield and a wide margin of safety for the dividend [1] - Since the recommendation, the stock has provided significant returns [1] Group 2 - The author has a background in chemical engineering and economics, and has written multiple books on investing and mathematics [1] - The author emphasizes the importance of fundamental and technical analysis in investment decisions [1]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED: March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 1-33796 CHIMERA INVESTMENT CORPORATION (Exact Name of Registrant as Specified in its Charter) Maryland 26-0630461 (State or other jurisdict ...

Financial Data and Key Metrics Changes - Earnings available for distribution improved by 11% and book value increased by 7.4% with an economic return of 9.2% for the quarter [6][13] - GAAP net income for the first quarter was $145.9 million or $1.77 per share, while economic net interest income was $72.3 million [13][14] - The yield on average interest-earning assets was 5.9% and the average cost of funds was 4.4%, resulting in a net interest spread of 1.5% [14] Business Line Data and Key Metrics Changes - Third-party loans under management by Palisades Advisory Services increased by 43% year over year, reaching nearly $24 billion [7] - The company managed a total of nearly $37 billion in assets, including on-balance sheet assets and those managed for others [7] - The company executed impactful balance sheet moves, including cash-out refinancing that unlocked $187 million [8][27] Market Data and Key Metrics Changes - National home price growth was 3.9% year over year, with varying performance across regions [21] - Existing home sales declined to a 4 million unit annualized pace, marking the slowest first quarter since 2009 [21] - Delinquency rates remained stable at 8.9%, with prepayments decreasing to 5.5% [23] Company Strategy and Development Direction - The company aims to build a hybrid mortgage REIT that is resilient and diversified, focusing on diversifying the portfolio and growing recurring fee income [11][30] - The strategy includes adding Agency RMBS assets and evaluating MSR opportunities to generate attractive returns [29][30] - The company is focused on disciplined risk management and thoughtful portfolio construction [30] Management's Comments on Operating Environment and Future Outlook - Management noted that despite market volatility, the company is holding steady and expects to continue growing third-party loans under management [10] - The outlook for the third-party business remains positive, with expectations for growth depending on the mortgage market [42] - Management expressed caution regarding capital deployment due to ongoing macroeconomic uncertainty [29] Other Important Information - The company ended the quarter with $697 million in total cash and unencumbered assets [14] - The company refinanced two structured repo lines, extending maturities and lowering costs, which released an additional $100 million in cash [26][55] Q&A Session Summary Question: Clarification on book value performance - Management indicated that book value was down about 40 basis points as of the beginning of the second quarter [33] Question: Timing for deploying freed-up investment capital - Approximately 33% to 40% of the $187 million has been deployed, with a focus on building liquidity [35][36] Question: Outlook for third-party business growth - Management is bullish on growth potential, depending on the mortgage market and new client acquisitions [42] Question: Sensitivity to higher delinquency rates - Management noted that delinquencies in the RPL portfolio are stable and not a major concern, while monitoring trends in non-QM portfolios [60][63] Question: Details on new loan facilities and advance rates - Management did not disclose specific advance rates but confirmed that the facilities are structured repo facilities with banking relationships [64][66]

Financial Data and Key Metrics Changes - Earnings available for distribution improved by 11% and book value increased by 7.4% with an economic return of 9.2% for the quarter [6] - GAAP net income for the first quarter was $145.9 million or $1.77 per share, while GAAP book value at the end of the quarter was $21.17 per share [13] - Economic net interest income for the first quarter was $72.3 million with a yield on average interest-earning assets of 5.9% and an average cost of funds of 4.4%, resulting in a net interest spread of 1.5% [14] Business Line Data and Key Metrics Changes - Third-party loans under management by Palisades Advisory Services increased by 43% year over year, reaching nearly $24 billion [7] - The company executed impactful balance sheet moves, including cash-out refinancing that unlocked $187 million [8] - The company settled $100 million in residential transition loans during the quarter, expecting mid-teen levered returns [9] Market Data and Key Metrics Changes - National home price growth was 3.9% year over year, with varying performance across regions [22] - Existing home sales declined to a 4 million unit annualized pace, marking the slowest first quarter since 2009 [22] - Delinquency rates remained stable at 8.9% for the re-performing loan portfolio, with prepayments at 5.5% [24] Company Strategy and Development Direction - The company aims to build a hybrid mortgage REIT that is resilient and diversified, focusing on diversifying the portfolio and growing recurring fee income [11][32] - The strategy includes adding Agency RMBS assets and evaluating MSR opportunities to generate attractive returns [31] - The company is focused on disciplined risk management and thoughtful portfolio construction to support attractive risk-adjusted returns [32] Management's Comments on Operating Environment and Future Outlook - Management noted that despite market volatility, the company is holding steady and expects to continue growing third-party loans under management [10] - The current book value is estimated to be flat to slightly down, with a focus on building liquidity [10][36] - Management expressed cautious optimism regarding the growth potential of the third-party business, depending on the mortgage market [42] Other Important Information - The company ended the quarter with $697 million in total cash and unencumbered assets, enhancing liquidity [14] - The company refinanced two structured repo lines, extending maturities and lowering costs, which unlocked additional cash for investment [27] Q&A Session Summary Question: Clarification on book value performance - Management indicated that book value was down about 40 basis points as of the latest update [35] Question: Timing for deploying freed-up investment capital - Approximately 33% to 40% of the $187 million has been deployed, with a focus on building liquidity [36][37] Question: Outlook for third-party business growth - Management is bullish on growth potential, depending on the mortgage market and client acquisition [42] Question: Sensitivity to higher delinquency rates - Management noted that delinquencies in the re-performing loan portfolio are stable and not considered high for that product type [58][62] Question: Details on new loan facilities and advance rates - Management did not disclose specific advance rates but confirmed that the facilities are structured repo facilities with limited mark-to-market features [63][65]

Q1 2025 Highlights - Book value per share increased by 74% from $1972 in Q4 2024 to $2117 in Q1 2025[13] - Earnings Available for Distribution (EAD) was $041 per share[13] - Economic Return was 92%[13] - Dividends declared were $037 per share[13] Securitization and Investments - Sponsored a $288 million Non-QM securitization (CIM 2025-I1)[13] - Re-securitized $646 million of loans extracting $187 million of capital for reinvestment[13] - Purchased $149 million of Agency specified pools in March[13] - Settled $100 million of residential transition loans (RTL) during the quarter with an 89% net rate[13] Financing and Hedging - Extended a maturing non-mark-to-market facility to February 2027[13] - Refinanced a maturing non-mark-to-market secured repo facility at a lower interest rate[13] - Converted the remaining $500 million swaption position into a 1-year swap with a fixed pay rate of 345%[13] - Added $155 million of SOFR swap futures with a par equivalent pay fixed rate of 384%[13] - Purchased a $10 billion 2-year interest rate cap with a strike rate of 395%[13] Portfolio and Loan Performance - Total Current Unpaid Principal Balance (UPB) of residential mortgage loans is $113 billion[23] - Weighted Average Loan Size is $110K[23] - Weighted Average Coupon is 601%[23] - 60+ Days Delinquency rate is 92%[23]

CHIMERA INVESTMENT CORPORATION REPORTS 1ST QUARTER 2025 EARNINGS Investor Relations 888-895-6557 www.chimerareit.com FOR IMMEDIATE RELEASE NEW YORK - (BUSINESS WIRE) - Chimera Investment Corporation (NYSE:CIM) today announced its financial results for the first quarter ended March 31, 2025. PRESS RELEASE NYSE: CIM CHIMERA INVESTMENT CORPORATION 630 Fifth Ave, Suite 2400 New York, New York 10111 CHIMERA INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION Financial Highlights : (1) (2) Earni ...

Core Viewpoint - SolarBank Corporation has secured up to US$100 million in project-based financing from CIM Group to accelerate its growth as an independent power producer, focusing on a portfolio of 97 MW of solar power projects in the U.S. [1][2] Group 1: Financing Details - The financing will be structured as a preferred equity investment into a new joint venture entity called New HoldCo, formed between CIM and SolarBank's subsidiary, Abundant Solar Power Inc. [1][2] - SolarBank will retain a majority ownership interest in 21 solar energy projects with a total capacity of 97 MW, assuming full funding is achieved [2]. - CIM will acquire non-convertible preferred equity interests in New HoldCo and will receive a semi-annual coupon of 3% on the aggregate investment [4]. Group 2: Project Structure and Operations - New HoldCo will purchase membership interests of project companies that own the 97 MW capacity from ASP, with a payment structure of 20% at mechanical completion and 80% at substantial completion of each project [2][4]. - Each project is expected to sell investment tax credits (ITCs) to creditworthy third-party buyers under tax credit transfer agreements [3]. Group 3: Company Background - SolarBank Corporation focuses on developing renewable and clean energy projects, including solar, Battery Energy Storage Systems (BESS), and EV Charging projects, with a development pipeline exceeding one gigawatt [8]. - CIM Group has a history of delivering over $60 billion in essential real estate and infrastructure projects, emphasizing community impact and environmental sustainability [7].

Group 1 - The Chimera Investment Corporation 9.0% senior notes due 2029 (NYSE: CIMN) were previously assigned a 'Buy' rating due to their attractive coupon, seniority in the capital structure, and favorable risk/reward profile [1] - Binary Tree Analytics (BTA) focuses on providing transparency and analytics for capital markets instruments, particularly in closed-end funds (CEFs), exchange-traded funds (ETFs), and special situations, aiming for high annualized returns with low volatility [1] Group 2 - The article expresses the author's personal opinions and indicates a beneficial long position in CIMN shares through various means [2]

Group 1 - The article suggests that investors should prepare to invest in preferred stock and baby bonds due to anticipated interest rate hikes by the Federal Reserve [1] - The author highlights a significant background in nuclear engineering and environmental engineering, indicating a strong analytical foundation for investment decisions [1] Group 2 - The article includes a disclosure of long positions in various preferred stocks, indicating a strategic investment approach [2] - It emphasizes that past performance does not guarantee future results, reflecting a cautious perspective on investment outcomes [3]