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]

Core Viewpoint - Chimera Investment (CIM) shares experienced a significant rally of 9.7%, closing at $11.49, following a broader market rally driven by optimism around tariff pauses [1][2] Company Performance - Chimera is expected to report quarterly earnings of $0.38 per share, reflecting a year-over-year increase of 5.6%, with revenues projected at $70.4 million, an 8.1% increase from the previous year [3] - The consensus EPS estimate for Chimera has remained unchanged over the last 30 days, indicating stability in earnings expectations [4] Market Context - The stock price surge is linked to Trump's announcement of a 90-day pause on reciprocal tariffs for most trading partners, which alleviates immediate trade war fears and improves economic outlook [2] - The tariff pause is anticipated to ease cost pressures, enhancing margins and profitability for mREIT stocks, including Chimera [2] Industry Comparison - Chimera belongs to the Zacks REIT and Equity Trust industry, where another stock, Angel Oak Mortgage (AOMR), closed 4.8% higher at $8.03, despite a -20.1% return over the past month [4] - Angel Oak's consensus EPS estimate has remained unchanged at $0.27, representing a year-over-year change of 145.5% [5]

Core Insights - The preferred stock of Chimera (NYSE: CIM.PR.D) was recommended for its 10.0% dividend yield and a significant margin of safety in the dividend [1] Group 1 - The preferred stock has provided outstanding returns since the initial recommendation [1] - The author has a background in chemical engineering and economics, indicating a strong analytical foundation for investment decisions [1] - The author emphasizes the importance of fundamental and technical analysis in investment strategies, particularly using options for both investing and trading [1]

Core Viewpoint - Chimera Investment (CIM) has experienced significant selling pressure, declining 7.7% over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, with analysts predicting better earnings than previously expected [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to identify oversold stocks, with a reading below 30 typically indicating oversold conditions [2]. - CIM's current RSI reading is 28.62, suggesting that the heavy selling may be exhausting, indicating a potential bounce back towards equilibrium in supply and demand [5]. Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts to raise earnings estimates for CIM, with a 0.6% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - CIM holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].

Core Viewpoint - Chimera Investment Corporation (NYSE: CIM) is rated as a Hold for income-focused investors interested in mortgage real estate investment trusts (mREIT) due to its appealing dividend yield of 10.65%, despite a history of poor long-term performance [1]. Group 1 - The dividend yield of Chimera Investment Corporation is 10.65%, which is attractive for income-focused investors [1]. - The company has a history of poor performance over the long term, which may concern potential investors [1]. - The analysis is provided by David A. Johnson, who has over 30 years of investment experience and holds advanced degrees in finance and business administration [1].

Investment Portfolio - As of December 31, 2024, the investment portfolio consisted of approximately 88% residential mortgage loans, 8% Non-Agency RMBS, and 4% Agency MBS, compared to 91%, 8%, and 1% respectively in 2023[45] - The residential mortgage loan portfolio primarily includes reperforming loans that have been outstanding for over 120 months and have a history of delinquent payments[46] - The company has invested in residential mortgage loans to securitize them or retain them in the investment portfolio, financing through warehouse facilities and repurchase agreements[49] - The investment strategy includes acquiring Non-Agency RMBS, which are typically certificates created by the securitization of pools of mortgage loans[54] - The investment guidelines restrict any single industry from representing more than 20% of the portfolio's aggregate risk exposure[63] Financial Strategy - The debt-to-equity ratio was 4.0:1 as of December 31, 2024, indicating a leveraged financing strategy[63] - The company may evaluate revolving securitization structures for financing its RTLs in the future[47] - The company intends to maintain compliance with REIT regulations by distributing at least 90% of its annual taxable income to stockholders[67] Workforce and Diversity - As of December 31, 2024, the company had 77 full-time employees, with 36 added through the Palisades Acquisition, indicating a significant increase in workforce[78] - 61% of the workforce is either gender or racially diverse, reflecting the company's commitment to diversity and inclusion[78] - The company focuses on attracting and retaining employees through competitive financial benefits and internal training programs[76] - The company provides competitive compensation and benefits, including a 401(k) retirement plan with a company match and comprehensive healthcare benefits[77] Compliance and Regulation - The company holds all required licenses or exempt status through two wholly owned subsidiaries in 21 states as of December 31, 2024, ensuring compliance with regulatory requirements[74] - The company is registered with the SEC as an investment adviser under the Advisers Act, which imposes fiduciary duties and disclosure obligations[73] - The company engages third parties for independent reviews of mortgage files to assess credit underwriting and compliance[51] Cybersecurity - The Audit Committee and Risk Committee oversee management of cybersecurity risk, receiving regular reports on the company's cybersecurity program[246] - The Chief Information Security Officer (CISO) has over 25 years of experience in information technology, ensuring strong leadership in cybersecurity matters[247] - The Incident Response Team coordinates responses to cybersecurity incidents, involving both internal and external resources as necessary[248] Competition - The company competes with various entities including mortgage REITs and investment management firms, many of which are significantly larger and have greater access to capital[79]