Chimera Investment Corporation (NYSE:CIM) Q2 2024 Earnings Conference Call August 7, 2024 8:30 AM ET Company Participants Victor Falvo - Head of Capital Markets and IR Phil Kardis - President and CEO Subra Viswanathan - CFO Dan Thakkar - Chief Investment Officer Conference Call Participants Doug Harter - UBS Bose George - KBW Stephen Laws - Raymond James Jake Katsikis - BTIG Operator Good day, ladies and gentlemen, and welcome to the Chimera Investment Corporation Second Quarter Earnings Call. Our host for ...

Chimera Investment (CIM) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 8.82%. A quarter ago, it was expected that this mortgage investor would post earnings of $0.30 per share when it actually produced earnings of $0.36, delivering a surprise of 20%. Over the last four quarters, th ...

PRESS RELEASE NYSE: CIM CHIMERA INVESTMENT CORPORATION 630 Fifth Ave, Ste 2400 New York, New York 10111 _________________________________________________________________________________________________ Investor Relations 888-895-6557 www.chimerareit.com FOR IMMEDIATE RELEASE CHIMERA INVESTMENT CORPORATION REPORTS 2ND QUARTER 2024 EARNINGS NEW YORK - (BUSINESS WIRE) - Chimera Investment Corporation (NYSE:CIM) today announced its financial results for the second quarter ended June 30, 2024. Financial Highligh ...

matdesign24 Chimera Investment Corporation (NYSE:CIM) preferreds Chimera Investment Corporation PFD SER B (NYSE:CIM.PR.B) and Chimera Investment Corporation 8% PFD CUM SER D (NYSE:CIM.PR.D) look quite appealing as a means of generating very high dividend income, as they have current yields in excess of 11% and are well covered by both assets and cashflows. When fixed income instruments yield over 10% it is usually due to abnormally high risk, but the nature of the high yield here came about in a different f ...

1 IF D H Business overview To cut a long story short, Chimera is highly vulnerable to unexpected hikes of interest rates, which are highly unlikely for the foreseeable future, given the decrease in inflation, the guidance of the Fed and the burden of high interest rates on the budget of the U.S. government. Analysts seem to agree on this view, as they expect Chimera to recover strongly this year and remain profitable until at least 2026. More precisely, they expect the earnings per share of the company to r ...

Chimera Investment (CIM) shares ended the last trading session 7.5% higher at $12.83. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 12.8% loss over the past four weeks. The increased optimism in the stock can be attributed to its recent announcement of a dividend hike. Chimera's board of directors announced a cash dividend of 35 cents per share on its common stock for the second quarter of 2024, indicating an inc ...

Black_Kira/iStock via Getty Images Market Action Systematic Income Preferred Stocks Median Treasury Spread To Worst 8.00% 8.00% 2.00 0.00% 2020-01-01 2021-01-01 2022-01-01 2023-01-01 2024-01-01 Market Commentary Book Value Changes Over Periods 20.0% ABR � PMT 0.0% FR ● -20.0% CHMI RIT 2020/201 -40.0% TWO -60.0% MITT . -80.0% -40.0% -30.0% -20.0% -10.0% 0.0% 2023/2021 Given few people expect longer-term rates to head significantly higher, we shouldn't see further big book value drops, particularly if the coo ...

Core Viewpoint - Chimera Investment (CIM) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][4][12] Earnings Estimates and Revisions - The Zacks Consensus Estimate for Chimera for the fiscal year ending December 2024 is projected at $1.41 per share, reflecting a decrease of 7.8% from the previous year [9] - Over the past three months, analysts have raised their earnings estimates for Chimera by 14.6%, indicating a positive trend in earnings outlook [9] Zacks Rating System - The Zacks rating system is based solely on changes in a company's earnings picture, making it a reliable tool for investors [2][3] - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8] - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, highlighting their superior earnings estimate revision features [10][12] Market Implications - The upgrade to Zacks Rank 1 suggests that Chimera's improving earnings outlook could lead to increased buying pressure and a rise in stock price [4][6] - The correlation between earnings estimate revisions and near-term stock movements underscores the importance of tracking these revisions for investment decisions [7][5]

Dragon Claws Mortgage real estate investment trusts are primed to become more attractive investments for passive income investors as the central bank is poised to lower short-term interest rates and provide the highly leveraged sector with relief in terms of lower financing costs. Chimera Investment Corporation (NYSE:CIM) is one mortgage trust that I think is worth paying close attention to, since the trust's stock is selling for an exaggerated discount to book value. The mortgage real estate investment tru ...

Investment Thesis - Pessimism surrounding Chimera Investment has led to a stock price of around $12 per share, a 5-year low, but the discount to book value is considered excessive, indicating potential for recovery [1] - Future dividend cuts are deemed unlikely as book values and dividends have stabilized, suggesting that the stock price may support from this point onward [1] Company Overview - Chimera Investment primarily invests in a diversified portfolio of mortgage assets, including residential mortgage loans, Agency RMBS, Non-Agency RMBS, Agency CMBS, and other real estate-related assets [2] Investment Strategy - The company has shifted its strategy to focus primarily on residential loans, indicating a more conservative approach in the current market environment [4] - Management plans to continue acquiring and securitizing mortgage loans, which is a major strategic emphasis for the company [8] Loan Portfolio Characteristics - Chimera's loan portfolio is seasoned, with 80% of loans originated prior to 2008, which are expected to perform reliably [5][6] - As of Q1 2024, the total current unpaid principal balance is $11.6 billion, with a weighted average coupon of 5.99% and a weighted average loan age of 186 months [6] Financial Performance - Q1 2024 earnings showed a GAAP net income of $0.45 per diluted common share and a GAAP book value of $7.11 per common share [11] - Total shareholder's equity increased from $2.56 billion to $2.65 billion quarter over quarter, indicating resilience in book value [7] Market Conditions - The housing market is experiencing mixed results, with existing home sales declining while new home sales are rising, which may affect mREITs [14][15] - Despite macroeconomic headwinds, Chimera is viewed as resilient, with the potential for book value to increase if the Federal Reserve cuts rates [12][13] Valuation - The stock is considered significantly undervalued, with an adjusted book value of $32 per share, leading to a fair value estimate of $15 per share after applying a 50% discount for potential risks [16] - The stock trades at 10x forward earnings non-GAAP, close to the sector median, with dividends well covered by earnings [17] Risk Management - The company is managing liabilities effectively, reducing higher-cost repo borrowings, which is expected to benefit net interest income [18] - Current hedges are positioned to deal with an uncertain rate environment, providing some protection against interest rate movements [13] Conclusion - The significant discount to book value is expected to close as the company performs well under challenging conditions, with a focus on securitization allowing for flexible financing and high returns on equity [22]