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]

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].