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]

Core Viewpoint - Mortgage real estate investment trusts (REITs) are becoming more attractive for passive income investors as the central bank is expected to lower short-term interest rates, which will reduce financing costs for this highly leveraged sector [1]. Company Overview: Chimera Investment Corporation - Chimera Investment Corporation (NYSE:CIM) is highlighted as a mortgage trust worth attention due to its stock trading at a significant discount to book value, following a reverse stock split and offering an 11% stock yield [2][3]. - The trust's dividend was covered by distributable earnings in Q1 2024, and there is anticipation for a re-rating potential once the central bank implements rate cuts [2][20]. Financial Metrics - Chimera Investment's portfolio is valued at $12 billion, consisting of $11.1 billion in residential mortgage loans and $1.1 billion in Non-Agency residential mortgage-backed securities [5]. - The net interest spread for Chimera Investment was 1.4% in Q1 2024, unchanged from the previous year, with expectations for an increase if short-term interest rates are lowered [8]. - The trust's GAAP book value decreased to $7.11 per share in Q1 2024 from $11.44 in Q1 2021, reflecting a 38% decline over three years [13]. Dividend Coverage and Payout - In Q1 2024, Chimera Investment earned $0.12 per share in distributable earnings, resulting in a dividend payout ratio of 92%, which increased by 7.1 percentage points from the previous quarter [10][12]. - The 39% dividend cut enacted in Q4 2023 has led to stronger payout metrics, with two consecutive quarters of a payout ratio below 100% [11]. Market Position and Valuation - Chimera Investment's discount to book value has exceeded 50%, making it one of the largest discounts in the market, attributed to a steepening yield curve and increased short-term interest rate volatility [14]. - The recent reverse stock split (1-for-3) aims to enhance liquidity and appeal to investors, although it does not alter the fundamental metrics of the company [19]. Investment Outlook - The mortgage-backed securities held by Chimera Investment are expected to increase in value in a falling-rate environment, positioning the trust for potential re-rating if the central bank cuts rates [6][20]. - With a covered 11% dividend yield and a significant discount to book value, Chimera Investment is considered a viable option for passive income investors with a higher risk tolerance [21].

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]

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED: March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO (Exact Name of Registrant as Specified in its Charter) (888) 895-6557 (Registrant's telephone number, including area code) | --- | --- | --- | |-------------------------------------------------------------------------------------------|-----------| ...

Chimera Investment Corporation (NYSE:CIM) Q1 2024 Earnings Conference Call May 9, 2024 8:30 AM ET Company Participants Victor Falvo - Head of Capital Markets and Investor Relations Phil Kardis - President and Chief Executive Officer Subra Viswanathan - Chief Financial Officer Dan Thakkar - Chief Investment Officer Conference Call Participants Doug Harter - UBS Bose George - KBW Trevor Cranston - Citizens JMP Operator Greetings and welcome to the Chimera Investments’ 2024 Earnings Conference. I have here wit ...

Chimera Investment (CIM) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of $0.10 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 20%. A quarter ago, it was expected that this mortgage investor would post earnings of $0.13 per share when it actually produced earnings of $0.13, delivering no surprise.Over the last four quarters, the company ...

NE CHIMERA "WESTMENT INVESTOR PRESENTATION DISCLAIMER This presentation includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as "goal" "expect," "target," "assume," "estimate," "project," "budget," "forecast," "an ...

NYSE: CIM Investor Relations 888-895-6557 www.chimerareit.com NEW YORK - (BUSINESS WIRE) - Chimera Investment Corporation (NYSE:CIM) today announced its financial results for the first quarter ended March 31, 2024. • 1ST QUARTER GAAP NET INCOME OF $0.45 PER DILUTED COMMON SHARE • 1ST QUARTER EARNINGS AVAILABLE FOR DISTRIBUTION OF $0.12 PER DILUTED COMMON SHARE • GAAP BOOK VALUE OF $7.11 PER COMMON SHARE (1) | --- | --- | --- | |-------------------------------------------------------------------------------- ...