We also indirectly own an entity that has elected to be taxed as a REIT under the U.S. federal income tax laws, or a "Subsidiary REIT." Our Subsidiary REIT is subject to the same REIT qualification requirements that are applicable to us. If our Subsidiary REIT were to fail to qualify as a REIT, then (i) that Subsidiary REIT would become subject to regular U.S. federal, state and local corporate income tax, (ii) our interest in such Subsidiary REIT would cease to be a qualifying asset for purposes of the REI ...

designer491A higher-than-expected reading of inflation data on Tuesday triggered a minor meltdown for stocks, including in the high-yield sector that consists of mortgage real estate investment trusts and business development company. One such trust was Chimera Investment Corporation (NYSE:CIM) which also happened to just report 4Q-23 earnings. Though Chimera Investment’s stock just fell to new 52-week lows, the earnings release showed that the dividend realignment in the last quarter worked: Chimera In ...

Chimera Investment Corporation (NYSE:CIM) Q4 2023 Earnings Conference Call February 14, 2024 8:30 AM ET Company Participants Victor Falvo - Head, Capital Markets and Investor Relations Phillip Kardis - Chief Executive Officer Subramaniam Viswanathan - Chief Financial Officer and Principal Accounting Officer Dan Thakkar - Co-Chief Investment Officer Conference Call Participants Bose George - KBW Trevor Cranston - JMP Securities Stephen Laws - Raymond James Eric Hagen - BTIG Operator Hello and welcome to the ...

Chimera Investment (CIM) came out with quarterly earnings of $0.13 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this mortgage investor would post earnings of $0.12 per share when it actually produced earnings of $0.13, delivering a surprise of 8.33%.Over the last four quarters, the company has surpassed consensus EPS estimates just once.Chimera, which belon ...

NEW YORK--(BUSINESS WIRE)--The Board of Directors of Chimera announced the declaration of its first quarter cash dividend of $0.50 per share of 8% Series A Cumulative Redeemable Preferred Stock. The dividend is payable April 1, 2024 to preferred shareholders of record on March 1, 2024. The ex-dividend date is February 29, 2024. The Board of Directors of Chimera also announced the declaration of its first quarter cash dividend of $0.50 per share of 8% Series B Fixed-to-Floating Rate Cumulative Redeemable Pr ...

NEW YORK--(BUSINESS WIRE)--Chimera Investment Corporation (NYSE:CIM) today announced its financial results for the fourth quarter and full year ended December 31, 2023. Financial Highlights: 4TH QUARTER GAAP NET INCOME OF $0.05 PER DILUTED COMMON SHARE 4TH QUARTER EARNINGS AVAILABLE FOR DISTRIBUTION(1) OF $0.13 PER DILUTED COMMON SHARE FULL YEAR GAAP NET INCOME OF $52 MILLION, OR $0.23 PER DILUTED COMMON SHARE FULL YEAR EARNINGS AVAILABLE FOR DISTRIBUTION(1) OF $119 MILLION, OR $0.51 PER DILUTED ...

NEW YORK--(BUSINESS WIRE)--Chimera Investment Corporation (NYSE: CIM) (the "Company") announced today that it plans to release its financial results for the fourth quarter and full year ended December 31, 2023 on Wednesday, February 14, 2024 prior to 7:00 a.m. EDT. The Company will conduct a conference call and audio webcast to discuss the results on Wednesday, February 14, 2024 at 8:30 a.m. EDT. Call-in Number: U.S. Toll Free (866) 604-1613 International (201) 689-7810 Webcast ...

Financing Interest Rate Hedging $1.9 billion of floating rate financing $1.0 billion of interest rate swaps Interest rate swaps hedge 53% of the floating rate liabilities $1.5 billion of interest rate swaptions Weighted average pay-fixed rate of 3.56% Liquidity $139 million in cash Q3 2023 Post Q3 2023 (1) Investment Portfolio Book value per share lower by approximately 2% to 3% post Q3 2023. Refinanced $250 million of high-cost fixed rate Non-MtM financing into new 2-year capped floating rate Limited MtM f ...

Financial Data and Key Metrics Changes - The GAAP book value per share decreased from $7.29 to $6.90, a decline of 5.4% quarter-over-quarter [36] - The GAAP net loss for the third quarter was $16.3 million or $0.07 per share, while net income available for distribution was approximately $29 million or $0.13 per diluted common share [57] - Economic net interest income for the third quarter was $66 million, with a yield on average interest-earning assets of 5.8% and an average cost of funds of 4.5%, resulting in an interest spread of 1.3% [57] Business Line Data and Key Metrics Changes - The company reduced recourse financing by more than $800 million during the first nine months of 2023 [3] - The economic net interest income return on equity was 10.4%, while the GAAP return on average equity was 0.3% [5][57] Market Data and Key Metrics Changes - The 10-year treasury rate increased by 73 basis points over the quarter to 4.57%, briefly reaching 5% in mid-October [35][36] - The company noted that the fixed income market experienced increased volatility and higher rates, impacting the value of its portfolio [35][36] Company Strategy and Development Direction - The company plans to focus on liquidity and liability management, having added three new repo counterparties and refinanced a high fixed-rate facility to save approximately $16 million in interest expense over the next 12 months [37][42] - The company aims to optimize its investment portfolio and seek opportunities to acquire assets that will improve returns and liquidity [42] - The company has reduced its dividend to align with expected earnings, considering the current macroeconomic environment [42][43] Management's Comments on Operating Environment and Future Outlook - Management remains cautious, expecting interest rates to remain high for an extended period, with inflation still above the Fed's target [38][39] - The company believes that as financing costs decrease, its economic performance will significantly improve [43] - Management expressed optimism about the portfolio's performance, highlighting strong income generation and credit quality [43] Other Important Information - The company had $606 million in total cash and unencumbered assets at quarter-end, with $1.5 billion in non or limited mark-to-market features on outstanding repo arrangements [44] - The company has hedged $1 billion of floating rate financings with a weighted average swap rate of 3.26% [3][44] Q&A Session Summary Question: Current liquidity position and appetite for stock repurchases - Management is currently focused on liquidity and investment opportunities, considering stock repurchases as a third option [6][7] Question: Savings from refinancing a higher-cost facility - The company confirmed a $16 million savings in interest expense from refinancing, translating to an annual benefit of $0.06 to $0.07 per share [8] Question: Changes in loan facility terms and further refinancing opportunities - Management elaborated on the limited mark-to-market terms of the refinanced facility and indicated that further refinancing opportunities may arise in early 2025 [9][50][52] Question: Incremental liquidity generation from paydowns - Management noted that the portfolio is running around 6 CPR in terms of paydowns, contributing to incremental liquidity [25] Question: Sensitivity of optionality to interest rates - Management acknowledged that the optionality is sensitive to interest rates, with plans to monitor the situation closely as rates moderate [26]

difference between the model generated prices and third-party prices provided in excess of the thresholds for the period. The internally developed prices were $14 million higher, in the aggregate, than the third-party prices provided of $82 million. After review and discussion, the Company affirmed and valued the investments at the higher internally developed prices. No other differences were noted at December 31, 2022 in excess of the thresholds for the period. Loans consisting of seasoned reperforming res ...