Financial Performance - Net income for the third quarter of 2024 was $5.4 million, or $0.21 per share, with adjusted distributable earnings of $7.2 million, or $0.28 per share[2]. - Net income for the three-month period ended September 30, 2024, was $5,445,000, a significant recovery from a loss of $815,000 in the previous quarter[32]. - Adjusted Distributable Earnings were $7,241,000, slightly down from $7,273,000 in the previous quarter[40]. - The company experienced a net income (loss) before income taxes of $5,908,000, compared to a loss of $(890,000) in the previous quarter[40]. - Interest income for the three-month period ended September 30, 2024, was $12,504,000, a decrease from $14,132,000 in the previous quarter[32]. - Total net interest income for the same period was $4,752,000, compared to $3,897,000 in the prior quarter, reflecting a 22% increase[32]. - The company declared cash dividends of $0.24 per share for the three-month period, consistent with the previous quarter[32]. - The accumulated deficit increased to $146,174,000 as of September 30, 2024, from $145,196,000 in the previous quarter[33]. Asset and Liability Management - Total assets decreased to $752,303,000 as of September 30, 2024, down from $933,457,000 at the end of the previous quarter[33]. - Total liabilities decreased to $560,674,000, compared to $787,328,000 in the prior quarter, indicating a reduction of approximately 29%[34]. - The book value per share was $6.85 as of September 30, 2024, down from $6.91 in the previous quarter[33]. - Weighted average shares outstanding increased to 25,591,607 as of September 30, 2024, compared to 20,354,062 in the previous quarter[32]. Investment Strategy and Portfolio - The CLO portfolio increased by 70% to $144.5 million as of September 30, 2024, compared to $85.1 million as of June 30, 2024[10]. - The company is strategically transforming its investment focus towards corporate CLOs, emphasizing mezzanine debt and equity tranches[6]. - The company underwent a strategic transformation to focus on corporate CLOs, revoking its REIT status effective January 1, 2024[27]. - The CLO strategy yielded strong results, driven by higher net interest income and net gains in U.S. and European CLO debt portfolios[23]. Interest and Economic Returns - The net interest margin was 9.65% on credit, 3.52% on Agency, and 5.22% overall[2]. - The net interest margin (NIM) on the credit portfolio was 9.65% in Q3 2024, down from 13.41% in Q2 2024, while the NIM on the Agency portfolio increased to 3.52% from 2.85%[16]. - Overall NIM increased to 5.22% as of September 30, 2024, compared to 4.24% as of June 30, 2024, due to a higher allocation of capital to the credit strategy[16]. - The overall annualized economic return for the quarter was 10.8%[3]. Market and Economic Conditions - The trailing-twelve-month default rate for the U.S. leveraged loan index declined to 80 basis points by the end of Q3 2024, the lowest since December 2022[20]. - The U.S. Agency MBS Index generated an excess return of 0.76% in Q3 2024, supported by falling interest rates and tightening yield spreads[25]. Operational Costs - General and administrative expenses increased quarter over quarter due to costs related to the strategic transformation and higher management fees[26]. - The company incurred Strategic Transformation costs of $106,000, down from $464,000 in the previous quarter[40].

The recent Federal Reserve cut of interest rates could be a very good thing for REITs. Rates have been necessarily high for quite a while, and almost every REIT is confirming in their official risk disclosures that they've struggled in I'm Jason Ditz and I have 20 years of experience in foreign policy research. My work has appeared in Forbes, Toronto Star, Minneapolis Star-Tribune, Providence Journal, Washington Times and the Detroit Free Press, as well as American Conservative Magazine and the Quincy Insti ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Title of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered Common Shares of Beneficial Interest, $0.01 par value per share EARN The New York Stock Exchange FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition perio ...

Financial Data and Key Metrics Changes - The company reported a net loss of $0.04 per share for Q2 2024, with adjusted distributable earnings (ADE) of $0.36 per share, reflecting a sequential increase of $0.09 per share [13][14] - The net interest margin expanded to 4.24% from 3.03% quarter-over-quarter, driven by the growth of CLOs [12][14] - The debt to equity ratio decreased to 3.7 times as of June 30, compared to 4.9 times at March 31 [19] Business Line Data and Key Metrics Changes - The CLO portfolio increased to approximately $108 million as of August 9, 2024, up from $85 million at June 30 [19] - The agency MBS portfolio decreased significantly from $791 million last September to $531 million at June 30, and further to $518 million by August 9 [7][19] - The capital allocation to CLOs increased to 45% at June 30 from 25% at March 31 [19] Market Data and Key Metrics Changes - The CLO market benefited from strengthening fundamentals and robust demand for leveraged loans, with corporate loan prepayment rates reaching their highest level since February 2022 [8][9] - Credit spreads on BB and B CLO tranches tightened overall, although there was significant dispersion among deals [9][10] - The U.S. MBS Index generated a slightly negative excess return relative to U.S. treasuries, reflecting the impact of intra-quarter interest rate volatility [11][16] Company Strategy and Development Direction - The company is in the process of transforming into a CLO-focused closed-end fund, with a targeted conversion date later this year [6][7] - The anticipated benefits of this transformation include better projected risk-adjusted returns and enhanced access to capital markets [7] - The company plans to maintain a core portfolio of liquid agency MBS until the conversion is complete, while continuing to grow its CLO portfolio [8][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining the dividend through the conversion to a CLO-focused fund, citing the positive impact of the rotation into CLOs on net interest margin and ADE [37] - The recent market volatility is seen as an opportunity for attractive trading, with management prepared to deploy capital at favorable spreads [25][29] - The company expects to continue to see strong returns from both CLO and agency MBS portfolios, with a favorable backdrop for agency MBS due to a steeper yield curve and potential rate cuts [29][32] Other Important Information - The company revoked its REIT election effective January 1, 2024, and is currently operating as a taxable C-Corp [17] - Book value per share was reported at $6.91 at June 30, down from $7.21 at March 31, with an economic return of negative 0.8% for the quarter [18] Q&A Session Summary Question: What is driving the dispersion in CLO performance? - Management noted that dispersion is influenced by asset quality and credit sensitivity, with equity being more exposed to tail risks [34] Question: Can you provide an update on liquidity and leverage? - As of July 31, the debt to equity ratio was down to around 3 times, indicating improved leverage [35] Question: How is the dividend outlook as capital rotates into CLOs? - Management indicated confidence in maintaining the dividend, with expectations for potential increases post-conversion based on CLO returns [37][41]

Ellington Financial Q2 2024 EARNINGS Earnings Conference Call August 7, 2024 Q2 2024 Important Notice Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking s ...

Ellington Credit (EARN) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this residential mortgage real estate investment trust would post earnings of $0.24 per share when it actually produced earnings of $0.27, delivering a surprise of 12.50%. ...

Exhibit 99.1 Ellington Credit Company Reports Second Quarter 2024 Results OLD GREENWICH, Connecticut—August 12, 2024 Ellington Credit Company, formerly known as Ellington Residential Mortgage REIT (NYSE: EARN) ("we", "us," or "our"), today reported financial results for the quarter ended June 30, 2024. Highlights • Net income (loss) of $(0.8) million, or $(0.04) per share. • Adjusted Distributable Earnings of $7.3 million, or $0.36 per share. 1 • Book value of $6.91 per share as of June 30, 2024, which incl ...

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stock ...

After reaching an important support level, Ellington Credit (EARN) could be a good stock pick from a technical perspective. EARN surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend. The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20- day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages. Similar to o ...

For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Ellington Credit (EARN) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question. Innovative Industrial Properties, however, belongs to the REIT and Equity Trust - Other industry. Currently, this 95-stock industry is ranked #138. The industry has moved ...