Core Viewpoint - Ellington Financial Inc. announced an estimated book value per share of common stock of $13.40 as of September 30, 2025, which reflects the impact of the upcoming monthly dividend payment [1] Group 1 - The estimated book value per share includes the effect of a previously announced monthly dividend of $0.13 per share [1] - The dividend is scheduled to be paid on October 31, 2025, to holders of record as of September 30, 2025 [1] - The ex-dividend date is the same as the record date, September 30, 2025 [1]

Core Points - Ellington Financial Inc. will release its financial results for Q3 2025 on November 5, 2025, after market close [1] - A conference call to discuss these results is scheduled for November 6, 2025, at 11:00 a.m. Eastern Time [1] - An investor presentation will be posted on the company's website after the financial results release [3] Company Overview - Ellington Financial invests in a diverse array of financial assets, including residential and commercial mortgage loans, mortgage-backed securities, reverse mortgage loans, and consumer loans [4] - The company is externally managed and advised by Ellington Financial Management LLC, an affiliate of Ellington Management Group, L.L.C. [4]

Core Viewpoint - The Zacks REIT and Equity Trust industry is experiencing volatility in mortgage rates due to macroeconomic uncertainty, leading to earnings pressure in the near term [1] Industry Overview - The Zacks REIT and Equity Trust industry consists of mortgage REITs (mREITs) that invest in and originate mortgages and mortgage-backed securities (MBS), providing mortgage credit for homeowners and businesses [3] - mREITs typically focus on either residential or commercial mortgage markets, with some investing in both through asset-backed securities [3] - Agency securities, backed by the federal government, are considered safer investments, limiting credit risks [3] - Key revenue metrics for mREITs include net interest margin, which is the spread between interest income on mortgage assets and funding costs [3] Current Challenges - The industry is facing dividend cuts as book values erode due to tightened mortgage spreads and expected higher interest rates, leading to earnings pressure for highly leveraged mREITs [4] - A conservative investment approach is likely to impede returns, as mREITs prioritize risk and liquidity management over growth [5] - Despite a recent Federal Reserve rate cut, mortgage rates remain below the 52-week average of 6.71%, which is driving renewed interest in purchase applications and refinancing activities [6] Industry Performance - The Zacks REIT and Equity Trust industry ranks 185, placing it in the bottom 24% of 243 Zacks industries, indicating underperformance in the near term [7] - The industry's current-year earnings estimate has decreased by 8.1% over the last year, reflecting a negative earnings outlook [8] - Over the past year, the industry has declined by 6.2%, while the broader Zacks Finance sector rose by 17.1% and the S&P 500 grew by 18.2% [10] Valuation Metrics - The industry is currently trading at a trailing 12-month price-to-book (P/BV) ratio of 1.00X, compared to the S&P 500's 8.8X [13] - The Zacks Finance sector's trailing 12-month P/BV is 4.32X, indicating that the REIT and Equity Trust industry is trading at a significant discount [15] Company Highlights - **Annaly Capital Management (NLY)**: Focuses on prudent asset selection and effective capital allocation, with a diversified investment strategy that includes Agency MBSs and non-agency assets [17][18]. The company's 2025 earnings are estimated at $2.89 per share, reflecting a 7% year-over-year increase [19] - **Apollo Commercial Real Estate Finance (ARI)**: Engages in originating and managing commercial mortgage loans, benefiting from a robust origination pipeline and disciplined capital recycling strategy [22][23]. The company's 2025 earnings estimates are $1.04 per share, indicating a 141.9% year-over-year increase [24] - **Ellington Financial (EFC)**: Invests in a diverse array of financial assets, including residential and commercial mortgage loans, and employs dynamic hedging strategies to manage risks [27][29]. The company's 2025 earnings estimates are $1.74 per share, reflecting a 19.2% year-over-year growth [30]

Core Viewpoint - Ellington Financial Inc. has successfully closed an offering of $400 million in senior unsecured notes with a 7.375% interest rate, maturing on September 30, 2030 [1] Group 1: Offering Details - The offering consists of $400 million in aggregate principal amount of senior unsecured notes [1] - The notes are due on September 30, 2030 and carry an interest rate of 7.375% [1] - The notes are senior unsecured obligations of certain subsidiaries of the Company, which are fully and unconditionally guaranteed by the Company [1] Group 2: Use of Proceeds - The Company plans to utilize the net proceeds from the offering for unspecified purposes [1]

Core Viewpoint - Ellington Financial Inc. has successfully priced an offering of $400 million in senior unsecured notes with a 7.375% interest rate, maturing in 2030 [1] Group 1: Offering Details - The offering consists of $400 million in aggregate principal amount of senior unsecured notes [1] - The notes will have a fixed interest rate of 7.375% and are due in 2030 [1] - The notes will be senior unsecured obligations of the Issuers and fully guaranteed by the Company [1] Group 2: Closing Information - The offering is expected to close on a specified date, which is not mentioned in the document [1]

Core Viewpoint - Ellington Financial Inc. plans to offer $400 million in senior unsecured notes due 2030, which will be fully guaranteed by the Company [1] Group 1 - The offering will be conducted through certain subsidiaries of the Company, referred to as the Issuers [1] - The Notes will represent senior unsecured obligations of the Issuers [1] - The net proceeds from the offering are expected to be used for general corporate purposes [1]

Core Viewpoint - Ellington Financial Inc. reported an estimated book value per share of common stock of $13.33 as of August 31, 2025, which reflects the impact of the upcoming monthly dividend payment [1] Financial Summary - The estimated book value includes the effect of a previously announced monthly dividend of $0.13 per share, scheduled to be paid on September 30, 2025 [1] - The record date for the dividend payment is August 29, 2025, with the same ex-dividend date [1]

Core Insights - Ellington Financial Inc. (NYSE:EFC) is recognized as one of the 10 safest monthly dividend stocks to buy [1] - The company operates as a specialty finance firm, investing in a diverse range of financial assets related to mortgages, consumers, and corporations [2] Financial Performance - For Q2 2025, Ellington Financial reported a GAAP net income of $0.45 per share, resulting in an annualized economic return of nearly 14% [3] - The book value per share increased to $13.49 during the same quarter [3] Investment Strategy - CEO Laurence Eric Penn highlighted the effectiveness of the company's credit hedging strategy, which was beneficial as credit spreads widened due to tariff uncertainties [4] - The firm successfully completed six securitizations at favorable levels during the quarter [4] Dividend Information - Ellington Financial offers a monthly dividend of $0.13 per share, with a dividend yield of 11.95% as of September 23 [5] - The company has maintained its dividend payouts for 15 consecutive years, reinforcing its status as a solid dividend company [5]

Core Insights - Mortgage rates have decreased to 6.26%, the lowest since October 2024, driven by a decline in U.S. Treasury yields and a Federal Reserve rate cut [1][11] - The reduction in mortgage rates has led to a significant increase in mortgage loan application volume by 43% and a 58% rise in refinancing activity [2] - The favorable environment for mortgage rates is expected to benefit mortgage REITs (mREITs) such as Ellington Financial, Annaly Capital Management, and Orchid Island Capital [3][4] Mortgage Market Trends - The Federal Reserve's indication of two additional rate cuts by the end of 2025 suggests further declines in mortgage rates, which will likely enhance mREIT profitability and asset prices [4] - As net interest spreads expand, mREITs are positioned for stronger profitability and increased dividend payouts, appealing to income-focused investors [5] Company-Specific Insights Ellington Financial (EFC) - EFC is diversified across residential and commercial mortgage loans, contributing to stable growth and income [6][7] - The company employs dynamic hedging strategies and maintains a balanced portfolio to navigate market volatility [8] - EFC's 2025 earnings estimates remain at $1.74 per share, reflecting a year-over-year growth of 19.2% [9] Annaly Capital Management (NLY) - NLY manages an $89.5 billion portfolio, focusing on diversified investment strategies to reduce volatility and enhance risk-adjusted returns [12][13] - The company's net interest income (NII) surged to $493.2 million in the first half of 2025, up from $47.1 million year-over-year, positioning it for book value gains [14] - NLY's 2025 earnings estimates are stable at $2.89 per share, indicating a year-over-year growth of 7% [15] Orchid Island Capital (ORC) - ORC focuses on Agency residential mortgage-backed securities (RMBS), targeting traditional and structured Agency RMBS [18][19] - The company's NII increased to $42.9 million in the first half of 2025, with expectations for further improvement due to favorable mortgage rates [21] - ORC's 2025 earnings estimates remain at 63 cents per share, reflecting a substantial year-over-year increase of 450% [21]

Core Viewpoint - Ellington Financial (NYSE: EFC) is a mortgage REIT that is being revisited for analysis due to the impacts of President Trump's tariff policy and potential interest rate changes [1] Company Analysis - The company was rated a hold back in March, indicating a cautious approach towards its investment potential [1] - The analysis is based on value investing principles, an owner's mindset, and a long-term investment horizon [1] Investment Strategy - The analyst does not engage in writing sell articles, as they are considered short theses, and does not recommend shorting stocks [1]