Ellington Residential Mortgage REIT(US:EARN)2025-11-19 22:20Financial Performance - Ellington Credit Company reported a net investment income of $8.5 million, or $0.23 per share, for the quarter ended September 30, 2025[8]. - Adjusted Net Investment Income for the quarter ended September 30, 2025, was $8,520,000, up from $6,596,000 in the previous quarter, representing a 29% increase[27]. - Net Investment Income for the quarter ended September 30, 2025, was $8,485,000, compared to $6,521,000 for the quarter ended June 30, 2025, indicating a 30% growth[27]. - Adjusted Net Investment Income per share increased to $0.23 for the quarter ended September 30, 2025, from $0.18 in the previous quarter, reflecting a 28% rise[27]. - Non-recurring expenses related to strategic transformation were $35,000 for the quarter ended September 30, 2025, down from $75,000 in the previous quarter[27]. Asset and Investment Portfolio - The company's CLO portfolio grew to $379.6 million, with CLO debt investments at $185.5 million and CLO equity investments at $194.0 million[8]. - Total assets amounted to $415.74 million, with total liabilities of $190.65 million, resulting in a net asset value of $225.09 million[19]. - The investment portfolio generated $16.2 million in recurring cash distributions, equating to $0.43 per share[8]. - The weighted average GAAP yield for the CLO portfolio was 15.5% based on amortized cost[8]. - The company executed 92 distinct CLO trades during the quarter, purchasing $115.7 million and selling $29.2 million of CLO investments[8]. Distributions and Shareholder Returns - The net asset value (NAV) per share was $5.99 as of September 30, 2025, reflecting distributions of $0.24 per share for the quarter[8]. - The company declared recurring cash distributions of $0.08 per share for each month from July to November 2025[7]. - The Board of Trustees considers various factors, including earnings and liquidity, when setting distributions[26]. Management Outlook and Strategy - Management expects elevated loan repricing activity and ongoing credit dispersion to create opportunities for outperformance through active management[5]. - The company maintains a balanced mix of mezzanine and equity tranches, nearly a 50/50 split, to position for market resilience[5]. Conference Call and Forward-Looking Statements - The company will host a conference call on November 20, 2025, to discuss financial results for the quarter ended September 30, 2025[21]. - A dial-in replay of the conference call will be available from November 20, 2025, at 2:00 p.m. Eastern Time until November 27, 2025[21]. - Forward-looking statements are subject to numerous risks and uncertainties, including changes in interest rates and market conditions[22]. - The company emphasizes that Adjusted Net Investment Income is a non-GAAP financial measure and may differ from similar measures used by peers[25]. Share Count - The weighted average shares outstanding increased slightly to 37,563,048 for the quarter ended September 30, 2025, compared to 37,559,195 in the previous quarter[27].