Armada Hoffler Properties (NYSE:AHH) Q4 2025 Earnings call February 17, 2026 08:30 AM ET Company ParticipantsAndrew Berger - Equity Research AssociateChelsea Forrest - VP of Investor RelationsCraig Ramiro - EVP of Asset ManagementJon Petersen - Managing DirectorMatthew Barnes-Smith - CFOShawn Tibbetts - Chairman, President, and CEOViktor Fediv - Senior Equity Research AssociateOperatorThis call is being recorded on Tuesday, February 17, 2026. I would now like to turn the conference over to Chelsea Forrest, ...

Management said CAPREIT’s portfolio has shifted toward a mix designed to reduce capital needs and improve resilience. Kenney said 79% of the portfolio is classified as value-add assets, with 68% considered a core long-term holding. Another 11% is categorized as “opportunistic dispositions,” which Kenney described as steady-performing assets that the company would consider selling if pricing is compelling.Kenney also emphasized CAPREIT’s use of its normal course issuer bid (NCIB) amid what he described as a ...

Chimera Investment (NYSE:CIM) Q4 2025 Earnings call February 11, 2026 08:30 AM ET Company ParticipantsBose George - Managing DirectorEric Hagen - Managing DirectorJack MacDowell - CIOKenneth Lee - Managing DirectorKyle Walker - President and CEOMiyun Sung - CLO and Corporate SecretaryPhil Kardis - President, CEO, and DirectorSubra Viswanathan - CFO and Principal Accounting OfficerTrevor Cranston - Managing DirectorConference Call ParticipantsDoug Harter - Equity Research AnalystOperatorAs a reminder, this c ...

Financial Data and Key Metrics Changes - GAAP net income for Q4 2025 was $7 million or $0.08 per share, while for the full year it was $144 million or $1.72 per share [11] - GAAP book value at the end of Q4 was $19.70 per share, with an economic return on GAAP book value of -0.9% for the quarter and +7.4% for the full year [12] - Earnings available for distribution (EAD) for Q4 was $45 million or $0.53 per share, and for the full year, it was $141 million or $1.68 per share [12] Business Line Data and Key Metrics Changes - The investment portfolio segment reported an economic net interest income of $65 million for Q4, with a yield on average interest-earning assets of 5.9% and a net interest spread of 1.4% [13] - Home Express funded $1 billion in production during Q4 with a gain-on-sale premium of 358 basis points, and its EBITDA was $11 million for the quarter [13][27] - The company ended the year with a total leverage of 5.1-to-1, compared to the REIT average of 2.4-to-1 [13] Market Data and Key Metrics Changes - Agency swap OAS tightened by approximately 22 basis points in Q4, while generic non-QM AAAs firmed by 5 basis points [19] - Treasury yields had a tightening bias, with the two-year, ten-year Treasury spread ending the year at 69 basis points, approximately 37 wider than at the beginning of the year [20] - Mortgage rates decreased by approximately 70 basis points for the year, ending at 6.15% [20] Company Strategy and Development Direction - The company aims to build a diversified residential platform capable of generating long-term value, focusing on portfolio diversification, liquidity expansion, and fee-based income growth [10] - The acquisition of Home Express is a key part of the strategy to enhance capabilities and reach within the residential mortgage market [6][10] - The company is committed to maintaining a long-term orientation while adapting to market conditions and evolving its operational capabilities [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the first quarter of 2026, expecting strong revenue and gain on sale premiums despite typical seasonal reductions in volume [33] - The company anticipates continued growth in the non-QM and business purpose loan markets, projecting a market growth of 20%-25% in 2026 [46] - Management emphasized the importance of capital allocation and the balance between dividend payouts and reinvestment for growth [39] Other Important Information - The company raised approximately $120 million in unsecured debt, with the majority of funding for transformation coming from its own portfolio [6] - Compensation, general, and administrative expenses increased by $22 million year-over-year, primarily due to staffing costs related to acquisitions [16] - The company is focused on managing capital at risk and evaluating cash flow generating capital rather than short-term valuation movements [50] Q&A Session Summary Question: Update on Home Express volume and gain on sale - Management noted a typical seasonal reduction in volume but expressed optimism for Q1 2026, expecting good revenue compared to the previous year [33] Question: Relative value between adding more agencies versus securitizations - Management highlighted the importance of portfolio construction and maintaining a balance between agency and credit components, with a focus on MSR allocation [34][35] Question: Context of dividend increase - Management explained that the dividend increase was sized to ensure sufficient EAD coverage while allowing for growth in operating aspects of the business [39] Question: Originating second liens and non-QM volume outlook - Management confirmed they are not currently originating second mortgages but anticipate significant growth in the non-QM market in 2026 [46] Question: Change in book value and securitized debt - Management clarified that the reduction in book value was due to the faster increase in the value of securitized debt compared to loan values, emphasizing the focus on managing capital at risk [49][50]

Core Viewpoint - Mapletree family of REITs is actively reshaping portfolios through divestments and capital redeployment, aiming for stronger growth despite short-term distribution impacts [1][13] Mapletree Logistics Trust (MLT) - MLT is pursuing a portfolio rejuvenation strategy with a divestment target of approximately S$1.0 billion, mainly from older properties in China and Hong Kong [2] - For FY2026, MLT aims to divest between S$100 million and S$150 million, having completed S$58 million in divestments year-to-date as of September 2025 [3] - DPU for 2QFY2026 decreased by 10.5% YoY to S$0.01815, largely due to the absence of divestment gains, with operational DPU down 4.8% YoY [4] Mapletree Pan Asia Commercial Trust (MPACT) - MPACT owns 15 commercial properties across five Asian markets, with total assets under management of S$15.9 billion [5] - For 1HFY2026, MPACT reported gross revenue of S$437.1 million, down 5.4% YoY, and net property income fell 5% to S$329.9 million [5] - DPU declined 1.2% YoY to S$0.0402, influenced by divestments and overseas market challenges, while VivoCity showed positive performance with increased shopper traffic and tenant sales [6][7] Mapletree Industrial Trust (MIT) - MIT manages 136 industrial properties with assets under management of S$8.5 billion, where data centres represent 58.3% of the portfolio [9] - For 1HFY2026, MIT's gross revenue was S$346.1 million, down 3% YoY, and DPU fell 5.1% to S$0.065 [9][10] - The North American portfolio occupancy is a concern at 87.8%, while Singapore properties achieved a weighted average rental reversion of 6.2% [11][12] Overall Investment Outlook - All three Mapletree REITs have experienced DPU declines, but management is focused on long-term sustainability through strategic portfolio repositioning [13] - The upcoming earnings reports in January 2026 are expected to provide insights into the effectiveness of these strategies and potential for future income growth [14]

Core Insights - The company reported significant profitability improvements, with adjusted gross margin increasing by 290 basis points to 32.5%, driven by pricing, raw material cost actions, acquisitions, divestitures, and targeted cost reductions [1] - Adjusted EBITDA for fiscal 2025 was $170 million, reflecting a 15% year-on-year increase, while adjusted EPS rose 39% to $1.28 due to higher operating income and a reduced share count from share repurchases [1][6] - Despite a challenging economic backdrop, the company achieved double-digit profit growth in fiscal 2025, attributing margin expansion to pricing discipline and restructuring efforts [4] Financial Performance - For Q4, net revenue decreased by 3.1% year-over-year, primarily due to a weak economic environment and strategic portfolio actions, although it would have increased by about 1% when adjusting for the flooring divestiture [2] - Organic revenue fell by 1.3%, with a 2.5% volume decline partially offset by 1.2% pricing growth [2] - Cash flow from operations in Q4 was $107 million, up 25% year-on-year, driven by higher net income [6] Segment Performance - Engineering Adhesives (EA) showed organic revenue growth of 2.2%, with strength in automotive, electronics, and aerospace, while Hygiene, Health and Consumables (HHC) saw a 1.8% decline in organic revenue due to lower volume [7] - Building Adhesives Solutions (BAS) experienced a 4.8% decrease in organic sales, attributed to lower volume and tough comparisons from the previous year [7] 2026 Outlook - Management expects organic sales to be roughly flat for fiscal 2026, with adjusted EBITDA guidance of $630 million to $660 million and adjusted EPS of $4.35 to $4.70 [5][9] - The company anticipates a foreign currency translation benefit of approximately 1% to revenue if rates hold [9] - For Q1, revenue is expected to decline in low single digits, with adjusted EBITDA projected between $110 million and $120 million [11] Strategic Initiatives - The company is focusing on ongoing portfolio repositioning and a "Quantum Leap" initiative for manufacturing and warehouse consolidation [13] - In 2023 and 2024, the company acquired eight companies with a combined EBITDA of $41 million, which contributed $73 million of EBITDA in 2025 [14] - The company plans to reduce its solar business, with revenue expected to decline from $80 million in 2025 to around $50 million by the end of 2026 [16] Special Items - A reserve for a product liability legal claim related to the divested flooring business was recorded in Q4, amounting to approximately $35 million pre-tax [17]

Core Insights - Appaloosa's latest 13F filing indicates a strategic portfolio rotation focused on cyclicals and China exposure, while selectively trimming positions in mega-cap tech stocks, suggesting a shift towards asymmetric mean-reversion opportunities [1][2] Portfolio Adjustments - The portfolio reflects a classic strategy of adding aggressively in washed-out sentiment scenarios while preserving core franchises and exiting positions with diminished payoff potential [2] - Significant adjustments were made, including a massive increase in Whirlpool Corp shares, indicating high conviction in cyclical recovery [3] Key Holdings - **Whirlpool Corp (WHR)**: Increased by 5,233,098 shares to a total of 5.5 million shares, representing a $432.3 million position (5.85%). This increase of nearly 2,000% quarter-over-quarter signals strong belief in earnings normalization following a housing downturn [3] - **Alibaba Group (BABA)**: Reduced by 617,271 shares to 6.45 million shares, maintaining a $1.15 billion position (15.61%). The trim reflects risk management amid regulatory uncertainties rather than a loss of confidence in core assets [4] - **KraneShares CSI China Internet ETF (KWEB)**: Increased by 3,400,000 shares to 7.4 million shares, totaling a $310.9 million position (4.21%). This indicates a structural repositioning to maintain exposure to Chinese internet stocks while mitigating single-company risks [5] - **Qualcomm (QCOM)**: Increased by 895,000 shares to 1.25 million shares, amounting to a $207.1 million position (2.81%). The increase suggests confidence in the stabilization of smartphone and semiconductor demand [6] - **Amazon.com (AMZN)**: Trimmed by 200,000 shares to 2.5 million shares, with a total position of $548.9 million (7.43%). The reduction likely reflects portfolio balancing rather than a change in fundamental outlook [7] - **Alphabet (GOOG)**: Reduced by 112,500 shares to 1.39 million shares, totaling a $337.9 million position (4.58%). The trim appears to be driven by valuation considerations as the focus shifts to higher beta opportunities [8] Exits - Full exits were made from Intel Corp (INTC), Oracle Corp (ORCL), and KE Holdings (BEKE), demonstrating a decisive approach to reallocating capital when payoff profiles deteriorate [9]

Core Viewpoint - Income investors are recognizing the necessity to reposition their portfolios for future market conditions [1] Group 1 - Investors are closely monitoring market trends to adapt their investment strategies [1]

Core Insights - Meros Investment Management has fully exited its position in Worthington Steel, resulting in a liquidation valued at nearly $5.3 million, which reflects a significant portfolio adjustment [2][10]. Company Overview - Worthington Steel, based in Columbus, Ohio, operates as a steel processor with a diversified product portfolio, serving various industrial sectors including automotive, heavy truck, agriculture, construction, and energy [6][9]. - As of the latest market close, Worthington Steel shares were priced at $35.92, with a market capitalization of $1.8 billion, revenue of $3.1 billion, and net income of $118.6 million for the trailing twelve months (TTM) [4][6]. Recent Performance - The company reported a 5% revenue growth to $872.9 million in the most recent quarter, alongside an increase in operating income to $48.3 million and net earnings of $36.8 million, all showing meaningful improvement from the previous year [7]. - Adjusted earnings per share rose to $0.77 from $0.56, indicating positive traction in core spreads despite some volume softness in certain categories [7]. Market Context - Worthington Steel's stock has underperformed, down 18% over the past year, while the S&P 500 has increased by 13% during the same period [3]. - The exit by Meros Investment Management raises questions about investor sentiment, especially as the company appears to be stabilizing after its spin-off [7][10]. Strategic Positioning - Worthington Steel's vertically integrated model, strong balance sheet, and recent acquisition of the Sitem Group contribute to its ongoing transformation efforts [10]. - The company continues to focus on dividend continuity and steady margin improvement, which are key factors for fundamentals-driven investors to monitor [10].

Core Insights - James River Group Holdings reported a net loss from continuing operations of $0.4 million, significantly improved from a loss of $40.7 million in the same quarter of 2024, indicating a recovery in financial performance [1][2] - Adjusted net operating income for Q3 2025 was $17.4 million, a notable turnaround from a loss of $28.2 million in Q3 2024, reflecting effective underwriting and operational strategies [1][2] Financial Performance - The combined ratio improved to 94.0% from 135.5% in the prior year quarter, demonstrating enhanced underwriting performance [4] - Underwriting income was reported at $8.9 million, compared to a loss of $56.8 million in the prior year quarter, indicating a strong recovery in underwriting results [4] - The expense ratio decreased to 28.3% from 31.4% in the prior year quarter, showcasing effective cost management [4] Segment Performance - The Excess and Surplus (E&S) segment reported a combined ratio of 88.3%, down from 136.1% in the prior year quarter, highlighting improved profitability in this segment [4][5] - Net earned premium for the E&S segment was $140.2 million, a slight increase of approximately 1% compared to the prior year quarter, while gross written premium declined by 8.9% [5][7] - The Specialty Admitted Insurance segment experienced a significant decline, with gross written premium down 72.6% year-over-year, reflecting the company's strategy to minimize risk exposure [6][32] Investment Results - Net investment income for Q3 2025 was $21.9 million, a 7% increase from the previous quarter, although it was down 7% compared to the same quarter last year [9][10] - The annualized gross investment yield remained stable at 4.6%, consistent with the previous quarter [10] Capital Management - The Board of Directors declared a cash dividend of $0.01 per common share, payable on December 31, 2025, indicating a commitment to returning value to shareholders [12] - Tangible common equity increased by 24.2% to $378.4 million compared to December 31, 2024, driven by net income and unrealized gains [13] Operational Efficiency - The company has achieved lasting expense reductions and is positioned to capitalize on market opportunities, as stated by the CEO [3] - The total full-time employee count decreased from 640 at the end of 2024 to 590, contributing to overall cost savings [8]