Core Insights - Chimera Investment executed a strategic plan in 2025 to diversify its portfolio, strengthen liquidity, and expand fee-based income, transitioning towards a "hybrid REIT" model with diversified income sources [2][3][5] Portfolio and Financial Performance - The company increased third-party assets under management to $26 billion from $22 billion and repositioned its portfolio by reducing loan concentration and increasing Agency exposure [1][5] - By the end of 2025, the GAAP portfolio composition shifted to 61% loans, 16% Agency securities, 10% non-Agency securities, 11% lending activities, and 1% mortgage servicing rights [1] - Chimera reported a GAAP net income of $7 million, or $0.08 per share, for Q4 2025, and a full-year GAAP net income of $144 million, or $1.72 per share [9] - Earnings available for distribution were $45 million, or $0.53 per share, in Q4 and $141 million, or $1.68 per share, for the full year [10] Acquisition and Operational Metrics - The acquisition of HomeXpress Mortgage contributed to strong origination results, with the platform funding a record $1.04 billion in Q4 2025 and achieving a GAAP cost to originate of 201 basis points [4][18] - HomeXpress's full-year originations reached $3.4 billion, with an annualized EBITDA return on equity of 16.2% [4][18] Dividend and Capital Allocation - The board declared a Q1 2026 dividend of $0.45 per share, a 22% increase from the previous quarter, and expects to maintain this level throughout 2026 [6][7] - Total leverage was reported at 5.1-to-1, with liquidity ending the year at $528 million, down from $752 million at the end of Q3 [11] Market Outlook and Growth Projections - Management anticipates 20% to 25% growth in non-QM and business-purpose loans in 2026 compared to 2025, projecting non-QM origination volume of approximately $110 billion to $130 billion [22]