Cherry Hill Mortgage Investment Earnings Call Transcripts
Fiscal Year 2026
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The meeting confirmed a quorum and proceeded with board elections, executive compensation approval, auditor ratification, and a charter amendment vote. All proposals except the charter amendment passed, and a brief Q&A followed.
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First quarter results were impacted by geopolitical volatility, leading to a 6.1% decline in book value per share and a GAAP net loss. Liquidity remained strong, and portfolio returns are expected to improve if market stability persists.
Fiscal Year 2025
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Fourth quarter results showed higher net income, increased book value, and strong liquidity, with portfolio performance aided by tighter mortgage spreads and a steeper yield curve. Management remains optimistic for 2026, expecting improved income and continued prudent leverage.
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Third quarter 2025 results showed stable interest rates, improved portfolio performance, and a slight increase in book value per share. The company realigned its dividend, maintained prudent leverage, and saw positive momentum from its digital mortgage partnership.
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Q2 saw a GAAP net loss and a decline in book value per share, with strong liquidity maintained and a strategic investment in RealGenius LLC expected to be profitable within a year. Leverage is expected to rise slightly as the Fed may cut rates, potentially increasing prepayment speeds.
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First quarter saw a GAAP net loss of $0.29 per share and a 3.2% decline in NAV amid market volatility and tariff uncertainty. EAD benefited from a maturing hedge but is expected to trend lower, with capital deployment focused on agency RMBS and select MSRs.
Fiscal Year 2024
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Fourth quarter results showed lower book value and steady leverage amid persistent inflation and market volatility. Management internalization was completed, reducing future expenses, while capital allocation favored RMBS for better returns.
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Third quarter results showed a GAAP net loss and a decline in book value, with agency RMBS and MSR each comprising 42% of equity capital. Management is positioning for further Fed easing, favoring agency RMBS for its risk-adjusted returns, while maintaining prudent leverage and liquidity.
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Q2 saw a GAAP net loss of $0.06 per share and EAD of $0.08, impacted by special committee expenses and MSR sales. Management internalization is underway, with capital shifting toward Agency RMBS and continued preferred share repurchases to stabilize equity.