The following is a summary of the Cherry Hill Mortgage Investment Corporation (CHMI) Q2 2024 Earnings Call Transcript:
Financial Performance:
Cherry Hill reported a GAAP net loss applicable to common stockholders of $0.06 per diluted share.
Earnings available for distribution (EAD) were $2.3 million, or $0.08 per share, impacted by $0.06 per share of expenses related to the Special Committee's efforts.
Book value per common share decreased to $4.15, driven by Special Committee expenses and high dividend payments on Class B preferred shares.
Business Progress:
Cherry Hill has initiated the internalization of management to become a fully integrated internally managed mortgage REIT. This transition aims to reduce expenses, enhance earnings, and align management with the investment community.
The company strategically sold over $1 billion in UPB of low loan balance MSRs to improve portfolio efficiency and reduce servicing costs.
Opportunities:
The anticipated Federal Reserve rate cuts should enable Cherry Hill to reposition its portfolio to take advantage of the steepening yield curve.
Cherry Hill plans to invest in Agency RMBS offering strong risk-adjusted returns and reduce the portion of preferred equity in its capital structure.
Risks:
Continued market volatility exacerbated by geopolitical unrest, the upcoming U.S. Presidential election, and possible central bank interest rate cuts impacting portfolio performance.
More details: Cherry Hill Mortgage Investment IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.