The following is a summary of the Cherry Hill Mortgage Investment Corporation (CHMI) Q4 2024 Earnings Conference Call Transcript:
Financial Performance:
Cherry Hill Mortgage reported Q4 net income of $0.29 per diluted share and EAD of $0.10 per share.
The book value per share decreased from $3.82 from $4.02 in September due to special committee expenses but reveals a stable financial position with $46 million of unrestricted cash.
Leverage maintained at 5.3 times, reflecting a stable leverage strategy despite market volatility.
Business Progress:
Internalization of management completed, expected to save $1.1 to $1.6 million in operating expenses in 2025.
Continued strategic focus on Agency RMBS and selective MSRs, balancing risk and returns effectively.
Adoption of interest rate derivatives strategies to mitigate interest rate impacts, with notional amounts of approximately $809 million.
Opportunities:
Internalization aligns management with shareholder interests, improving transparency and efficiency.
The shift towards Agency RMBS and selective MSR investments reflects strong risk-adjusted return profiles despite the volatile market.
Risks:
Elevated repo costs at year-end indicate potential challenges in managing borrowing costs.
Stubbornly high inflation and anticipated fewer rate cuts might impact investment returns.
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.
