Chimera Investment ( NYSE: CIM ) on Wednesday posted Q4 earnings that met the consensus estimate. During the quarter the mortgage REIT took actions in financing, hedging, and asset acquisitions and allocations to help it navigate potentially volatile markets in 2023, CEO Phillip Kardis said.
Q4 earnings available for distribution of $0.11 per share, matching the Wall Street consensus, fell from $0.27 in Q3 and from $0.46 in Q4 2021.
Q4 economic net interest income of $76.9M, xxx the consensus, fell from $104.2M in the prior quarter and from $154.6M in the same quarter a year earlier.
GAAP book value was $7.49 per common share at Dec. 31, 2022 vs. $7.44 at Sept. 30.
Earnings available for distribution/average common equity was 6.02% vs. 13.30% in the previous quarter and 13.29% Q2 2022.
During the quarter Chimera ( CIM ) settled $463M of fixed rate prime jumbo loans into a financing structure in which the company borrowed $383M for five years at an effective fixed rate with non-mark-to-market feature. It also sponsored $145M CIM 2022-NR1 Securitization, which reduced CIM's mark-to-market mortgage loan warehouse exposure by ~$100M.
Since the quarter's end, the company committed to purchase ~$900M of residential mortgage loans, which is expected to be accretive to future earnings; collapsed CIM Trust 2020-R4, CIM Trust 2020-NR1, CIM Trust 2018-R5, and CIM Trust 2018-R6, and issued CIM Trust 2023-R1 and CIM Trust 2023-NR1, reducing recourse borrowing amount by ~$139M and releasing ~$90M of equity.
Its cash balance increased to ~$365M as of Jan. 31, 2022 vs. ~$350M as of Oct. 31, 2022.
Conference call at 8:30 AM ET.
Earlier, Chimera Investment ( CIM ) non-GAAP EPS of -$0.11 in-line
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Chimera Investment Q4 earnings meet consensus; braces for more volatility