Chimera Investment ( CIM ) is trading ~9% lower after the mortgage REIT reported a Y/Y fall in EPS and net interest income.
The company's Q2 non-GAAP EPS of $0.31 misses by $0.04 and net interest income of $116.89M is down 32.0% Y/Y.
The company booked a GAAP book value of $8.82 per share. CIM is currently trading at $9.20.
GAAP Q2 net loss was $180M, or $0.76 per diluted share.
94% of Chimera's equity capital is allocated to mortgage credit, with Q2 residential mortgage credit portfolio coming at $13.2B and agency MBS portfolio at $0.5B.
Here is a look at CIM's Q2 net interest spread, compared to the previous quarter:
The company paid a dividend of $0.33 per share in Q2.
With two interest rate hikes of 75 basis points by the Federal Reserve in the last two meetings, and 100 basis points rate hike expectations from the coming three meetings, the company is set to evaluate its dividend policy, according to the Q2 earnings call.
As home prices hover near historical highs and mortgage rates keep soaring, housing affordability in the U.S. is about to reach its lowest point since the 2007 Great Financial Crisis, according to a report by S&P Global Ratings released on July 20.
Chimera is among the many mortgage REITs that may be impacted.
For further details see:
Chimera Investment trades lower after Y/Y fall in Q2 earnings