Chimera Investment Corporation (CIM) Q3 2025 Earnings Call Transcript
HomeXpress Originations $2.4 billion by UPB, up 36% year-over-year. Reasons for change: Growth in consumer and business purpose loans.
GAAP Net Loss $22 million or $0.27 per share. Reasons for change: Not explicitly mentioned.
GAAP Book Value $20.24 per share. Reasons for change: Decline of 3.2% due to tighter non-Agency RMBS spreads and rally in short-term rates.
Economic Return on GAAP Book Value (Quarterly) Negative 1.4%. Reasons for change: Quarterly change in book value and $0.37 dividend per common share.
Year-to-Date Economic Return on GAAP Book Value 8.3%. Reasons for change: Not explicitly mentioned.
Earnings Available for Distribution (Net Income) $30 million or $0.37 per share. Reasons for change: Not explicitly mentioned.
Economic Net Interest Income $69 million. Reasons for change: Not explicitly mentioned.
Yield on Average Interest-Earning Assets 5.9%. Reasons for change: Not explicitly mentioned.
Average Cost of Funds 4.5%. Reasons for change: Not explicitly mentioned.
Net Interest Spread 1.4%. Reasons for change: Not explicitly mentioned.
Total Leverage 4.8:1. Reasons for change: Not explicitly mentioned.
Recourse Leverage 2:1. Reasons for change: Increased due to higher capital allocation to Agency RMBS securities.
Liquidity (Total Cash and Unencumbered Assets) $752 million, up from $561 million in the second quarter. Reasons for change: Raised liquidity through asset sales and issuance of senior unsecured notes.
Transaction Expenses Higher by $10 million. Reasons for change: Costs associated with HomeXpress acquisition.
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Analysis of Dividend Investment Value in REITs
- Dividend Investment Strategy: Dividend investors, approaching from a value perspective, typically focus on researching highly profitable companies trading at attractive valuations, utilizing a proprietary DividendRank formula to identify the most interesting stocks for further research.
- Unique Nature of REITs: Real Estate Investment Trusts (REITs) are favored by dividend investors due to their requirement to distribute at least 90% of taxable income as dividends, which can lead to high yields but also introduces volatility and uncertainty in payment levels.
- Chimera Investment Corp Dividend: Chimera Investment Corp currently pays an annualized dividend of $1.48 per share in quarterly installments, with its most recent ex-dividend date on December 31, 2025, indicating a stable dividend payment capability.
- Importance of Dividend History: Analyzing a company's long-term dividend history is crucial for assessing the sustainability of recent dividends, particularly in REITs, where past payment records can help investors evaluate future payout potential.
Stocks Have Overlooked Geopolitical Issues, But Trump's Actions in Venezuela Shift the Landscape.
Geopolitical Impact: The U.S. arrest of Venezuelan President Nicolás Maduro signifies a significant shift in President Trump's foreign policy ambitions, particularly regarding Venezuela.
Oil's Central Role: Oil is a crucial element in Trump's strategy to influence global dynamics and reshape international relations.
Chimera Investment Corp Anticipates 12% Annual Yield Based on Dividend History
- Yield Expectations: Chimera Investment Corp's current anticipated 12% annual yield, based on historical dividend data, reflects the company's profitability fluctuations, which may impact investor confidence and future investment decisions.
- Dividend Uncertainty: While historical data provides some guidance, the unpredictability of dividend amounts necessitates cautious evaluation by investors regarding sustainability, thereby influencing overall investment strategies.
- Market Reaction: Investor responses to Chimera's dividend policy could lead to stock price volatility, particularly in light of changes in profitability, potentially prompting a reevaluation of the stock in the market.
- Investor Focus: With the emergence of nine other dividend stocks, Chimera's dividend performance will become a focal point for investors, potentially affecting its competitive position among dividend-paying stocks.
Chimera Investment Corp's CIM.PRA Preferred Shares Decline 0.3%
- Stock Performance: On Friday, Chimera Investment Corp's 8.00% Series A Cumulative Redeemable Preferred Stock (CIM.PRA) fell approximately 0.3%, mirroring the decline in common shares (CIM), indicating a cautious market sentiment towards the company's stock.
- Dividend History: The historical dividend payments of CIM.PRA illustrate a stable income return, which, despite the current slight decline in stock price, continues to attract investors seeking fixed income opportunities.
- Market Reaction: The simultaneous 0.3% drop in both preferred and common shares reflects investor concerns regarding Chimera's future performance, potentially impacting its financing capabilities and market confidence.
- Investor Sentiment: The current stock price fluctuations may prompt investors to reassess their investment strategies in Chimera, particularly in the context of increasing market uncertainties.
Chimera Investment announces a dividend of $0.37
Dividend Declaration: Chimera Investment (CIM) has declared a quarterly dividend of $0.37 per share, consistent with previous payments.
Yield Information: The forward yield stands at 11.4%, with the dividend payable on January 30 for shareholders of record on December 31, and the ex-dividend date also on December 31.
Chimera Investment's Series B Preferred Stock Surpasses 10.5% Yield Mark
Stock Performance: Chimera Investment Corp's 8.00% Series B Preferred Stock (CIM.PRB) is up approximately 0.6% in Monday trading, while the common shares (CIM) have decreased by about 0.1%.
Dividend History: A chart detailing the historical dividend payments for CIM.PRB is provided, showcasing the company's commitment to its preferred stockholders.
Analysis of Dividend Investment Value in REITs
- Dividend Investment Strategy: Dividend investors, approaching from a value perspective, typically focus on researching highly profitable companies trading at attractive valuations, utilizing a proprietary DividendRank formula to identify the most interesting stocks for further research.
- Unique Nature of REITs: Real Estate Investment Trusts (REITs) are favored by dividend investors due to their requirement to distribute at least 90% of taxable income as dividends, which can lead to high yields but also introduces volatility and uncertainty in payment levels.
- Chimera Investment Corp Dividend: Chimera Investment Corp currently pays an annualized dividend of $1.48 per share in quarterly installments, with its most recent ex-dividend date on December 31, 2025, indicating a stable dividend payment capability.
- Importance of Dividend History: Analyzing a company's long-term dividend history is crucial for assessing the sustainability of recent dividends, particularly in REITs, where past payment records can help investors evaluate future payout potential.
Stocks Have Overlooked Geopolitical Issues, But Trump's Actions in Venezuela Shift the Landscape.
Geopolitical Impact: The U.S. arrest of Venezuelan President Nicolás Maduro signifies a significant shift in President Trump's foreign policy ambitions, particularly regarding Venezuela.
Oil's Central Role: Oil is a crucial element in Trump's strategy to influence global dynamics and reshape international relations.
Chimera Investment Corp Anticipates 12% Annual Yield Based on Dividend History
- Yield Expectations: Chimera Investment Corp's current anticipated 12% annual yield, based on historical dividend data, reflects the company's profitability fluctuations, which may impact investor confidence and future investment decisions.
- Dividend Uncertainty: While historical data provides some guidance, the unpredictability of dividend amounts necessitates cautious evaluation by investors regarding sustainability, thereby influencing overall investment strategies.
- Market Reaction: Investor responses to Chimera's dividend policy could lead to stock price volatility, particularly in light of changes in profitability, potentially prompting a reevaluation of the stock in the market.
- Investor Focus: With the emergence of nine other dividend stocks, Chimera's dividend performance will become a focal point for investors, potentially affecting its competitive position among dividend-paying stocks.
Chimera Investment Corp's CIM.PRA Preferred Shares Decline 0.3%
- Stock Performance: On Friday, Chimera Investment Corp's 8.00% Series A Cumulative Redeemable Preferred Stock (CIM.PRA) fell approximately 0.3%, mirroring the decline in common shares (CIM), indicating a cautious market sentiment towards the company's stock.
- Dividend History: The historical dividend payments of CIM.PRA illustrate a stable income return, which, despite the current slight decline in stock price, continues to attract investors seeking fixed income opportunities.
- Market Reaction: The simultaneous 0.3% drop in both preferred and common shares reflects investor concerns regarding Chimera's future performance, potentially impacting its financing capabilities and market confidence.
- Investor Sentiment: The current stock price fluctuations may prompt investors to reassess their investment strategies in Chimera, particularly in the context of increasing market uncertainties.
Chimera Investment announces a dividend of $0.37
Dividend Declaration: Chimera Investment (CIM) has declared a quarterly dividend of $0.37 per share, consistent with previous payments.
Yield Information: The forward yield stands at 11.4%, with the dividend payable on January 30 for shareholders of record on December 31, and the ex-dividend date also on December 31.
Chimera Investment's Series B Preferred Stock Surpasses 10.5% Yield Mark
Stock Performance: Chimera Investment Corp's 8.00% Series B Preferred Stock (CIM.PRB) is up approximately 0.6% in Monday trading, while the common shares (CIM) have decreased by about 0.1%.
Dividend History: A chart detailing the historical dividend payments for CIM.PRB is provided, showcasing the company's commitment to its preferred stockholders.
