CHMI-PB — Cherry Hill Mortgage Investment Corporation

Cherry Hill Mortgage Investment Corporation (CHMI-PB) Q3 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• GAAP Net Income: $2 million, or $0.05 per diluted share.
• Comprehensive Income: $4.5 million, or $0.12 per diluted share.
• Earnings Available for Distribution (EAD): $3.3 million, or $0.09 per share.
• Book Value per Common Share: Increased to $3.36 from $3.34 in Q2 2025.
• Net Asset Value (NAV): Up approximately $1.1 million (0.5%) from June 30, 2025.
• Financial Leverage: Consistent at 5.3x.
• Unrestricted Cash: $55 million, indicating strong liquidity.

2. Strategic Updates and Business Highlights

• Dividend Adjustment: The Board declared a dividend of $0.10 per share, aligning with the company’s earnings power.
• Partnership with Real Genius LLC: The digital mortgage technology partnership is showing positive momentum, expected to accelerate growth as mortgage rates decline.
• Portfolio Performance: Adjustments made to the RMBS portfolio to capitalize on lower interest rates and investor demand for lower coupon mortgages.

3. Forward Guidance and Outlook

• The company anticipates continued monitoring of the economic environment and plans to seek investment opportunities that are accretive to the business.
• The management remains optimistic about the growth potential of Real Genius as mortgage rates hover around 6%, potentially increasing refinancing activity.

4. Bad News, Challenges, or Points of Concern

• Operating Expenses: G&A and compensation expenses rose by 12.5% sequentially, attributed to personnel changes and professional fees. Although a decrease is expected, exact future costs are uncertain.
• Prepayment Speeds: The MSR portfolio's recapture rate remains low, and the expectation for prepayment speeds is modest due to current mortgage rates.
• Market Conditions: While the Fed's easing may benefit the portfolio, the overall economic landscape remains uncertain, with potential impacts on performance.

5. Notable Q&A Insights

• Future Partnerships: Management expressed openness to future partnerships similar to Real Genius, contingent on finding accretive opportunities.
• Expense Management: There was a discussion on the rise in servicing costs, clarified as a non-recurring expense related to prior deboarding fees.
• Current Book Value: As of October 31, 2025, the book value per share is up about 1.2% from September 30, 2025, indicating positive momentum before any fourth-quarter dividend accrual.

Overall, Cherry Hill Mortgage Investment Corporation reported stable financial performance in Q3 2025, with strategic initiatives in place to enhance growth, while also facing challenges related to operating expenses and market conditions.