The following is a summary of the Cherry Hill Mortgage Investment Corporation (CHMI) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Cherry Hill reported a GAAP net loss applicable to common stockholders of $0.06 per diluted share.

• Earnings available for distribution (EAD) were $2.3 million, or $0.08 per share, impacted by $0.06 per share of expenses related to the Special Committee's efforts.

• Book value per common share decreased to $4.15, driven by Special Committee expenses and high dividend payments on Class B preferred shares.

Business Progress:

• Cherry Hill has initiated the internalization of management to become a fully integrated internally managed mortgage REIT. This transition aims to reduce expenses, enhance earnings, and align management with the investment community.

• The company strategically sold over $1 billion in UPB of low loan balance MSRs to improve portfolio efficiency and reduce servicing costs.

Opportunities:

• The anticipated Federal Reserve rate cuts should enable Cherry Hill to reposition its portfolio to take advantage of the steepening yield curve.

• Cherry Hill plans to invest in Agency RMBS offering strong risk-adjusted returns and reduce the portion of preferred equity in its capital structure.

Risks:

• Continued market volatility exacerbated by geopolitical unrest, the upcoming U.S. Presidential election, and possible central bank interest rate cuts impacting portfolio performance.

More details: Cherry Hill Mortgage Investment IR

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