Ellington Residential Mortgage REIT - EARN STOCK NEWS

Ellington Credit Company (NYSE: EARN) has announced it will ring the closing bell at the New York Stock Exchange on April 2, 2025. The ceremony marks two significant milestones: the company's successful conversion to a closed-end fund focused on corporate collateralized loan obligation (CLO) investments and the 30-year anniversary of Ellington Management Group, EARN's investment adviser's parent company.

Ellington Credit Company (NYSE: EARN) has announced the completion of its conversion to a Delaware-domiciled closed-end fund registered under the Investment Company Act of 1940. As part of this strategic transformation, the Fund plans to:

• Divest its remaining Agency MBS pools
• Acquire additional corporate collateralized loan obligations (CLOs)
• Operate as a Regulated Investment Company (RIC) under U.S. federal tax law
• Change its fiscal and tax year to end on March 31

The conversion represents a significant structural change in the Fund's operations and investment strategy, shifting focus towards CLO investments while adapting to new regulatory requirements.

Ellington Credit Company (NYSE: EARN) has secured all necessary approvals to convert to a Delaware-registered closed-end fund, effective April 1, 2025. Following the conversion, the company plans to:

• Divest remaining Agency MBS pools
• Acquire additional CLOs
• Operate under the Investment Company Act of 1940

CEO Laurence Penn expressed optimism about the transition, suggesting the timing could be advantageous given current market volatility and potentially create attractive investment opportunities. The company aims to enhance its ability to generate strong risk-adjusted returns and create additional shareholder value through this strategic transformation.

Ellington Credit Company (NYSE: EARN) reported Q4 2024 results with a net loss of $(2.0) million, or $(0.07) per share, while achieving Adjusted Distributable Earnings of $7.8 million ($0.27 per share). The company's book value stood at $6.53 per share, including $0.24 quarterly dividends.

Key metrics include:

• CLO portfolio grew 18% to $171.1 million, with capital allocation to CLOs increasing to 72%
• Net interest margin of 8.54% on credit, 3.24% on Agency, and 5.07% overall
• Debt-to-equity ratio of 2.9:1
• Cash and unencumbered assets totaling $111 million

Shareholders approved the company's conversion to a Delaware registered closed-end fund, transitioning from an MBS-focused REIT to a CLO-focused strategy. The conversion is expected to complete on April 1, 2025, with over 93% shareholder approval.

Ellington Credit (NYSE: EARN) has announced that its Board of Trustees has declared a monthly common dividend of $0.08 per share. The dividend will be payable on April 25, 2025 to shareholders of record as of March 31, 2025.

The company outlined several potential risk factors that could affect future performance, including: interest rate changes, market volatility, default rates on corporate loans, borrowing capacity, regulatory changes, and their ability to maintain Investment Company Act exclusion. Additionally, they highlighted specific business focuses including their strategy regarding collateralized loan obligations (CLOs) and potential conversion to a closed-end fund/RIC.

Ellington Credit Company (NYSE: EARN) has scheduled its fourth quarter 2024 earnings release and conference call. The company will release financial results for Q4 2024 after market close on March 12, 2025, followed by a conference call on March 13, 2025 at 11:00 a.m. Eastern Time.

The conference call will be accessible via telephone and webcast. Participants can dial (800) 225-9448 (US) or (203) 518-9708 (International) with conference code EARNQ424. A replay will be available until March 20, 2025. The company will also post an investor presentation on its website concurrent with the earnings release.

Ellington Credit (NYSE: EARN) has announced its Board of Trustees' declaration of a monthly common dividend of $0.08 per share. The dividend will be payable on March 25, 2025, to shareholders of record as of February 28, 2025.

The company's forward-looking statements highlight various risk factors that could affect future performance, including interest rate changes, market volatility, default rates on corporate loans, borrowing capacity, regulatory changes, and their ability to maintain Investment Company Act exclusion. Additional considerations include their potential pivot to focus on collateralized loan obligations (CLOs), utilization of net operating loss carryforwards, and possible conversion to a closed-end fund/RIC.

Ellington Credit Company (NYSE: EARN) has released preliminary Q4 2024 results, reporting an estimated book value per share of $6.52-$6.54, including $0.24 in quarterly dividends. The company posted an estimated net loss of $(0.08)-$(0.06) per share, while Adjusted Distributable Earnings are expected at $0.26-$0.28 per share.

Total shareholders' equity is estimated at $195 million as of December 31, 2024. The company's portfolio composition shows significant changes, with CLO allocation increasing to 72% from 58% in the previous quarter. The CLO portfolio reached approximately $170 million, while the MBS portfolio stood at $510 million.

The company is proceeding with its planned conversion to a Delaware registered closed-end fund, focusing on corporate CLO investments, with completion expected by April 1, 2025.

Ellington Credit Company (NYSE: EARN) has released information about the federal income tax treatment of distributions deemed paid in 2024 on its common shares. The company has made this information available on its website under the dividend and tax information section. Throughout 2024, the company operated as a taxable C-Corp.