Ellington Residential Mortgage REIT Stock Price, News & Analysis

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.

Ellington Credit Company (NYSE: EARN) has received shareholder approval to convert to a Delaware registered closed-end fund, with a focus on corporate CLO investments. The conversion received strong support, with over 93% of votes cast in favor, and excluding abstentions, over 95% approval. The company will be treated as a regulated investment company (RIC) under the Internal Revenue Code.

The conversion process is expected to be completed in the near future, and the company's Series A Preferred Shares were automatically redeemed following the vote. Management believes this strategic transformation will enhance their ability to deliver strong earnings and create additional shareholder value.

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 February 25, 2025, to shareholders of record as of January 31, 2025.

Ellington Credit Company (NYSE: EARN) announced plans to hold a special meeting in early 2025 to approve its conversion to a Delaware registered closed-end fund focused on corporate CLO investments. Despite receiving over 91% approval votes at the December 2024 meeting, the conversion threshold wasn't reached due to low voter turnout.

To address this, the company has issued 1,000 Series A Preferred Shares, each with 25,000 votes, designed to mirror common shareholders' votes. These preferred shares, sold to Ellington Credit Company Management for $1,000, will only vote on conversion proposals and will be automatically redeemed upon approval. The shares aim to amplify voting preferences without overriding common shareholders' expressed preferences.

Ellington Credit Company (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 January 27, 2025 to shareholders of record as of December 31, 2024.

Ellington Credit (NYSE: EARN) has announced its 2024 Annual Meeting of Shareholders will be held on December 4, 2024, at 10:00 am ET via webcast. Over 92% of received votes support proposals to convert the company to a closed-end investment company under the Investment Company Act of 1940. However, due to shareholders who haven't voted, the Conversion Proposals haven't reached required approval threshold. The company's Board of Trustees and proxy advisory firms ISS and Glass Lewis recommend voting 'FOR' all proposals.

Ellington Credit Company (NYSE: EARN) reported Q3 2024 financial results with net income of $5.4 million ($0.21 per share) and Adjusted Distributable Earnings of $7.2 million ($0.28 per share). Book value was $6.85 per share, including $0.24 quarterly dividends. The company's CLO portfolio increased to $144.5 million from $85.1 million in Q2. Net interest margin was 9.65% on credit, 3.52% on Agency, and 5.22% overall. The company maintains a debt-to-equity ratio of 2.5:1 and declared a monthly dividend of $0.08 per share, yielding 14.5%. The company continues its strategic transformation to focus on corporate CLOs while maintaining strong performance from CLO debt and equity investments.