Cherry Hill Mtg Invt Stock Price, News & Analysis
Company Description
Cherry Hill Mortgage Investment Corporation (NYSE: CHMI) is a finance and insurance sector company classified in the "Other Financial Vehicles" industry. According to its public company profile, Cherry Hill Mortgage Investment Corporation operates as a real estate investment trust (REIT) in the United States and focuses on residential mortgage assets. The company states that it invests in these assets with the goal of generating current yields and risk‑adjusted total returns for stockholders, primarily through dividend distributions and secondarily through capital appreciation.
Cherry Hill Mortgage Investment Corporation’s activities are organized into three reportable segments: investments in residential mortgage‑backed securities (RMBS), investments in servicing related assets, and all other activities. The company discloses that it generates the majority of its revenue from the RMBS segment, and that interest income earned for servicing mortgage loans is a key component of its income profile.
Business model and investment focus
As a mortgage REIT, Cherry Hill Mortgage Investment Corporation invests in residential mortgage‑backed securities and servicing related assets. Its public filings and earnings releases describe a portfolio that includes RMBS measured at fair value through earnings and investments in mortgage servicing rights (MSRs) and other servicing related assets. The company reports net interest income from its RMBS portfolio and net servicing income from its servicing related assets, and it uses derivatives such as interest rate swaps, to‑be‑announced (TBA) securities and Treasury futures in connection with managing interest rate and duration risk associated with these holdings.
Cherry Hill Mortgage Investment Corporation reports that it seeks to generate risk‑adjusted total returns for stockholders, with a significant emphasis on dividend distributions. Regular common stock dividends and preferred stock dividends are a recurring feature of its public announcements, reflecting the REIT structure’s focus on distributing earnings to shareholders. The company also reports non‑GAAP metrics such as earnings available for distribution (EAD), which it presents as one indication of earnings capacity for comparison with other issuers that invest in residential mortgage‑related assets.
Portfolio components and income sources
In its quarterly earnings releases, Cherry Hill Mortgage Investment Corporation describes income from several sources tied to its core investment activities. These include:
- Net interest income from its RMBS portfolio, based on the difference between interest income on its securities and interest expense on related financing.
- Net servicing income, which the company calculates as servicing fee income less servicing costs associated with its servicing related assets and MSR portfolio.
- Realized and unrealized gains and losses on RMBS, derivatives and investments in servicing related assets, which affect its reported GAAP net income.
The company’s filings and press releases highlight that the RMBS portfolio and servicing related assets are central to its operations. Cherry Hill Mortgage Investment Corporation also discloses that it employs leverage and uses derivatives, including interest rate swaps, TBAs and Treasury futures, in connection with managing exposure to interest rate movements and duration risk within its RMBS and MSR portfolios.
Dividends and REIT characteristics
Cherry Hill Mortgage Investment Corporation regularly announces dividends on its common stock and preferred stock. Public press releases describe quarterly cash dividends declared by the board of directors on common shares, as well as on its 8.20% Series A Cumulative Redeemable Preferred Stock and 8.250% Series B Fixed‑to‑Floating Rate Cumulative Redeemable Preferred Stock. These announcements underscore the company’s stated objective of generating current yields for stockholders through dividend distributions, consistent with its REIT structure and focus on residential mortgage assets.
The company also explains in its disclosures that EAD is a non‑GAAP financial measure it uses in addition to GAAP net income. EAD is defined by Cherry Hill Mortgage Investment Corporation as GAAP net income or loss adjusted to exclude certain realized and unrealized gains and losses on RMBS, derivatives and investments in MSRs, as well as related tax effects. The company notes that EAD is one indication of earnings capacity but is not a substitute for GAAP net income or a measure of liquidity, and that it may not be comparable to similarly titled measures used by other issuers.
Regulatory reporting and public company status
Cherry Hill Mortgage Investment Corporation files periodic and current reports with the U.S. Securities and Exchange Commission (SEC) under its Commission File Number 001‑36099. Recent Form 8‑K filings describe the company’s quarterly results of operations and financial condition, including the furnishing of earnings press releases as exhibits. Other Form 8‑K filings report matters such as the appointment of executive officers, including changes in the roles of the chief financial officer and general counsel.
The company’s SEC filings identify it as incorporated in Maryland, with principal executive offices in Tinton Falls, New Jersey. These filings confirm its status as a publicly traded corporation whose common stock and certain series of preferred stock are listed under the symbol CHMI on the New York Stock Exchange.
Risk management and use of derivatives
In its earnings materials, Cherry Hill Mortgage Investment Corporation discusses the use of interest rate swaps, TBA securities and Treasury futures in connection with its RMBS and MSR portfolios. The company reports realized and unrealized gains and losses on these derivatives, which affect GAAP net income. It also states that these instruments are used in relation to managing interest rate and duration characteristics of its residential mortgage‑related investments.
The company’s reported results include net interest spread metrics for its RMBS portfolio and leverage ratios for its aggregate portfolio, reflecting the role of financing and hedging in its business model as a mortgage REIT focused on residential mortgage assets.
Segment reporting and financial disclosures
Cherry Hill Mortgage Investment Corporation’s segment disclosures identify three reportable segments: investments in RMBS, investments in servicing related assets, and all others. The company reports that the RMBS segment generates the maximum revenue among these segments, with interest income from mortgage‑related investments and servicing income from mortgage loans forming key components of its financial performance.
Investors and analysts can review the company’s detailed financial information, including segment results, net interest income, net servicing income, realized and unrealized gains and losses, and reconciliations of GAAP net income to EAD, in its quarterly reports on Form 10‑Q and related earnings press releases furnished on Form 8‑K.
FAQs about Cherry Hill Mortgage Investment Corporation (CHMI)
- What does Cherry Hill Mortgage Investment Corporation do?
Cherry Hill Mortgage Investment Corporation operates as a real estate investment trust that invests in residential mortgage assets in the United States. It focuses on generating current yields and risk‑adjusted total returns for stockholders, primarily through dividend distributions and secondarily through capital appreciation. - How does Cherry Hill Mortgage Investment Corporation generate income?
According to the company’s disclosures, Cherry Hill Mortgage Investment Corporation generates income through net interest income on its residential mortgage‑backed securities, net servicing income from servicing related assets, and realized and unrealized gains and losses on RMBS, derivatives and investments in servicing related assets. Interest income earned for servicing mortgage loans is an important revenue source. - What are Cherry Hill Mortgage Investment Corporation’s main business segments?
The company reports three segments: investments in residential mortgage‑backed securities (RMBS), investments in servicing related assets, and all others. It states that the RMBS segment generates the maximum revenue among these segments. - What is the role of dividends in Cherry Hill Mortgage Investment Corporation’s strategy?
Cherry Hill Mortgage Investment Corporation states that it aims to generate risk‑adjusted total returns for stockholders primarily through dividend distributions. The company regularly announces quarterly cash dividends on its common stock and on its Series A and Series B preferred stock. - What is Earnings Available for Distribution (EAD) for Cherry Hill Mortgage Investment Corporation?
EAD is a non‑GAAP financial measure defined by the company as GAAP net income or loss adjusted to exclude certain realized and unrealized gains and losses on RMBS, derivatives and investments in MSRs, as well as related tax effects. The company indicates that EAD is provided to give investors insight into ongoing operational performance, but it is not a substitute for GAAP net income or a measure of liquidity. - How does Cherry Hill Mortgage Investment Corporation describe its use of derivatives?
In its earnings releases, the company reports using interest rate swaps, TBA securities and Treasury futures in connection with its RMBS and MSR portfolios. It reports realized and unrealized gains and losses on these derivatives as part of its results of operations. - Where is Cherry Hill Mortgage Investment Corporation incorporated and where are its principal executive offices located?
SEC filings identify Cherry Hill Mortgage Investment Corporation as a Maryland corporation with principal executive offices in Tinton Falls, New Jersey. - On which exchange does Cherry Hill Mortgage Investment Corporation trade and what is its ticker symbol?
The company’s common stock is listed on the New York Stock Exchange under the ticker symbol CHMI, as referenced in its press releases and SEC filings. - What types of residential mortgage assets does Cherry Hill Mortgage Investment Corporation invest in?
The company states that it invests in residential mortgage assets, including residential mortgage‑backed securities and servicing related assets such as mortgage servicing rights, which together form the core of its investment portfolio. - How does Cherry Hill Mortgage Investment Corporation present its financial results to investors?
Cherry Hill Mortgage Investment Corporation reports its results of operations and financial condition in quarterly earnings press releases and in Quarterly Reports on Form 10‑Q filed with the SEC. It also furnishes these earnings releases on Form 8‑K and provides reconciliations of GAAP net income to non‑GAAP measures such as EAD.