Cherry Hill Mortgage Investment Corporation Announces Fourth Quarter 2018 Results
FARMINGDALE, N.J.--(BUSINESS WIRE)--Mar. 18, 2019-- Cherry Hill Mortgage Investment Corporation (NYSE: CHMI) (“Cherry Hill” or the “Company”) today reported results for the fourth quarter of 2018.
Fourth Quarter 2018 Highlights
- GAAP net loss applicable to common stockholders of $39.7 million, or $2.42 per share
- Core earnings attributable to common stockholders of $10.8 million, or $0.66 per share
- Book value of $17.58 per share at December 31, 2018, a 9.7% decline from September 30, 2018, net of the Company’s fourth quarter dividend and before giving effect to the $0.15 special dividend
- Declared regular common dividend of $0.49 per share; annualized common dividend yield at market close was 10.8% at March 15, 2019
- Aggregate portfolio leverage stood at 4.8x at December 31, 2018
- Increased UPB of MSR portfolio by approximately 10% during the quarter
“Cherry Hill had another year of strong earnings, despite a difficult market environment in the fourth quarter. We believe our asset selection has served our shareholders well to date,” said Jay Lown, President and Chief Executive Officer of Cherry Hill Mortgage Investment Corporation.
“In the fourth quarter, investor sentiment waned as a spike in volatility, geopolitical concerns and revised global growth expectations moved investors into safe-haven assets. Spread sector assets struggled given the market volatility,” said Julian Evans, Chief Investment Officer.
Operating Results
Cherry Hill reported GAAP net loss applicable to common stockholders for the fourth quarter of 2018 of $39.7 million, or $2.42 per basic and diluted weighted average common share outstanding. The reported GAAP net loss was determined based primarily on the following: $6.6 million of net interest income, $13.0 million of net servicing income, a net realized loss of $2.9 million on the RMBS portfolio, a net realized loss of $3.2 million on derivatives, a net unrealized loss of $30.9 million on derivatives, a net unrealized loss of $21.9 million on the MSR portfolio and general and administrative expenses and management fees paid to Cherry Hill’s external manager in the aggregate amount of $2.6 million.
Core earnings attributable to common stockholders for the fourth quarter of 2018 were $10.8 million, or $0.66 per basic and diluted weighted average common share outstanding. For a reconciliation of GAAP net loss to non-GAAP core earnings, please refer to the reconciliation table accompanying this release.