Cherry Hill Mortgage Investment Corporation (CHMI) Q1 2026 earnings summary

Executive summary

• Book value per common share was $3.23 as of March 31, 2026, down 6.1% from the prior quarter after accounting for a $0.10 dividend per share.

• GAAP net loss applicable to common stockholders was $2 million ($0.05 per diluted share), while Earnings Available for Distribution (EAD) was $5.3 million ($0.14 per share).

• Economic return for the quarter was -3.2%, reflecting both the decrease in book value and the dividend paid.

• Portfolio leverage stood at 5.5x, with unrestricted cash of $46.7 million at quarter-end.

• The company continues to focus on risk management and portfolio resilience amid ongoing market turbulence and geopolitical uncertainty.

Financial highlights

• Net interest income was $4.5 million, and net servicing income was $7.9 million for Q1 2026.

• Comprehensive loss attributable to common stockholders was $4.4 million, or $(0.12) per share.

• Book value per common share declined from $3.44 to $3.23 quarter-over-quarter.

• Dividend of $0.10 per share was declared and paid in the quarter.

• Operating expenses totaled $3.3 million for the quarter.

Outlook and guidance

• Management expects continued market volatility until geopolitical tensions in the Middle East subside.

• Portfolio returns are projected in the mid- to high-teens for RMBS and 10–12% for MSR on a levered basis if market stability persists.

• Book value per share increased nearly 2% by April 30, 2026, excluding any second quarter dividend accrual.

• April showed signs of stabilization, but uncertainty persists.

• Forward-looking statements caution about volatility in returns, prepayment rates, and market conditions.