Chimera Investment (CIM) Q1 2025 earnings summary

Executive summary

• Book value per share increased 7.4% to $21.17 in Q1 2025, with a 9.2% economic return and $0.41 earnings available for distribution per share.

• Net income available to common shareholders was $146 million ($1.79 per share), up from $111 million ($1.37 per share) in Q1 2024, driven by higher unrealized gains and investment management fees.

• Palisades Acquisition contributed to rapid integration, expanded advisory revenue, and strong third-party loan growth, with loans under management reaching $24 billion.

• Liquidity was enhanced through $187 million raised from resecuritizations and a new $288 million securitization, with $149 million invested in Agency pools.

• Significant balance sheet moves included refinancing, new securitizations, and extension of major non-mark-to-market facilities to 2027.

Financial highlights

• GAAP net income for Q1 2025 was $145.9 million ($1.77 per share); earnings available for distribution were $34 million ($0.41 per share); book value at quarter-end was $21.17 per share.

• Economic net interest income was $72.3 million; net interest income was $69 million; net interest margin was 2.3%; net interest rate spread was 1.5%.

• Return on average equity was 25.89%; economic net interest income return on average equity was 11.2%; EAD return on average equity was 8.1%.

• Total leverage was 3.9x; recourse leverage was 1.2x.

• Declared dividends of $0.37 per share in Q1 2025.

Outlook and guidance

• Focus on portfolio diversification, growing recurring fee income, and adding liquidity, with plans to deploy freed capital over the next 4–8 weeks.

• Management expects continued market uncertainty and volatility but believes strong liquidity positions the company to capitalize on investment opportunities.

• Dividend policy under review, with decisions pending further market developments.

• Book value estimated flat to slightly down (about 40 bps) so far in Q2 2025.

• Committed to purchase $32 million of residential transition loans expected to settle in Q2 2025.