Chimera Investment (CIM) Q3 2025 earnings summary

Executive summary

• Closed the acquisition of HomeXpress for $240 million in cash and stock on October 1, 2025, diversifying revenue streams and expanding into Non-QM mortgage origination.

• Transitioned into a fully integrated mortgage business with origination, management, and investment capabilities.

• Portfolio repositioned with 73% in residential mortgage loans, 21% in Agency RMBS, and 6% in Non-Agency RMBS as of September 30, 2025.

• Diverse revenue streams from permanent capital, mortgage origination, advisory services, and third-party capital management.

• Issued $120 million of 8.875% senior unsecured notes due 2030 to support liquidity and acquisition funding.

Financial highlights

• GAAP net loss for Q3 2025 was $22 million ($0.27 per share); earnings available for distribution were $30 million ($0.37 per share).

• Book value per share at quarter-end was $20.24, down 3.2% from Q2 2025.

• Economic return for Q3 2025 was (1.4)%; year-to-date economic return was 8.3%.

• Net interest income for Q3 2025 was $65.0 million; economic net interest income was $68.6 million, with a net interest rate spread of 1.4%.

• Total leverage at period-end was 4.8x; recourse leverage was 2.0x.

Outlook and guidance

• HomeXpress acquisition expected to be accretive to earnings in Q4 2025 and 2026, with estimated after-tax ROE of 19–25%.

• 2026 HomeXpress projections: $4–$4.4 billion in originations, after-tax earnings of $53–$68 million.

• Management expects continued portfolio repositioning, maintaining flexibility to respond to market volatility and policy uncertainty.

• Dividend of $0.37 per common share declared for Q3 2025.