Chimera Investment (CIM) Q4 2025 earnings summary

Executive summary

• Completed a strategic transformation into a hybrid REIT, emphasizing diversification, liquidity, and fee-based income growth, with the first full quarter of HomeXpress contributions and capital allocation realization in Q4 2025.

• Acquired HomeXpress Mortgage, expanding operational capabilities and reach in non-QM origination, contributing to increased earnings power and enabling a dividend hike for 2026.

• Transformation initiatives begun in December 2024 are credited for improved results and increased dividend.

• FY 2025 was a transition year, highlighted by capital generation, portfolio reallocation, and the HomeXpress acquisition.

Financial highlights

• GAAP net income for Q4 2025 was $7M ($0.08/share); full-year GAAP net income was $144M ($1.72/share).

• Q4 earnings available for distribution (EAD) was $45M ($0.53/share); full-year EAD was $141M ($1.68/share).

• GAAP book value at Q4 end was $19.70/share; Q4 economic return on book value was -0.9%, full-year +7.4%.

• Q4 dividend increased 22% to $0.45/share for Q1 2026, with board expecting to maintain this level for the year.

• Total assets at year-end 2025 were $15.8B, up from $13.1B at year-end 2024.

Outlook and guidance

• Focus remains on portfolio diversification, liquidity expansion, and fee-based income growth, with management expecting continued benefits from the transformation strategy and increased dividend capacity.

• Expect continued capital redeployment into Agency MBS, MSRs, and select credit investments in 2026.

• Optimistic about non-QM and business purpose loan market growth, projecting 20-25% industry volume increase in 2026.

• Forward-looking statements highlight risks from market, regulatory, and operational factors.