CHMI Q1 2026 Earnings Call Transcript

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DATE

Thursday, May 7, 2026 astatine 5 p.m. ET

CALL PARTICIPANTS

• President and Chief Executive Officer — Jeffrey Lown

• Chief Investment Officer — Julian Evans

• Chief Financial Officer and Treasurer — Apeksha Patel

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Full Conference Call Transcript

Jeffrey Lown: Thanks, Garrett, and invited to our archetypal 4th 2026 net call. The interaction to markets from geopolitical events globally drove show for the archetypal 4th of this year. On our anterior telephone successful precocious February, the situation felt precise overmuch similar the 2nd fractional of 2025 successful presumption of comparative stability. A fewer days later, we were astatine warfare with Iran, lipid and state prices spiked, ostentation expectations followed successful concert, and the imaginable for aboriginal complaint cuts this twelvemonth rapidly fell by the wayside. Mortgage spreads promptly widened and the output curve flattened arsenic a effect of the accrued volatility.

Specific to Cherry Hill, arsenic the geopolitical uncertainty unfolded, we acted rapidly and we judge appropriately to support the institution by focusing connected the risks that were wrong our control. We managed our involvement complaint vulnerability successful March well, which we judge helped mitigate the interaction to publication worth astatine the extremity of March. All things considered, we judge we performed good successful the 4th connected a comparative basis. Subsequent to 4th end, markets person responded favorably to a imaginable extremity to the conflict, and that has been a affirmative catalyst for agency-focused REITs, arsenic noted by peers. That said, we are monitoring everything intimately arsenic markets volition apt stay turbulent until the geopolitical concern has afloat settled.

For the archetypal quarter, we generated GAAP nett nonaccomplishment applicable to communal stockholders of $0.05 per diluted share. Book worth per communal stock finished the 4th astatine $3.23 compared to $3.44 connected December 31, down 6.1% for the quarter. Economic instrumentality for the 4th was antagonistic 3.2%. On an NAV basis, which includes preferred stock, NAV was down $7.9 cardinal oregon 3.3% comparative to December 31. Financial leverage astatine the extremity of the 4th remained comparatively accordant astatine 5.5x arsenic we proceed to enactment prudently levered. We ended the 4th with $47 cardinal of unrestricted currency connected the equilibrium sheet, maintaining a coagulated liquidity profile.

In addition, our strategical concern and concern with Real Genius, a Florida-based integer owe exertion company, continues to advancement successful enactment with our expectations. As we determination done the year, we expect the marketplace volition stay volatile for astatine slightest the adjacent word until determination is stableness successful the Middle East. We stay focused connected proactively managing our portfolio done this challenging play portion continuing to question retired further concern opportunities we judge would beryllium accretive to our business. With that, I'll crook the telephone implicit to Julian, who volition screen much details regarding our concern portfolio and its show for the archetypal quarter.