CIMP · Chimera Investment Corporation

Chimera Investment Corporation reported a GAAP net loss of $65 million for Q1 2026, or $(0.78) per diluted share, compared to net income of $145.9 million, or $1.77 per diluted share, in the same quarter last year. The loss was primarily driven by portfolio repositioning, which accounted for nearly two-thirds of the decline in book value, as well as net realized losses on sales of investments ($40.4 million) and losses on extinguishment of debt ($38.9 million). Despite the GAAP loss, the company generated $46 million in earnings available for distribution (EAD), a non-GAAP measure, or $0.54 per diluted share, comfortably covering the $0.45 common dividend (120% coverage). The dividend was increased 22% from $0.37 in the prior quarter. Book value per share fell 6.9% to $18.34 from $19.70 at year-end 2025, with approximately 40% of the decline attributable to redeeming securitized debt at par that was valued at a discount. Management highlighted strong EAD from both the investment portfolio and residential origination segments. The residential origination segment produced $884 million in volume, up 39% year-over-year, contributing $11 million in EBTDA (earnings before taxes, depreciation, and amortization) representing a 16.8% annualized EBTDA ROE. The company continued to reposition its portfolio by redeeming eight securitizations collateralized by $1.5 billion of seasoned reperforming loans, selling $1.2 billion of those loans, retaining $287 million in loans held for investment, and redeploying $195 million into Agency RMBS. Additionally, it committed to purchase $187 million of newly originated loans from HomeXpress to launch a securitization program. President and CEO Phillip J. Kardis II stated, 'We generated solid earnings across the business and fully covered our dividend, despite the volatile environment. We continued to reposition the portfolio toward higher-return opportunities.' The company's economic return was negative 4.6% for the quarter.