Cherry Hill Mortgage Reports Full-Year Net Loss, Cuts Common Dividend Amid Market Volatility

summarizeSummary

Cherry Hill Mortgage reported a full-year 2025 net loss for common stockholders and reduced its common stock dividend, despite an increase in non-GAAP EAD per share. The company continued to issue shares through its ATM program, with significant capacity remaining.

check_boxKey Events

• Full-Year Net Loss Reported

  The company reported a net loss of $(3.0) million applicable to common stockholders for the year ended December 31, 2025, a decline from a net income of $2.1 million in 2024.

• Common Stock Dividend Reduced

  Annual common stock dividends were decreased to $0.50 per share in 2025, down from $0.60 per share in 2024.

• Ongoing ATM Program Activity

  The company sold 4,909,053 shares of common stock for aggregate gross proceeds of $14.7 million under its At-The-Market (ATM) program in 2025. Approximately $34.6 million remains available under the program, indicating potential for further dilution.

• Internalization Impact on Expenses

  The first full year of internal management in 2025 resulted in increased compensation and benefits of $6.5 million, while management fees to affiliates were eliminated ($0 in 2025 vs $6.0 million in 2024).

auto_awesomeAnalysis

Cherry Hill Mortgage Investment Corp's 2025 annual report reveals a significant shift to a net loss for common stockholders, declining to $(3.0) million from a $2.1 million net income in 2024. This is compounded by a reduction in annual common stock dividends to $0.50 per share from $0.60 per share in 2024, a key negative signal for a REIT. While the non-GAAP Earnings Available for Distribution (EAD) per diluted share increased to $0.46 from $0.40, the GAAP loss and dividend cut are likely to be the primary focus for investors. The company continued to utilize its At-The-Market (ATM) program, selling $14.7 million in common stock in 2025, with a substantial $34.6 million remaining, indicating ongoing potential for dilution. The report also details the first full-year financial impact of the company's internalization, resulting in increased compensation and benefits but the elimination of external management fees. Investors should closely monitor the company's path to profitability, its management of interest rate risks, and the potential dilutive effects of future ATM sales.