Cherry Hill Mortgage Investment Stock Earnings Reports

Cherry Hill reported a GAAP net loss applicable to common stockholders of $2.0 million, or $0.05 per diluted share, for Q1 2026. Book value per common share fell 6.1% quarter-over-quarter to $3.23 (NAV down ~3.3% including preferreds). Comprehensive loss was $0.12 per share; earnings available for distribution (EAD) were $5.3 million, or $0.14 per share. The Board declared a $0.10 per common share dividend for Q1; preferred dividends were paid on Series A and B. Financial leverage remained prudent at ~5.5x and unrestricted cash was $47 million. Portfolio highlights: MSR UPB was $15.6 billion with market value ~ $213 million (MSR and related assets ~41% of equity capital); RMBS comprised ~42% of equity capital (RMBS + TBAs ~$807 million). RMBS net interest margin was 2.9%, aided by lower repo costs (financing rate 3.78%) and improved dollar roll income. Prepayment speeds: MSR net CPR ~4.5%; RMBS ~8% CPR. Management emphasized active hedging (swaps, TBAs, treasury futures, Eris SOFR futures) but noted they have not elected hedge accounting, so mark-to-market volatility flows through GAAP results. The team cited geopolitical events (conflict with Iran) as the primary driver of March volatility and said they acted quickly to manage interest-rate exposure to protect book value. They expect elevated mortgage and rate volatility to persist until geopolitical clarity; however, stability could produce notable spread tightening and positive levered returns. April 30 book value increased ~2% vs. March 31 (excluding any Q2 dividend accrual). The company continues its strategic partnership with Real Genius and is selectively evaluating accretive investment opportunities while redeploying capital within the portfolio as needed.