Cherry Hill Mortgage Investment Stock Earnings Reports

Cherry Hill reported a challenging but actively managed Q1 2026. GAAP net loss applicable to common was $2.0 million (-$0.05/share); comprehensive loss was $4.4 million (-$0.12/share). Earnings available for distribution (EAD) were $5.3 million ($0.14/share). Book value per common share fell to $3.23 (down 6.1% vs. 12/31/25) and NAV (including preferred) declined ~3.3%. Financial leverage remained conservative at ~5.5x and unrestricted cash totaled ~$47 million. Management attributes quarter volatility to geopolitical events (the Iran war) that drove wider mortgage spreads, higher rates and a flatter curve; they acted in March to manage interest rate exposure and protect book value. Portfolio highlights: MSR UPB $15.6 billion with market value ~ $213 million (MSR + related assets ~41% of equity); RMBS comprised ~42% of equity and ~79% of investable assets (ex-cash). RMBS net interest spread improved to 2.9%, helped by lower repo costs (financing rate down to 3.78%) and better dollar roll income. MSR net CPR ~4.5%; prepayments in the RMBS portfolio were ~8% CPR. Hedging is active (swaps, TBAs, treasury futures, Eris SOFR futures) but they have not applied hedge accounting, so MTM on derivatives flows through GAAP. Board declared common and preferred dividends (common dividend $0.10 paid 4/30). Management expects near-term market volatility until geopolitical clarity; if stability persists, management believes RMBS and MSR offer attractive levered returns. April 30 book value was up nearly 2% vs. March 31 (excluding any Q2 dividend accrual). The company continues to pursue accretive investment opportunities and is progressing on a strategic partnership with Real Genius (digital mortgage tech).