Cherry Hill Mortgage Investment Stock Earnings Reports

Cherry Hill reported Q1 2026 GAAP net loss applicable to common stockholders of $2.0 million, or $0.05 per diluted share, with book value per common share declining 6.1% quarter-over-quarter to $3.23 and NAV (including preferred) down 3.3%. Economic return for the quarter was negative 3.2%, while earnings available for distribution (EAD) were $5.3 million, or $0.14 per share. The company maintained conservative financial leverage (5.5x) and $47 million of unrestricted cash. Portfolio composition: MSR UPB of $15.6 billion with market value ~ $213 million (MSR and related assets ~41% of equity capital; ~21% of investable assets), RMBS representing ~42% of equity capital (RMBS including TBAs ~ $807 million). Prepayment speeds were modest (MSR net CPR ~4.5%; RMBS ~8% CPR). Management highlighted that geopolitical events (the Iran war) drove March volatility, prompting proactive portfolio and hedging actions to protect book value; hedges include swaps, TBAs, treasury futures and Eris SOFR futures (combined notional ~ $396 million). Financing costs for RMBS improved modestly (repo/financing rate decline to 3.78%), supporting a RMBS net interest spread of 2.9% for the quarter. The Board declared a $0.10 common dividend for Q1 and paid preferred dividends. Management expects elevated near-term market volatility until geopolitical clarity, but noted that if stability persists, RMBS and MSR could deliver attractive levered returns (management cited mid-teens+ for RMBS and ~10–12% for MSR). The company continues to seek accretive investment opportunities while remaining disciplined about capital allocation.