Ellington Residential Mortgage ( (EARN) ) has released its Q4 earnings. Here is a breakdown of the information Ellington Residential Mortgage presented to its investors.
Ellington Credit Company, a financial entity focused on corporate collateralized loan obligations (CLOs), has reported its fourth-quarter 2024 earnings. The company, formerly known as Ellington Residential Mortgage REIT, is transitioning from a real estate investment trust to a regulated investment company, emphasizing CLO investments.
In its latest earnings report, Ellington Credit Company disclosed a net loss of $2.0 million, or $0.07 per share, for the fourth quarter of 2024. Despite this, the company achieved adjusted distributable earnings of $7.8 million, or $0.27 per share, which covered its quarterly dividends. The book value per share stood at $6.53, reflecting the effects of dividends paid during the quarter.
Key highlights from the report include a significant increase in the company’s CLO portfolio, which grew by 18% to $171.1 million. The capital allocation to CLOs rose to 72% by the end of the year. The company also reported a net interest margin of 5.07% overall, with specific margins of 8.54% on credit and 3.24% on Agency portfolios. The debt-to-equity ratio was reported at 2.9:1.
Looking ahead, Ellington Credit Company is set to complete its conversion to a Delaware registered closed-end fund by April 1, 2025. This strategic transformation aims to enhance shareholder value and drive strong earnings through focused investments in corporate CLOs. The management remains committed to executing its strategies with discipline, leveraging market opportunities to optimize portfolio performance.