Ellington Residential Mortgage ( (EARN) ) has released its Q2 earnings. Here is a breakdown of the information Ellington Residential Mortgage presented to its investors.
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Ellington Credit Company is a non-diversified closed-end fund that specializes in investing in collateralized loan obligations (CLOs), focusing on mezzanine debt and equity tranches, and is managed by an affiliate of Ellington Management Group, L.L.C., a renowned fixed-income investment manager.
In its latest earnings report for the first fiscal quarter ending June 30, 2025, Ellington Credit Company reported a net asset value per share of $6.12, a slight increase from the previous quarter. The company achieved a GAAP net income of $10.2 million, or $0.27 per share, and a net investment income of $6.5 million, or $0.17 per share. The CLO portfolio expanded significantly, reaching $316.9 million, up from $249.9 million in the previous quarter.
Key financial highlights include a weighted average GAAP yield of 15.6% on the total CLO portfolio and a distribution rate of 17.2% based on the recent stock price. The company received $15.9 million in recurring cash distributions from its investment portfolio. The strategic scaling of the CLO portfolio and active trading contributed to a robust annualized return of 19.7% for the quarter.
Looking ahead, Ellington Credit Company remains optimistic about its future performance. The management anticipates that the current capital deployment rate will enhance net investment income in the coming months, with projections indicating that net investment income will cover monthly distributions starting in September.