Ellington Residential reports Q1 adjusted EPS 27c, consensus 25c

“Driven in large part by excellent performance from our CLO portfolio, in the first quarter Ellington Credit Company generated net income of $0.20 per share and adjusted distributable earnings of $0.27 per share, which again more than covered our dividend,” said Laurence Penn, Chief Executive Officer and President. “Similar to the prior quarter, our ongoing rotation into CLOs expanded our net interest margin and reduced our overall leverage. In addition, we reduced the size of our interest rate hedging portfolio in the first quarter, given that our CLOs are predominantly backed by floating-rate loans and, as such, have much more limited interest rate duration risk.”