Key Points – Cherry Hill Mortgage Investment reported a first-quarter GAAP net loss of $2 million, or $0.05 per share, and book value per common share fell 6.1% to $3.23 as geopolitical volatility and wider mortgage spreads pressured results late in the quarter. – The company…
id its MSR portfolio helped offset some weakness, while management made portfolio adjustments in March to protect book value; leverage ended the quarter at a “prudently levered” 5.5x with $47 million in unrestricted cash. – Management expects volatility to remain elevated in the near term, but sees potential support from GSE demand and stabilizing mortgage rates, with CFOs noting book value improved nearly 2% by April 30 from quarter-end. Cherry Hill Mortgage Investment (NYSE:CHMI) reported a first-quarter loss as management said geopolitical volatility, higher inflation expectations and wider mortgage spreads weighed on performance late in the period
President and CEO Jay Lown said markets began the quarter with relative stability similar to the second half of 2025, but conditions changed quickly after the outbreak of war with Iran. He said oil and gas prices spiked, inflation expectations rose and expectations for future rate cuts this year diminished. Mortgage spreads widened and the yield curve flattened as volatility increased. “Specific to Cherry Hill, as the geopolitical uncertainty unfolded, we acted quickly and we believe appropriately to protect the company by focusing on the risks that were within our control,” Lown said.
He added that the company managed its interest rate exposure in March in a way that management believes helped mitigate the impact to book value. First-quarter results The mortgage REIT reported a GAAP net loss applicable to common stockholders of $2 million, or $0.05 per diluted share, for the first quarter. Comprehensive loss attributable to common stockholders, including mark-to-market changes on available-for-sale RMBS, was $4.4 million, or $0.12 per diluted…