Tue, May 5, 8:33 PM
- Q1 core earnings of $6M or $0.66 per share vs. $7M and $0.76 in Q4. Dividend is $0.55.
- Book value per share of $17.71 slips from $17.86 at start of year. Today's close of $16.30 is an 8% discount to book. Economic return - the dividend plus the change in book value - of 2.2% for the quarter (9.3% annualized).
- Net interest margin of 2.21% down 28 basis points from Q4.
- CPR for agency portfolio of 6.3% vs. 4.6% in Q4.
- Debt-to-equity ratio of 7.5:1 vs. 8.1:1.
- Conference call tomorrow at 11 ET
- Previously: Ellington Residential Mortgage REIT reports Q1 results (May 5)
- EARN flat after hours
Tue, May 5, 5:07 PM
Wed, Mar. 11, 5:15 PM
Fri, Mar. 6, 10:21 AM
- The 10-year Treasury yield has popped all the way to 2.24% (up 11 bps on the session) following the strong jobs report which saw 295K jobs added in February and the unemployment rate dropping to 5.5%.
- Checking short-term interest rate futures, they're falling (meaning higher rates), but still not pricing in a rate hike until late summer.
- Annaly Capital (NLY -1.3%), American Capital Agency (AGNC -0.6%), Two Harbors (TWO -1%), Armour (ARR -0.9%), Invesco (IVR -0.9%), CYS Investments (CYS -1.4%), Hatteras (HTS -1.1%), MFA Financial (MFA -1.1%), Western Asset (WMC -0.7%), Dynex (DX -1.2%), AG Mortgage (MITT -1.5%), Ellington Residential (EARN -1.1%).
- ETFs: REM, MORT, MORL
- Previously: Dollar and Treasury yields spike after strong jobs print (March 6)
Wed, Feb. 18, 7:53 AM
- Q4 core earnings of $7M or $0.76 per share vs. $6.9M and $0.76 in Q3. Dividend is $0.55.
- Book value per share of $17.86 vs. $18.53 as falling rates had the company losing significant money on its hedges. Last night's close of $16.38 is an 8.3% discount to book - about as narrow as the spread has been since shortly after the IPO less than two years ago.
- Economic return for the year - defined as increase in book value plus the dividend - of 9.9% (compounded).
- Net interest margin of 2.49% up 11 basis points from Q3. Weighted-average CPR of 4.6% down 70 basis points.
- Conference call at 11 ET
- Previously: Ellington Residential Mortgage REIT reports Q4 results (Feb. 17)
- EARN flat premarket
Tue, Feb. 17, 6:45 PM
Tue, Jan. 6, 2:17 PM
- The 10-year yield has plunged all the way down to 1.94% and one would figure on some nice increases in book value for the mortgage REITs (REM -0.1%), but on the flip side are narrowing interest rate spreads (especially as the Fed still seems to be intent on hiking short rates), and what hedging losses the companies are taking.
- Other ETFs: MORT, MORL
- Individual names: Annaly Capital (NLY +0.4%), American Capital Agency (AGNC), Armour Residential (ARR -1%), CYS Investments (CYS -0.2%), Invesco Mortgage (IVZ -2.7%), New York Mortgage Trust (NYMT -0.5%), Hatteras Financial (HTS -0.3%), Western Asset Mortgage (WMC -2.7%), Ellington Residential (EARN -0.4%), Javelin Mortgage (JMI -3%).
Dec. 30, 2014, 12:37 PM
- Nearly all the mREITs sell at discounts to their most recently disclosed book value, with sector giants Annaly Mortgage (NYSE:NLY) and American Capital Agency (NASDAQ:AGNC) trading at double-digit discounts.
- Often a sizable haircut to book may make sense, as in the case of Armour Residential (NYSE:ARR) and Javelin Mortgage (NYSE:JMI), both of which just cut their dividend (they have the same external manager).
- Of the 24 companies examined, New York Mortgage Trust (NASDAQ:NYMT) and Capstead Mortgage (NYSE:CMO) stand alone in trading at premiums to book value.
- The full list
Dec. 11, 2014, 4:23 PM
Nov. 19, 2014, 3:42 PM
- A check of the mortgage REITs following FOMC minutes which shows the discussion moving a bit more seriously towards rate hikes finds the sector (REM -0.5%) modestly lower.
- Individual names: Annaly (NLY -0.3%), American Capital Agency (AGNC), CYS Investments (CYS -0.3%), Invesco Mortgage (IVR -0.9%), New York Mortgage Trust (NYMT -0.4%), Hatteras Financial (HTS -0.8%), MFA Financial (MFA -1%), Capsteam Mortgage (CMO -0.6%), Ellington Residential (EARN -0.4%).
Nov. 10, 2014, 7:23 AM
- Q3 core earnings of $6.9M or $0.76 per share vs. $6.8M and $0.75 in Q2. Dividend is $0.55.
- Book value per share of $18.53 vs. $18.71 at end of Q2. Friday's close of $17.68 is a 4.6% discount to September 30 book, a sizable narrowing from the double-digit discounts available to buyers over much of the past several quarters.
- Net interest margin of 2.38% up five basis points from Q; CPR of 5.3% up 130 basis points.
- Non-agency MBS portfolio trimmed just a bit to $33.7M from $35.7M.
- Conference call at 11 ET
- Previously: Ellington Residential Mortgage REIT EPS of $0.76
- EARN flat premarket
Nov. 10, 2014, 7:16 AM
Oct. 7, 2014, 7:08 AM
Sep. 30, 2014, 3:45 PM
- Nearing the end of the day at the JMP Financial Services and Real Estate Conference, attendees get a two-fer, with Michael Vranos and Lawrence Penn presenting for both Ellington Financial (EFC -0.1%) and Ellington Residential (EARN -1.8%).
- Webcast and presentation slides
- "We are religious interest rate hedgers," says Penn (the CEO of both). Our edge, he says, is not in predicting the direction of interest rates. He notes EFC lost just 1% of book value in its agency portfolio and EARN (which is strictly agency MBS) lost only 3% ... "orders of magnitude" less than the company's industry peers.
- EFC hedges credit as well, says Penn, and he notes the company made money during brutally tough years - 2008/09 and 2011 - for credit.
- Previously: Mortgage REITs slip amid investor presentations
Sep. 17, 2014, 2:51 PM
- Another $10B taper this month brings QE to just $5B monthly, an amount the FOMC expects to go down to zero with its next policy meeting. The "dots" shifted somewhat higher - meaning maybe a slightly earlier start to Fed rate hikes and a higher level of Fed Funds at the end of the next few years, with the median forecast being 2.9% at the end of 2016.
- Mortgage REITs (REM +0.2%) have been under pressure in the sessions ahead of the FOMC, and are mostly snoozing through today's news.
- Annaly (NLY -0.1%), American Capital Agency (AGNC +0.1%), CYS Investments (CYS +0.2%), New York Mortgage Trust (NYMT +0.5%), Dynex (DX +0.8%), Ellington Residential (EARN +1.2%), Javelin (JMI +1.3%).
- Previously: FOMC statement and projections lean hawkish
- Previously: Yellen press conference: Falling UE rate still masking labor market weakness
Sep. 11, 2014, 4:36 PM
Ellington Residential Mortgage REIT is engaged in acquiring, investing in, and managing residential mortgage and real estate-related assets. It is also engaged in constructing & actively managing a portfolio comprised mainly of Agency RMBS.
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