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PR Newswire (Fri, 5:25PM)
PR Newswire (Nov 7, 2013)
PR Newswire (Nov 5, 2013)
PR Newswire (Nov 4, 2013)
PR Newswire (Oct 7, 2013)
Ellington Financial LLC to Present at the JMP Securities Financial Services and Real Estate ConferencePR Newswire (Sep 25, 2013)
PR Newswire (Sep 9, 2013)
PR Newswire (Aug 7, 2013)
PR Newswire (Aug 5, 2013)
PR Newswire (Aug 1, 2013)
PR Newswire (Jul 8, 2013)
PR Newswire (Jun 7, 2013)
PR Newswire (Jun 3, 2013)
PR Newswire (May 10, 2013)
PR Newswire (May 9, 2013)
PR Newswire (May 8, 2013)
PR Newswire (May 7, 2013)
PR Newswire (May 6, 2013)
at MarketWatch.com (Sep 12, 2012)
at CNBC.com (Aug 16, 2012)
EFC vs. ETF Alternatives
Friday, Dec 66:45 PMEllington Financial reports book value per share of $23.86
Friday, Dec 66:45 PM| 2 Comments
- Ellington's (EFC) estimated fully diluted book value per share of $23.86 on Nov. 30 appears to be off from $24.57 at the end of October, but it includes the $0.77 dividend. Adding that back in shows book value actually grew a hair during November.
- Today's close of $22.61 puts the stock at a 5.2% discount to book and - annualized - the $0.77 quarterly payout is a yield of 13.6%.
- Press release
Monday, Dec 23:48 PMNo bid for mortgage REITS as yields rise
Monday, Dec 23:48 PM| 36 Comments
- There's no mercy for the mREIT sector (REM -1.6%) as this morning's strong economic data sends the 10-year Treasury yield five basis points higher to 2.80%. Among the new 52-week lows today are sector giants Annaly (NLY -1.6%) and American Capital Agency (AGNC -1.8%).
- Also down sharply are Armour (ARR -2.4%), CYS Investments (CYS -2.4%), Dynex (DX -2.5%), American Capital Mortgage (MTGE -2.8%), AG Mortgage (MITT -2.4%), and Arlington Asset (AI -3.1%).
- Management matters, and investors have clearly lost some faith in the leadership of Annaly and American Capital - both of which trade at more than 20% discounts to book value. The newest favorite is that of Ellington Financial (EFC), where management has mostly been able to preserve book value this year. Company structure may have helped too - Ellington is a partnership, not a REIT and has somewhat more flexibility with its portfolio. The stock trades at just a 6% discount to October 31 reported book.
- ETFs: MORT, MORL
Friday, Nov 154:26 PMVranos buys big slug of Ellington stock
Friday, Nov 154:26 PM| 3 Comments
- Ellington Financial (EFC) co-CIO Mike Vranos purchased 500K shares of company stock at $23.275 each yesterday, bringing his holdings up to about 2.7M shares.
- Ellington has managed to maintain its book value in the face of this year's interest rate and MBS difficulties, and the dividend stands higher today than a year ago. Not surprisingly, the stock has strongly outperformed the broad mREIT sector (though Ellington is a partnership).
- SEC Form 4
Wednesday, Nov 1311:15 AMEllington Residential flies post-earnings
Wednesday, Nov 1311:15 AM| Comment!
- The near-indiscriminate selling in mortgage REITs (REM +0.6%) left at least one major bargain as Ellington Residential Mortgage (EARN +10.7%) soars after reporting Q3 core EPS of $0.61 and an increase in book value to $18.80 per share from $18.57 at the end of Q2. This left the stock - prior to today's move - at a whopping 23.7% discount to book.
- The dividend was just $0.50 per share against core earnings of $0.61 - is a special payout coming?
- Ellington Residential is managed by the same crack team which has expertly preserved book value at Ellington Financial (EFC +0.3%), only EFC is a partnership, EARN is a REIT.
- Net interest margin increased 14 bps to 1.77%. The CPR rose to 3.6% from 1.7%.
- Earnings call is just getting underway.
- Press release
- Relevant ETFs: MORT, MORL.
Thursday, Nov 77:24 PMEllington book value grows 1.6% in October|Thursday, Nov 77:24 PM| Comment!
Tuesday, Nov 57:27 PMEllington Financial misses estimates
Tuesday, Nov 57:27 PM| Comment!
- Ellington Financial (EFC): Q3 net operating income per share of $0.45 misses by $0.10.
- Book value per share of $24.19 off $0.32 or 1.3% from end of Q2. Dividend was $0.77. In early October, company had estimated end of quarter book value of $24.20. Today's close of $22.95 puts the stock at a 5.1% discount to book.
- Non-agency strategy generated $15.1M of income, or $0.58 per share, with realized gains adding to interest income as non-agency prices rebounded a bit. Company remains positive on non-agencies as home price appreciation - while slowed by the increase in mortgage rates - should continue. There's also technical reason to be positive - regulators adopted revised capital rules for banks, the bottom line of which makes non-agency MBS more attractive for lenders to hold.
- Company also took advantage of weakness in CMBS market to add to its holdings - they now represent 6.5% of non-agency portfolio, up from 4.1% in Q2.
- Agency strategy generated $3.1M of income, or $0.12 per share.
- Interest rate hedges generated losses of $7.3M, or $0.28 per share.
- CC tomorrow at 11 ET.
- Shares -1.2% AH.
Tuesday, Nov 56:26 AM
Monday, Nov 46:52 PMEllington Financial declares $0.77 quarterly dividend|Monday, Nov 46:52 PM| Comment!
Tuesday, Oct 293:23 PMTwo sell-siders offer tepid defense of American Capital
Tuesday, Oct 293:23 PM| Comment!
- "A good quarter, all things considered," says Nomura's Bill Carcache, maintaining his Hold rating and $22 price target on American Capital Agency (AGNC -8.7%) after Q3 results. Carcache seems copacetic with CIO Kain's defensive stance - a view not shared by all, judging by the earnings call and the direction of the stock today.
- KBW, meanwhile, maintains its Buy rating, but cuts the price target to $25.50 from $27. The team sees Kain loosening up on his "fully hedged" stance and lifting earnings power "north of the $0.80 dividend."
- You take what you get when you buy an actively managed mREIT like AGNC, says Nomura. Some quarters are going to be terrific, and others - like Q3 - will have a ton of activity with little to show for it.
- AGNC continues to be a major drag on the sector (REM -3.7%). Other names: Two Harbors (TWO -2.6%), Hatteras (HTS -2.9%), Anworth (ANH -3.8%), Western Asset (WMC -2.6%), Ellington (EFC -1.9%), (EARN -3%), AG Mortgage Investment (MITT -5.1%), Apollo Residential (AMTG -4.9%).
Tuesday, Oct 812:09 PMCredit Suisse constructive on mREITs
Tuesday, Oct 812:09 PM| 4 Comments
- Total economic return for mREITs (REM -0.9%) should be positive over the next year, says Credit Suisse, with hybrid/non-agency names faring better than their agency MBS cousins thanks to an expected continued rise in long-term interest rates.
- The team continues to favor two names with less interest rate risk - Two Harbors (TWO -0.8%) and Ellington Financial (EFC -0.4%), as well as those lumped in with mREITs but not really so - Newcastle Investment (NCT -1%), New Residential (NRZ -0.6%), and PennyMac Mortgage (PMT -1.4%).
- Management willingness to buy back shares trading below book value coupled with an ability to protect book value will be the "differentiator of valuation within the group," says Credit Suisse, noting the aggressive repurchases of Gary Kain's AGNC and MTGE.
- Related ETFs: MORT, MORL.
Monday, Oct 76:43 PMEllington Financial discount to book narrows to 6%|Monday, Oct 76:43 PM| 2 Comments
Tuesday, Oct 112:49 PMEllington management sees gains from taper
Tuesday, Oct 112:49 PM| Comment!
- Presenting at the JMP Conference (slides) (webcast), Ellington management lays out the differences between its older partnership - Ellington Financial (EFC -0.1%) - and its recently IPOd mREIT Ellington Residential (EARN +0.9%).
- With 15% agency exposure and 85% non-agency, EFC is about credit risk; with 85% agency exposure and 15% non-agency, EARN is about prepayment risk.
- Turning to market commentary, management feels at this moment there's a good deal more upside than downside. Particularly interesting is their conviction (pages 10 and 11) in the value of pool payups. These were destroyed when rates moved higher over the summer, but have barely recovered even as mortgage prices have improved over the past month. Behind the bizarre price action is - what else - the distortions introduced by the Fed's QE. The taper could turn out to be very helpful. "Tremendous declines in prices set you up for very asymmetric risk/reward opportunities."
Tuesday, Sep 242:45 PMNon-agency REITS the way to go, says Maxim
Tuesday, Sep 242:45 PM| 16 Comments
- The mREIT (REM -0.5%) environment has turned favorable, says Maxim's Michael Diana, but non-agency players are his favorites due to less leverage and exposure to higher home prices. His favorite picks:
- Ellington Financial (EFC +1.2%) - a non-REIT which gives it "the ability to hedge and trade on an unrestricted basis [and profit from] volatility." His target price is $28 (Ellington Residential EARN is the REIT version).
- Two Harbors (TWO -0.3%) - “due to substantial non-Agency and hedging expertise, as well as diversification.” The price target is $11.50.
- American Capital Mortgage (MTGE +1.2%) - price target $25.
- Eleven mREITs have cut their dividends this quarter, but pricing below book value still leaves yields high - 13.9% average for agency REITs, and 13.1% for hybrids.
- Other buy-rated mREITs at Maxim: AMTG, DX, AGNC. Hold-rated: MITT, ARR, HTS, JMI.
- Related ETFs: MORT, MORL.
Monday, Sep 168:07 AMNon-agency mREITs boosted at Compass Point
Monday, Sep 168:07 AM| Comment!
- Compass Point is bullish on (certain) non-agency mREITs with the group overall trading at sizable discounts to book value and maybe having priced in not just the recent interest rate rout, but future routs to come.
- In addition to Ellington Financial (EFC) started at a Buy (yes, we know EFC is a LLC, not a REIT), the firm also initiates Dynex (DX) and MFA Financial (MFA) with Buys.
Monday, Sep 167:21 AMEllington Financial started a Buy at Compass Point
Monday, Sep 167:21 AM| Comment!
- Ellington Financial (EFC) is initiated with a Buy rating at Compass Point.
- Over the weekend, SA's Bear Fight attached his own Buy rating to the stock, noting its lower leverage than most non-agency mRETIs, its large discount to book value, and management's interests (by dint of their 13% ownership) being strongly inline with those of shareholders.
- As previously noted, management's trading skills have allowed it to retain nearly all of the company's book value amid the sharp rise in interest rates.
Monday, Sep 98:57 PMEllington boosts book value during August
Monday, Sep 98:57 PM| Comment!
- Ellington Financial (EFC) reports estimated book value of $24.03 per share as of August 30. Adding back the $0.77 dividend (ex-dividend date was Aug. 28, payable on Sept. 16) would bring book up to $24.80, meaning Mike Vranos and his team increased book value by $0.27 during August.
- An investor buying at the close today got shares at a 12.9% discount to book and yielding 14.3% (annualizing last quarter's $0.77 dividend).
- Source: Press release.
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