Cherry Hill Mortgage Investment Corporation

For Q1 2026, Cherry Hill reported GAAP net loss applicable to common stockholders of $2 million, or $0.05 per diluted share. Comprehensive loss attributable to common stockholders was $4.4 million, or $0.12 per share, and earnings available for distribution (EAD) were $5.3 million, or $0.14 per share. Book value per common share ended at $3.23 versus $3.44 at Dec. 31, 2025, down 6.1% quarter over quarter; economic return was negative 3.2%. Operating expenses were $3.3 million, unrestricted cash was $47 million, and leverage was 5.5x. For April 30, management said book value per share had increased nearly 2% from March 31, excluding any second-quarter dividend accrual. No formal next-quarter or full-year financial guidance was given.

CEO Jay Lown framed the quarter as a period of rapid market disruption driven by geopolitical events, saying the company moved quickly in March to protect book value and manage interest-rate exposure. He emphasized that Cherry Hill stayed prudently levered, maintained strong liquidity, and continues to look for accretive opportunities despite constrained capital. His tone was cautious but constructive, stressing that markets may remain turbulent until the Middle East situation stabilizes.

CFO Apeksha Patel highlighted the quarter’s key financials: a $2 million GAAP net loss, $4.4 million comprehensive loss, and $5.3 million EAD, or $0.14 per share. She noted the company used swaps, TBAs, treasury futures and swap futures with a combined notional amount of about $396 million to reduce exposure to rising rates, and that operating expenses were $3.3 million. She also confirmed the common dividend of $0.10 per share for Q1, alongside preferred dividends of $0.5125 on Series A and $0.5978 on Series B.

Analysts focused on how Cherry Hill would fund new investments, what returns the portfolio could generate if volatility stabilizes, and how wide spreads might move in either direction. Management said any new investment would come at the expense of another asset class, with decisions based on risk-adjusted returns given constrained capital. Julian Evans said RMBS could generate roughly 15% to mid-teens/high-teens levered returns and MSR about 10% to 12%, while also outlining a spread range that could retrace toward 130 or widen to 180 versus swaps; Apeksha Patel added that April 30 book value per share was up nearly 2% from March 31, though spreads had softened after mid-April.