Cherry Hill Mortgage Investment Corporation (CHMI) reported its financial results for the third quarter of 2025, revealing a net income of $4.5 million, or $0.05 per share, compared to a net loss of $12.4 million for the same period in 2024. The company’s interest income increased to $15.6 million from $14.3 million year-over-year, while interest expense decreased to $12.3 million from $14.2 million. This resulted in a net interest income of $3.3 million, a significant improvement from the previous year’s net interest expense of $0.1 million. For the nine months ending September 30, 2025, the company reported a net loss of $0.9 million, compared to a net income of $0.4 million for the same period in 2024.
The company’s total assets increased to $1.52 billion as of September 30, 2025, up from $1.49 billion at the end of 2024. The increase was primarily driven by a rise in the fair value of residential mortgage-backed securities (RMBS), which reached $1.19 billion, compared to $1.12 billion at the end of the previous year. The company’s investments in servicing-related assets also decreased to $218.7 million from $233.7 million, reflecting changes in market conditions and valuation inputs. The total liabilities rose to $1.29 billion, with repurchase agreements accounting for $1.11 billion of this amount.
Strategically, Cherry Hill Mortgage transitioned to an internally managed structure in November 2024, following the termination of its management agreement with Cherry Hill Mortgage Management, LLC. This internalization is expected to enhance operational efficiency and align management incentives with shareholder interests. The company continues to focus on acquiring and managing residential mortgage assets, including Agency RMBS and mortgage servicing rights (MSRs), while maintaining its qualification as a real estate investment trust (REIT).
Operationally, the company reported a slight decrease in servicing fee income to $10.8 million for the third quarter of 2025, down from $11.7 million in the same quarter of 2024. The total number of shares outstanding increased to 36.74 million as of September 30, 2025, compared to 31.63 million at the end of 2024, reflecting ongoing capital raising efforts through its at-the-market (ATM) program. The company raised approximately $14.7 million through the issuance of common stock during the nine months ended September 30, 2025.
Looking ahead, Cherry Hill Mortgage remains cautious about market conditions, particularly regarding interest rate fluctuations and their impact on asset valuations and prepayment speeds. The company is focused on managing its portfolio effectively to navigate potential challenges while aiming to provide attractive returns to its shareholders through dividend distributions and capital appreciation.
About Cherry Hill Mortgage Investment Corp
Cherry Hill Mortgage Investment Corporation is a Maryland-based real estate finance company specializing in acquiring, investing in, and managing residential mortgage assets in the U.S. Its portfolio includes mortgage-backed securities (RMBS) and mortgage servicing rights (MSRs). The company operates as a REIT, focusing on generating attractive yields and risk-adjusted returns through active management, leveraging assets, and hedging interest rate risks. It transitioned to an internally managed structure in 2024.
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