Chimera Investment Corporation (CIMP) operates as a real estate investment trust (REIT), primarily focusing on capital deployment within a diverse array of ...
Chimera Investment Corporation is a publicly traded, internally managed mortgage real estate investment trust headquartered at 630 Fifth Avenue in New York, New York. The company was organized on June 1, 2007 and commenced operations after completing its initial public offering on November 21, 2007. Its stated objective is to ...Chimera Investment Corporation is a publicly traded, internally managed mortgage real estate investment trust headquartered at 630 Fifth Avenue in New York, New York. The company was organized on June 1, 2007 and commenced operations after completing its initial public offering on November 21, 2007. Its stated objective is to generate attractive risk-adjusted returns for shareholders through investments in mortgage assets and related real estate credit opportunities.
The company’s core business is divided into two principal areas: Investment Portfolio and Residential Origination. The Investment Portfolio segment deploys capital into a diversified collection of mortgage-related assets. These may include directly originated or acquired residential mortgage loans, Agency residential mortgage-backed securities backed by government-sponsored enterprises or government agencies, Non-Agency RMBS issued without a government guarantee, Agency commercial mortgage-backed securities, and other real-estate-linked investments. The Residential Origination segment independently generates new residential mortgages, expanding the company’s exposure beyond securities investing and potentially providing additional servicing, origination, and asset-management capabilities.
Unlike a traditional manufacturer, Chimera does not have a conventional bill of materials, factory network, or inventory-based cost structure. Its principal “inputs” are investment capital, financing capacity, underwriting expertise, market data, risk-management systems, and employee resources. Key economic costs generally include interest expense on borrowings, hedging costs, loan-origination and servicing expenses, compensation, technology, professional fees, and credit-related losses or valuation changes. Leverage is an important part of the mortgage-REIT model because borrowed funds can increase portfolio income and shareholder distributions, but leverage also magnifies exposure to interest-rate movements, spread widening, refinancing conditions, prepayment behavior, housing-market performance, and counterparty risk.
The supplied market snapshot identifies the company as a Real Estate-sector REIT in the Mortgage REIT industry, with approximately $1.04 billion in market capitalization, 423 full-time employees, and a reported beta of 0.12. The snapshot reports a price of approximately $25.10, book value per share of approximately $28.82, a price-to-book ratio near 0.42, debt-to-assets of approximately 83.8%, and debt-to-equity of approximately 5.57. It also reports a trailing dividend yield of roughly 13.7%, although dividend sustainability should be assessed using current filings, distributable earnings, book-value trends, liquidity, and financing conditions rather than yield alone. Several trailing indicators show weak or unusual profitability and cash-flow characteristics, including near-zero net margin, negative operating cash flow, and a high payout ratio, so the figures should be interpreted in the context of mortgage-REIT accounting and market-value changes.
Phillip J. Kardis II serves as President and Chief Executive Officer; he became CEO in December 2022 and President in March 2024. Chimera’s ongoing priorities are likely to include maintaining diversified mortgage exposure, managing leverage and liquidity, controlling funding costs, protecting book value, generating attractive risk-adjusted returns, supporting distributions, and responsibly expanding residential origination and investment-management capabilities. Investors should monitor quarterly filings for portfolio composition, hedging, delinquencies, credit losses, financing maturities, interest-rate sensitivity, book value, and the relationship between earnings and distributions.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$820.8M
+218.2%
-9.9%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$230.5M
+30.9%
-255.0%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+94.9%
-5.1%
-76.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+93.2%
—
-128.8%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+28.1%
-58.9%
-272.0%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-248.9M
-221.0%
-139.4%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-30.3%
-138.0%
-143.7%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
508.1%
+28.2%
+7.7%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.07x
-97.5%
+3928.7%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Greetings, and welcome to the Chimera Investment Corporation First Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Tyra Walton, Head of Investor Relations. Thank you. You may begin.
Tyra Walton: Thank you, operator, and thank you, everyone, for joining us today. I'm Tyra Walton, Head of Investor Relations. This morning, Chimera released its results for the first quarter of 2026. The earnings release and presentation for the quarter are both available on our website at chimerareit.com. Before we begin, I'd like to review the safe harbor statement. Today's remarks may contain forward-looking statements, which are predictions, projections or other statements about future events. These events are based on current expectations and assumptions that are subject to risks and uncertainties, which are outlined in the Risk Factors section in our most recent annual and quarterly SEC filings. Actual events and results may differ materially from these forward-looking statements. We encourage you to read the forward-looking statement disclaimers in our earnings release and our quarterly and annual filings. During the call, we may also discuss non-GAAP financial measures. Please refer to our SEC filings and earnings supplement for reconciliations to the most comparable GAAP measures. Additionally, the content of this conference call may contain time-sensitive information that is accurate only as of the date of this earnings call. We do not undertake and specifically disclaim any obligation to update or revise this information. I will now turn the call over to our President and Chief Executive Officer, Phil Kardis.
Phillip Kardis: Thank you, Tyra. Good morning, and welcome to Chimera Investment Corporation's First Quarter 2026 Earnings Call. Joining me on the call are Subra Viswanathan, our Chief Financial Officer; Jack MacDowell, our Chief Investment Officer; and Kyle Walker, the President and CEO of HomeXpress Mortgage. After my remarks, Subra will review the financial results. Jack will review the investment portfolio, and then Kyle will review HomeXpress results. We operate in a market where conditions change -- can change quickly. Rates move, spreads widen, liquidity tightens and then [rarely] in a straight line. This year has been a clear reminder of that reality. During the quarter, treasury yields moved higher across the curve, while the 2/10s spread flattened. Prior to the Iran conflict, mortgage rates briefly touched the 3.5-year low, going to reverse higher by 40 basis points as volatility returned. Mortgage basis widened relative to treasuries and swaps, equity volatility spiked at one point doubling before stabilizing. Oil prices moved sharply higher. And at the same time, rate markets alternated between periods of calm and episodes of rapid repricing. Overlaying this, the market expectations for monetary policy shifted meaningfully. …
