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Cherry Hill Mortgage swings to Q3 net loss on unrealized RMBS losses

By Reuters News


Overview

  • U.S. mortgage REIT posted Q3 net loss and loss per share of $0.11

  • Earnings available for distribution for Q3 were $0.14 per share

  • Company highlighted pending merger with TPG Mortgage Investment Trust, announced in August


Outlook

  • Company has entered into a definitive merger agreement with TPG Mortgage Investment Trust, Inc.


Result Drivers

  • RMBS LOSSES - Co said net unrealized loss on RMBS and credit loss and impairment on other assets contributed to Q3 net loss

  • DERIVATIVES GAINS - Realized and unrealized gains on derivatives partially offset portfolio losses in Q3

  • SERVICING INCOME - Net servicing fee income supported earnings available for distribution in Q3


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Loss Per Share

$0.11

Q3 Net Loss

$3.90 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the specialized reits peer group is "buy."

  • Wall Street's median 12-month price target for Cherry Hill Mortgage Investment Corporation is $3.10, about 19.7% above its October 28 closing price of $2.59

  • The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 4 three months ago


Reuters Recommended Reads

  • Oct 26 - TPG RE Finance Trust Q3 distributable earnings fall on realized loan loss

  • Oct 29 - Blackstone Mortgage Trust posts Q3 loss

  • Oct 28 - KKR Real Estate Finance Trust posts smaller Q3 loss on strong loan repayments


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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