Overview

• U.S. mortgage REIT reported Q1 GAAP net loss and negative EPS, book value declined

• Earnings available for distribution remained positive, supporting $0.45 dividend in volatile markets

• Residential origination volume rose 39% yr/yr, demonstrating platform scale and capacity

Outlook

• Company says it is well-positioned as it moves through the year

Result Drivers

• PORTFOLIO OPTIMIZATION - Co said portfolio optimization, including loan sales and redeployment into Agency RMBS, accounted for nearly two-thirds of the change in book value

• ORIGINATION VOLUME GROWTH - Residential origination volume rose 39% yr/yr, demonstrating platform scale and capacity

• DIVERSIFIED EARNINGS - Earnings available for distribution generated from both Investment Portfolio and Residential Origination segments

Company press release: ID:nBw6rXC3Ya

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 EPS		-$0.78
Q1 Net Interest Income		$75 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Chimera Investment Corp is $15.00, about 10.1% above its May 6 closing price of $13.63

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

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