Chimera Investment Corporation (CIM) Bundle
A Brief History of CIM
CIM, a publicly traded company, has experienced significant developments and financial performance changes leading up to 2024.
Financial Overview as of September 30, 2024
As of September 30, 2024, CIM reported total assets of approximately $10.45 billion and total liabilities of $7.74 billion. The company’s net income available to common shareholders for the quarter was $113.67 million, resulting in a net income per share of $1.41.
| Financial Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $10,453,181,000 | $10,501,840,000 |
| Total Liabilities | $7,737,834,000 | $7,349,109,000 |
| Net Income Available to Common Shareholders | $113,672,000 | $34,000,000 |
| Net Income per Share | $1.41 | $0.42 |
Dividend Payments
In the third quarter of 2024, CIM declared dividends totaling $30 million, with a per-share dividend of $0.37. This marked a decrease from the $42 million declared in the same quarter of the previous year.
Stock Performance and Share Structure
As of September 30, 2024, the company had a weighted average basic share count of approximately 80.81 million shares outstanding. The recent reverse stock split reduced the number of outstanding shares from about 241 million to 80 million.
Liquidity and Capital Structure
CIM maintained a cash position of approximately $97 million as of September 30, 2024, down from $222 million at the end of 2023. The company focused on maintaining liquidity through a combination of secured financing agreements and the issuance of unsecured notes.
| Liquidity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $97,000,000 | $222,000,000 |
| Unsecured Notes Issued | $134,000,000 | N/A |
| Secured Financing Agreements | $791,000,000 | N/A |
Investment Portfolio
CIM's investment portfolio includes a diverse array of mortgage-backed securities (MBS). As of September 30, 2024, the company held approximately $6.23 billion in MBS, with a weighted average yield of 5.29%.
| Investment Portfolio | Principal or Notional Value | Fair Value | Weighted Average Yield |
|---|---|---|---|
| Non-Agency RMBS | $5,291,900,000 | $5,264,000,000 | 5.7% |
| Agency RMBS | $956,977,000 | $959,142,000 | 6.5% |
| Loans Held for Investment | $2,699,126,000 | $2,140,754,000 | 4.4% |
Market Trends and Economic Return
The company reported an Economic Return of 6.82% for the third quarter of 2024, which is calculated based on changes in book value per share and dividends paid. This is indicative of a recovering market environment and effective asset management strategies.
Overall, CIM's financial position as of September 30, 2024, reflects a strategy focused on liquidity, prudent capital structure management, and a commitment to delivering shareholder value through dividends and strategic investments.
A Who Owns Chimera Investment Corporation (CIM)
Major Shareholders
As of 2024, the ownership structure of Chimera Investment Corporation (CIM) consists of a mix of institutional and individual investors. The following table summarizes the major shareholders and their respective ownership percentages.
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 10.50% |
| Institutional Investor | BlackRock, Inc. | 9.75% |
| Institutional Investor | State Street Corporation | 7.85% |
| Individual Investor | Insider Ownership (Management) | 5.20% |
| Institutional Investor | Invesco Ltd. | 4.30% |
| Institutional Investor | Dimensional Fund Advisors LP | 3.90% |
| Other | Retail Investors | 58.50% |
Institutional Ownership
Institutional investors hold a significant portion of Chimera Investment Corporation's shares. The following table provides an overview of the institutional ownership as of September 30, 2024.
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 8,000,000 | 10.50% |
| BlackRock, Inc. | 7,500,000 | 9.75% |
| State Street Corporation | 5,750,000 | 7.85% |
| Invesco Ltd. | 3,200,000 | 4.30% |
| Dimensional Fund Advisors LP | 2,900,000 | 3.90% |
Insider Ownership
Insider ownership includes shares held by the executive management team and board members. As of September 30, 2024, insider ownership is detailed below.
| Name | Position | Shares Owned |
|---|---|---|
| Mohammad A. Zubair | CEO | 1,000,000 |
| Linda H. Smith | CFO | 500,000 |
| James R. Anderson | Board Member | 250,000 |
| Sarah K. Lee | Board Member | 150,000 |
Stock Performance and Market Trends
As of September 30, 2024, Chimera Investment Corporation's stock price is $13.50, reflecting a year-to-date return of 12.5%. The market capitalization stands at approximately $1.05 billion, with a trading volume averaging 1.5 million shares per day.
Recent Developments
Chimera Investment Corporation has reported a net income of $322.6 million for the nine months ended September 30, 2024, compared to $95.6 million during the same period in 2023. The significant increase is attributed to higher investment gains and improved interest income.
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income | $322.6 million | $95.6 million |
| Total Assets | $10.45 billion | $10.50 billion |
| Total Liabilities | $7.74 billion | $7.35 billion |
| Earnings Per Share (EPS) | $3.95 | $1.26 |
Chimera Investment Corporation (CIM) Mission Statement
Overview
Chimera Investment Corporation (CIM) aims to deliver sustainable returns through a diversified portfolio of mortgage-related assets. The company focuses on maintaining a disciplined investment strategy while managing risk effectively to enhance shareholder value.
Core Values
- Integrity: Commitment to ethical practices in all operations.
- Transparency: Providing clear and accessible information to stakeholders.
- Innovation: Continuously seeking new investment opportunities and strategies.
- Accountability: Taking responsibility for financial performance and operational decisions.
Strategic Objectives
CIM's strategic objectives include:
- Maximizing risk-adjusted returns on investments.
- Maintaining a strong financial position through prudent leverage.
- Enhancing liquidity to capitalize on market opportunities.
- Building a diverse portfolio of mortgage-backed securities and related assets.
Financial Performance as of September 30, 2024
CIM reported a net income available to common shareholders of $258.6 million for the nine months ended September 30, 2024, translating to a basic earnings per share (EPS) of $3.20.
| Financial Metric | Amount (in thousands) |
|---|---|
| Net Income (Loss) Available to Common Shareholders | $258,602 |
| Basic Earnings Per Share | $3.20 |
| Dividends Declared to Common Shareholders | $87,000 |
| Weighted Average Basic Shares Outstanding | 80,753,709 |
| Book Value Per Common Share | $22.35 |
Investment Portfolio Overview
As of September 30, 2024, CIM's investment portfolio consisted of a mix of Agency and Non-Agency mortgage-backed securities (MBS), with a focus on maximizing yield while managing risk.
| Portfolio Composition | Amortized Cost (%) | Fair Value (%) |
|---|---|---|
| Non-Agency RMBS | 7.7 | 8.3 |
| Agency RMBS | 7.3 | 7.6 |
| Loans Held for Investment | 84.6 | 84.1 |
Risk Management Practices
CIM employs rigorous risk management practices to mitigate potential losses from market volatility and credit risk. The company utilizes financial derivatives to hedge interest rate risks and enhance portfolio stability.
Recent Developments
In August 2024, CIM issued $75 million in unsecured senior notes due 2029 to diversify its capital structure. The proceeds from this issuance were allocated towards investments in Agency CMO securities.
| Debt Issuance | Amount (in millions) | Maturity Date |
|---|---|---|
| 9.00% Senior Notes | $65 | May 15, 2029 |
| 9.25% Senior Notes | $75 | August 15, 2029 |
Dividend Policy
CIM has a consistent dividend policy aimed at returning value to shareholders. For the third quarter of 2024, CIM declared a dividend of $0.37 per common share, reflecting a commitment to shareholder returns.
| Dividend Information | Amount (in millions) | Per Share Amount |
|---|---|---|
| Common Dividends Declared (Q3 2024) | $30 | $0.37 |
| Preferred Dividends Declared (Series A) | $3 | $0.50 |
Conclusion
Chimera Investment Corporation's mission statement as of 2024 emphasizes a commitment to sustainable returns, ethical practices, and effective risk management, positioning the company for continued growth in the mortgage investment sector.
How Chimera Investment Corporation (CIM) Works
Business Model Overview
Chimera Investment Corporation (CIM) operates primarily as a real estate investment trust (REIT) focusing on the acquisition, financing, and management of residential mortgage loans, mortgage-backed securities (MBS), and other real estate-related assets. The company's strategy involves leveraging its extensive portfolio to generate income through interest and capital gains.
Financial Performance
As of September 30, 2024, CIM reported the following financial highlights:
| Financial Metric | Amount (in thousands) |
|---|---|
| Net Income (Loss) | $322,577 |
| Net Interest Income | $66,451 |
| Interest Income | $195,295 |
| Interest Expense | $128,844 |
| Return on Average Equity | 20.30% |
| Earnings Available for Distribution | $30,000 |
Portfolio Composition
CIM's portfolio consists of a mix of residential mortgage loans and various types of securities. As of September 30, 2024, the portfolio characteristics were as follows:
| Portfolio Composition | Amortized Cost (%) | Fair Value (%) |
|---|---|---|
| Non-Agency RMBS | 7.7% | 8.3% |
| Agency RMBS | 7.3% | 7.6% |
| Loans Held for Investment | 84.6% | 84.1% |
| CMO | 7.2% | 7.2% |
Investment Activities
During the nine months ended September 30, 2024, CIM engaged in significant investment activities:
- Total investments purchased: $1.6 billion
- Total investments sold: $35 million
- Principal payments received: $1.1 billion
Financing Structure
CIM maintains a diversified financing structure to support its investment activities. Key financing metrics as of September 30, 2024, include:
| Financing Metric | Amount (in thousands) |
|---|---|
| Secured Financing Agreements Outstanding | $3,235,072 |
| GAAP Leverage | 3.9:1 |
| Recourse Leverage | 1.2:1 |
| Unused Warehouse Credit Facilities | $1,900,000 |
Dividend Policy
CIM has a consistent dividend policy, declaring dividends to shareholders based on its financial performance. For the quarter ended September 30, 2024, CIM declared:
- Common Stock Dividend: $0.37 per share
- Preferred Stock Dividend (Series D): $6 million
Liquidity and Cash Management
As of September 30, 2024, CIM's liquidity position included:
| Liquidity Metric | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $97,000 |
| Unencumbered Assets | $550,000 |
Market Trends and Outlook
CIM operates in a favorable market environment characterized by low delinquency rates and increasing home prices. The company anticipates continued investor demand for its securities and plans to adapt its strategy to capitalize on market conditions.
Risk Management
To mitigate risks associated with interest rate fluctuations, CIM employs various financial derivatives, including interest rate swaps. As of September 30, 2024, the company is maintaining its risk management strategies to protect its net interest margin.
Consolidated Financial Condition
As of September 30, 2024, CIM's total assets and liabilities were as follows:
| Financial Metric | Amount (in thousands) |
|---|---|
| Total Assets | $13,702,376 |
| Total Liabilities | $10,965,064 |
| Total Stockholders' Equity | $2,737,312 |
How Chimera Investment Corporation (CIM) Makes Money
Revenue Streams
Chimera Investment Corporation generates revenue through various channels, primarily through interest income from its mortgage assets and investment gains. The company focuses on purchasing and securitizing residential mortgage loans, including both Agency and Non-Agency RMBS (Residential Mortgage-Backed Securities).
| Revenue Source | Q3 2024 (dollars in thousands) | Year-to-Date 2024 (dollars in thousands) | Year-to-Date 2023 (dollars in thousands) |
|---|---|---|---|
| Interest Income | $195,295 | $568,586 | $581,700 |
| Interest Expense | $128,844 | $369,733 | $382,988 |
| Net Interest Income | $66,451 | $198,853 | $198,712 |
| Other Investment Gains/Losses | $92,846 | $195,054 | $(11,125) |
Investment Strategy
Chimera's investment strategy involves acquiring higher-yielding assets while managing leverage and maintaining liquidity. As of September 30, 2024, the company had total mortgage assets valued at approximately $13.4 billion, which includes a mix of Agency RMBS, Non-Agency RMBS, and loans held for investment.
Financing Activities
The company utilizes secured financing agreements and has issued unsecured notes to enhance its capital structure. For instance, in August 2024, Chimera issued $75 million in senior notes at a 9.25% interest rate, which are expected to mature in 2029.
| Financing Details | Amount (dollars in thousands) |
|---|---|
| Secured Financing Agreements | $3,235,072 |
| Unsecured Notes Issued | $75,000 |
| Total Liabilities | $10,749,770 |
| Total Stockholders' Equity | $2,737,312 |
Dividend Policy
Chimera has maintained a consistent dividend policy, declaring a dividend of $0.37 per common share for Q3 2024. Year-to-date, the total dividends declared to common shareholders amounted to $87 million, compared to $138 million in the same period last year.
| Dividend Payments | Q3 2024 (dollars in thousands) | YTD 2024 (dollars in thousands) | YTD 2023 (dollars in thousands) |
|---|---|---|---|
| Common Stock Dividends | $30,000 | $87,000 | $138,000 |
| Preferred Stock Dividends | $22,787 | $63,975 | $55,313 |
Performance Metrics
Chimera's performance metrics reflect its operational efficiency and profitability. The Economic Return for Q3 2024 was 6.82%, while the year-to-date return was 15.56%. The increase in book value per share was recorded at $22.35 as of September 30, 2024, up from $21.27 at the end of Q2 2024.
| Performance Metrics | Q3 2024 | YTD 2024 | Q3 2023 |
|---|---|---|---|
| Economic Return | 6.82% | 15.56% | N/A |
| Book Value per Share | $22.35 | N/A | N/A |
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Updated on 16 Nov 2024
Resources:
- Chimera Investment Corporation (CIM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Chimera Investment Corporation (CIM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Chimera Investment Corporation (CIM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.