Chimera Investment Corp. Sponsors Two Residential Mortgage Loan Securitizations & Provides an Estimate of GAAP Book Value
March 31 2020 - 6:40AM
Business Wire
Chimera Investment Corporation (“Chimera” or the “Company”)
announced that at close of business on March 27, 2020 Chimera
estimates that its GAAP book value per share is between $12.25 and
$12.75.
In addition, Chimera sponsored two residential mortgage loan
securitizations during the month of March. CIM 2020-R1 is a $390.7
million non-rated securitization of re-performing residential
mortgage loans, which closed on March 10, 2020. CIM 2020-R2 is a
$492.3 million rated securitization of re-performing residential
mortgage loans, which closed on March 24, 2020. “We believe that
our ability to close a securitization during the current market
environment speaks to the value of our franchise,” said Matthew
Lambiase, the Company’s Chief Executive Officer.
While the global COVID-19 pandemic continues to cause
unprecedented market conditions, Chimera remains focused on
managing its portfolio to benefit its stockholders over the long
term.
The Company’s estimates of the financial information above
reflect estimates with respect to such information based on
information currently available to management, and may vary from
the Company’s actual financial results as of and for the quarter
ended March 31, 2020 (and these variances may be material,
particularly in light of the significant volatility and market
dislocations discussed above). Further, these estimates are not a
comprehensive statement of the Company’s financial results as of
and for the quarter ended March 31, 2020, and there can be no
assurance that the Company’s estimates as of March 27, 2020 are
indicative of what its results are likely to be for the quarter
ending March 31, 2020 or in future periods and the Company
undertakes no obligation to update or revise its estimates prior to
issuance of financial statements. Accordingly, you should not place
undue reliance on this information. These estimates, which are the
responsibility of the Company’s management, were prepared by the
Company’s management and are based upon a number of assumptions,
including, without limitation, the fair market value of the
Company’s assets, which may not be reflective of such assets’
liquidation value or current fair market value, particularly during
times of stress and enhanced volatility such as exists today. The
values also may be different than the values derived by the
Company’s financing counterparties, investors or other financial
analysts that value securities. Additional adjustments to this
information may be identified and could result in material changes
to the Company’s estimated operating results. Estimates of
operating results are inherently uncertain and the Company
undertakes no obligation to update this information. The Company’s
independent registered public accounting firm has not audited,
reviewed, compiled or performed any procedures with respect to this
financial information. Accordingly, the Company’s independent
registered public accounting firm does not express an opinion or
provide any form of assurance with respect thereto.
About Chimera Investment
Corporation
We are a publicly traded REIT that is primarily engaged in the
business of investing directly or indirectly through our
subsidiaries, on a leveraged basis, in a diversified portfolio of
real estate assets, including mortgage loans, Agency RMBS,
Non-Agency RMBS, Agency CMBS, and other real estate assets.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. Actual results
may differ from expectations, estimates and projections and,
consequently, readers should not rely on these forward-looking
statements as predictions of future events. Words such as “expect,”
“target,” “assume,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,”
“believe,” “predicts,” “potential,” “continue,” and similar
expressions are intended to identify such forward-looking
statements. These forward-looking statements involve significant
risks and uncertainties that could cause actual results to differ
materially from expected results, including, among other things,
those described in our most recent Annual Report, and any
subsequent Quarterly Reports on Form 10-Q, under the caption “Risk
Factors.” Factors that could cause actual results to differ
include, but are not limited to:; the state of credit markets and
general economic conditions, particularly in light of the COVID-19
pandemic and related uncertainty; our ability to accurately
estimate our GAAP book value per share as of March 27, 2020, which
is subject to significant management judgment and assumptions
(particularly in light of current market conditions); changes in
interest rates and the market value of our assets; the rates of
default or decreased recovery on the mortgages underlying our
target assets; the occurrence, extent and timing of credit losses
within our portfolio; the credit risk in our underlying assets;
declines in home prices; our ability to establish, adjust and
maintain appropriate hedges for the risks in our portfolio; the
availability and cost of our target assets; our ability to borrow
to finance our assets and the associated costs; changes in the
competitive landscape within our industry; our ability to manage
various operational risks and costs associated with our business;
interruptions in or impairments to our communications and
information technology systems; our ability to acquire residential
mortgage loans and successfully securitize the residential mortgage
loans we acquire; our ability to oversee our third party
sub-servicers; the impact of any deficiencies in the servicing or
foreclosure practices of third parties and related delays in the
foreclosure process; our exposure to legal and regulatory claims;
legislative and regulatory actions affecting our business; the
impact of new or modified government mortgage refinance or
principal reduction programs; our ability to maintain our REIT
qualification; and limitations imposed on our business due to our
REIT status and our exempt status under the Investment Company Act
of 1940.
Readers are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made.
Chimera does not undertake or accept any obligation to release
publicly any updates or revisions to any forward-looking statement
to reflect any change in its expectations or any change in events,
conditions or circumstances on which any such statement is based.
Additional information concerning these and other risk factors is
contained in Chimera’s most recent filings with the Securities and
Exchange Commission (SEC). All subsequent written and oral
forward-looking statements concerning Chimera or matters
attributable to Chimera or any person acting on its behalf are
expressly qualified in their entirety by the cautionary statements
above.
Readers are advised that the financial information in this press
release is based on company data available at the time of this
presentation and, in certain circumstances, may not have been
audited by the company’s independent auditors.
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