Chimera Investment Corporation Announces 2nd Quarter 2023 Common Stock Dividend and Increase in Share Repurchase Program
June 14 2023 - 4:30PM
Business Wire
Chimera Investment Corporation (NYSE: CIM) (the “Company” or
“Chimera”) announced today that its Board of Directors declared the
second quarter common stock dividend. The Company also announced an
increase in the amount authorized under its common stock repurchase
program.
2nd Quarter Common Stock Dividend Announcement
The Board of Directors of the Company announced the declaration
of a second quarter 2023 cash dividend of $0.18 per share of common
stock. This dividend is payable July 31, 2023 to common
stockholders of record on June 30, 2023. The ex- dividend date is
June 29, 2023.
“Today’s dividend cut brings our dividend more in line with our
expected earnings performance over the medium term,” said Mr.
Kardis, CEO of Chimera. “We believe the stock price does not
reflect the strength of our portfolio. Accordingly, our Board has
approved an increase in our stock buyback plan from $177 million to
$250 million.”
Increase in Common Stock Repurchase Program
The Board of Directors of the Company has authorized an increase
in the amount authorized under the Company’s common stock
repurchase program. As of March 31, 2023, $177 million in aggregate
amount of common stock remained available for repurchase under the
program. Following the Board’s action, the aggregate amount of
common stock available for repurchase under the program is $250
million.
Purchases made pursuant to the program will be made in either
the open market or in privately negotiated transactions from time
to time as permitted by securities laws and other legal
requirements. The timing, manner, price and amount of any
repurchases will be determined by the Company in its discretion and
will be subject to economic and market conditions, stock price,
applicable legal requirements and other factors. The Company
intends to only consider repurchasing shares of our common stock
when the purchase price is less than the last publicly reported
book value per common share. The authorization does not obligate
the Company to acquire any particular amount of common shares and
the program may be suspended or discontinued at the Company’s
discretion without prior notice.
About Chimera
Chimera is a publicly traded real estate investment trust, or
REIT, that is primarily engaged in the business of investing
directly or indirectly through its subsidiaries, on a leveraged
basis, in a diversified portfolio of mortgage assets, including
residential mortgage loans, Agency RMBS, Non-Agency RMBS, Agency
CMBS, and other real estate related securities.
Disclaimer
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 on Form 10-K, and
any subsequent Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K, under the caption “Risk Factors.” Factors that could
cause actual results to differ include, but are not limited to: our
business and investment strategy; our ability to accurately
forecast the payment of future dividends on our common and
preferred stock, and the amount of such dividends; our ability to
determine accurately the fair market value of our assets;
availability of investment opportunities in real estate-related and
other securities, including our valuation of potential
opportunities that may arise as a result of current and future
market dislocations; effect of a pandemic or other national or
international crisis on real estate market, financial markets and
our Company, including the impact on the value, availability,
financing and liquidity of mortgage assets; changes in the value of
our investments, including negative changes resulting in margin
calls related to the financing of our assets; changes in interest
rates and mortgage prepayment rates; prepayments of the mortgage
and other loans underlying our mortgage-backed securities, or RMBS,
or other asset-backed securities, or ABS; rates of default,
delinquencies or decreased recovery rates on our investments;
general volatility of the securities markets in which we invest;
our ability to maintain existing financing arrangements and our
ability to obtain future financing arrangements; our ability to
effect our strategy to securitize residential mortgage loans; our
ability to consummate proposed transactions; interest rate
mismatches between our investments and our borrowings used to
finance such purchases; effects of interest rate caps on our
adjustable-rate investments; the degree to which our hedging
strategies may or may not protect us from interest rate volatility;
the impact of and changes to various government programs; impact of
and changes in governmental regulations, tax law and rates,
accounting guidance, and similar matters; market trends in our
industry, interest rates, the debt securities markets or the
general economy; estimates relating to our ability to make
distributions to our stockholders in the future; our understanding
of our competition; availability of qualified personnel; our
ability to maintain our classification as a real estate investment
trust, or, REIT, for U.S. federal income tax purposes; our ability
to maintain our exemption from registration under the Investment
Company Act of 1940, as amended, or 1940 Act; our expectations
regarding materiality or significance; or the effectiveness of our
disclosure controls and procedures.
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.
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Chimera Investor Contact
Chimera Investment Corporation Investor Relations 888-895-6557
www.chimerareit.com
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