A mortgage investment corporation leveraging a large asset base to generate steady interest income and fee revenue while navigating volatile interest rate environments.
CHMI offers exposure to a stable mortgage lending franchise with a substantial asset base that can weather economic fluctuations; The company's ability to generate positive operating cash flow of $19.1M demonstrates underlying business resilience; Strategic joint venture investments provide potential upside from real estate appreciation and development value.
Significant retained earnings deficit of -$270.4M suggests historical profitability challenges that require careful monitoring; Operating profit was negligible at -$0.136M, indicating that non-operating income is crucial for current earnings; Large cash outflows from investing activities could strain liquidity if financing conditions tighten unexpectedly.
Cherry Hill Mortgage Investment Corp (CHMI) operates as a mortgage investment corporation primarily serving the residential real estate market through direct lending and portfolio management services. The company generates revenue via interest income on its diversified loan portfolio and fees from ancillary servicing activities. With total assets of $1.54B, CHMI maintains a significant investment presence in joint ventures totaling $214.8M across various property sectors.
CHMI reported a net profit of $6.9M for the latest period, though operating expenses of $14.2M resulted in a minimal operating profit before tax adjustments. The company saw significant cash outflows from investing activities of -$66.7M, likely reflecting strategic portfolio expansion or joint venture investments, partially offset by financing inflows of $39.3M. Despite a temporary revenue contraction in 2023, the firm recovered to $34.6M in 2024 and maintained $23.3M in the most recent year.
The mortgage investment sector is characterized by high sensitivity to Federal Reserve policy and housing market cycles, which directly impact origination volumes and yield spreads. Industry leaders differentiate themselves through diversified portfolios and strong servicing capabilities that generate fee income independent of interest rates. Regulatory changes regarding capital adequacy and lending standards continue to shape the competitive landscape for mortgage corporations.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $40.2M | $-21.2M | $34.6M | $23.3M |
| Cost of Revenue | $11.8M | $11.2M | $12.4M | $9.3M |
| Gross Profit | $28.4M | $-32.5M | $22.2M | $14.0M |
| Operating Expenses | $12.9M | $13.7M | $18.3M | $14.2M |
| Operating Income | $15.4M | $-46.2M | $3.9M | $-136.0K |
| G&A | $6.3M | $6.9M | $10.7M | $7.7M |
| Stock-Based Comp | $496.0K | $468.0K | $496.0K | $287.0K |
| Other OpEx | $6.6M | $6.8M | $7.6M | $6.5M |
| Non-Operating Income | $11.8M | $11.2M | $12.4M | $9.3M |
| Interest Expense | $17.6M | $51.6M | — | — |
| Pre-Tax Income | $27.3M | $-34.9M | $16.3M | $9.1M |
| Income Tax | $5.1M | $523.0K | $4.1M | $2.2M |
| Continuing Ops | $22.2M | $-35.5M | $12.2M | $6.9M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $22.2M | $-35.5M | $12.2M | $6.9M |
| Minority Interest | $450.0K | $-661.0K | $240.0K | $114.0K |
| Net to Common | $21.7M | $-34.8M | $12.0M | $6.8M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Cash & Equivalents | $57.3M | $52.9M | $46.3M | $54.9M |
| Operating Leases | — | — | $109.0K | $40.0K |
| Total Assets | $1.41B | $1.39B | $1.49B | $1.54B |
| Total Liabilities | $1.14B | $1.13B | $1.26B | $1.30B |
| Shareholders' Equity | $265.5M | $258.4M | $233.6M | $238.5M |
| Paid-In Capital | $344.5M | $375.5M | $381.1M | $396.5M |
| Retained Earnings | $-169.0M | $-233.2M | $-249.6M | $-270.4M |
| AOCI | $-29.1M | $-2.5M | $-7.3M | $3.7M |
| Total L&E | $1.41B | $1.39B | $1.49B | $1.54B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $22.2M | $-35.5M | $12.2M | $6.9M |
| Non-Cash Adjustments | $27.9M | $57.3M | $7.6M | $18.6M |
| Working Capital Changes | $9.8M | $18.8M | $-24.5M | $-6.4M |
| Cash from Operations | $59.9M | $40.7M | $-4.7M | $19.1M |
| Cash from Investing | $-128.2M | $-104.1M | $-141.3M | $-66.7M |
| Share Buybacks | $0 | — | — | — |
| Dividends Paid | $8.5M | $6.7M | $7.0M | $5.9M |
| Cash from Financing | $57.1M | $67.2M | $147.5M | $39.3M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-11.2M | $3.8M | $1.4M | $-8.3M |
| Beginning Cash | $76.8M | $65.6M | $69.3M | $70.8M |
| Ending Cash | $65.6M | $69.3M | $70.8M | $62.5M |
Direct residential lending providing fixed-rate mortgages to homeowners; Portfolio management services offering tailored financial solutions for institutional investors; Ancillary servicing operations generating fees from loan administration and property management activities; Joint venture investments participating in regional real estate development projects.
Interest rate volatility impacting net interest margins on the $1.54B asset base; Potential decline in residential mortgage demand affecting origination volumes; High leverage ratio given total liabilities of $1.30B against shareholders' equity of $238.5M; Concentration risk in specific geographic regions within the joint venture portfolio.
Diversified asset base of $1.54B providing resilience against single-market downturns; Established joint venture network of $214.8M offering stable long-term cash flow streams; Strong capital position with $62.5M in ending cash and equivalents ensuring liquidity for new lending opportunities.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.