Ellington Residential Mortgage REIT (EARN): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

Sumérgete en el intrincado mundo de Ellington Residential Mortgage REIT (ENER), un vehículo de inversión dinámico que transforma los valores complejos respaldados por hipotecas en una oportunidad convincente para los inversores inteligentes. Este innovador REIT navega por el sofisticado panorama de las inversiones hipotecarias residenciales, ofreciendo una combinación única de gestión financiera estratégica y una potencial generación de ingresos pasivos que lo distingue en el mercado competitivo de inversión inmobiliaria. Con un modelo de negocio meticulosamente elaborado que equilibra el riesgo, la transparencia y la inversión estratégica, Gane presenta un instrumento financiero intrigante para aquellos que buscan diversificar su cartera de inversiones y aprovechar el ámbito matizado de valores respaldados por hipotecas.

Ellington Residential Mortgage REIT (ENER) - Modelo de negocios: asociaciones clave

Prestamistas de hipotecas y creadores

A partir del cuarto trimestre de 2023, Ellington Residential Mortgage REIT mantiene asociaciones estratégicas con los siguientes prestamistas y creadores de hipotecas:

Pareja	Tipo de asociación	Volumen anual
Wells Fargo	Originación de la hipoteca residencial	$ 425 millones
JPMorgan Chase	Titulización hipotecaria	$ 312 millones
Banco de América	Adquisición de préstamos	$ 287 millones

Instituciones y bancos financieros

Las asociaciones institucionales financieras de Earn incluyen:

• Goldman Sachs - Aviso de mercados de capitales
• Morgan Stanley - Finanzas estructuradas
• Citibank - Instalaciones de préstamos

Asesores de inversiones y empresas del mercado de capitales

Inversión clave y asociaciones del mercado de capitales:

Firme	Servicio	Valor de transacción anual
Roca negra	Aviso de inversión	$ 215 millones
Vanguardia	Gestión de cartera	$ 178 millones

Proveedores de tecnología y análisis de datos

Asociaciones tecnológicas centradas en el análisis hipotecario y la gestión de riesgos:

• Bloomberg Terminal - Datos del mercado
• CORELOGIC - Datos de propiedad e hipotecas
• S&P Global Market Intelligence

Consultores de cumplimiento regulatorio

Detalles de la asociación de cumplimiento:

Consultor	Enfoque de cumplimiento	Valor de compromiso anual
Deloitte	Gestión de riesgos regulatorios	$ 1.2 millones
PWC	Cumplimiento de informes financieros	$850,000

Ellington Residential Mortgage REIT (ENER) - Modelo de negocio: actividades clave

Inversión de valores respaldados por hipotecas residenciales (RMBS)

A partir del cuarto trimestre de 2023, la cartera de inversiones RMBS RMBS de Ellington Residential Mortgage consistió en:

Categoría de inversión	Valor total	Porcentaje de cartera
Agencia RMBS	$ 265.7 millones	78.3%
RMBS no agencias	$ 73.6 millones	21.7%

Gestión de la cartera y evaluación de riesgos

Métricas clave de gestión de riesgos para ganar a partir del cuarto trimestre 2023:

• Duración de sensibilidad a la tasa de interés: 1.2 años
• Tasa de cupón promedio ponderada: 4.75%
• Ratio de cobertura de riesgo de crédito: 1.35

Asignación de capital y financiamiento estratégico

Desglose de asignación financiera para 2023:

Fuente de financiamiento	Cantidad	Porcentaje
Acuerdos de recompra	$ 422 millones	65.4%
Deuda asegurada	$ 118 millones	18.3%
Patrimonio de los accionistas	$ 104 millones	16.3%

Investigación y análisis de mercado hipotecario

Áreas de enfoque de investigación en 2023:

• Agencia Dinámica de mercado MBS
• Modelado de riesgo de prepago
• Análisis de spread de crédito

Distribución de dividendos y relaciones con los inversores

Métricas de rendimiento de dividendos:

Año	Dividendo anual	Rendimiento de dividendos
2023	$ 1.20 por acción	12.5%
2022	$ 1.08 por acción	11.2%

Ellington Residential Mortgage REIT (ENER) - Modelo de negocio: recursos clave

Equipo experimentado de gestión de inversiones

A partir del cuarto trimestre de 2023, el equipo de gestión de Ellington Residential Mortgage REIT incluye:

Posición	Número de profesionales	Experiencia de la industria promedio
Gerentes de inversión senior	7	15.3 años
Especialistas en gestión de riesgos	4	12.7 años

Capacidades sofisticadas de modelado financiero

La infraestructura de modelado financiero incluye:

• Plataformas de análisis cuantitativo avanzados
• Herramientas de simulación del mercado hipotecario en tiempo real
• Sistemas de modelado predictivo mejorado por el aprendizaje automático

Cartera de valores respaldados por hipotecas diversas

Composición de cartera al 31 de diciembre de 2023:

Tipo de seguridad	Valor total	Porcentaje de cartera
Agencia MBS residencial	$ 512.6 millones	68.3%
MBS residencial no agencia	$ 147.3 millones	19.6%
MBS comercial	$ 90.5 millones	12.1%

Strong Capital Base y Credit Lines

Recursos financieros a partir del cuarto trimestre 2023:

• Equidad total de los accionistas: $ 167.2 millones
• Facilidades de crédito disponibles: $ 250 millones
• Relación de deuda / capital: 3.2: 1

Tecnologías avanzadas de gestión de riesgos

Infraestructura de tecnología de gestión de riesgos:

Tipo de tecnología	Año de implementación	Función principal
Sistema de monitoreo de riesgos en tiempo real	2022	Evaluación de riesgos de cartera continua
Plataforma de modelado predeterminada predictiva	2023	Análisis de probabilidad de incumplimiento de la hipoteca

Ellington Residential Mortgage REIT (ENER) - Modelo de negocio: propuestas de valor

Alto rendimiento de dividendos para inversores centrados en los ingresos

A partir del cuarto trimestre de 2023, Ellington Residential Mortgage REIT (ENER) informó un rendimiento de dividendos del 13.52%, significativamente más alto que el rendimiento promedio del sector REIT.

Métrico de dividendos	Valor
Tasa de dividendos anuales	$ 1.20 por acción
Dividendo trimestral	$ 0.30 por acción
Frecuencia de dividendos	Trimestral

Estrategia de inversión hipotecaria residencial especializada

Ganar se enfoca en:

• Agencia Valores respaldados por hipotecas residenciales (RMBS)
• RMBS no agencias
• Préstamos hipotecarios residenciales

Composición de la cartera de inversiones	Porcentaje
Agencia RMBS	84.3%
RMBS no agencias	12.7%
Préstamos hipotecarios residenciales	3.0%

Gestión profesional de valores hipotecarios complejos

Métricas de rendimiento de la gestión clave:

• Total de activos administrados: $ 376.4 millones (cuarto trimestre 2023)
• Ingresos de intereses netos: $ 7.2 millones
• Relación de apalancamiento: 6.8x

Potencial para una generación de ingresos pasivos consistentes

Indicadores de desempeño financiero:

Métrica financiera	Valor
Ingresos netos (2023)	$ 14.6 millones
Retorno sobre la equidad	8.3%
Valor en libros por acción	$10.42

Enfoque de inversión transparente en los mercados hipotecarios

Métricas de transparencia:

• Divulgaciones de cartera detalladas trimestralmente
• Presentaciones mensuales de inversores
• Presentaciones de la SEC integrales

Frecuencia de informes	Detalles
Informes trimestrales	Estados financieros integrales
Informes anuales	Estratégico detallado overview
Llamadas de inversionista	Discusiones de ganancias trimestrales

Ellington Residential Mortgage REIT (ENER) - Modelo de negocios: relaciones con los clientes

Información financiera y transparencia regulares

A partir del cuarto trimestre de 2023, Ellington Residential Mortgage REIT reportó ingresos totales de $ 11.4 millones. La compañía mantiene un Política detallada de divulgación financiera Con las siguientes métricas de informes:

Métrica de informes	Frecuencia	Detalles de divulgación
Informes financieros trimestrales	4 veces al año	SEC Formulario 10-Q Presentación
Informe financiero anual	Anualmente	SEC Formulario 10-K Presentación
Ingresos de intereses netos	Trimestral	$ 7.2 millones (cuarto trimestre de 2023)

Comunicación de inversores y llamadas trimestrales de ganancias

Ganar realiza llamadas de ganancias trimestrales con las siguientes características:

• Duración promedio de llamadas: 45-60 minutos
• Recuento de participantes: aproximadamente 50-75 inversores institucionales
• Frecuencia de llamadas de ganancias: trimestralmente
• Disponibilidad de transmisión web: versiones en vivo y grabadas

Portal de inversores en línea y compromiso digital

Las métricas de participación de los inversores digitales incluyen:

Plataforma digital	Métricas de compromiso
Sitio web de relaciones con los inversores	Visitantes únicos mensuales: 3.500
Descargas de presentación de inversores	Descargas trimestrales: 1.200

Servicios de apoyo a los inversores personalizados

La infraestructura de soporte de los inversores incluye:

• Equipo dedicado de relaciones con inversores: 4 profesionales a tiempo completo
• Tiempo de respuesta promedio para consultas de inversores: 24 horas
• Métodos de contacto directo: teléfono, correo electrónico y reuniones programadas

Estrategia de distribución de dividendos consistente

Detalles de distribución de dividendos para 2023:

Métrico	Valor
Rendimiento de dividendos anuales	12.5%
Dividendo trimestral por acción	$0.30
Dividendos anuales totales pagados	$ 4.8 millones

Ellington Residential Mortgage REIT (ENER) - Modelo de negocios: canales

Listado de la Bolsa de Valores (NYSE)

Símbolo del ticker: Ganar

Intercambio	Fecha de listado	Capitalización de mercado
Bolsa de Nueva York (NYSE)	Julio de 2013	$ 117.45 millones (a partir de enero de 2024)

Plataformas de inversión en línea

• Charles Schwab
• Inversiones de fidelidad
• TD Ameritrade
• E*comercio

Redes de asesoramiento financiero

Red	Acceso a la plataforma	Disponibilidad de negociación
Morgan Stanley	Acceso completo	Comercio directo
Servicios financieros de UBS	Acceso completo	Comercio directo

Sitio web de relaciones con los inversores

Sitio web: www.ellingtonresidential.com

• Informes financieros trimestrales
• Presentación de la SEC
• Presentaciones de inversores
• Transcripciones de llamadas de ganancias

Canales de inversión institucional

Tipo de inversor institucional	Porcentaje de propiedad	Inversión total
Fondos mutuos	42.3%	$ 68.5 millones
Fondos de pensiones	22.7%	$ 36.8 millones
Fondos de cobertura	15.6%	$ 25.3 millones

Ellington Residential Mortgage REIT (ENER) - Modelo de negocios: segmentos de clientes

Inversores minoristas centrados en los ingresos

A partir del cuarto trimestre de 2023, la hipoteca residencial de Ellington REIT se dirige a inversores minoristas que buscan ingresos de dividendos consistentes. El rendimiento de dividendos de la compañía fue del 14,32% para el año fiscal.

Métricas de segmento de inversores	Valor
Tamaño de inversión promedio	$25,000 - $75,000
Inversión mínima	$1,000
Frecuencia de dividendos	Trimestral

Empresas de inversión institucional

Los inversores institucionales representan el 62.4% de la base total de accionistas de Earl a diciembre de 2023.

• Total de tenencias institucionales: $ 347.6 millones
• Los principales inversores institucionales incluyen Vanguard Group y BlackRock
• Inversión institucional promedio: $ 5.2 millones

Inversores individuales de alto nivel de red

Los inversores de alto nivel de red constituyen aproximadamente el 22% de la base de inversores de Earn.

Características de inversión	Métrica
Rango de inversión típico	$100,000 - $1,000,000
Asignación de cartera promedio	3-5% en REIT hipotecarios

Gerentes de cartera de jubilación

Las carteras de jubilación asignan aproximadamente el 1.8% de sus activos totales para ganar a partir de 2023.

• Inversiones totales de fondos de jubilación: $ 128.3 millones
• Asignación promedio por cartera de jubilación: $ 450,000

Especialistas en inversiones de ingresos fijos

Los especialistas en ingresos fijos representan el 15.6% de la composición de los inversores de Earn.

Inversión Profile	Detalles
Inversiones totales de ingresos fijos	$ 276.4 millones
Tamaño de inversión promedio	$ 2.3 millones

Ellington Residential Mortgage REIT (GANE) - Modelo de negocio: Estructura de costos

Gestión y gastos operativos

A partir del informe anual más reciente, Ellington Residential Mortgage REIT reportó gastos operativos totales de $ 15.7 millones para el año fiscal 2022.

Categoría de gastos	Monto ($)
Tarifas de gestión	8,200,000
Compensación y beneficios	4,500,000
Costos administrativos generales	3,000,000

Gastos de intereses en préstamos

Los gastos de intereses totales para 2022 fueron de $ 23.4 millones, que representa una porción significativa de la estructura de costos de la empresa.

• Intereses del acuerdo de recompra: $ 18.6 millones
• Notas seguras senior Intereses: $ 4.8 millones

Costos de negociación y transacción de valores

Los gastos relacionados con la transacción totalizaron $ 2.1 millones en 2022.

Tipo de costo de transacción	Monto ($)
Tarifas de corretaje	1,200,000
Costos de compensación y liquidación	900,000

Cumplimiento y gastos regulatorios

Los costos relacionados con el cumplimiento para 2022 ascendieron a $ 1.5 millones.

• Tarifas legales y de auditoría: $ 900,000
• Gastos de presentación regulatoria: $ 600,000

Inversiones de tecnología e infraestructura

El gasto en tecnología e infraestructura alcanzó los $ 2.3 millones en 2022.

Categoría de inversión tecnológica	Monto ($)
Infraestructura	1,400,000
Ciberseguridad	500,000
Actualizaciones de software y sistemas	400,000

Ellington Residential Mortgage REIT (ENER) - Modelo de negocios: flujos de ingresos

Ingresos por intereses de valores respaldados por hipotecas

A partir del tercer trimestre de 2023, el REIT de la hipoteca residencial Ellington reportó ingresos por intereses totales de $ 14.1 millones. La cartera consistió en:

Tipo de seguridad	Valor total	Producir
Agencia MBS residencial	$ 378.5 millones	3.65%
MBS residencial no agencia	$ 62.3 millones	5.22%

Ganancias realizadas de la negociación de valores

Para el año fiscal 2023, el REIT de la hipoteca residencial Ellington generó:

• Ganancias realizadas de $ 3.2 millones
• Total de ganancias realizadas de la negociación de valores: $ 7.6 millones

Distribuciones de dividendos

Rendimiento de dividendos para 2023:

Cuarto	Dividendo por acción	Pago total de dividendos
Q1 2023	$0.30	$ 2.1 millones
Q2 2023	$0.28	$ 1.9 millones
P3 2023	$0.25	$ 1.7 millones

Apreciación de capital de la cartera de inversiones

Métricas de valoración de cartera para 2023:

• Valor total de la cartera de inversiones: $ 442.8 millones
• Ganancias no realizadas: $ 6.5 millones
• Apreciación de la cartera hasta la fecha: 2.3%

Pagado de hipotecas e ingresos de refinanciación

Pagos anticipados y refinanciación de datos financieros:

Métrico	Cantidad
Ingresos por pago anticipado	$ 2.4 millones
Tarifas de refinanciación	$ 1.1 millones
Ingresos totales de prepago	$ 3.5 millones

Ellington Residential Mortgage REIT (EARN) - Canvas Business Model: Value Propositions

You're looking at the core reasons why investors are drawn to Ellington Residential Mortgage REIT (EARN) right now, especially given its recent strategic shift. The value proposition centers heavily on delivering high current income derived from a specialized, actively managed portfolio.

High current income generation is a primary draw. The TTM dividend yield sits around 18.8%. This high yield is supported by the monthly distribution schedule.

The monthly dividend distribution is set at $0.08 per share. This consistent monthly payout is a key feature for income-focused capital deployment.

The business model now offers direct exposure to corporate credit via actively managed Collateralized Loan Obligations (CLOs). This is a fundamental change from its prior focus, leveraging management's expertise in complex structured credit markets to target risk-adjusted returns. Ellington Residential Mortgage REIT built upon its existing CLO portfolio, which grew to $379.6 million as of September 30, 2025, focusing on secondary CLO mezzanine debt and equity tranches.

The management's expertise in complex structured credit markets is demonstrated by their active trading approach within the CLO space, which they view as a $1.5 trillion opportunity.

Crucially, for Q3 2025, the company achieved full dividend coverage from Net Investment Income (NII). The reported NII for that quarter was $0.23 per share, which covered the monthly distribution requirement.

Here's a quick look at the key income-related figures as of late 2025:

Metric	Value
TTM Dividend Yield	18.8%
Monthly Dividend Per Share	$0.08
Annualized Dividend Per Share	$0.96
Q3 2025 Net Investment Income (NII) Per Share	$0.23
CLO Portfolio Value (as of 9/30/2025)	$379.6 million

The CLO portfolio composition reflects this strategy:

• CLO equity investments: $194.0 million
• CLO debt investments: $185.5 million
• U.S. CLO investments as percentage of portfolio: 86.1%

The management's track record in this area spans more than a decade in secondary CLOs.

You can see the direct link between the NII performance and the distribution:

• Q3 2025 NII: Approximately $8.65 million
• Monthly Distribution: $0.08
• Implied Quarterly Distribution: $0.24 (3 x $0.08)

Finance: draft comparison of Q3 2025 NII to the $0.24 quarterly distribution by Tuesday.

Ellington Residential Mortgage REIT (EARN) - Canvas Business Model: Customer Relationships

The relationship Ellington Residential Mortgage REIT (EARN), now operating as Ellington Credit Company, maintains with its customer base-its shareholders-is primarily financial and transactional, given its structure as a publicly traded REIT on the NYSE. The core interaction revolves around the distribution of income and transparent reporting of performance.

Transactional relationship via public stock ownership on the NYSE

Your ownership in Ellington Residential Mortgage REIT (EARN) is executed through the public market, trading on the New York Stock Exchange (NYSE). This is the most fundamental, high-volume touchpoint. As of December 5, 2025, the market capitalization stood at approximately $162.16 M, based on 37.60 M shares outstanding. This public listing dictates the transactional nature of the relationship, where buying and selling shares is the primary means of customer entry and exit.

Investor Relations team providing quarterly earnings calls and filings

The Investor Relations function ensures regular, mandated communication regarding financial health and strategy. This is structured around the quarterly reporting cycle. For instance, the Q3 2025 results were released on November 5, 2025, followed by the Earnings Conference Call on November 6, 2025, where management discussed results like the Net Investment Income of $0.23 per share and the Net Asset Value (NAV) of $5.99 per share as of that quarter end. Filings provide the detailed legal and financial backbone for this relationship.

The cadence of formal communication includes:

• Quarterly Earnings Conference Calls.
• Release of Investor Presentations, such as the one posted on November 5, 2025, for Q3 2025.
• Mandatory SEC filings detailing operations and financial position.

Automated monthly dividend payments to shareholders

The most direct financial relationship is the regular distribution of cash flow. Ellington Residential Mortgage REIT (EARN) adheres to a policy of monthly dividend distributions. The latest declared monthly dividend amount was $0.08 per share, with an ex-dividend date of Nov 28, 2025, and a payment date of Dec 31, 2025. This consistent monthly payout structure is key to attracting and retaining income-focused investors. The annualized dividend payout based on this rate is $0.96 per share, translating to a current dividend yield of approximately 17.91% as of late 2025, which is significantly higher than the Real Estate sector average yield of 6.61%.

Here's a snapshot of the recent monthly dividend activity:

Ex-Date	Payment Date	Dividend Amount Per Share	Frequency
Nov 28, 2025	Dec 31, 2025	$0.08	Monthly
Oct 31, 2025	Nov 28, 2025	$0.08	Monthly
Sep 30, 2025	Oct 31, 2025	$0.08	Monthly

Regular communication of strategic shifts and portfolio performance

Shareholders are kept informed of directional changes, which is critical for a company that transitioned its focus. A major strategic shift communicated was the rebranding and focus change from residential mortgage-backed securities (RMBS) to corporate collateralized loan obligations (CLOs) mezzanine debt and equity tranches, completed in April 2025. Performance updates are tied directly to the portfolio's success in these new areas, such as the reported CLO portfolio growth of 27% to $317 million in Q2 2025. The company has been paying dividends since 2013, demonstrating a long-term commitment to shareholder returns.

Key performance indicators regularly communicated include:

• Net Investment Income (NII) per share.
• Book Value per share, reported as $5.99 per share for Q3 2025.
• Dividend coverage status, which was reported as full for Q3 2025.

The management, led by CEO Laurence Penn, uses these communications to frame their dynamic, income-oriented investment approach. Finance: draft 13-week cash view by Friday.

Ellington Residential Mortgage REIT (EARN) - Canvas Business Model: Channels

You're looking at how Ellington Residential Mortgage REIT (EARN), which is now operating as Ellington Credit Company, gets its shares and its investment story out to the market as of late 2025. The primary channel for liquidity and price discovery is the public exchange, but the digital presence is where you dig into the real numbers.

The core distribution mechanism for your ability to buy or sell shares is centralized on the major US exchange, but the information flow relies on a mix of direct corporate communication and third-party aggregators. If onboarding takes 14+ days, churn risk rises, but for stock trading, the settlement is fast, so that's not a worry here.

Here are the key channels used to access the security and its information:

• New York Stock Exchange (NYSE) under the ticker EARN: This is the primary venue for trading the security.
• Retail and institutional brokerage platforms for stock purchase: You can access EARN through virtually any major brokerage, including online services, to execute trades.
• Corporate website for financial reports and investor presentations: The official source for deep dives, such as the Q3 2025 investor slides, is found at www.ellingtonfinancial.com.
• Financial news and data aggregators (e.g., Bloomberg, Investing.com): These platforms deliver real-time quotes and historical data points for quick analysis.

To give you a sense of the financial context you'd find through these channels as of early December 2025, here's a snapshot of the latest reported figures:

Metric	Value (as of late 2025)	Source Period
Stock Price (Dec 05, 2025)	$5.36	Daily Trading Data
Market Capitalization	$162.16 M	December 5, 2025
Shares Outstanding	37.60 M	December 5, 2025
Net Asset Value (NAV) per Share	$5.99	Q3 2025
Total Investment Income (Revenue)	$11.88 million	Q3 2025
CLO Portfolio Size	$379.6 million	Q3 2025
Cash and Cash Equivalents	$20.1 million	September 30, 2025

The stock has seen a 52-week trading range between a low of $4.33 and a high of $6.99. Furthermore, the trailing twelve-month (TTM) dividend yield was reported near 18.8%, supported by a monthly dividend of $0.08 per share, though you must check the latest NII (Net Investment Income) coverage, which was tight in Q2 2025. The company's Q3 2025 EPS beat expectations, coming in at $0.23 versus a forecast of $0.20, which is a strong signal you'd see reflected on the news aggregators. This entire structure relies on the market's ability to price the underlying CLO assets efficiently, which is why you defintely need to review the latest investor presentation slides.

Ellington Residential Mortgage REIT (EARN) - Canvas Business Model: Customer Segments

You're looking at the core groups Ellington Residential Mortgage REIT (EARN) serves, especially now that the structure has shifted toward a CLO-focused Closed-End Fund (CEF) as of 2025. This shift definitely changes the profile of who is buying the shares.

Income-focused retail investors seeking high-yield dividends

This segment has historically been a major part of the shareholder base for mortgage REITs, attracted by the high distribution yields. Before the 2025 conversion, the dividend yield was a primary draw. For instance, looking at the trailing twelve months ending September 30, 2025, the annualized distribution rate was reported around 11.5%, based on the closing price of $12.85 on that date.

The retail investor base often seeks predictable, high cash flow. Here's a snapshot of the historical distribution pattern:

• Monthly distribution declared for Q3 2025: $0.123 per share.
• Total distributions paid in the first nine months of 2025: $1.107 per share.
• The average daily trading volume in October 2025 was approximately 450,000 shares, indicating consistent retail interest.

Institutional investors (e.g., hedge funds, asset managers) seeking CLO exposure

The 2025 conversion was specifically designed to appeal more strongly to institutional buyers looking for exposure to Collateralized Loan Obligation (CLO) equity and debt, which often fits better within mandated investment mandates for certain funds. Post-conversion, the target is a more sophisticated institutional holder.

As of the latest available proxy filing data from mid-2025, institutional ownership stood at approximately 42% of the outstanding common stock, a figure expected to increase as the CLO strategy matures. The total Assets Under Management (AUM) managed by Ellington Management Group, the external manager, was reported to be over $18 billion as of June 30, 2025, which brings significant internal expertise and potential institutional interest to the REIT.

This segment is interested in the structure's ability to generate stable, floating-rate income streams, which is a key feature of CLOs in a rising rate environment. Here are some relevant figures related to the CLO focus:

Metric	Value as of Q3 2025	Unit
Target CLO Equity Allocation (Post-Conversion)	60% to 75%	Percentage of total assets
Weighted Average Spread on CLO Assets	485 basis points	Basis points
Total Par Value of CLOs Managed by Affiliates	Over $5.5 billion	US Dollars

Investors comfortable with the risk profile of corporate credit and leverage

Ellington Residential Mortgage REIT (EARN) employs leverage to enhance returns, a characteristic that naturally filters its customer segment to those who understand and accept this risk. The company's reported debt-to-equity ratio stood at 3.1-to-1 as of September 30, 2025. This level of leverage is typical for the sector but requires an investor who is not risk-averse.

Furthermore, the underlying assets in the CLO portfolio are primarily corporate credit instruments. The weighted average credit rating of the underlying collateral in the CLO equity positions was rated as BB- across the portfolio as of the last disclosure. Investors here are explicitly accepting credit risk in exchange for higher potential equity-like returns from the CLO structures.

Shareholders who approved the conversion to a CLO-focused CEF in 2025

This group represents the legacy holders who voted in favor of the strategic shift. The shareholder vote, which took place in May 2025, passed with approximately 88% of the votes cast in favor of the proposal. These shareholders are now aligned with the new mandate.

This segment includes long-term holders who trust the management team's ability to execute the transition. The total number of shares outstanding following the conversion remained stable at approximately 98.5 million shares as of the end of Q3 2025. These are the investors who will be monitoring the performance metrics specific to the CLO strategy going forward, such as:

• CLO Equity Cash Flow Coverage Ratio: Target above 1.35x.
• Total shareholder equity as of September 30, 2025: $955 million.
• Net Asset Value (NAV) per share as of September 30, 2025: $13.15.

Finance: draft 13-week cash view by Friday.

Ellington Residential Mortgage REIT (EARN) - Canvas Business Model: Cost Structure

The Cost Structure for Ellington Credit Company (formerly Ellington Residential Mortgage REIT) reflects the expenses associated with its focus on corporate Collateralized Loan Obligations (CLOs) following its conversion to a Regulated Investment Company (RIC) on April 1, 2025. The primary cost drivers are tied to the external management structure and the financing of the CLO portfolio.

Management fees paid to Ellington Management Group are a significant, variable cost. These fees are tied to the capital base; for instance, General and administrative expenses in the three-month period ended March 31, 2025, included an increase in management fees due to a larger capital base compared to December 31, 2024, when the CLO portfolio stood at $171.1 million. Post-conversion, the management fee arrangement was determined to more closely align with the advisory fee structures of CLOs.

Significant interest expense on borrowings used to finance CLO portfolio is the largest component of the cost of capital. The company employs leverage through repos and credit facilities. The net interest margin on the credit portfolio for the quarter ended September 30, 2025, was 15.5% on a GAAP weighted average yield basis, which is the asset yield less the cost of funds and hedging effects. The CLO portfolio fair value reached $379.6 million as of September 30, 2025, requiring substantial financing costs.

General and administrative expenses (e.g., legal, accounting, compliance) were reported for the three-month period ended March 31, 2025, as $(2,582) thousand, which included higher professional fees and compensation expense related to the conversion process. Following the conversion, the company is structured to operate as a RIC, which generally minimizes corporate-level income tax expense.

Costs associated with credit hedging and derivative transactions are ongoing, though the nature shifted post-conversion. For the quarter ended September 30, 2025, the company noted net realized and unrealized losses on CLO equity and on credit hedges designed to protect against downside risk. The company also maintained a foreign currency hedge portfolio to manage exposure associated with European CLO investments.

Expenses related to operating as a publicly traded company are reflected in the G&A line, though specific public company costs are not itemized separately in the latest available summaries. The company operates under the NYSE ticker EARN.

Here's a summary of the most recent concrete figures available, noting the context of the company's transition:

Cost Component	Latest Reported Amount (Period)	Notes
General and Administrative Expenses	$(2.582) million (Q1 2025: 3 months ended March 31, 2025)	Included conversion-related professional fees and compensation.
Management Fees	Implicitly increased (Q1 2025 vs. Q4 2024)	Due to a larger capital base; structure aligned with CLO advisory fees post-conversion.
Interest Expense on Borrowings	Implied by Net Interest Margin of 15.5% (Q3 2025 GAAP Yield on CLO Portfolio)	Cost of financing $379.6 million CLO portfolio (fair value as of Sept 30, 2025).
Credit Hedging Costs	Reported as Net realized and unrealized losses (Q2 2025: Quarter ended Sept 30, 2025)	Offsetting gains on CLO debt and equity.
Corporate Income Tax Expense	Expected to be minimal/zero (Post-April 1, 2025)	Intends to qualify and be taxed as a Regulated Investment Company (RIC).

The overall cost profile is dominated by the cost of financing the assets, which is managed through active trading and hedging strategies.

• CLO portfolio fair value as of September 30, 2025: $379.6 million.
• CLO equity represented 51% of total CLO holdings at quarter end.
• European CLO investments accounted for 14% of the portfolio as of September 30, 2025.
• Cash and cash equivalents totaled $20.1 million as of September 30, 2025.

Finance: draft 13-week cash view by Friday.

Ellington Residential Mortgage REIT (EARN) - Canvas Business Model: Revenue Streams

You're looking at the revenue generation engine for Ellington Residential Mortgage REIT (EARN) as it solidifies its pivot to a corporate Collateralized Loan Obligation (CLO) focused entity. The revenue streams are now heavily concentrated on the income derived from these structured credit vehicles, moving away from legacy mortgage-backed securities.

The core operating income, Net Interest Income (NII), which is the spread earned on assets over the cost of financing, showed strong performance in the middle of 2025. Specifically, the NII from CLO debt and equity tranches was reported at $8.5 million in Q2 2025, which you need to track closely as the foundation of their recurring earnings. For the most recently reported quarter, Q3 2025, the NII per share was $0.23, which supported full dividend coverage for that period.

The overall top-line performance for the third quarter of 2025 was robust, with Total revenue reaching $11.88 million. This figure represents a significant year-over-year increase of nearly 150% from the Q3 2024 revenue of $4.75 million, underscoring the impact of the CLO strategy shift.

A major component of the total investment income is the Dividend and interest income from the underlying corporate loans in CLOs. This income is sourced from the various tranches Ellington Residential Mortgage REIT (EARN) holds within its CLO investments. The active management style means they are constantly trading, which generates realized and unrealized gains/losses, adding a variable element to the revenue mix.

Here is a breakdown of the total investment income sources for the quarter ending September 30, 2025, which feeds directly into the revenue calculation:

Income Source Component	Amount (Q3 2025)
Total Investment Income	$14.15 million
U.S. CLO Debt Interest Income	$5.16 million
U.S. CLO Equity Income	$6.73 million
European CLO Debt Income	$1.26 million
European CLO Equity Income	$0.42 million

The active trading strategy is designed to capitalize on market movements, generating both Realized and unrealized gains/losses from active CLO trading. While the exact dollar amount for realized/unrealized gains/losses for Q3 2025 isn't isolated from the total investment income, the company noted strong net realized and unrealized gains across its equity and mezzanine investments in the prior quarter, Q2 2025, which is a key driver of performance outside of pure NII.

You should keep an eye on the composition of the CLO portfolio, as the income streams are directly tied to the asset mix. As of September 30, 2025, the portfolio size was $379.6 million, with a weighted average GAAP yield of 15.5% on the total CLO portfolio. The recurring cash distributions received during Q3 2025 were $16.2 million, or $0.43 per share.

The revenue streams are characterized by:

• Focus on higher-yielding CLO mezzanine debt and equity tranches.
• Income derived from floating rate assets, which helps manage interest rate risk.
• Active trading resulting in both gains and potential losses on investment positions.
• A monthly common share distribution of $0.08, which management aims to cover fully from NII.

Finance: draft 13-week cash view by Friday.