Ellington Residential Mortgage REIT (GAET): Business Model Canvas [Jan-2025 Mis à jour]

Plongez dans le monde complexe d'Ellington Residential Mortgage REIT (Earn), un véhicule d'investissement dynamique qui transforme les titres complexes adossés à des créances hypothécaires en une opportunité impérieuse pour les investisseurs avisés. Cette FPI innovante navigue dans le paysage sophistiqué des investissements hypothécaires résidentiels, offrant un mélange unique de gestion financière stratégique et de génération potentielle de revenu passif qui le distingue sur le marché des investissements immobiliers compétitifs. Avec un modèle commercial méticuleusement conçu qui équilibre les risques, la transparence et l'investissement stratégique, GAW présente un instrument financier intrigant pour ceux qui cherchent à diversifier leur portefeuille d'investissement et à exploiter le domaine nuancé des titres adossés à des hypothèques.

Ellington Residential Mortgage REIT (GAVE) - Modèle commercial: Partenariats clés

Prêteurs hypothécaires et initiateurs

Depuis le quatrième trimestre 2023, Ellington Residential Mortgage REIT maintient des partenariats stratégiques avec les prêteurs hypothécaires et les initiateurs suivants:

Partenaire	Type de partenariat	Volume annuel
Wells Fargo	Origination hypothécaire résidentielle	425 millions de dollars
JPMorgan Chase	Titrisation hypothécaire	312 millions de dollars
Banque d'Amérique	Acquisition de prêts	287 millions de dollars

Institutions et banques financières

Les partenariats institutionnels financières de GAVE comprennent:

• Goldman Sachs - Capital Markets Advisory
• Morgan Stanley - Finance structurée
• Citibank - Installations de prêt

Conseillers en placement et sociétés du marché des capitaux

Partenariats clés du marché des investissements et des capitaux:

Ferme	Service	Valeur de transaction annuelle
Blackrock	Avis d'investissement	215 millions de dollars
Avant-garde	Gestion du portefeuille	178 millions de dollars

Fournisseurs de technologies et d'analyse de données

Les partenariats technologiques se sont concentrés sur l'analyse hypothécaire et la gestion des risques:

• Bloomberg Terminal - Données du marché
• Corelogic - données sur les propriétés et hypothécaires
• S&P Global Market Intelligence

Consultants en conformité réglementaire

Détails du partenariat de conformité:

Consultant	Focus de la conformité	Valeur d'engagement annuelle
Deloitte	Gestion des risques réglementaires	1,2 million de dollars
Pwc	Conformité des rapports financiers	$850,000

Ellington Residential Mortgage REIT (GAVE) - Modèle d'entreprise: Activités clés

Investissement de titres adossés à des créances hypothécaires (RMBS)

Au quatrième trimestre 2023, le portefeuille d'investissement RMBS de RMBS de Mortgage REIT d'Ellington était composé de:

Catégorie d'investissement	Valeur totale	Pourcentage de portefeuille
RMBS d'agence	265,7 millions de dollars	78.3%
RMBS non agences	73,6 millions de dollars	21.7%

Gestion du portefeuille et évaluation des risques

Mesures clés de la gestion des risques pour gagner au quatrième trimestre 2023:

• Durée de sensibilité aux taux d'intérêt: 1,2 ans
• Taux de coupon moyen pondéré: 4,75%
• Ratio de couverture des risques de crédit: 1,35

Allocation des capitaux et financement stratégique

Répartition de l'allocation financière pour 2023:

Source de financement	Montant	Pourcentage
Accords de rachat	422 millions de dollars	65.4%
Dette garantie	118 millions de dollars	18.3%
Capitaux propres	104 millions de dollars	16.3%

Étude de marché hypothécaire et analyse

RECHERCHE FOCUS DES RÉMARQUES EN 2023:

• Dynamique du marché de l'agence MBS
• Modélisation des risques de prépaiement
• Analyse de la répartition du crédit

Distribution des dividendes et relations avec les investisseurs

Métriques de performance des dividendes:

Année	Dividende annuel	Rendement des dividendes
2023	1,20 $ par action	12.5%
2022	1,08 $ par action	11.2%

Ellington Residential Mortgage REIT (GAVE) - Modèle d'entreprise: Ressources clés

Équipe expérimentée de gestion des investissements

Au quatrième trimestre 2023, l'équipe de gestion de l'Ellington Residential Mortgage Reit comprend:

Position	Nombre de professionnels	Expérience moyenne de l'industrie
Responsables de l'investissement seniors	7	15,3 ans
Spécialistes de la gestion des risques	4	12,7 ans

Capacités de modélisation financière sophistiquées

L'infrastructure de modélisation financière comprend:

• Plates-formes d'analyse quantitative avancées
• Outils de simulation du marché hypothécaire en temps réel
• Systèmes de modélisation prédictive améliorés par l'apprentissage

Portefeuille de valeurs mobilières adossé à des hypothèques diversifiés

Composition du portefeuille au 31 décembre 2023:

Type de sécurité	Valeur totale	Pourcentage de portefeuille
MBS résidentiels d'agence	512,6 millions de dollars	68.3%
MBS résidentiels non agences	147,3 millions de dollars	19.6%
MBS commercial	90,5 millions de dollars	12.1%

Fer solide base de capital et lignes de crédit

Ressources financières au quatrième trimestre 2023:

• Total des capitaux propres des actionnaires: 167,2 millions de dollars
• Facilités de crédit disponibles: 250 millions de dollars
• Ratio de dette / fonds propres: 3,2: 1

Technologies de gestion des risques avancés

Infrastructure technologique de gestion des risques:

Type de technologie	Année de mise en œuvre	Fonction primaire
Système de surveillance des risques en temps réel	2022	Évaluation des risques de portefeuille continu
Plateforme de modélisation par défaut prédictive	2023	Analyse de probabilité par défaut d'hypothèque

Ellington Residential Mortgage REIT (Earn) - Modèle d'entreprise: propositions de valeur

Rendement élevé des dividendes pour les investisseurs axés sur le revenu

Au quatrième trimestre 2023, l'Ellington Residential Mortgage REIT (GAE rendement en dividendes de 13,52%, significativement plus élevé que le rendement moyen du secteur des FPI.

Métrique du dividende	Valeur
Taux de dividendes annuel	1,20 $ par action
Dividende trimestriel	0,30 $ par action
Fréquence des dividendes	Trimestriel

Stratégie d'investissement hypothécaire résidentiel spécialisée

Gagnez l'accent sur:

• Titres adossés à des hypothèques résidentiels de l'agence (RMBS)
• RMBS non agences
• Prêts hypothécaires résidentiels

Composition du portefeuille d'investissement	Pourcentage
RMBS d'agence	84.3%
RMBS non agences	12.7%
Prêts hypothécaires résidentiels	3.0%

Gestion professionnelle des titres hypothécaires complexes

Mesures de performance de gestion clés:

• Actifs gérés totaux: 376,4 millions de dollars (Q4 2023)
• Revenu des intérêts nets: 7,2 millions de dollars
• Ratio de levier: 6,8x

Potentiel de génération de revenus passive cohérente

Indicateurs de performance financière:

Métrique financière	Valeur
Revenu net (2023)	14,6 millions de dollars
Retour des capitaux propres	8.3%
Valeur comptable par action	$10.42

Approche d'investissement transparent sur les marchés hypothécaires

Métriques de transparence:

• Divulgations de portefeuille détaillées trimestres
• Présentations mensuelles des investisseurs
• Déposages complets de la SEC

Fréquence de rapport	Détails
Rapports trimestriels	États financiers complets
Rapports annuels	Stratégique détaillé overview
Appels d'investisseurs	Discussions sur les bénéfices trimestriels

Ellington Residential Mortgage REIT (GAVE) - Modèle d'entreprise: relations avec les clients

Information financière régulière et transparence

Au quatrième trimestre 2023, Ellington Residential Mortgage REIT a déclaré un chiffre d'affaires total de 11,4 millions de dollars. La société maintient un Politique détaillée de la divulgation financière avec les mesures de rapport suivantes:

Métrique de rapport	Fréquence	Détails de divulgation
Rapports financiers trimestriels	4 fois par an	Formulaire SEC 10-Q Dépôt
Rapport financier annuel	Annuellement	Formulaire SEC 10-K DISPOST
Revenu net d'intérêt	Trimestriel	7,2 millions de dollars (Q4 2023)

Communication des investisseurs et appels de bénéfices trimestriels

Gagner des conduites de résultats trimestriels avec les caractéristiques suivantes:

• Durée moyenne de l'appel: 45-60 minutes
• Compte de participants: environ 50 à 75 investisseurs institutionnels
• Fréquence des appels de bénéfices: trimestriel
• Disponibilité des webdits: versions en direct et enregistrées

Portail des investisseurs en ligne et engagement numérique

Les métriques d'engagement des investisseurs numériques comprennent:

Plate-forme numérique	Métriques d'engagement
Site Web de relations avec les investisseurs	Visiteurs uniques mensuels: 3 500
Téléchargements de présentation des investisseurs	Téléchargements trimestriels: 1 200

Services de soutien aux investisseurs personnalisés

L'infrastructure de soutien aux investisseurs comprend:

• Équipe de relations avec les investisseurs dédiés: 4 professionnels à temps plein
• Temps de réponse moyen aux demandes des investisseurs: 24 heures
• Méthodes de contact direct: téléphone, e-mail et réunions planifiées

Stratégie de distribution de dividendes cohérente

Détails de la distribution des dividendes pour 2023:

Métrique	Valeur
Rendement annuel sur le dividende	12.5%
Dividende trimestriel par action	$0.30
Total des dividendes annuels payés	4,8 millions de dollars

Ellington Residential Mortgage REIT (Earn) - Modèle d'entreprise: canaux

Listing de bourse (NYSE)

Symbole de ticker: Gagnez

Échange	Date d'inscription	Capitalisation boursière
Bourse de New York (NYSE)	Juillet 2013	117,45 millions de dollars (en janvier 2024)

Plateformes d'investissement en ligne

• Charles Schwab
• Investissements de fidélité
• Améritrade TD
• E * Commerce

Réseaux de conseil financier

Réseau	Accès à la plate-forme	Disponibilité commerciale
Morgan Stanley	Accès complet	Trading direct
Services financiers UBS	Accès complet	Trading direct

Site Web de relations avec les investisseurs

Site Web: www.ellingtonresidential.com

• Rapports financiers trimestriels
• Dépôts de la SEC
• Présentations des investisseurs
• Transcriptions d'appel des gains

Canaux d'investissement institutionnels

Type d'investisseur institutionnel	Pourcentage de propriété	Investissement total
Fonds communs de placement	42.3%	68,5 millions de dollars
Fonds de pension	22.7%	36,8 millions de dollars
Hedge funds	15.6%	25,3 millions de dollars

Ellington Residential Mortgage REIT (GAVE) - Modèle d'entreprise: segments de clientèle

Investisseurs de détail axés sur le revenu

Au quatrième trimestre 2023, l'Ellington Residential Mortgage REIT cible les investisseurs de détail à la recherche de revenus de dividendes cohérents. Le rendement en dividendes de l'entreprise était de 14,32% pour l'exercice.

Métriques du segment des investisseurs	Valeur
Taille moyenne de l'investissement	$25,000 - $75,000
Investissement minimum	$1,000
Fréquence des dividendes	Trimestriel

Entreprises d'investissement institutionnelles

Les investisseurs institutionnels représentent 62,4% de la base totale des actionnaires de GAY en décembre 2023.

• Total Institutional Holdings: 347,6 millions de dollars
• Les principaux investisseurs institutionnels incluent Vanguard Group et BlackRock
• Investissement institutionnel moyen: 5,2 millions de dollars

Investisseurs individuels à haute nette

Les investisseurs à haute navette représentent environ 22% de la base d'investisseurs de GAY.

Caractéristiques d'investissement	Métrique
Gamme d'investissement typique	$100,000 - $1,000,000
Attribution moyenne du portefeuille	3-5% dans les FPI hypothécaires

Gestionnaires du portefeuille de retraite

Les portefeuilles de retraite allouent environ 1,8% de leur actif total à gagner en 2023.

• Investissements totaux de fonds de retraite: 128,3 millions de dollars
• Attribution moyenne par portefeuille de retraite: 450 000 $

Spécialistes des investissements à revenu fixe

Les spécialistes à revenu fixe représentent 15,6% de la composition des investisseurs de GAY.

Investissement Profile	Détails
Investissements totaux à revenu fixe	276,4 millions de dollars
Taille moyenne de l'investissement	2,3 millions de dollars

Ellington Residential Mortgage REIT (GAVE) - Modèle d'entreprise: Structure des coûts

Frais de gestion et opérationnels

Depuis le dernier rapport annuel, Ellington Residential Mortgage REIT, a déclaré des dépenses d'exploitation totales de 15,7 millions de dollars pour l'exercice 2022.

Catégorie de dépenses	Montant ($)
Frais de gestion	8,200,000
Compensation et avantages sociaux	4,500,000
Coûts administratifs généraux	3,000,000

Dépenses d'intérêt sur les emprunts

Les frais d'intérêt total pour 2022 étaient de 23,4 millions de dollars, représentant une partie importante de la structure des coûts de l'entreprise.

• Intérêt de l'accord de rachat: 18,6 millions de dollars
• Intérêts de notes garanties de senior: 4,8 millions de dollars

Coûts de négociation et de transaction en valeurs mobilières

Les dépenses liées aux transactions ont totalisé 2,1 millions de dollars en 2022.

Type de coût de transaction	Montant ($)
Frais de courtage	1,200,000
Coûts de compensation et de règlement	900,000

Compliance et dépenses réglementaires

Les coûts liés à la conformité pour 2022 s'élevaient à 1,5 million de dollars.

• Frais juridiques et d'audit: 900 000 $
• Dépenses de dépôt réglementaire: 600 000 $

Investissements technologiques et infrastructures

Les dépenses de technologie et d'infrastructures ont atteint 2,3 millions de dollars en 2022.

Catégorie d'investissement technologique	Montant ($)
Infrastructure informatique	1,400,000
Cybersécurité	500,000
Mises à niveau des logiciels et des systèmes	400,000

Ellington Residential Mortgage REIT (Earn) - Modèle d'entreprise: Strots de revenus

Revenu des intérêts provenant de titres adossés à des créances hypothécaires

Au troisième trimestre 2023, Ellington Residential Mortgage REIT a déclaré un revenu total d'intérêts de 14,1 millions de dollars. Le portefeuille consistait en:

Type de sécurité	Valeur totale	Rendement
MBS résidentiels d'agence	378,5 millions de dollars	3.65%
MBS résidentiels non agences	62,3 millions de dollars	5.22%

Réalisé des gains de la négociation des valeurs mobilières

Pour l'exercice 2023, Ellington Residential Mortgage REIT généré:

• Des gains nets réalisés de 3,2 millions de dollars
• Total des gains réalisés de la négociation des titres: 7,6 millions de dollars

Distributions de dividendes

Performance de dividendes pour 2023:

Quart	Dividende par action	Paiement total des dividendes
Q1 2023	$0.30	2,1 millions de dollars
Q2 2023	$0.28	1,9 million de dollars
Q3 2023	$0.25	1,7 million de dollars

Appréciation du capital du portefeuille d'investissement

Mesures d'évaluation du portefeuille pour 2023:

• Valeur du portefeuille d'investissement total: 442,8 millions de dollars
• Gains non réalisés: 6,5 millions de dollars
• Appréciation du portefeuille d'année à jour: 2,3%

Revenu du prépaiement hypothécaire et de refinancement

Pré-dirigeant et refinancement des données financières:

Métrique	Montant
Revenu de remboursement anticipé	2,4 millions de dollars
Frais de refinancement	1,1 million de dollars
Revenu total de prépaiement	3,5 millions de dollars

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.