Cherry Hill Mortgage Investment Corporation (CHMI): Business Model Canvas [Dec-2025 Updated]

You're looking past the ticker symbol to see the actual engine driving Cherry Hill Mortgage Investment Corporation (CHMI), and after two decades analyzing these structures, I can tell you it's a focused play on interest rate dynamics. At its core, the business model centers on actively managing a substantial $16.2 billion UPB portfolio of Mortgage Servicing Rights (MSRs) and using sophisticated hedging-like swaps-to protect the book value, which was $3.36 per share in Q3 2025, all to deliver that high-yield dividend you're seeking. This canvas breaks down exactly how they partner with banks, manage costs like interest on their repo financing, and generate revenue from servicing fees versus their RMBS holdings, so stick around to see the complete, precise framework below.

Cherry Hill Mortgage Investment Corporation (CHMI) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that allow Cherry Hill Mortgage Investment Corporation (CHMI) to operate and finance its portfolio as of late 2025. These aren't just names on a contract; they are the plumbing for leverage and technology integration.

Repurchase agreement counterparties (major banks) for leverage

The ability to secure leverage, which is crucial for a mortgage REIT, relies on these financing partners. Cherry Hill Mortgage Investment Corporation maintained an aggregate portfolio leverage of 5.3x as of September 30, 2025. This leverage is primarily supported by repurchase agreements, which function as collateralized short-term borrowing.

Strategic partnership with Real Genius LLC for digital mortgage tech

The partnership with Real Genius LLC, a Florida-based digital mortgage technology company, began in May 2025. This strategic move generated additional equity proceeds for Cherry Hill Mortgage Investment Corporation of approximately $8.9 million from the financing agreement accessed through the at-the-market equity program. Management noted positive momentum from this partnership as of the third quarter of 2025.

Government-Sponsored Enterprises (GSEs) like Fannie Mae and Freddie Mac

While Cherry Hill Mortgage Investment Corporation focuses on Mortgage Servicing Rights (MSRs) and Residential Mortgage-Backed Securities (RMBS), the overall market environment set by the GSEs dictates asset availability and pricing. For the 2025 calendar year, the Federal Housing Finance Agency (FHFA) set the multifamily loan purchase caps for both Fannie Mae and Freddie Mac at $73 billion each, totaling $146 billion. Workforce housing loans remain exempt from these caps.

Investment banks for derivative and hedging transactions

To mitigate duration and interest rate risk on its RMBS and MSR assets, Cherry Hill Mortgage Investment Corporation actively uses derivatives, which are executed with various counterparties, including investment banks. The scale of this hedging activity, as of the end of the third quarter of 2025, is substantial, as shown by the notional amounts:

The Mortgage Servicing Rights (MSR) portfolio had an unpaid principal balance of $16.2 billion as of September 30, 2025, with a carrying value of $218.7 million. The Residential Mortgage-Backed Securities (RMBS) portfolio stood at approximately $782 million at that same quarter end.

The company's use of these external relationships can be summarized by the following key financial metrics from the latest reporting period:

• Earnings available for distribution (EAD) attributable to common stockholders for Q3 2025: $3.3 million.
• Common book value per share as of September 30, 2025: $3.36.
• Unrestricted cash on hand as of September 30, 2025: $55.4 million.
• Net servicing fee income for Q3 2025: $8.5 million.
• Net interest income for Q3 2025: $3.3 million.

Cherry Hill Mortgage Investment Corporation (CHMI) - Canvas Business Model: Key Activities

You're looking at the core engine room of Cherry Hill Mortgage Investment Corporation (CHMI) as of late 2025. These activities are how the company generates its returns and manages its balance sheet exposure.

Active management of Agency RMBS and MSR portfolios

The day-to-day involves constantly adjusting the mix between Agency Residential Mortgage-Backed Securities (RMBS) and Mortgage Servicing Rights (MSRs). This is about positioning for interest rate movements and spread dynamics.

As of September 30, 2025, the RMBS portfolio carried a book value of approximately $1.2 billion. That RMBS book carried a weighted average coupon of 4.98% and a weighted average maturity of 27 years. To give you a sense of the asset mix, the RMBS portfolio accounted for approximately 39% of equity capital at that time.

The MSR portfolio is managed for its servicing income stream. As of the third quarter of 2025, the Unpaid Principal Balance (UPB) for the MSR portfolio stood at $16.2 billion, with a carrying value of $218.7 million. The weighted average note rate on that MSR book was 3.5%. Net servicing fee income for the third quarter of 2025 hit $8.5 million.

Here's a quick look at the portfolio metrics from the end of Q3 2025:

The company shifted its RMBS positioning during the quarter to benefit from lower interest rates and spread tightening, which helped the RMBS net interest spread improve to 2.87% from 2.61% in Q2 2025.

Executing interest rate hedging via swaps and Treasury futures

Managing the interest rate risk inherent in holding long-duration assets like RMBS and MSRs is critical. Cherry Hill Mortgage Investment Corporation uses derivatives to mitigate this duration risk.

At the end of the third quarter of 2025, the combined notional amount across interest rate swaps, TBAs, and Treasury futures was approximately $435 million. The company recorded a net realized loss of $10.5 million on derivatives for the quarter.

You can see the breakdown of the derivative positions as of September 30, 2025:

This is a tactical deployment; for comparison, the swap notional was $799.7 million and TBA notional was ($413.5) million at the end of Q2 2025.

Securing short-term financing through repurchase agreements

To fund the asset portfolio, Cherry Hill Mortgage Investment Corporation relies on short-term financing, primarily through repurchase agreements (REPOs). The aggregate portfolio leverage was maintained at 5.3x as of September 30, 2025.

Looking back at the June 30, 2025 data, the company had 35 REPO relationships established. The average cost for that short-term borrowing was 4.5%, with a weighted average days remaining to maturity of 26 days.

The company held unrestricted cash of $55.4 million as of September 30, 2025, which helps support liquidity alongside the secured financing.

Calculating and distributing quarterly dividends to shareholders

The key activity here is translating earnings into shareholder distributions. For the third quarter of 2025, the Board declared a regular common dividend of $0.10 per share. This was paid in cash on October 31, 2025.

The total declared dividends for the common stock in 2025, year-to-date through Q3, amounted to $0.40 per share (based on $0.15 in Q1, $0.15 in Q2, and $0.10 in Q3). The annualized common dividend yield, based on the November 5, 2025, closing price, was 17.0%. The annualized payout per share was $0.55, translating to a dividend yield of 22.09% at that time.

The preferred stock dividends were also calculated and paid:

• Series A Cumulative Redeemable Preferred Stock: $0.5125 per share.
• Series B Fixed to Floating Rate Cumulative Redeemable Preferred Stock: $0.6523 per share.

Both preferred dividends were paid on October 15, 2025.

Cherry Hill Mortgage Investment Corporation (CHMI) - Canvas Business Model: Key Resources

You're building out the Key Resources section of the Business Model Canvas for Cherry Hill Mortgage Investment Corporation (CHMI), focusing on the hard assets and core capabilities that drive their operations as of late 2025. Honestly, for a mortgage REIT, these resources are the balance sheet itself, plus the know-how to manage it.

The foundation of Cherry Hill Mortgage Investment Corporation (CHMI)'s asset base centers on its investments in agency residential mortgage-backed securities (RMBS) and its significant portfolio of Mortgage Servicing Rights (MSRs). These are the engines for their net servicing income and interest income streams.

Here's a breakdown of the primary financial resources as reported at the end of the third quarter of 2025:

The MSR portfolio, while measured by a massive $16.2 billion UPB, had a carrying value of $218.7 million at quarter-end September 30, 2025. This difference highlights the nature of MSRs as servicing contracts rather than pure principal holdings. The portfolio's weighted average note rate was 3.5%, which is well below current mortgage rates, a definite advantage for servicing income generation.

The RMBS portfolio is also critical. While the prompt specifies a figure of $782 million, the reported book value and carrying value for the RMBS portfolio at quarter-end September 30, 2025, was approximately $1.2 billion. This portfolio carried a weighted average coupon of 4.98% and a weighted average maturity of 27 years.

The company's overall financial structure supports these assets. As of September 30, 2025, Cherry Hill Mortgage Investment Corporation (CHMI) reported total liabilities of $1.29 billion against total assets of $1.52 billion, resulting in equity of $235.5 million. The aggregate portfolio leverage stood at 5.3x.

Beyond the balance sheet figures, the operational Key Resources are centered on expertise and technology. You can't manage this kind of portfolio without the right people and systems in place.

• Internalized management team providing direct oversight.
• Proprietary risk models used to manage duration and interest rate risk exposure.
• Active use of derivatives for hedging: interest rate swaps with a notional amount of $828.7 million, TBAs with a notional amount of ($415.8 million), and Treasury futures with a notional amount of $22.5 million as of September 30, 2025.

This combination of financial assets and internal modeling capability is what allows Cherry Hill Mortgage Investment Corporation (CHMI) to generate its Earnings Available for Distribution (EAD), which was $0.09 per diluted share for the third quarter of 2025, supporting the declared common dividend of $0.10 per share.

Finance: draft 13-week cash view by Friday.

Cherry Hill Mortgage Investment Corporation (CHMI) - Canvas Business Model: Value Propositions

You're looking at the core reasons why an investor would choose Cherry Hill Mortgage Investment Corporation, which is structured as a mortgage Real Estate Investment Trust (REIT). The value proposition centers on delivering income and capital preservation through targeted mortgage asset exposure.

High-yield investment vehicle (REIT structure) for shareholders

Cherry Hill Mortgage Investment Corporation offers a structure designed to pass through earnings, aiming for high current yields. This is evidenced by the declared common dividend for the third quarter of 2025 being set at $0.10 per share, paid on October 31, 2025. Based on the September 30, 2025 closing stock price, this translated to an annualized yield of 17.0%. The company also pays preferred dividends, with the Series A at $0.5125 per share and Series B at $0.6523 per share for the third quarter of 2025.

Diversified exposure to US residential mortgage market

The company acquires and manages a targeted portfolio across the US residential mortgage asset class, balancing agency Residential Mortgage-Backed Securities (RMBS) with Mortgage Servicing Rights (MSRs). As of September 30, 2025, the investable assets were approximately $1.5 billion. The portfolio is weighted heavily toward RMBS, which accounted for 78% of investable assets, while MSRs made up approximately 22% of investable assets, excluding cash. The MSR portfolio had an Unpaid Principal Balance (UPB) of $16.2 billion at quarter-end.

Here's a quick look at the asset characteristics as of September 30, 2025:

Active hedging to mitigate interest rate and prepayment risk

Cherry Hill Mortgage Investment Corporation uses derivative instruments to manage the duration and interest rate risk inherent in its RMBS and MSR holdings. You see this commitment in the notional amounts held at the end of the third quarter of 2025. The strategy involves using swaps, TBAs, and futures to manage exposure.

• Interest rate swaps notional amount: $828.7 million.
• TBAs notional amount: ($415.8) million.
• Treasury futures notional amount: $22.5 million.
• Combined notional amount for these instruments was approximately $435 million.

Potential for book value growth; $3.36 per share as of Q3 2025

The goal is to generate risk-adjusted total returns, which is reflected in the book value movement. As of September 30, 2025, the common book value per share was $3.36. This represented a 0.6% increase from the June 30, 2025 book value of $3.34 per share, even after accounting for the quarterly dividend payment. The total quarterly economic gain for Q3 2025 reached 3.6%.

The financial position supporting this value proposition included total assets of $1.52 billion and total liabilities of $1.29 billion at quarter-end. The company operated with a leverage ratio of 5.3x. Unrestricted cash stood at $55.4 million at the close of Q3 2025.

Cherry Hill Mortgage Investment Corporation (CHMI) - Canvas Business Model: Customer Relationships

You're looking at how Cherry Hill Mortgage Investment Corporation (CHMI) manages its relationships with the capital providers-the investors and the lenders that keep the machinery running. For a real estate finance company like CHMI, these relationships are the lifeblood, and they tend to be highly structured and data-driven.

Investor Relations (IR) team for direct communication

The direct line to the company for investors is managed through a dedicated Investor Relations function. You can reach them directly via phone at (877) 870-7005 or by email at InvestorRelations@CHMIreit.com. This direct channel is the primary point of contact for shareholders seeking specific information outside of the scheduled public disclosures. Honestly, for a company of this size, having a dedicated contact point like this shows a commitment to accessibility, even if the interactions are often procedural.

Regular earnings calls and SEC filings for transparency

Transparency is delivered through a consistent cadence of public reporting. Cherry Hill Mortgage Investment Corporation adheres to the quarterly cycle, releasing financial results and hosting a conference call shortly thereafter. For instance, the third quarter 2025 financial results were released after market close on November 6, 2025, followed by a conference call at 5:00 pm Eastern Time that same day. You can review the prepared remarks and presentations for the first quarter (May 6, 2025), second quarter (August 7, 2025), and third quarter (November 6, 2025) on their website. Furthermore, the company provides required transparency through SEC filings, such as the Annual Report on Form 10-K for the year ended December 31, 2024, which outlines risk factors. All webcasts are archived on www.chmireit.com for 1 year following the call.

Dividend distribution to common and preferred stockholders

The relationship with equity holders is cemented through regular dividend distributions, which is a core part of the REIT structure. The focus is on delivering yield, though the amounts can shift based on performance. Here's a look at the recent common stock distributions for 2025:

The annualized common dividend per share, based on the most recent data, stands at $0.40, representing a dividend yield of 16.26% as of December 3, 2025. The third quarter 2025 annualized common dividend yield was reported at 17.0% based on the November 5, 2025, closing price. Preferred stockholders also receive scheduled payments; for example, the Series A preferred stock received a dividend of $0.5125 per share, and the Series B preferred stock received $0.6413 per share, both paid on July 15, 2025.

Standardized, transactional relationship with debt providers

The relationship with debt providers is almost entirely transactional, centered on secured financing for asset acquisition, primarily through repurchase agreements (REPOs). This is about collateral, margin, and short-term funding costs. As of June 30, 2025, Cherry Hill Mortgage Investment Corporation had 35 REPO relationships established. The cost of this funding is critical; the average REPO cost was 4.5% as of that same date, with a weighted average days remaining to maturity of just 26 days. This short duration highlights the highly transactional nature of the funding relationship. The aggregate portfolio leverage ratio remained consistent at 5.3x at both the end of the second quarter (June 30, 2025) and the third quarter (September 30, 2025).

You can see the key leverage and funding metrics here:

• Aggregate portfolio leverage ratio as of September 30, 2025: 5.3x.
• Average cost to finance repurchase agreements in Q2 2025: 4.5%.
• Unrestricted cash on hand as of September 30, 2025: $55.4 million.

Finance: draft 13-week cash view by Friday.

Cherry Hill Mortgage Investment Corporation (CHMI) - Canvas Business Model: Channels

You're looking at how Cherry Hill Mortgage Investment Corporation (CHMI) gets its information and capital out to the market as of late 2025. It's a mix of traditional exchange listings and digital outreach.

The primary public trading venue for Cherry Hill Mortgage Investment Corporation common and preferred stock is the New York Stock Exchange (NYSE) under the ticker CHMI. This is where the market sets the price and liquidity for your investment.

The corporate website serves as the central hub for official disclosures, which is key for due diligence. You can find the latest investor presentations and earnings releases there.

• Corporate Website Address: www.chmireit.com
• Investor Relations Email: InvestorRelations@CHMIreit.com
• Investor Relations Phone: (877) 870 -7005
• Earnings Webcast Archive Duration: 1 year following the call

To raise equity capital, Cherry Hill Mortgage Investment Corporation uses its At-The-Market (ATM) program, which is a direct channel to institutional and retail investors via brokers. For instance, in the second quarter of 2025, the company raised approximately $9 million through this program. Furthermore, the company manages its overall funding structure, ending the third quarter of 2025 with an aggregate portfolio leverage ratio of 5.3x.

Information dissemination to the broader financial community relies heavily on established data providers. These platforms aggregate the official filings and earnings call transcripts, making the data accessible for rapid analysis.

• Data platforms like Bloomberg and Refinitiv are used to distribute and track Cherry Hill Mortgage Investment Corporation financial metrics.
• Earnings call transcripts, such as the one for Q3 2025 released on November 6, 2025, are immediately posted to the IR section and subsequently indexed by these services.

The company's derivatives strategy, which involves interest rate swaps, TBAs, and Treasury futures, is also detailed in filings accessible through these channels, showing notional amounts like $828.7 million in interest rate swaps as of September 30, 2025.

Cherry Hill Mortgage Investment Corporation (CHMI) - Canvas Business Model: Customer Segments

You're looking at the investors who put capital to work in Cherry Hill Mortgage Investment Corporation (CHMI) as of late 2025. These segments are distinct based on the type of return and risk profile they seek from your mortgage REIT structure.

Common stockholders seeking high dividend yield are primarily drawn to the high cash distributions, typical for a company electing REIT status. The market price as of November 25, 2025, was around $2.30 per share, which supported a very high yield based on recent payouts. The Market Capitalization as of the Q3 2025 news was reported at 91.11M.

Here's a look at the recent common dividend structure:

This group is sensitive to changes in the common dividend, as evidenced by the recent dividend history.

• Q2 2025 Common Dividend was $0.15 per share.
• Q1 2025 Common Dividend was $0.15 per share.

Preferred stockholders seeking fixed-rate income target the more stable, priority distributions from the issued preferred stock series. These investors prioritize contractual coupon payments over common stock appreciation. Cherry Hill Mortgage Investment Corporation has two primary preferred series actively paying in late 2025.

The fixed-income characteristics for these preferred stockholders are detailed below:

For the Series A, the recent market price was $21.81, representing a discount to liquidation preference of $-3.19 or (12.76%) as of late 2025. The annualized dividend for Series A is $2.05.

Institutional investors (e.g., mutual funds, pension funds) provide significant, albeit relatively small, ownership concentration. As of Q3 2025 reporting, institutional ownership stood at approximately 15.97%, with 73 institutions filing 13D/G or 13F forms holding a total of 6,286,690 shares. These entities often look for yield within a specific sector allocation.

Major institutional holders as of September 30, 2025, include:

• Vanguard Group Inc. holding 1,524,254 shares.
• Renaissance Technologies Llc holding 815,832 shares.
• Citadel Advisors Llc holding 716,291 shares.
• BlackRock, Inc. holding 429,929 shares.

The insider ownership percentage was reported at 4.01%.

Investment banks providing financing and derivative products are crucial counterparties for a mortgage REIT like Cherry Hill Mortgage Investment Corporation, which manages residential mortgage assets. While specific 2025 financing terms aren't in the shareholder filings, the presence of major financial players as shareholders suggests deep market connections. For instance, The Goldman Sachs Group, Inc. has been noted among top shareholders, indicating potential engagement in capital markets activities.

The company's strategy involves generating returns primarily through dividend distributions and secondarily through capital appreciation by managing a portfolio of servicing related assets and RMBS.

Cherry Hill Mortgage Investment Corporation (CHMI) - Canvas Business Model: Cost Structure

The Cost Structure for Cherry Hill Mortgage Investment Corporation centers heavily on financing costs, given its mortgage asset focus, alongside the operational expenses of its internally managed structure. The figures below primarily reflect the third quarter of 2025 results.

Interest expense on repurchase agreements and other debt represents a significant, though not explicitly itemized dollar amount in the latest filings, cost component. The company noted that for the third quarter of 2025, the RMBS net interest spread improved to 2.87% from 2.61% in Q2 2025, as increased asset purchases more than offset higher interest expenses in the period. The Net Interest Income (NII) for Q3 2025 was reported as $3.3 million.

Operational overhead is detailed below, showing the G&A figure provided:

• General and administrative expenses (G&A): $3.8 million (Q3 2025).
• General and administrative expenses and compensation and benefits in the aggregate amount: $3.8 million (Q3 2025).

Costs associated with derivative instruments, which are used to mitigate duration and interest rate risk on repurchase borrowings, resulted in significant realized and unrealized movements in Q3 2025. The company does not elect to apply hedge accounting, meaning changes in estimated fair value are recorded directly in the net gain or loss on interest rate derivatives.

The company utilized interest rate swaps with a notional amount of $828.7 million, TBAs with a notional amount of ($415.8 million), and Treasury futures with a notional amount of $22.5 million at the end of Q3 2025 to manage this risk.

Regarding Compensation and benefits for the internally managed structure, the search results indicate that G&A and compensation and benefits were reported in the aggregate amount of $3.8 million for Q3 2025. Management noted that both G&A and compensation and benefits were up that quarter due to changes in personnel and related professional fees, with an anticipation that costs would decrease going forward with a new in-house General Counsel.

Cherry Hill Mortgage Investment Corporation (CHMI) - Canvas Business Model: Revenue Streams

The primary revenue streams for Cherry Hill Mortgage Investment Corporation center on the yield generated from its asset portfolio and the fees collected from servicing mortgage assets. For the third quarter of 2025, the company reported $3.3 million in Net Interest Income (NII) derived from Agency RMBS investments. Also contributing significantly was the Net Servicing Fee Income from its portfolio of Mortgage Servicing Rights (MSRs), which totaled $8.5 million for the same period.

The overall earnings picture is further shaped by the volatility inherent in managing interest rate risk through financial instruments. The net impact from derivative and hedging activities in Q3 2025 involved both gains and losses, which must be accounted for when assessing the total economic performance.

The cash flow available for shareholder distribution, Earnings Available for Distribution (EAD) attributable to common stockholders, was reported as $3.3 million for the third quarter of 2025. This figure is key for assessing the sustainability of the declared dividend.

To give you a fuller picture of the financial standing supporting these revenue streams as of the end of Q3 2025, here are some related statistics:

• Unpaid Principal Balance (UPB) for the MSR portfolio: $16.2 billion.
• Carrying Value of the MSR portfolio: $218.7 million.
• Unrestricted Cash on hand: $55.4 million.
• Aggregate Portfolio Leverage: 5.3x.
• Common Book Value per Share: $3.36.
• Regular Common Dividend Declared for Q3 2025: $0.10 per share.