Cherry Hill Mortgage Investment Corporation

Good day and welcome to Cherry Hill Mortgage Investment Corporation's third quarter 2025 conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 1-1 on your touchtone telephone. If your question has been answered and you'd like to withdraw your question, please press star 1-1 again. I would like to turn the call over to Garrett Edson of ICR. Please go ahead.

We'd like to thank you for joining us today for Cherry Hill Mortgage Investment Corporation's third quarter 2025 conference call. In advance of this call, we issued a press release that was distributed earlier this afternoon. That press release and a third quarter 2025 investor presentation have been posted to the investor relations section of our website at www.chmireet.com. On today's call, management's prepared remarks and answers to your questions may contain forward-looking statements that are subject to risks and uncertainties, that could cause actual results to differ from those discussed today. Examples of forward-looking statements include those related to interest income, financial guidance, IRRs, future expected cash flows, as well as prepayment and recapture rates, delinquencies and non-GAAP financial measures, such as earnings available for distribution or EAD, and comprehensive income. Forward-looking statements represent management's current estimates, and Cherry Hill assumes no obligation to update any forward-looking statements in the future. We encourage listeners to review the more detailed discussions related to these forward-looking statements contained in the company's filings with the SEC, and the definitions contained in the financial presentations available on the company's website. Today's conference call is hosted by Jay Lown, President and CEO, Julian Evans, the Chief Investment Officer, and Apeksha Patel, the Chief Financial Officer. Now, I will turn the call over to Jay.

Thanks, Garrett, and welcome to our third quarter 2025 earnings call. The third quarter saw continued reduction in overall macro volatility as we moved into the fall, with tariff concerns mostly fading into the background and investors accepting the new normal. As the quarter progressed, it became clear that the Fed would proceed with rate cuts given economic indicators, and they did exactly that in both September and last week. Rates were mostly contained quarter over quarter, with the 10-year yield ending marginally lower at 4.15%. Specific to Cherry Hill, portfolio components such as mortgages, swaps, futures, and MSRs performed well in the quarter, though lower coupon mortgages outperformed higher coupons due to lower rates and investors' growing demand for duration. With the Fed in easing mode, leading to higher prepayment speed expectations for high-coupon mortgages, we shifted our RMBS portfolio in the quarter to benefit from the lower interest rate environment and stand positioned to benefit from lower funding costs and improved portfolio performance. Our MSR portfolio has a weighted average note rate of 3.5%, well below current mortgage rates, and continues to perform well. For the third quarter, we generated GAAP net income applicable to common stockholders of 5 cents per diluted share. Book value per common share finished the quarter at $3.36, compared to $3.34 on June 30th. On an NAV basis, which includes preferred stock and prior to any ATM capital raised in the quarter, NAV was up approximately 1.1 million, or 0.5 percent relative to June 30. Financial leverage at the end of the quarter remained consistent at 5.3 times as we continued to stay prudently levered. We ended the quarter with $55 million of unrestricted cash, maintaining a solid liquidity profile. In September, our board of directors made the strategic decision to adjust our dividend to 10 cents per share. We believe the realignment is more sustainable and in line with the company's earnings power. As we mentioned on our last call, we entered into a strategic partnership and investment with Real Genius LLC, a Florida-based digital mortgage technology company earlier this year. As a reminder, Real Genius has developed a proprietary direct-to-consumer platform offering an efficient, fully online mortgage experience, including instant prequalification, automated document process, and real-time loan tracking, all of which is supported by their custom-built point-of-sale system. We are seeing positive momentum from that partnership as Real Genius' growth trajectory and stabilization progresses in line with our expectations. With 30-year mortgage rates hovering around 6 percent, we are optimistic that the reduction in mortgage rates may facilitate an acceleration in Real Genius' growth as more homebuyers and homeowners look to purchase homes or refinance. Looking ahead, we will continue to seek out investment opportunities we believe would be accretive to our business. We are monitoring the economic environment closely and are focused on thoughtfully growing the company while maintaining strong liquidity and prudent leverage. With that, I'll turn the call over to Julian, who will cover more details regarding our investment portfolio and its performance over the third quarter.