Ellington Credit Reports Q1 2025 Financials with $10.2M Net Income and $316.9M CLO Portfolio

Ellington Credit Company (EARN) reported Q1 2025 financial results, with net income of $10.2 million, net asset value (NAV) per share increasing to $6.12, and a significant expansion of its CLO portfolio to $316.9 million. The company achieved a weighted average GAAP yield of 15.6% on the CLO portfolio and declared a monthly distribution of $0.08 per common share.

Ellington Credit Company (NYSE: EARN) has reported its financial results for the first quarter of 2025, showcasing a robust performance across various metrics. The company's net income for the period was $10.2 million, representing a significant increase from the previous quarter. The net asset value (NAV) per share rose to $6.12, up from $6.08 as of March 31, 2025. This growth can be attributed to the distribution of $0.24 per share for the quarter [1].

A key highlight of the quarter was the substantial expansion of Ellington's CLO (Collateralized Loan Obligation) portfolio. The total value of the CLO portfolio grew to $316.9 million, a 27% increase from the previous quarter's $249.9 million. This expansion was driven by aggressive investment in both CLO debt and equity, with debt investments increasing to $148.9 million and equity investments rising to $168.0 million [1].

The company's weighted average GAAP yield on the CLO portfolio was 15.6%, indicating strong performance in this segment. Additionally, Ellington received $15.9 million in recurring cash distributions from its investment portfolio, equating to $0.42 per share [1].

Ellington's Chief Executive Officer, Laurence Penn, commented on the company's performance, stating, "During the second calendar quarter of 2025—our first quarter as a registered closed-end fund and the first quarter of our new fiscal year—we generated a robust annualized return of 19.7% , completed the disposition of our legacy mortgage-related investments with minimal impact on NAV, and aggressively scaled our CLO portfolio by another 27% sequentially to $317 million ,” [1].

The company's net investment income (NII) was $6.5 million for the quarter, with adjusted NII at $6.6 million. This was partially offset by a lag in net investment income due to capital rotation, but management projects that NII will cover the monthly distribution starting in September [1].

Ellington's CLO strategy proved effective, with strong net investment income and net realized and unrealized gains across both U.S. equity and mezzanine investments. The company ended the quarter with a CLO portfolio of $316.9 million and cash and cash equivalents of $36.6 million [1].

In summary, Ellington Credit Company's Q1 2025 financial results demonstrate a strong performance, with notable growth in the CLO portfolio and robust net income. The company's strategic investments and effective management have positioned it well for continued success.

References:
[1] https://www.stocktitan.net/news/EARN/ellington-credit-company-announces-financial-results-for-the-first-5rkiaofxohpe.html