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What does Cherry Hill Mortgage do and what are its main business segments?

Did Cherry Hill Mortgage beat or miss consensus estimates last quarter?

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- **Sustainable Dividend Adjustment**: Dividend reduced to $0.10 per share to align with earnings power, maintaining financial stability.
- **Portfolio Resilience**: MSR portfolio (3.5% note rate) and RMBS portfolio (6.1% CPR) performed well amid rate cuts, with potential for higher prepayment speeds as rates decline.
- **Cost Management Progress**: Operating expenses up 12.5% sequentially due to personnel changes, but CFO anticipates future reductions with new in-house GC.
- **Strategic Growth Potential**: Real Genius partnership shows momentum, with digital mortgage platform poised to benefit from lower mortgage rates.

**【CEO Summary Section】**
- **Market Conditions and Portfolio Performance**: The third quarter saw reduced macro volatility and Fed rate cuts, with the 10-year yield ending at 4.15%. The portfolio, including mortgages, swaps, futures, and MSRs, performed well, with lower coupon mortgages outperforming. The MSR portfolio (weighted average note rate of 3.5%) and RMBS portfolio (6.1% CPR) showed stability.
- **Financial Highlights**: GAAP net income was $0.05 per share, book value rose to $3.36, and NAV increased by 0.5%. The Board adjusted the dividend to $0.10 per share for sustainability.
- **Strategic Initiatives**: The partnership with Real Genius, a digital mortgage platform, is gaining momentum, with potential growth as mortgage rates decline.

**【CFO Financial Commentary】**
- **Earnings and Dividends**: GAAP net income was $2 million, comprehensive income $4.5 million, and EAD $3.3 million. Dividends of $0.10 per common share and $0.5125/$0.6523 for preferred shares were paid.
- **Cost Management**: Operating expenses rose to $3.8 million due to personnel changes and fees, but a new in-house GC is expected to reduce future costs.
- **Liquidity and Leverage**: Financial leverage remained at 5.3x, with $55 million in unrestricted cash.

**【Q&A Key Highlights】**
- **Partnership Outlook**: CEO indicated openness to future accretive partnerships, with Real Genius showing positive momentum.
- **Expense Trends**: CFO noted Q3 G&A and comp costs were elevated due to personnel changes but expects downward pressure in Q4.
- **Book Value Update**: As of October 31, book value per share increased by 1.2% from September 30, excluding dividend accruals.

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