EARN Reports Results
Ellington Credit Company (NYSE:EARN) reported its first quarter 2025 earnings on May 7, 2025, highlighting a net loss of $0.23 per share in calendar Q1 2025 and adjusted distributable earnings (ADE) of $0.26 per share, with a strategic shift to CLO (Collateralized Loan Obligation) investments following its conversion to a closed-end fund. Management executed a complete divestment of agency mortgage assets, increased CLO holdings by 46% to $250 million as of March 31, 2025, and maintained a robust liquidity position with $59 million in cash at April 30, 2025. Insights from the call reveal impactful portfolio repositioning, market-driven capital deployment, and evolving risk management practices.
Ellington Credit Company transitioned from a REIT to a registered closed-end fund on April 1, 2025, triggering a full-sale of agency mortgage pools and a rapid redeployment of capital to CLOs. The shift prompted a fiscal calendar reset and changed quarterly reporting requirements from 10-Qs/10-Ks to 1940 Act filings, such as N-PORT and N-CSR.
The seamless transition minimized NAV volatility and enhances flexibility in deploying capital into higher-yielding credit assets during periods of market dislocation.
Source Fool.com
