Ellington Residential Mortgage REIT Files 2023 10-K

TL;DR

<b>Ellington Residential Mortgage REIT filed its 2023 10-K, detailing financial performance and management agreements.</b>

AI Summary

Ellington Residential Mortgage REIT (EARN) filed a Annual Report (10-K) with the SEC on March 12, 2024. Ellington Residential Mortgage REIT reported total assets of $18,601,464 and total debt of $13,377,840 for the fiscal year ended December 31, 2023. The company's net income was $18,601,464 for the fiscal year ended December 31, 2023, with EPS of $2.69. Shareholders' equity was $13,377,840 as of December 31, 2023. The Manager receives an annual management fee of 1.50% of shareholders' equity, payable quarterly. A termination fee equal to 5% of Shareholders' Equity is payable to the Manager upon certain termination events.

Why It Matters

For investors and stakeholders tracking Ellington Residential Mortgage REIT, this filing contains several important signals. The filing provides a comprehensive overview of the REIT's financial health and operational structure for the fiscal year 2023, including asset and debt levels. Details on management fees and termination clauses highlight the contractual relationship and potential costs associated with the management of the REIT.

Risk Assessment

Risk Level: medium — Ellington Residential Mortgage REIT shows moderate risk based on this filing. The company's financial performance and asset-liability structure are subject to market interest rate fluctuations and the specific terms of its management agreement, which includes significant termination fees.

Analyst Insight

Investors should review the detailed financial statements and risk factors to understand the impact of interest rate sensitivity and management contract terms on future performance.

Financial Highlights

total Assets

18,601,464

total Debt

13,377,840

net Income

18,601,464

eps

2.69

Key Numbers

• 18,601,464 — Total Assets (As of December 31, 2023)
• 13,377,840 — Total Debt (As of December 31, 2023)
• 18,601,464 — Net Income (For the fiscal year ended December 31, 2023)
• 2.69 — EPS (For the fiscal year ended December 31, 2023)
• 1.50% — Annual Management Fee (Of shareholders' equity)
• 5% — Termination Fee (Of Shareholders' Equity)
• 2023-12-31 — Fiscal Year End
• 2024-03-12 — Filing Date

Key Players & Entities

• Ellington Residential Mortgage REIT (company) — Filer
• 53 FOREST AVENUE (company) — Business Address
• OLD GREENWICH (company) — Business Address City
• CT (company) — Business Address State
• 06870 (company) — Business Address Zip
• 1.50% (dollar_amount) — Annual management fee percentage
• 5% (dollar_amount) — Termination fee percentage
• MD (company) — State of Incorporation

FAQ

Risk Factors

• Interest Rate Risk [high — financial]: The value of the company's mortgage-backed securities and its net interest margin are sensitive to changes in interest rates.
• Management Agreement Terms [medium — operational]: The management fee is 1.50% of shareholders' equity, and a 5% termination fee is payable upon certain events, impacting operational costs and flexibility.

Key Financial Figures

• $0.01 — Common Shares of Beneficial Interest, $0.01 par value per share EARN The New York S
• $10.3 b — ssets under management of approximately $10.3 billion, of which (i) approximately $7.2
• $7.2 billion — 0.3 billion, of which (i) approximately $7.2 billion consisted of our company, as well as El
• $3.1 billion — ancial leverage, and (ii) approximately $3.1 billion consisted of accounts that do not emplo
• $10.3 billion — t do not employ financial leverage. The $10.3 billion and $7.2 billion in assets under manage
• $0.8 billion — under management include approximately $0.8 billion in Ellington-managed CLOs. For these pu

Filing Documents

• earn-20231231.htm (10-K) — 2754KB
• earn20231231ex211-subsidia.htm (EX-21.1) — 6KB
• earn20231231exhibit231.htm (EX-23.1) — 2KB
• earn20231231exhibit311.htm (EX-31.1) — 11KB
• earn20231231exhibit312.htm (EX-31.2) — 11KB
• earn20231231exhibit321.htm (EX-32.1) — 5KB
• earn20231231exhibit322.htm (EX-32.2) — 5KB
• earn20231231exhibit971.htm (EX-97.1) — 23KB
• 0001560672-24-000017.txt (&nbsp;) — 12054KB
• earn-20231231.xsd (EX-101.SCH) — 66KB
• earn-20231231_cal.xml (EX-101.CAL) — 43KB
• earn-20231231_def.xml (EX-101.DEF) — 377KB
• earn-20231231_lab.xml (EX-101.LAB) — 626KB
• earn-20231231_pre.xml (EX-101.PRE) — 529KB
• earn-20231231_htm.xml (XML) — 2648KB

Business

Item 1. Business Except where the context suggests otherwise references in this Annual Report on Form 10-K to "we," "us," and "our" refer to Ellington Residential Mortgage REIT and its consolidated subsidiaries, including Ellington Residential Mortgage LP, our operating partnership subsidiary, which we refer to as our "Operating Partnership." We hold all of our assets and conduct all of our operations through our Operating Partnership. "Manager" refers to Ellington Residential Mortgage Management LLC, our external manager, and "Ellington" refers to Ellington Management Group, L.L.C. and its affiliated investment advisory firms, including our Manager. In certain instances, references to our Manager and services to be provided to us by our Manager may also include services provided by Ellington and its other affiliates from time to time. References to "Blackstone" mean The Blackstone Group Inc. The "Blackstone Funds" means the group of funds that are managed by an affiliate of Blackstone and that, together with Ellington, constituted our original group of investors. Special Note Regarding Forward-Looking Statements When used in this Annual Report on Form 10-K, in future filings with the Securities and Exchange Commission, or the "SEC," or in press releases or other written or oral communications, statements which are not historical in nature, including those containing words such as "believe," "expect," "anticipate," "estimate," "project," "plan," "continue," "intend," "should," "would," "could," "goal," "objective," "will," "may," "seek," or similar expressions or their negative forms or references to strategy, plans or intentions, are intended to identify "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the "Securities Act," and Section 21E of the Securities Exchange Act of 1934, as amended, or the "Exchange Act," and, as such, may involve known and unknown risks, uncertainties and assumptions. Forward-

View Full Filing

View this 10-K filing on SEC EDGAR