Chimera Investment Corp.

Unknown • New York, NY, United States • CIMO (NYQ)

888 895 6557 630 Fifth Avenue, New York, NY 10111, United States

Quarter: Q4 2025 Reported: October 3, 2025 Sentiment: Positive

Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. The company, through its subsidiaries, invests in a portfolio of mortgage assets, including residential mortgage loans, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, agency mortgage-backed securities secured by pools of commercial mortgage loans, business purpose and investor loans, and other real estate related securities. It invests in investment grade, non-investment grade, and non-rated classes. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, it intends to distribute at least 90% of its taxable income as dividends to shareholders. Chimera Investment Corporation was incorporated in 2007 and is headquartered in New York, New York.

Analysis Summary

Chimera Investment Corp. (CIMO) announced the successful completion of its acquisition of HomeXpress Mortgage Corp. on October 1, 2025, through its subsidiary Chimera Funding TRS, LLC. This strategic transaction involved the acquisition of all outstanding equity interests in HX Holdco Corp. and the remaining interests in HomeXpress. The total consideration for the acquisition was multifaceted: $119.5 million, representing the estimated Adjusted Book Value of HomeXpress as of August 31, 2025 (subject to post-closing adjustments), a cash premium of $120 million, and the issuance of 2,077,151 shares of Chimera's common stock. The cash component was financed entirely with cash on hand, demonstrating Chimera's liquidity position.

Strategically, the acquisition is aimed at expanding Chimera's presence and capabilities within the mortgage sector. A key aspect of the integration plan includes the retention of HomeXpress's President and CEO, Kyle Walker, who will continue to lead the acquired entity. Furthermore, to ensure the stability and continuity of operations, Chimera's Compensation Committee adopted an Inducement Award Plan, reserving 540,000 shares of common stock for restricted stock unit awards to critical HomeXpress employees. This move underscores Chimera's commitment to retaining key talent post-acquisition.

While specific Q4 2025 financial performance metrics for Chimera were not disclosed in this 8-K filing, the company indicated that the acquisition is expected to impact its future earnings. The filing included historical and pro forma financial statements for HomeXpress as exhibits, providing insight into the acquired entity's past performance and the combined entity's potential. The company also updated its risk factors to reflect the new operational landscape post-acquisition, emphasizing the importance of successful integration and the realization of expected benefits. The overall market outlook, as implied by the strategic acquisition, suggests a proactive approach to growth and market positioning, albeit with standard cautionary notes regarding forward-looking statements and integration challenges.

Key Highlights

• Chimera Investment Corp. completed the acquisition of HomeXpress Mortgage Corp. on October 1, 2025.
• Total acquisition consideration included $119.5 million (adjusted book value), a $120 million cash premium, and 2,077,151 shares of Chimera common stock.
• The cash portion of the acquisition was funded using Chimera's cash on hand.
• Kyle Walker, HomeXpress's President and CEO, will continue in his leadership role post-acquisition.
• Chimera established an Inducement Award Plan, reserving 540,000 shares for restricted stock units to retain HomeXpress employees.
• The acquisition is expected to positively impact Chimera's future earnings.
• Chimera supplemented its risk factors to include new considerations related to the acquisition.

Financial Metrics

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Stock Performance (90 Days)

Data through Dec 26, 2025

Layoff Events

Earnings Calls

Positive Signals

• Successful completion of a significant strategic acquisition.
• Retention of key leadership (HomeXpress CEO) to ensure continuity.
• Implementation of an employee inducement plan to stabilize the workforce post-acquisition.
• Funding of the substantial cash portion of the acquisition with cash on hand, indicating strong liquidity.
• Anticipated positive impact on Chimera's future earnings.

Risks & Concerns

— Potential that Chimera may not fully realize the expected benefits of the acquisition of HomeXpress, including financial impact.
— Ability to successfully integrate HomeXpress into Chimera's operations.
— Ability to originate or acquire quality and profitable loans at an appropriate and consistent cost (relevant to HomeXpress's business model).
— General market risks including changes in inflation, interest rates, and mortgage prepayment rates.
— Ability to retain qualified executive officers and key personnel, despite inducement efforts.