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Investor FAQ

1.What is Ellington Financial?
2.What is Ellington Management Group’s relation to Ellington Financial?
3.What is Ellington Financial’s fiscal year?
4.Who is Ellington Financial’s auditor?
5.Who is Ellington Financial’s legal counsel?
6.How can I receive email alerts from Ellington Financial?
7.How can I request additional information from Ellington Financial?
8.When did EFC begin to be taxed as a REIT and what does that mean for shareholders through December 31, 2018?
9.Why does EFC intend to elect to be treated as a REIT instead of continuing to be treated as a partnership?
10.What is the tax impact of EFC’s conversion to a state law corporation on March 1, 2019?
11.How will electing REIT status impact the EFC shareholders?
1.What is Ellington Financial?
 Ellington Financial Inc. is a specialty finance company formed in August 2007 that specializes in acquiring and managing mortgaged-related assets. Our primary objective is to generate attractive, risk-adjusted total returns for our shareholders by making investments in non-agency and agency mortgage-backed securities, mortgage-related derivatives and other related assets.

2.What is Ellington Management Group’s relation to Ellington Financial?
 Ellington Financial is managed by Ellington Financial Management, an affiliate of Ellington Management Group (“EMG”). EMG is a registered private investment adviser specializing in the mortgage-backed securities markets. Our manager relies on the resources of EMG to support Ellington Financial's operations.

3.What is Ellington Financial’s fiscal year?
 Ellington Financial’s fiscal year is January 1 to December 31.

4.Who is Ellington Financial’s auditor?
 Ellington Financial’s auditor is PricewaterhouseCoopers.

5.Who is Ellington Financial’s legal counsel?
 Ellington Financial’s legal counsel is Vinson & Elkins LLP.

6.How can I receive email alerts from Ellington Financial?
 To receive email alerts, click the “For Our Shareholders” tab on the left. Select “Email Alerts” under the Investor Toolkit, enter your email address and submit. Thank you.

7.How can I request additional information from Ellington Financial?
 You may fill out an information request here on our website or email us at info@ellingtonfinancial.com.

8.When did EFC begin to be taxed as a REIT and what does that mean for shareholders through December 31, 2018?
 Prior to January 1, 2019, EFC was taxed as a partnership and was required to provide shareholders with a Schedule K-1, which separately reports the shareholders’ items of income, gain, loss, deduction and credits. Effective January 1, 2019, EFC elected to be taxed as a corporation for both U.S. federal and state income tax purposes, and intends to elect to be treated as a real estate investment trust (“REIT”) for the year ending December 31, 2019. Shareholders will receive a final Schedule K-1 for the period from January 1, 2018 through December 31, 2018. The final Schedule K-1 should be reported on shareholders’ 2018 tax return.

9.Why does EFC intend to elect to be treated as a REIT instead of continuing to be treated as a partnership?
 We elected to be taxed as a corporation in order to simplify investor tax reporting by eliminating the Schedule K-1 reporting. We also believed that this election could open up our shares to a broader investor base and enhance our liquidity and trading volume. We intend to elect to be treated as a REIT because of the favorable tax treatment of REITs, which generally are not subject to entity level tax on income that is distributed to shareholders.

10.What is the tax impact of EFC’s conversion to a state law corporation on March 1, 2019?
 None.

11.How will electing REIT status impact the EFC shareholders?
 The elections to be taxed as a corporation and to be treated as a REIT and the state law conversion are not taxable events for our shareholders. A shareholder’s tax basis and holding period in its shares were not affected by these events.

Dividends made after December 31, 2018 will be reported on Form 1099-DIV. As a REIT, our ordinary dividends generally will qualify for the 20% pass-through deduction available to individuals, trusts and estates on their federal income tax returns. Because we generally will not be subject to U.S. federal income tax on the portion of our REIT taxable income distributed to our shareholders, our dividends generally will not be eligible for the 20% rate on qualified dividend income.


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