Ellington Financial LLC Reports Fourth Quarter 2018 Results
Highlights
-
Net loss1 of
$(2.2) million , or$(0.07) per basic and diluted share. -
Book value per share as of
December 31, 2018 of$18.92 , after payment of a quarterly dividend of$0.41 per share. -
Credit strategy gross income of
$8.1 million for the quarter, or$0.26 per share. -
Agency strategy gross loss of
$(4.9) million for the quarter, or$(0.16) per share. -
Net investment income of
$10.2 million for the quarter, or$0.33 per share; Adjusted net investment income2 of$12.7 million for the quarter, or$0.41 per share. -
Announced a dividend of
$0.41 per share, equating to an annualized dividend yield of 9.6% based on theFebruary 19, 2019 closing price of$17.16 per share. -
Repurchased 361,090 common shares during the quarter, or approximately
1% of our total common shares as of the beginning of the quarter, at
an average price of
$15.34 per share. -
Debt-to-equity ratio of 3.35:13 as of
December 31, 2018 .
1 Increase (decrease) in shareholders' equity from operations, or "net income (loss)." |
2 Adjusted net investment income is a non-GAAP financial measure. See "Reconciliation of Adjusted Net Investment Income to Net Income" below for an explanation regarding the calculation of Adjusted net investment income. |
3 Excludes repo borrowings on U.S. Treasury securities. |
Fourth Quarter 2018 Results
"Despite weakness in most equity and fixed income markets globally in
the fourth quarter,
"During the fourth quarter, we had strong results from several of our loan strategies, including consumer and non-QM, where we completed our second non-QM securitization in November. Our investments in loan originators also performed well during the quarter. We believe that many of our loan strategies, in addition to providing us a pipeline of investments over which we have greater control and visibility, have the additional benefit of being relatively insulated from interest rate movements and global macroeconomic events. I am pleased with our performance in 2018, having realized our primary objectives of prudently growing our credit portfolio and our adjusted net investment income, while delivering an economic return of 9.2%.
"Finally, I am excited that we completed our tax conversion from a publicly traded partnership. While we rotated a portion of the portfolio to enable us to qualify as a REIT, we have maintained all of our core investment strategies, including our highest-conviction non-real-estate-related strategies, as well as our core hedging strategies. Our tax reporting to investors will be greatly simplified as a REIT, which should expand our investor base and greatly improve the liquidity of our stock. At the same time, our investment objectives remain the same: generate a high-quality earnings stream while maintaining a strong balance sheet, moderate leverage, and a stable book value."
Corporate Structure Update
The Company plans to elect to be taxed as a REIT for U.S. federal income
tax purposes for the taxable year ending
Financial Results
The Company's total long credit portfolio4 was
The Company's borrowings increased during the quarter primarily as a
result of the financing of new small balance commercial loan
originations and non-QM loan purchases, while total equity declined
primarily because of the Company's share repurchases and dividend. As a
result, the Company's debt-to-equity ratio3 increased to
3.35:1 as of
During the fourth quarter, the Company's credit strategy generated total
gross income of
The Company's credit portfolio continued to be the primary driver of its
earnings. During the fourth quarter, the Company's credit strategy
generated net interest income5 of
The Company benefited from strong performance in several of its
loan-related strategies, including consumer loans, non-QM loans, and
investments in loan originators. The weakness in the credit markets
caused many of the Company's securities strategies to underperform,
including CLOs, European RMBS, and corporate credit relative value.
However, much of this underperformance was offset by the Company's net
credit hedges and other activities, which generated a gain of
In the Agency strategy, declining interest rates generated net realized
and unrealized gains on the Company's Agency assets of
4 Excludes hedges, other derivative, and corporate relative value trading positions. Also excludes tranches of the Company's consolidated non-QM securitization trusts that were sold to third parties, but that are consolidated for GAAP reporting purposes. Including such tranches, the Company's total long credit portfolio was $1.480 billion as of December 31, 2018 as compared to $1.379 billion as of September 30, 2018. |
5 Excludes any interest income and interest expense items from Net interest rate hedges and Net credit hedges and other activities. |
6 Excludes any interest income and interest expense items from Net interest rate hedges and other activities |
.
The following table summarizes the Company's investment portfolio
holdings as of
December 31, 2018 | September 30, 2018 | |||||||||||||||||||
(In thousands) | Fair Value | Cost | Fair Value | Cost | ||||||||||||||||
Long: | ||||||||||||||||||||
Credit: | ||||||||||||||||||||
Dollar Denominated: | ||||||||||||||||||||
CLO | $ | 123,893 | $ | 139,424 | $ | 156,087 | $ | 160,561 | ||||||||||||
CMBS | 18,426 | 17,828 | 14,923 | 13,995 | ||||||||||||||||
Commercial Mortgage Loans and REO(1) | 245,536 | 244,193 | 160,515 | 158,159 | ||||||||||||||||
Consumer Loans and ABS Backed by Consumer Loans(2) | 209,922 | 218,895 | 209,848 | 218,183 | ||||||||||||||||
Corporate Debt and Equity | 15,316 | 17,526 | 44,559 | 43,250 | ||||||||||||||||
Equity Investment in Loan Origination Entities | 37,067 | 28,314 | 30,171 | 25,314 | ||||||||||||||||
Non-Agency RMBS | 153,214 | 141,130 | 180,223 | 168,399 | ||||||||||||||||
Residential Mortgage Loans and REO | 498,126 | 495,551 | 393,846 | 392,634 | ||||||||||||||||
Non-Dollar Denominated: | ||||||||||||||||||||
CLO | — | — | — | — | ||||||||||||||||
CMBS | 15,482 | 16,510 | 16,250 | 16,774 | ||||||||||||||||
Consumer Loans and ABS Backed by Consumer Loans | 884 | 761 | 919 | 825 | ||||||||||||||||
Corporate Debt and Equity | 10,810 | 11,821 | 11,400 | 12,165 | ||||||||||||||||
RMBS(3) | 160,342 | 168,289 | 199,108 | 200,416 | ||||||||||||||||
Agency: | ||||||||||||||||||||
Fixed-Rate Specified Pools | 884,870 | 904,048 | 850,453 | 877,590 | ||||||||||||||||
Floating-Rate Specified Pools | 5,496 | 5,627 | 5,539 | 5,684 | ||||||||||||||||
IOs | 29,516 | 30,399 | 33,050 | 34,134 | ||||||||||||||||
Reverse Mortgage Pools | 55,475 | 56,799 | 55,396 | 57,552 | ||||||||||||||||
TBAs | 474,860 | 473,115 | 303,552 | 304,331 | ||||||||||||||||
Government: | ||||||||||||||||||||
Dollar Denominated | 76 | 76 | 4,230 | 4,257 | ||||||||||||||||
Total Long | 2,939,311 | 2,970,306 | 2,670,069 | 2,694,223 | ||||||||||||||||
Repurchase Agreements | ||||||||||||||||||||
Dollar Denominated | 41,530 | 41,530 | 140,352 | 140,352 | ||||||||||||||||
Non-Dollar Denominated | 19,744 | 19,744 | 20,070 | 20,116 | ||||||||||||||||
Total Repurchase Agreements | 61,274 | 61,274 | 160,422 | 160,468 | ||||||||||||||||
Short: | ||||||||||||||||||||
Credit: | ||||||||||||||||||||
Dollar Denominated: | ||||||||||||||||||||
Corporate Debt and Equity |
(23,462 | ) | (23,872 | ) | (60,809 | ) | (60,965 | ) | ||||||||||||
Agency: | ||||||||||||||||||||
TBAs | (772,964 | ) | (766,777 | ) | (562,098 | ) | (564,232 | ) | ||||||||||||
Government: | ||||||||||||||||||||
Dollar Denominated | (34,817 | ) | (34,410 | ) | (52,809 | ) | (52,884 | ) | ||||||||||||
Non-Dollar Denominated | (19,334 | ) | (19,545 | ) | (19,633 | ) | (19,605 | ) | ||||||||||||
Total Short | (850,577 | ) | (844,604 | ) | (695,349 | ) | (697,686 | ) | ||||||||||||
Net Total | $ | 2,150,008 | $ | 2,186,976 | $ | 2,135,142 | $ | 2,157,005 | ||||||||||||
(1) | Includes equity investment in a limited liability company holding small balance commercial mortgage loans. | |
(2) | Includes equity investment in a securitization-related vehicle. | |
(3) | Includes RMBS secured by non-performing loans and REO, and an investment in an entity holding a securitization call right. | |
The following table summarizes the Company's operating results for the
quarters ended
Quarter |
Per |
% of |
Quarter |
Per |
% of |
Year |
Per |
% of |
||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||
Credit: | ||||||||||||||||||||||||||||||||||||||||||
Interest income and other income | $ | 27,335 | $ | 0.89 | 4.49 | % | $ | 26,522 | $ | 0.86 | 4.32 | % | $ | 97,455 | $ | 3.14 | 15.91 | % | ||||||||||||||||||||||||
Net realized gain (loss) | 3,496 | 0.11 | 0.57 | % | 9,845 | 0.32 | 1.60 | % | 18,407 | 0.59 | 3.01 | % | ||||||||||||||||||||||||||||||
Change in net unrealized gain (loss) | (15,482 | ) | (0.50 | ) | (2.54 | )% | (9,886 | ) | (0.32 | ) | (1.61 | )% | (6,642 | ) | (0.21 | ) | (1.08 | )% | ||||||||||||||||||||||||
Net interest rate hedges(1) | (561 | ) | (0.02 | ) | (0.09 | )% | 468 | 0.02 | 0.08 | % | 115 | — | 0.02 | % | ||||||||||||||||||||||||||||
Net credit hedges and other activities(2) | 8,416 | 0.27 | 1.38 | % | (3,250 | ) | (0.11 | ) | (0.53 | )% | 8,020 | 0.26 | 1.31 | % | ||||||||||||||||||||||||||||
Interest expense(3) | (9,622 | ) | (0.31 | ) | (1.58 | )% | (8,786 | ) | (0.28 | ) | (1.43 | )% | (32,735 | ) | (1.05 | ) | (5.34 | )% | ||||||||||||||||||||||||
Other investment related expenses | (5,456 | ) | (0.18 | ) | (0.90 | )% | (3,921 | ) | (0.13 | ) | (0.64 | )% | (15,284 | ) | (0.49 | ) | (2.50 | )% | ||||||||||||||||||||||||
Total Credit profit (loss) | 8,126 | 0.26 | 1.33 | % | 10,992 | 0.36 | 1.79 | % | 69,336 | 2.24 | 11.33 | % | ||||||||||||||||||||||||||||||
Agency RMBS: | ||||||||||||||||||||||||||||||||||||||||||
Interest income | 8,205 | 0.27 | 1.35 | % | 7,873 | 0.25 | 1.28 | % | 31,116 | 1.01 | 5.08 | % | ||||||||||||||||||||||||||||||
Net realized gain (loss) | (528 | ) | (0.02 | ) | (0.09 | )% | (1,388 | ) | (0.04 | ) | (0.23 | )% | (4,612 | ) | (0.15 | ) | (0.75 | )% | ||||||||||||||||||||||||
Change in net unrealized gain (loss) | 9,008 | 0.29 | 1.48 | % | (6,167 | ) | (0.20 | ) | (1.00 | )% | (13,901 | ) | (0.45 | ) | (2.27 | )% | ||||||||||||||||||||||||||
Net interest rate hedges and other activities(1) | (16,011 | ) | (0.52 | ) | (2.63 | )% | 5,510 | 0.18 | 0.90 | % | 3,144 | 0.10 | 0.51 | % | ||||||||||||||||||||||||||||
Interest expense | (5,585 | ) | (0.18 | ) | (0.92 | )% | (5,087 | ) | (0.17 | ) | (0.83 | )% | (18,582 | ) | (0.60 | ) | (3.03 | )% | ||||||||||||||||||||||||
Total Agency RMBS profit (loss) | (4,911 | ) | (0.16 | ) | (0.81 | )% | 741 | 0.02 | 0.12 | % | (2,835 | ) | (0.09 | ) | (0.46 | )% | ||||||||||||||||||||||||||
Total Credit and Agency RMBS profit (loss) | 3,215 | 0.10 | 0.52 | % | 11,733 | 0.38 | 1.91 | % | 66,501 | 2.15 | 10.87 | % | ||||||||||||||||||||||||||||||
Other interest income (expense), net | 422 | 0.01 | 0.07 | % | 347 | 0.01 | 0.06 | % | 1,664 | 0.05 | 0.27 | % | ||||||||||||||||||||||||||||||
Other expenses | (4,707 | ) | (0.15 | ) | (0.77 | )% | (4,182 | ) | (0.14 | ) | (0.68 | )% | (17,539 | ) | (0.57 | ) | (2.86 | )% | ||||||||||||||||||||||||
Net increase in equity resulting from operations (before incentive fee) | (1,070 | ) | (0.04 | ) | (0.18 | )% | 7,898 | 0.25 | 1.29 | % | 50,626 | 1.63 | 8.28 | % | ||||||||||||||||||||||||||||
Incentive fee | — | — | — | % | (424 | ) | (0.01 | ) | (0.07 | )% | (715 | ) | (0.02 | ) | (0.12 | )% | ||||||||||||||||||||||||||
Net increase (decrease) in equity resulting from operations | $ | (1,070 | ) | $ | (0.04 | ) | (0.18 | )% | $ | 7,474 | $ | 0.24 | 1.22 | % | $ | 49,911 | $ | 1.61 | 8.16 | % | ||||||||||||||||||||||
Less: Net increase (decrease) in equity resulting from operations attributable to non-controlling interests | 1,147 | 813 | 3,235 | |||||||||||||||||||||||||||||||||||||||
Net increase (decrease) in shareholders' equity resulting from operations(4) | $ | (2,217 | ) | $ | (0.07 | ) | (0.38 | )% | $ | 6,661 | $ | 0.22 | 1.12 | % | $ | 46,676 | $ | 1.52 | 7.86 | % | ||||||||||||||||||||||
Weighted average shares and convertible
units(5) outstanding |
30,735 | 30,859 | 31,006 | |||||||||||||||||||||||||||||||||||||||
Average equity (includes non-controlling interests)(6) | $ | 608,772 | $ | 613,816 | $ | 612,513 | ||||||||||||||||||||||||||||||||||||
Weighted average shares and LTIP units outstanding(7) | 30,514 | 30,647 | 30,792 | |||||||||||||||||||||||||||||||||||||||
Average shareholders' equity (excludes non-controlling interests)(6) | $ | 583,206 | $ | 596,204 | $ | 593,483 | ||||||||||||||||||||||||||||||||||||
(1) | Includes TBAs and U.S. Treasury securities, if applicable. | |
(2) | Includes equity and other relative value trading strategies and related hedges. | |
(3) | Includes interest expense on the Company's Senior Notes. | |
(4) | Per share information is calculated using weighted average shares and LTIP units outstanding. Percentage of average equity is calculated using average shareholders' equity, which excludes non-controlling interests. | |
(5) | Convertible units include Operating Partnership units attributable to non-controlling interests. | |
(6) | Average equity and average shareholders' equity are calculated using month end values. | |
(7) | Excludes Operating Partnership units attributable to non-controlling interests. | |
About
Conference Call
The Company will host a conference call at
A dial-in replay of the conference call will be available on
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve
numerous risks and uncertainties. Actual results may differ from the
Company's beliefs, expectations, estimates, and projections and,
consequently, you should not rely on these forward-looking statements as
predictions of future events. Forward-looking statements are not
historical in nature and can be identified by 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 by
references to strategy, plans, or intentions. Examples of
forward-looking statements in this press release include without
limitation management's beliefs regarding the current economic and
investment environment and the Company's ability to implement its
investment and hedging strategies, performance of the Company's
investment and hedging strategies, the Company's exposure to prepayment
risk in its Agency portfolio, estimated effects on the fair value of the
Company's holdings of a hypothetical change in interest rates,
statements regarding the drivers of the Company's returns, the Company's
expected ongoing annualized expense ratio, statements regarding
potential changes to the Company's corporate structure, and statements
regarding the Company's intended dividend policy including the amount to
be recommended by management, and the Company's share repurchase
program. The Company's results can fluctuate from month to month and
from quarter to quarter depending on a variety of factors, some of which
are beyond the Company's control and/or are difficult to predict,
including, without limitation, changes in interest rates and the market
value of the Company's securities, changes in mortgage default rates and
prepayment rates, the Company's ability to borrow to finance its assets,
changes in government regulations affecting the Company's business, the
Company's ability to maintain its exclusion from registration under the
Investment Company Act of 1940; the Company's ability to qualify and
maintain its qualification as a real estate investment trust, or "REIT";
and other changes in market conditions and economic trends. Furthermore,
forward-looking statements are subject to risks and uncertainties,
including, among other things, those described under Item 1A of the
Company's Annual Report on Form 10-K filed on
ELLINGTON FINANCIAL LLC CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) |
|||||||||||||||
Three-Month Period Ended | Year Ended | ||||||||||||||
(In thousands, except per share amounts) |
December 31, |
September 30, |
December 31, |
||||||||||||
Investment income | |||||||||||||||
Interest income | $ | 35,694 | $ | 35,300 | $ | 131,027 | |||||||||
Other income | 1,157 | 1,046 | 4,014 | ||||||||||||
Total investment income | 36,851 | 36,346 | 135,041 | ||||||||||||
Expenses | |||||||||||||||
Base management fee to affiliate (Net of fee rebates of $430, $423, and $1,380, respectively) | 1,744 | 1,830 | 7,573 | ||||||||||||
Incentive fee to affiliate | — | 424 | 715 | ||||||||||||
Interest expense | 16,083 | 15,678 | 56,707 | ||||||||||||
Other investment related expenses: | |||||||||||||||
Servicing and other | 4,201 | 4,384 | 15,307 | ||||||||||||
Issuance costs related to Other secured borrowings, at fair value | 1,647 | — | 1,647 | ||||||||||||
Other operating expenses | 2,962 | 2,352 | 9,967 | ||||||||||||
Total expenses | 26,637 | 24,668 | 91,916 | ||||||||||||
Net investment income | 10,214 | 11,678 | 43,125 | ||||||||||||
Net realized gain (loss) on: | |||||||||||||||
Investments | 4,675 | 8,551 | 25,421 | ||||||||||||
Financial derivatives, excluding currency hedges | (389 | ) | 479 | (2,639 | ) | ||||||||||
Financial derivatives—currency hedges | 2,594 | 297 | 4,475 | ||||||||||||
Foreign currency transactions | 2,698 | 775 | 4,131 | ||||||||||||
9,578 | 10,102 | 31,388 | |||||||||||||
Change in net unrealized gain (loss) on: | |||||||||||||||
Investments | (13,181 | ) | (13,372 | ) | (25,947 | ) | |||||||||
Other secured borrowings | (82 | ) | (358 | ) | 758 | ||||||||||
Financial derivatives, excluding currency hedges | (2,829 | ) | 173 | 7,093 | |||||||||||
Financial derivatives—currency hedges | (839 | ) | 528 | 565 | |||||||||||
Foreign currency translation | (3,931 | ) | (1,277 | ) | (7,071 | ) | |||||||||
(20,862 | ) | (14,306 | ) | (24,602 | ) | ||||||||||
Net realized and change in net unrealized gain (loss) on investments, financial derivatives, and other secured borrowings | (11,284 | ) | (4,204 | ) | 6,786 | ||||||||||
Net increase (decrease) in equity resulting from operations | (1,070 | ) | 7,474 | 49,911 | |||||||||||
Less: Increase (decrease) in equity resulting from operations attributable to non-controlling interests | 1,147 | 813 | 3,235 | ||||||||||||
Net increase (decrease) in shareholders' equity resulting from operations | $ | (2,217 | ) | $ | 6,661 | $ | 46,676 | ||||||||
Net increase (decrease) in shareholders' equity resulting from operations per share: | |||||||||||||||
Basic and diluted | $ | (0.07 | ) | $ | 0.22 | $ | 1.52 | ||||||||
Weighted average shares and LTIP units outstanding | 30,514 | 30,647 | 30,792 | ||||||||||||
Weighted average shares and convertible units outstanding | 30,735 | 30,859 | 31,006 | ||||||||||||
ELLINGTON FINANCIAL LLC CONSOLIDATED STATEMENT OF ASSETS, LIABILITIES, AND EQUITY (UNAUDITED) |
||||||||||||||
As of | ||||||||||||||
(In thousands, except share amounts) |
December 31,
2018 |
September 30, 2018 |
December 31, 2017(1) |
|||||||||||
ASSETS | ||||||||||||||
Cash and cash equivalents | $ | 44,656 | $ | 53,598 | $ | 47,233 | ||||||||
Restricted cash | 425 | 425 | 425 | |||||||||||
Investments, financial derivatives, and repurchase agreements: | ||||||||||||||
Investments, at fair value (Cost–$2,970,306, $2,694,223, and $2,071,754) | 2,939,311 | 2,670,069 | 2,071,707 | |||||||||||
Financial derivatives–assets, at fair value (Net cost–$22,526, $20,895, and $31,474) | 20,001 | 31,338 | 28,165 | |||||||||||
Repurchase agreements (Cost–$61,274, $160,468, and $155,109) | 61,274 | 160,422 | 155,949 | |||||||||||
Total Investments, financial derivatives, and repurchase agreements | 3,020,586 | 2,861,829 | 2,255,821 | |||||||||||
Due from brokers | 71,794 | 83,915 | 140,404 | |||||||||||
Receivable for securities sold and financial derivatives | 780,826 | 670,952 | 476,000 | |||||||||||
Interest and principal receivable | 37,676 | 38,635 | 29,688 | |||||||||||
Other assets | 15,536 | 5,207 | 43,770 | |||||||||||
Total assets | $ | 3,971,499 | $ | 3,714,561 | $ | 2,993,341 | ||||||||
LIABILITIES | ||||||||||||||
Investments and financial derivatives: | ||||||||||||||
Investments sold short, at fair value (Proceeds–$844,604, $697,686, and $640,202) | $ | 850,577 | $ | 695,349 | $ | 642,240 | ||||||||
Financial derivatives–liabilities, at fair value (Net proceeds–$19,019, $16,294, and $27,463) | 20,806 | 27,226 | 36,273 | |||||||||||
Total investments and financial derivatives | 871,383 | 722,575 | 678,513 | |||||||||||
Reverse repurchase agreements | 1,498,849 | 1,636,039 | 1,209,315 | |||||||||||
Due to brokers | 5,553 | 4,551 | 1,721 | |||||||||||
Payable for securities purchased and financial derivatives | 488,411 | 430,808 | 202,703 | |||||||||||
Other secured borrowings (Proceeds–$114,100, $114,190, and $57,909) | 114,100 | 114,190 | 57,909 | |||||||||||
Other secured borrowings, at fair value (Proceeds–$81,728 $90,409, and $125,105) | 297,948 | 89,569 | 125,105 | |||||||||||
Senior notes, net | 85,035 | 84,968 | 84,771 | |||||||||||
Accounts payable and accrued expenses | 5,723 | 5,337 | 3,885 | |||||||||||
Base management fee payable to affiliate | 1,744 | 1,830 | 2,113 | |||||||||||
Incentive fee payable to affiliate | — | 424 | — | |||||||||||
Interest and dividends payable | 7,159 | 6,451 | 5,904 | |||||||||||
Other liabilities | 424 | 1,141 | 441 | |||||||||||
Total liabilities | 3,376,329 | 3,097,883 | 2,372,380 | |||||||||||
EQUITY | 595,170 | 616,678 | 620,961 | |||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 3,971,499 | $ | 3,714,561 | $ | 2,993,341 | ||||||||
ANALYSIS OF EQUITY: | ||||||||||||||
Common shares, no par value, 100,000,000 shares authorized; | ||||||||||||||
(29,796,601, 30,155,055, and 31,335,938, shares issued and outstanding) | $ | 563,833 | $ | 583,179 | $ | 589,722 | ||||||||
Additional paid-in capital–LTIP units (2) | — | 10,618 | 10,377 | |||||||||||
Total Shareholders' Equity | 563,833 | 593,797 | 600,099 | |||||||||||
Non-controlling interests (2) | 31,337 | 22,881 | 20,862 | |||||||||||
Total Equity | $ | 595,170 | $ | 616,678 | $ | 620,961 | ||||||||
PER SHARE INFORMATION: | ||||||||||||||
Common shares, no par value (2) | $ | 18.92 | $ | 19.69 | $ | 19.15 | ||||||||
DILUTED PER SHARE INFORMATION: | ||||||||||||||
Common shares and convertible units, no par value (3) | $ | 18.92 | $ | 19.37 | $ | 18.85 | ||||||||
(1) | Derived from audited financial statements as of December 31, 2017. | |
(2) | On December 31, 2018, the Company redeemed all 503,988 of its outstanding LTIP units which it had originally issued under its incentive plans, with each LTIP unitholder receiving in exchange an equivalent number of LTIP Units of the Operating Partnership. As such, these LTIP units are now treated as non-controlling interests. | |
(3) | Based on total equity excluding non-controlling interests not represented by instruments convertible into common shares. | |
Reconciliation of Adjusted Net Investment Income to Net Investment Income
The table below reconciles Adjusted net investment income for the
three-month period ended
The Company believes that Adjusted net investment income provides information useful to investors because it is one of the metrics that it uses to assess its performance and to evaluate the effective net yield provided by the Company's portfolio. However, because Adjusted net investment income is an incomplete measure of the Company's financial results and differs from Net investment income computed in accordance with U.S. GAAP, it should be considered as supplementary to, and not as a substitute for, Net investment income computed in accordance with U.S. GAAP.
(In thousands, except per share amounts) |
Three-Month
Period Ended December 31, 2018 |
||||
Net investment income | $ | 10,214 | |||
Include: | |||||
Net realized and unrealized gains (losses) from certain equity investments in partnerships(1) | 103 | ||||
Net accrued periodic (payments) receipts on interest rate swaps | 130 | ||||
Exclude: | |||||
Incentive fee to affiliate | — | ||||
Catch-up Premium Amortization Adjustment | 16 | ||||
Debt issuance costs related to Other secured borrowings, at fair value | (1,647 | ) | |||
Costs related to tax conversion | (615 | ) | |||
Adjusted net investment income | $ | 12,693 | |||
Weighted average shares and convertible units outstanding | 30,735 | ||||
Net investment income per share | $ | 0.33 | |||
Adjusted net investment income per share | $ | 0.41 | |||
(1) | Includes only those components that would be included in net investment income at the underlying partnership. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190220005933/en/
Source:
Investors:
Ellington Financial
Investor Relations, 203-409-3575
info@ellingtonfinancial.com
or
Media:
Gasthalter
& Co., for Ellington Financial
Amanda Klein / Kevin FitzGerald,
212-257-4170
ellington@gasthalter.com