Updating Model Post 1Q26 Results

Research evidence excerpt

Updating Model Post 1Q26 Results

e/Book 99% Adjusted distributable earnings continues to be strong with the company handily

ROE 13.77%

covering the dividend for the seventh consecutive quarter. Going forward, the company Institutional Ownership 41.8%

expects ADE in the $0.45 range, which is still well above the dividend. Balance sheet Insider Ownership 2.5%

shifts and optimization were recurring themes during the earnings call with EFC having Div (ann) US$1.56

priced 7 securitizations in the quarter totaling more than $2.8B. In addition, the company Div Yield 11.57%

priced an equity offering in the quarter with the $117M in proceeds being used to redeem Fiscal Year End Dec

its Series A preferred stock with the issuance being accretive to book value. Ellington

also grew its long credit portfolio 4% to $4.3B with growth driven by purchases of non-QM Price Performance - 1 Year

loans, agency-eligible loans, residential transition loans, and a larger portfolio of retained USD

RMBS. Credit also remained very strong as delinquencies decreased and realized 14.5

losses remained well under 1%. Management remained positive on the forward earnings 14

trajectory, and we expect continued coverage of the $0.39 dividend. We reiterate our 13.5

Overweight rating. 13

12.5

RISKS TO ACHIEVEMENT OF PT & RECOMMENDATION 12

Interest rate risk, higher cost of funds, credit risk, and potential cuts to the dividend. 11.5

COMPANY DESCRIPTION May-25 Jul-25 Sep-25 Nov-25 Jan-26 Mar-26 May-26

Ellington Financial is a specialty finance company that acquires mortgage-related and Source: Bloomberg

consumer-related assets, including resi and commercial mortgage loans, consumer loans,

RMBS, CMBS, and other assets.

EARNINGS PER SHARE (US$) YEAR

Mar Jun Sep Dec FY FY P/E

2025A 0.39 0.47 0.53 0.47 1.87 7.2x