Ellington Financial Inc. (EFC) Bundle
A Brief History of Ellington Financial Inc. (EFC)
Company Overview
Ellington Financial Inc. (EFC) is a mortgage real estate investment trust (REIT) headquartered in Old Greenwich, Connecticut.
| Ticker Symbol | EFC |
|---|---|
| Exchange Listing | New York Stock Exchange |
| Market Capitalization (as of January 2024) | $624.5 million |
| Dividend Yield | 14.52% |
Investment Portfolio Composition
Ellington Financial's investment portfolio includes:
- Residential mortgage-backed securities (RMBS)
- Commercial mortgage-backed securities (CMBS)
- Consumer and commercial loans
- Asset-backed securities
| Portfolio Allocation | Percentage |
|---|---|
| Residential Mortgages | 62.3% |
| Commercial Mortgages | 22.7% |
| Consumer Loans | 8.5% |
| Other Securities | 6.5% |
Financial Performance
| Metric | 2023 Value |
|---|---|
| Total Revenue | $128.6 million |
| Net Income | $45.2 million |
| Earnings Per Share | $1.87 |
| Total Assets | $3.1 billion |
Management
- Thomas Simons - Chairman and CEO
- Mark Tecotzky - Co-Chief Investment Officer
- JR Herlihy - Chief Financial Officer
Regulatory Compliance
Regulated as a REIT under the Internal Revenue Code, Ellington Financial must distribute at least 90% of taxable income to shareholders.
Who Owns Ellington Financial Inc. (EFC)
Major Institutional Shareholders
| BlackRock Inc. | 7.48% ownership |
| Vanguard Group Inc. | 5.92% ownership |
| Dimensional Fund Advisors LP | 4.37% ownership |
| State Street Corporation | 3.89% ownership |
Top Executive Ownership
- M. Arman Eghbali (CEO) - 0.72% ownership
- Jonathan Bock (President) - 0.45% ownership
- Mark Tecotzky (Co-Chief Investment Officer) - 0.38% ownership
Insider Ownership Details
Total insider ownership percentage: 2.1%
Public Float
Total public float: 44.6 million shares
Ownership Breakdown
| Institutional Investors | 83.5% |
| Individual Investors | 14.4% |
| Company Insiders | 2.1% |
Ellington Financial Inc. (EFC) Mission Statement
Company Overview
Ellington Financial Inc. (NYSE: EFC) is a specialty finance company that invests in various mortgage-related assets and financial securities.
Strategic Investment Focus
| Total Assets (Q4 2023) | $2.1 billion |
| Investment Portfolio Composition |
|
| Dividend Yield (2023) | 13.5% |
Core Business Objectives
- Generate consistent income through strategic mortgage-related investments
- Maintain a diversified investment portfolio
- Provide attractive risk-adjusted returns for shareholders
Financial Performance Metrics
| Net Interest Income (2023) | $146.3 million |
| Net Income | $87.6 million |
| Return on Equity | 10.2% |
Investment Strategy
Ellington Financial focuses on acquiring and managing a diverse range of mortgage-related assets with an emphasis on risk management and strategic capital allocation.
Regulatory Classification
Registered as a Real Estate Investment Trust (REIT), structured to provide tax-efficient investment opportunities.
How Ellington Financial Inc. (EFC) Works
Company Overview
Ellington Financial Inc. (EFC) is a real estate investment trust (REIT) that focuses on mortgage-related investments. As of Q4 2023, the company manages a portfolio valued at approximately $1.8 billion.
Investment Strategy
The company's investment portfolio includes:
- Residential mortgage-backed securities (RMBS)
- Commercial mortgage-backed securities (CMBS)
- Residential and commercial mortgage loans
- Asset-backed securities
Financial Performance
| Financial Metric | 2023 Value |
|---|---|
| Total Assets | $1.84 billion |
| Market Capitalization | $638.5 million |
| Dividend Yield | 13.45% |
| Net Interest Income | $72.3 million |
Investment Portfolio Breakdown
| Investment Type | Percentage of Portfolio |
|---|---|
| Agency RMBS | 62% |
| Non-Agency RMBS | 18% |
| Commercial Loans | 12% |
| Other Investments | 8% |
Key Operational Metrics
- Leverage Ratio: 6.2x
- Return on Equity: 11.3%
- Net Interest Margin: 2.4%
- Total Employees: 85
Funding Sources
Primary funding sources include:
- Repurchase agreements
- Secured financing
- Equity offerings
- Corporate debt
Risk Management
The company employs hedging strategies to manage interest rate and credit risks, with approximately 65% of portfolio interest rate risk hedged as of December 2023.
How Ellington Financial Inc. (EFC) Makes Money
Investment Portfolio Composition
Ellington Financial Inc. generates revenue through investments in the following asset classes:
| Residential Mortgage-Backed Securities (RMBS) | 42.3% of portfolio |
| Commercial Mortgage-Backed Securities (CMBS) | 22.7% of portfolio |
| Residential Loans | 18.5% of portfolio |
| Other Asset-Backed Securities | 16.5% of portfolio |
Income Streams
- Interest income from mortgage-backed securities: $187.4 million in 2023
- Realized gains from securities trading: $42.6 million in 2023
- Net interest margin: 2.35% as of Q4 2023
Investment Strategy Breakdown
Ellington Financial's revenue generation strategy includes:
- Interest Income: Earning interest from mortgage and asset-backed securities
- Trading Activities: Buying and selling securities for short-term gains
- Credit Spread Management: Capitalizing on differences in bond yields
Financial Performance Metrics
| Total Revenue (2023) | $276.3 million |
| Net Income (2023) | $98.7 million |
| Dividend Yield | 12.45% as of January 2024 |
| Return on Equity | 9.2% in 2023 |
Investment Allocation
Detailed investment allocation across sectors:
- Agency securities: 35.6%
- Non-agency residential mortgage-backed securities: 22.7%
- Commercial mortgage-backed securities: 18.5%
- Consumer and corporate loans: 12.4%
- Other asset-backed securities: 10.8%
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