Chimera completes acquisition of HomeXpress Mortgage

NEW YORK - Chimera Investment Corporation (NYSE:CIM), a $1.09 billion market cap REIT with a robust 11.2% dividend yield, announced Wednesday the completion of its acquisition of HomeXpress Mortgage Corp. from affiliates of Seer Capital Management and management sellers. According to InvestingPro analysis, Chimera maintains strong financial health with a GOOD overall score, making it well-positioned for this strategic acquisition.

The transaction, valued at $239.5 million, consists of an estimated book value of $119.5 million plus a premium of $120 million in cash and 2,077,151 shares of Chimera common stock, according to a company press release. With a current stock price of $13.44 and trading at just 0.41 times book value, InvestingPro analysis suggests the stock may be undervalued.

HomeXpress, headquartered in Santa Ana, California, will operate as a subsidiary of Chimera. Kyle Walker, the current President and CEO, along with key members of the senior management team, will continue to manage the mortgage originator.

"The successful closing of this transaction is a major step in the continued evolution of Chimera," said Phillip J. Kardis II, President and Chief Executive Officer of Chimera.

HomeXpress operates in 46 states and Washington D.C., offering consumer non-QM loans, investor business purpose loans, and other Agency and non-Agency mortgage loan products. The company originated approximately $2.5 billion of mortgage loans in 2024 and approximately $1.2 billion year-to-date through May 2025.

Wells Fargo acted as the exclusive financial advisor to Chimera, while Piper Sandler & Co. served as the exclusive financial advisor to HomeXpress and Seer.

Chimera is a publicly traded real estate investment trust that invests in mortgage assets, including residential mortgage loans, Non-Agency RMBS, Agency RMBS, Agency CMBS, and other real estate-related assets. The company has maintained dividend payments for 19 consecutive years and currently offers one of the highest dividend yields in its sector. Discover more insights about Chimera’s financial performance and growth potential with a comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Chimera Investment Corporation reported its second-quarter 2025 earnings, which fell short of analysts’ expectations. The company disclosed earnings per share of $0.39, missing the projected $0.46, and reported revenue of $67.39 million, below the expected $81.6 million. Additionally, Chimera Investment announced a third-quarter cash dividend of $0.37 per common share, payable on October 31, 2025, to stockholders of record as of September 30, 2025.

In a move to strengthen its financial position, Chimera closed a $120 million senior notes offering, which includes $5 million from an over-allotment option, with the notes bearing an interest rate of 8.875% and maturing in 2030. Prior to this, the company had priced $115 million in senior notes at the same interest rate, granting underwriters a 30-day option to purchase up to an additional $17.25 million. These notes are expected to be listed on the New York Stock Exchange under the symbol "CIMP." These developments highlight Chimera’s ongoing efforts to manage its financial strategy amid recent earnings challenges.

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