Ellington Credit Company reported its third‑quarter 2025 results, posting a net asset value of $5.99 per share and a quarterly distribution of $0.24 per share. GAAP net income totaled $4.3 million, or $0.11 per share, while net investment income reached $8.5 million, or $0.23 per share, matching the GAAP figure and providing full dividend coverage.
Compared with the same period a year earlier, GAAP net income fell from $5.4 million to $4.3 million, a 20% decline, and EPS dropped from $0.21 to $0.11, a 48% decrease. Net investment income, however, remained flat, underscoring the stability of the firm’s earnings base. The net asset value held steady at $5.99, reflecting a consistent underlying value for shareholders.
Consensus estimates for the quarter placed EPS at $0.20–$0.23. The GAAP EPS of $0.11 missed these expectations by $0.09–$0.12, likely due to higher operating expenses and a modest decline in interest income. In contrast, net investment income of $0.23 per share beat the consensus by $0.03, highlighting the strength of the company’s core CLO portfolio performance.
The results also confirm a 20% growth in the CLO portfolio, which now totals $379.6 million. Management emphasized that the portfolio ramp‑up, combined with active trading of 92 distinct CLOs and strategic repositioning toward mezzanine debt tranches, has driven the robust net investment income and supported full dividend coverage.
CEO Laurence Penn noted that the company’s “portfolio ramp‑up continued in the quarter, and our net investment income increased in tandem.” He added that active trading and selective redemptions at par on discounted purchases helped enhance returns, while the shift toward higher‑quality, longer‑dated equity positions positioned the firm to weather market volatility.
While the company did not provide new guidance, the steady net investment income and continued portfolio expansion suggest a focus on sustaining yield and managing risk in a dynamic credit environment.
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