8-K: Cherry Hill Mortgage Revises and Corrects Preferred Stock Dividends

Cherry Hill Mortgage Investment Corporation announced a revision to its third quarter dividend for Series B Preferred Stock and an additional payment for the second quarter dividend.

Summary

• Cherry Hill Mortgage Investment Corporation has revised its third quarter dividend for its 8.250% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock.
• The revised third quarter dividend is $0.7152 per share, an increase from the previously announced $0.6986 per share.
• This revised dividend will be paid in cash on October 15, 2024, to shareholders of record as of September 30, 2024.
• Additionally, an underpayment of the second quarter dividend of $0.6995 per share requires an additional payment.
• An additional cash dividend of $0.0096 per share will be paid on October 15, 2024, to holders of record as of June 28, 2024.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the need for a dividend revision and correction, which suggests a potential issue with financial controls. However, the company is taking corrective action, which is a positive.

Positives

• The revision of the third quarter dividend resulted in a higher payout for shareholders of the Series B Preferred Stock.
• The company is taking corrective action to address an underpayment of the second quarter dividend.

Negatives

• The need for a dividend revision and an additional payment indicates a potential error in the initial dividend calculation.

Risks

• The need for a dividend correction could raise concerns about the accuracy of the company's financial reporting processes.
• Investors may be concerned about the potential for future errors in dividend calculations.

Future Outlook

The company will pay the revised third quarter dividend and the additional second quarter dividend on October 15, 2024.

Management Comments

• Cherry Hill Mortgage Investment Corporation announced that it was revising its third quarter dividend on the Company's 8.250% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock.

Industry Context

This announcement is specific to Cherry Hill Mortgage Investment Corporation's preferred stock and does not reflect broader industry trends. Dividend adjustments are not uncommon, but the need for a correction may raise questions about internal controls.

Comparison to Industry Standards

• It is difficult to compare this specific dividend revision to industry standards without knowing the specific terms of other preferred stock offerings.
• Generally, companies aim for accurate and timely dividend payments, and corrections are not ideal but can occur.
• Other mortgage REITs with preferred stock may have different dividend policies and payment schedules.

Stakeholder Impact

• Shareholders of the Series B Preferred Stock will receive a higher dividend payment for the third quarter and an additional payment for the second quarter.
• The need for a dividend correction may raise concerns among investors about the company's financial management.

Next Steps

• The company will pay the revised third quarter dividend and the additional second quarter dividend on October 15, 2024.

Key Dates

Keywords

dividends, preferred stock, CHMI, Series B, dividend revision, dividend correction, cash dividend