Ellington Financial (NYSE:EFC) reported a resilient fourth quarter for 2025, supported by strong performance in its credit strategy and a significant expansion of its long-term, non-mark-to-market financing.
The company posted net income attributable to common stockholders of $14.7 million, or $0.14 per share, while Adjusted Distributable Earnings—a key metric for mortgage REITs—reached $51.4 million, or $0.47 per share.
The quarter’s results were largely driven by the company’s investment portfolio, which contributed $42.2 million to net income.
Within that portfolio, the credit strategy remained the primary engine of growth, generating $38.1 million, while the Agency strategy contributed a more modest $4.1 million.
Longbridge, the company’s reverse mortgage platform, added $16.4 million to the bottom line, reflecting steady demand in the niche lending sector.
Ellington’s book value per common share stood at $13.16 as of December 31, 2025.
This figure accounts for the $0.39 per share in dividends distributed during the quarter, indicating a stable underlying asset value despite fluctuations in the broader fixed-income markets.
On the financing front, Ellington moved aggressively to insulate its portfolio from margin call risk.
The company completed seven securitizations and successfully closed $400 million of senior unsecured notes rated by Moody’s and Fitch. These moves helped maintain a conservative recourse debt-to-equity ratio of 1.9:1.
While the total debt-to-equity ratio stood at 9.0:1, the company noted that this predominantly consists of non-recourse, securitization-related liabilities.
Ellington ended the year with a robust liquidity cushion, reporting $201.9 million in cash and cash equivalents, supplemented by $1.57 billion in other unencumbered assets.