Mortgage REIT PennyMac reports Q4 net income of $41.9 mln

Overview

• Mortgage REIT's Q4 net income was $41.9 mln, driven by credit and interest rate strategies

• Company acquired $5.5 bln in loans, up 18% from prior qtr

• Company raised $150 mln through exchangeable senior notes

Outlook

• Company expects to acquire all non-Agency eligible correspondent production in Q1 2026

• Company anticipates acquiring 15-25% of conventional conforming correspondent production in Q1 2026

Result Drivers

• CREDIT AND INTEREST RATE STRATEGIES - Strong contributions from credit sensitive and interest rate sensitive strategies, including a tax benefit, drove Q4 results

• LOAN ACQUISITIONS - Acquired $5.5 bln in loans, up 18% from prior qtr, contributing to investment activity

• SECURITIZATIONS - Executed eight private label securitizations totaling $2.8 bln in UPB, supporting investment growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for PennyMac Mortgage Investment Trust is $13.50, about 0.1% above its January 28 closing price of $13.48

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBw56zGqya

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