CIMNMEDIUM SIGNALFINANCIAL10-K

Chimera Investment Corporation has substantially expanded its balance sheet with meaningful increases in debt and assets while repositioning its business description from a "publicly traded REIT" to a "diversified real estate company."

The company appears to be in a growth phase, expanding its asset base by over 20% while taking on significantly more debt to fund operations. The language change from REIT to "diversified real estate company" may signal a strategic shift in how management views the business model, potentially indicating expanded activities beyond traditional REIT operations.

Comparing 2026-02-18 vs 2025-02-19View on EDGAR →
FINANCIAL ANALYSIS

Chimera's financial position reflects substantial expansion, with total assets growing over 20% to $15.8B and total debt nearly doubling to $251.5M. Interest expense increased meaningfully alongside the debt expansion, though net income still grew by roughly 31% to $230.5M, suggesting the company successfully deployed the additional capital. The overall picture indicates an aggressive growth strategy funded through increased leverage, with management able to maintain profitability despite higher financing costs.

FINANCIAL STATEMENT CHANGES
Total Debt
Balance Sheet
+86.8%
$134.6M$251.5M

Debt increased 86.8% — substantial leverage increase; assess whether deployed for growth or covering losses.

Interest Expense
P&L
+52.9%
$333.3M$509.5M

Interest expense surged 52.9% — significant debt increase or rising rates materially impacting earnings.

Net Income
P&L
+30.9%
$176.1M$230.5M

Net income grew 30.9% — bottom-line growth signals improving overall business health.

Total Liabilities
Balance Sheet
+25%
$10.6B$13.2B

Liabilities increased 25% — monitor debt-to-equity ratio and interest coverage.

Total Assets
Balance Sheet
+20.5%
$13.1B$15.8B

Asset base grew 20.5% — expansion through organic growth, acquisitions, or capital deployment.

LANGUAGE CHANGES
NEW — 2026-02-18
PRIOR — 2025-02-19
ADDED
FORM 10-K SUMMARY 135 SIGNATURES 136 1 In this Annual Report on Form 10-K, references to we, us, our, Chimera or the Company refer to Chimera Investment Corporation and its subsidiaries unless specifically stated otherwise or the context otherwise indicates.
Government, such as the Government National Mortgage Association ( Ginnie Mae ); GSE refers to a government-sponsored enterprise, such as Fannie Mae, Freddie Mac and Ginnie Mae; FHFA refers to the Federal Housing Financing Agency; CFPB refers to the Consumer Financial Protection Bureau; VA refers to the U.S.
2 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS We make forward-looking statements in this report that are subject to risks and uncertainties.
Business The Company We are a diversified real estate company that invests in, originates, and manages primarily residential real estate assets.
The assets we may invest in and manage for others, through our wholly-owned subsidiary Palisades Advisory Services LLC ( PAS ), include residential mortgage loans, Non-Agency RMBS, Agency RMBS, business purpose loans (including RTLs) and investor loans, MSRs and other real estate-related assets such as Agency CMBS, junior liens and HELOCs, equity appreciation rights, and reverse mortgages.
Also, through our wholly-owned subsidiary, HomeXpress Mortgage Corp.
( HomeXpress ), we originate consumer Non-QM and investor business purpose residential mortgage loans as well as QM residential mortgage loans.
Chimera Investment Corporation was incorporated in Maryland on June 1, 2007 and started trading on the NYSE in November 2007, and is structured as an internally managed real estate investment trust (REIT) for U.S.
On October 1, 2025, the Company completed the acquisition of HomeXpress (the HomeXpress Acquisition ) for total consideration of $272 million, which consisted of (i) cash of $124 million, representing the Adjusted Book Value of HomeXpress as of September 30, 2025, (ii) cash premium of $120 million, and (iii) issuance of 2,077,151 shares of the Company's common stock.
As a result of the HomeXpress Acquisition, the Company began originating consumer Non-QM, investor business purpose, and other mortgage loan products through its subsidiary, HomeXpress during the fourth quarter.
REMOVED
FORM 10-K SUMMARY 135 SIGNATURES 136 1 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS We make forward-looking statements in this report that are subject to risks and uncertainties.
In this Annual Report on Form 10-K, references to we, us, our or the Company refer to Chimera Investment Corporation and its subsidiaries unless specifically stated otherwise or the context otherwise indicates.
Business The Company We are a publicly traded REIT that is primarily engaged in the business of investing in a diversified portfolio of mortgage assets for ourselves and for unrelated third parties through our third-party investment management and advisory services.
The assets we may invest in and manage for others include residential mortgage loans, Non-Agency RMBS, Agency RMBS, business purpose loans ( BPLs ) (including residential transition loans ( RTLs )) and investor loans, mortgage servicing rights ( MSRs ) and other real estate-related assets such as Agency CMBS, junior liens and home equity lines of credit, or HELOCs, equity appreciation rights, and reverse mortgages.
The MBS and other real estate-related securities we purchase may include investment-grade, non-investment grade, and non-rated securities.
Our investment management and advisory services are provided on a discretionary basis through investment funds that we manage (the Discretionary Funds ) and on a non-discretionary basis with respect to assets acquired and owned by third-party institutions, including insurance companies, credit funds, and other institutional investors.
We were incorporated in Maryland on June 1, 2007 and started trading on the NYSE in November 2007.
On December 2, 2024, the Company acquired The Palisades Group, LLC ( TPG ), Palisades Advisory Services, LLC ( PAS ), Palisades Technology Holdings, LLC, and their respective subsidiaries for cash consideration of $30 million at closing, plus an additional potential earnout of up to $20 million over five years contingent upon achieving certain financial targets, with the option for us to pay 50% of the earnout payments in common shares (the Palisades Acquisition ).
As a result of the Palisades Acquisition, we began providing investment management and advisory services primarily through TPG and PAS (together with TPG, Palisades ).
TPG is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940 (the Advisers Act ), and PAS is a relying adviser with respect to TPG s investment adviser registration.
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