CHMI-PB

MKT CAP $832.8MP/E 112.7DIV YIELD —FCF YIELD —REV TTM $32.9M +124.5%NET INCOME $16.6MNET DEBT $89.4M52W 22.02 – 24.67SEC XBRL · TTM TO Invalid Date

How CHMI-PB rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

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words, now 36,131

New in FY2025

Prepayment speed is the measurement of how quickly borrowers pay down the unpaid principal balance of their loans or how quickly loans are otherwise liquidated or charged off.
Although transactions in MSRs are observable in the marketplace, the valuation includes unobservable market data inputs (prepayment speeds, costs to service and discount rates).
Securities financed through repurchase transactions remain on our consolidated balance sheet as an asset and cash received from the purchaser is recorded on our consolidated balance sheets as a liability.
Results of Operations Presented below is a comparison of the Company’s results of operations for the periods indicated (dollars in thousands): Results of Operations Year Ended December 31, 2025 2024 Income Interest income $ 61,095 $ 55,798 Interest expense 49,778 55,769 Net interest income 11,317 Servicing fee income 43,299 48,527 Servicing costs 9,275 12,418 Net servicing income 34,024 36,109 Other income (loss) Realized loss on RMBS, net (6,045 ) (6,595 ) Realized gain on investments in MSRs, net - Realized gain on derivatives, net 7,037 21,322 Realized gain on acquired assets, net Unrealized gain (loss) on RMBS, measured at fair value through earnings, net 35,578 (19,445 ) Unrealized gain (loss) on derivatives, net (39,767 ) 9,809 Unrealized loss on investments in Servicing Related Assets (18,825 ) (7,160 ) Total Income 23,321 34,575 Expenses General and administrative expense 7,704 10,654 Compensation and benefits 6,478 1,572 Management fee to affiliate - 6,037 Total Expenses 14,182 18,263 Income Before Income Taxes 9,139 16,312 Provision for corporate business taxes 2,197 4,102 Net Income 6,942 12,210 Net income allocated to noncontrolling interests in Operating Partnership (114 ) (240 ) Dividends on preferred stock (9,829 ) (9,969 ) Gain on repurchase and retirement of preferred stock - Net Income (Loss) Applicable to Common Stockholders $ (3,001 ) $ 2,079 Presented below is summary financial data on our segments together with the data for the Company as a whole, for the periods indicated (dollars in thousands): Segment Summary Data Servicing Related Assets RMBS All Other Total Income Statement Year Ended December 31, 2025 Interest income $ $ 60,961 $ - $ 61,095 Interest expense 1,487 48,291 - 49,778 Net interest income (expense) (1,353 ) 12,670 - 11,317 Servicing fee income 43,299 - - 43,299 Servicing costs 9,275 - - 9,275 Net servicing income 34,024 - - 34,024 Other expense (A) (18,121 ) (3,899 ) - (22,020 ) Other operating expenses (B) (3,513 ) (2,810 ) (7,859 ) (14,182 ) Provision for corporate business taxes (2,197 ) - - (2,197 ) Net other comprehensive income - 10,904 - 10,904 Comprehensive income (loss) $ 8,840 $ 16,865 $ (7,859 ) $ 17,846 Year Ended December 31, 2024 Interest income $ $ 55,793 $ - $ 55,798 Interest expense 1,404 54,365 - 55,769 Net interest income (expense) (1,399 ) 1,428 - Servicing fee income 48,527 - - 48,527 Servicing costs 12,418 - - 12,418 Net servicing income 36,109 - - 36,109 Other income (expense) (A) (8,117 ) 6,554 - (1,563 ) Other operating expenses (B) (3,910 ) (1,141 ) (13,212 ) (18,263 ) Provision for corporate business taxes (4,102 ) - - (4,102 ) Net other comprehensive loss - (4,725 ) - (4,725 ) Comprehensive income (loss) $ 18,581 $ 2,116 $ (13,212 ) $ 7,485 (A) Included in other income (expense) are realized and unrealized gains (losses) on Servicing Related Assets, RMBS and derivatives.
Servicing Related Assets RMBS All Other Total Balance Sheet December 31, 2025 Investments $ 214,831 $ 1,213,851 $ - $ 1,428,682 Other assets 28,904 27,293 55,677 111,874 Total assets 243,735 1,241,144 55,677 1,540,556 Debt 145,191 1,137,200 - 1,282,391 Other liabilities 2,575 9,504 7,554 19,633 Total liabilities 147,766 1,146,704 7,554 1,302,024 Net Assets $ 95,969 $ 94,440 $ 48,123 $ 238,532 December 31, 2024 Investments $ 233,658 $ 1,122,420 $ - $ 1,356,078 Other assets 28,874 59,159 47,064 135,097 Total assets 262,532 1,181,579 47,064 1,491,175 Debt 151,226 1,077,257 - 1,228,483 Other liabilities 4,290 15,010 9,770 29,070 Total liabilities 155,516 1,092,267 9,770 1,257,553 Net Assets $ 107,016 $ 89,312 $ 37,294 $ 233,622 Interest Income Interest income for the year ended December 31, 2025 was $61.1 million as compared to $55.8 million for the year ended December 31, 2024.
The $5.3 million increase in interest income for the year ended December 31, 2025 as compared to the year ended December 31, 2024 was due to purchases of new securities, an increase in price premium amortization as well as replacing lower yielding securities with higher yielding securities.
Interest Expense Interest expense for the year ended December 31, 2025 was $49.8 million as compared to $55.8 million for the year ended December 31, 2024.
The $6.0 million decrease in interest expense for the year ended December 31, 2025 as compared to the year ended December 31, 2024 was due to a decrease in financing rates combined with a decrease in notes payable.
Servicing Fee Income Servicing fee income for the year ended December 31, 2025 was $43.3 million as compared to $48.5 million for the year ended December 31, 2024.
The $5.2 million decrease in servicing fee income for the year ended December 31, 2025 as compared to the year ended December 31, 2024 was due to changes in the size of the portfolio.
Servicing Costs Servicing costs for the year ended December 31, 2025 were $9.3 million as compared to $12.4 million for the year ended December 31, 2024.
The $3.1 million decrease in servicing costs for the year ended December 31, 2025 as compared to the year ended December 31, 2024 was primarily due to changes in the portfolio and a one-time loan level adjustment as well as de-boarding fees related to the MSR sale during the year ended December 31, 2024.
Realized Loss on RMBS, Net Realized loss on RMBS for the year ended December 31, 2025 was $6.0 million as compared to $6.6 million for the year ended December 31, 2024.
The $0.6 million decrease in realized loss on RMBS for the year ended December 31, 2025 as compared to the year ended December 31, 2024 was due to a decline in the number of RMBS securities sold during the year ended December 31, 2025.
Realized Gain on Investments in MSRs, Net Realized gain on investments in MSRs for the year ended December 31, 2025 was $0 as compared to $0.5 million for the year ended December 31, 2024.
The decrease of $0.5 million in realized gain on MSRs was because no MSRs were sold during the year ended December 31, 2025.
Realized Gain on Derivatives, Net Realized gain on derivatives for the year ended December 31, 2025 was $7.0 million as compared to $21.3 million for the year ended December 31, 2024.
The $14.3 million decrease in realized gain on derivatives for the year ended December 31, 2025 as compared to December 31, 2024 was substantially comprised of a decrease of $13.4 million in interest income on interest rate swaps and an increase of $5.5 million in losses on interest rate swaps, offset by a decrease of $1.8 million in losses on TBAs and a decrease of $2.8 million in losses on U.S.
Treasury futures due to changes in interest rates as well as composition of derivatives.
Unrealized Gain (Loss) on RMBS, Measured at Fair Value through Earnings, Net Unrealized gain on RMBS measured at fair value through earnings for the year ended December 31, 2025 was $35.6 million as compared to a loss of $19.4 million for the year ended December 31, 2024.
The increase of $55.0 million in unrealized gain on RMBS measured at fair value through earnings was due to a drop in interest rates during the period combined with spread tightening.
Unrealized Gain (Loss) on Derivatives Unrealized loss on derivatives for the year ended December 31, 2025 was $39.8 million as compared to a gain of $9.8 million for the year ended December 31, 2024.
The $49.6 million increase in unrealized loss on derivatives for the year ended December 31, 2025 as compared to December 31, 2024 was primarily due to changes in interest rates and the composition of our derivatives relative to the prior year.
Unrealized Loss on Investments in Servicing Related Assets Unrealized loss on our investments in Servicing Related Assets for the year ended December 31, 2025 was $18.8 million as compared to $7.2 million for the year ended December 31, 2024.
The $11.6 million increase in unrealized loss on our investments in Servicing Related Assets for December 31, 2025 as compared to December 31, 2024 was primarily due to changes in valuation inputs or assumptions and paydown of underlying loans.
General and Administrative Expense General and administrative expense for the year ended December 31, 2025 was $7.7 million as compared to $10.7 million for the year ended December 31, 2024.
The $3.0 million decrease in general and administrative expense for the year ended December 31, 2025 as compared to the year ended December 31, 2024 was due to a decrease in professional fees related to the Internalization.
Compensation and Benefits Compensation and benefits expense for the year ended December 31, 2025 was $6.5 million as compared to $1.6 million for the year ended December 31, 2024.
The $4.9 million increase in compensation and benefits expense for the year ended December 31, 2025 as compared to the year ended December 31, 2024 was because, effective as of November 14, 2024, the Company started operating as an internally managed Company.
Management Fee to Affiliate Management fee to affiliate for the year ended December 31, 2025 was $0 as compared to $6.0 million for the year ended December 31, 2024.
The $6.0 million decrease in management fee to affiliate for the year ended December 31, 2025 as compared to the year ended December 31, 2024 was due to the Internalization of the Company.
Net Income Allocated to Noncontrolling Interests in Operating Partnership Net income allocated to noncontrolling interests in the Operating Partnership, which are LTIP-OP Units owned by our directors, officers and employees represented approximately 1.6% and 2.0% of net income for the years ended December 31, 2025 and December 31, 2024, respectively.
For the period indicated below, our accumulated other comprehensive income (loss) changed as a result of the indicated gains and losses (dollars in thousands): Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2025 Accumulated other comprehensive loss, December 31, 2024 $ (7,270 ) Other comprehensive income 10,939 Accumulated other comprehensive income, December 31, 2025 $ 3,669 Year Ended December 31, 2024 Accumulated other comprehensive loss, December 31, 2023 $ (2,545 ) Other comprehensive loss (4,725 ) Accumulated other comprehensive loss, December 31, 2024 $ (7,270 ) Our GAAP equity changes as the values of our RMBS are marked to market each quarter, among other factors.
During the year ended December 31, 2025, a drop in interest rates caused a net unrealized gain on our available-for-sale RMBS.
Earnings Available for Distribution EAD for the year ended December 31, 2025 as compared to the year ended December 31, 2024, increased by approximately $3.7 million or $0.06 per average common share due primarily to a decrease in Internalization expenses as well as a decrease in borrowing costs offset by an increase in common share count resulting from issuances under the Common Stock ATM program.
The following table reconciles the GAAP measure of net income (loss) to EAD and related per average common share amounts, for the periods indicated (dollars in thousands): Year Ended December 31, 2025 2024 Net Income $ 6,942 $ 12,210 Realized loss on RMBS, net 6,045 6,595 Realized loss on derivatives, net (A) 15,546 14,687 Realized gain on investments in MSRs, net - (504 ) Realized gain on acquired assets, net (2 ) (2 ) Unrealized loss (gain) on RMBS measured at fair value through earnings, net (35,578 ) 19,445 Unrealized loss (gain) on derivatives, net 39,767 (9,809 ) Unrealized gain on investments in MSRs, net of estimated MSR amortization (11,325 ) (26,796 ) Tax expense on realized and unrealized gain on MSRs 4,672 6,716 Total EAD: $ 26,067 $ 22,542 EAD attributable to noncontrolling interests in Operating Partnership (428 ) (442 ) Dividends on preferred stock (9,829 ) (9,969 ) EAD Attributable to Common Stockholders $ 15,810 $ 12,131 EAD Attributable to Common Stockholders, per Diluted Share $ 0.46 $ 0.40 GAAP Net Income (Loss) Per Share of Common Stock, per Diluted Share $ (0.09 ) $ 0.07 (A) Excludes drop income on TBA dollar rolls of $2.4 million and $2.4 million and interest rate swap periodic interest income of $20.2 million and $33.6 million for the years ended December 31, 2025 and December 31, 2024, respectively.
Our Portfolio MSRs Aurora’s MSR portfolio of Fannie Mae and Freddie Mac MSRs have an aggregate UPB of approximately $15.9 billion as of December 31, 2025.
The following tables set forth certain characteristics of the mortgage loans underlying those MSRs as of the dates indicated (dollars in thousands): MSR Collateral Characteristics As of December 31, 2025 Collateral Characteristics Current Carrying Amount Current Principal Balance WA Coupon (A) WA Servicing Fee (A) WA Maturity (months) (A) WA Loan Age (months) (A) ARMs % (B) MSRs $ 214,831 $ 15,891,266 3.49 % 0.25 % 0.0 % MSR Total/Weighted Average $ 214,831 $ 15,891,266 3.49 % 0.25 % 0.0 % As of December 31, 2024 Collateral Characteristics Current Carrying Amount Current Principal Balance WA Coupon (A) WA Servicing Fee (A) WA Maturity (months) (A) WA Loan Age (months) (A) ARMs % (B) MSRs $ 233,658 $ 17,304,133 3.50 % 0.25 % 0.1 % MSR Total/Weighted Average $ 233,658 $ 17,304,133 3.50 % 0.25 % 0.1 % (A) Weighted average coupon, servicing fee, maturity and loan age of the underlying residential mortgage loans in the pool are based on the unpaid principal balance.
RMBS The following tables summarize the characteristics of our RMBS portfolio and certain characteristics of the collateral underlying our RMBS as of the dates indicated (dollars in thousands): RMBS Characteristics As of December 31, 2025 Asset Type Gross Unrealized Weighted Average Original Face Value Book Value Gains Losses Carrying Value (A) Number of Securities Rating Coupon Yield (C) Maturity (Years) RMBS, available-for-sale, measured at fair value through OCI Fannie Mae $ 150,782 $ 110,321 $ 3,094 $ (232 ) $ 113,183 (B) 4.67 % 4.83 % Freddie Mac 125,240 92,829 1,149 (259 ) 93,719 (B) 4.67 % 4.76 % RMBS, measured at fair value through earnings Fannie Mae 469,667 408,260 10,506 (121 ) 418,645 (B) 5.04 % 5.14 % Freddie Mac 676,854 572,802 15,578 (76 ) 588,304 (B) 5.05 % 5.14 % Total/weighted average RMBS $ 1,422,543 $ 1,184,212 $ 30,327 $ (688 ) $ 1,213,851 4.98 % 5.08 % As of December 31, 2024 Gross Unrealized Weighted Average Asset Type Original Face Value Book Value Gains Losses Carrying Value (A) Number of Securities Rating Coupon Yield (C) Maturity (Years) RMBS, available-for-sale, measured at fair value through OCI Fannie Mae $ 160,092 $ 131,441 $ $ (2,282 ) $ 129,651 (B) 4.62 % 4.79 % Freddie Mac 157,618 127,839 - (5,362 ) 122,477 (B) 4.34 % 4.44 % RMBS, measured at fair value through earnings Fannie Mae 335,927 299,453 1,870 (5,375 ) 295,948 (B) 4.81 % 4.94 % Freddie Mac 648,523 580,529 3,134 (9,319 ) 574,344 (B) 4.93 % 5.03 % Total/weighted average RMBS $ 1,302,160 $ 1,139,262 $ 5,496 $ (22,338 ) $ 1,122,420 4.80 % 4.91 % (A) See “Item 8.
(B) The Company used an implied AA+ rating for the Agency RMBS .

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Gone since FY2024

Prepayment speed is the measurement of how quickly borrowers pay down the UPB of their loans or how quickly loans are otherwise liquidated or charged off.
Consolidated Financial Statements and Supplementary Data—Note 7.
Transactions with Related Parties” for information regarding Aurora’s recapture agreements.
Although transactions in MSRs are observable in the marketplace, the valuation includes unobservable market data inputs (prepayment speeds, delinquency levels, costs to service and discount rates).
Securities financed through repurchase transactions remain on our consolidated balance sheet as an asset and cash received from the purchaser is recorded on our consolidated balance sheet as a liability.
Results of Operations Presented below is a comparison of the Company’s results of operations for the periods indicated (dollars in thousands): Results of Operations Year Ended December 31, 2024 2023 Income Interest income $ 55,798 $ 49,985 Interest expense 55,769 51,642 Net interest income (expense) (1,657 ) Servicing fee income 48,527 53,427 Servicing costs 12,418 11,248 Net servicing income 36,109 42,179 Other income (loss) Realized loss on RMBS, net (6,595 ) (36,315 ) Realized gain on investments in MSRs, net - Realized gain on derivatives, net 21,322 33,821 Realized gain on acquired assets, net Unrealized gain (loss) on RMBS, measured at fair value through earnings, net (19,445 ) 9,755 Unrealized gain (loss) on derivatives, net 9,809 (43,071 ) Unrealized loss on investments in Servicing Related Assets (7,160 ) (25,937 ) Total Income (Loss) 34,575 (21,202 ) Expenses General and administrative expense 10,654 6,434 Compensation and benefits 1,572 Management fee to affiliate 6,037 6,830 Total Expenses 18,263 13,730 Income (Loss) Before Income Taxes 16,312 (34,932 ) Provision for corporate business taxes 4,102 Net Income (Loss) 12,210 (35,455 ) Net (income) loss allocated to noncontrolling interests in Operating Partnership (240 ) Dividends on preferred stock (9,969 ) (9,853 ) Gain on repurchase and retirement of preferred stock - Net Income (Loss) Applicable to Common Stockholders $ 2,079 $ (44,647 ) Presented below is summary financial data on our segments together with the data for the Company as a whole, for the periods indicated (dollars in thousands): Segment Summary Data Servicing Related Assets RMBS All Other Total Income Statement Year Ended December 31, 2024 Interest income $ $ 55,793 $ - $ 55,798 Interest expense 1,404 54,365 - 55,769 Net interest income (expense) (1,399 ) 1,428 - Servicing fee income 48,527 - - 48,527 Servicing costs 12,418 - - 12,418 Net servicing income 36,109 - - 36,109 Other income (expense) (A) (8,117 ) 6,554 - (1,563 ) Other operating expenses (B) (3,910 ) (1,141 ) (13,212 ) (18,263 ) Provision for corporate business taxes (4,102 ) - - (4,102 ) Net other comprehensive income (loss) - (4,725 ) - (4,725 ) Comprehensive income (loss) $ 18,581 $ 2,116 $ (13,212 ) $ 7,485 Year Ended December 31, 2023 Interest income $ - $ 49,985 $ - $ 49,985 Interest expense 1,572 50,070 - 51,642 Net interest expense (1,572 ) (85 ) - (1,657 ) Servicing fee income 53,427 - - 53,427 Servicing costs 11,248 - - 11,248 Net servicing income 42,179 - - 42,179 Other expense (A) (29,443 ) (32,281 ) - (61,724 ) Other operating expenses (B) (3,004 ) (664 ) (10,062 ) (13,730 ) Provision for corporate business taxes (523 ) - - (523 ) Net other comprehensive income (loss) - 26,559 - 26,559 Comprehensive income (loss) $ 7,637 $ (6,471 ) $ (10,062 ) $ (8,896 ) (A) Included in other income (expense) are realized and unrealized gains (losses) on Servicing Related Assets, RMBS and derivatives.
Servicing Related Assets RMBS All Other Total Balance Sheet December 31, 2024 Investments $ 233,658 $ 1,122,420 $ - $ 1,356,078 Other assets 28,874 59,159 47,064 135,097 Total assets 262,532 1,181,579 47,064 1,491,175 Debt 151,226 1,077,257 - 1,228,483 Other liabilities 4,290 15,010 9,770 29,070 Total liabilities 155,516 1,092,267 9,770 1,257,553 Net Assets $ 107,016 $ 89,312 $ 37,294 $ 233,622 December 31, 2023 Investments $ 253,629 $ 1,012,130 $ - $ 1,265,759 Other assets 33,785 39,939 53,509 127,233 Total assets 287,414 1,052,069 53,509 1,392,992 Debt 169,314 903,489 - 1,072,803 Other liabilities 4,240 47,990 9,584 61,814 Total liabilities 173,554 951,479 9,584 1,134,617 Net Assets $ 113,860 $ 100,590 $ 43,925 $ 258,375 Interest Income Interest income for the year ended December 31, 2024 was $55.8 million as compared to $50.0 million for the year ended December 31, 2023.
The $5.8 million increase in interest income for the year ended December 31, 2024 as compared to the year ended December 31, 2023 was due to purchases of new securities, as well as replacing lower yielding securities with higher yielding securities coupled with portfolio positioning.
Interest Expense Interest expense for the year ended December 31, 2024 was $55.7 million as compared to $51.6 million for the year ended December 31, 2023.
The $4.1 million increase in interest expense for the year ended December 31, 2024 as compared to the year ended December 31, 2023, was primarily due to a rise in repurchase obligations.
Servicing Fee Income Servicing fee income for the year ended December 31, 2024 was $48.5 million as compared to $53.4 million for the year ended December 31, 2023.
The $4.9 million decrease in servicing fee income for the year ended December 31, 2024 as compared to the year ended December 31, 2023 was due to changes in the size of the portfolio.
Servicing Costs Servicing costs for the year ended December 31, 2024 were $12.4 million as compared to $11.2 million for the year ended December 31, 2023.
The $1.2 million increase in servicing costs for the year ended December 31, 2024 as compared to the year ended December 31, 2023 was primarily due to one-time loan level adjustments as well as de-boarding fees related to the MSR sale.
Realized Loss on RMBS, Net Realized loss on RMBS for the year ended December 31, 2024 was $6.6 million as compared to $36.3 million for the year ended December 31, 2023.
The $29.7 million decrease in realized loss on RMBS for the year ended December 31, 2024 as compared to the year ended December 31, 2023 was due to a decline in the number of RMBS securities sold during the year ended December 31, 2024.
Realized Gain on Investments in MSRs, Net Realized gain on investments in MSRs for the year ended December 31, 2024 was approximately $504,000 as compared to $0 for the year ended December 31, 2023.
The increase of $504,000 in realized gain on MSRs was because no MSRs were sold during the year ended December 31, 2023.
Realized Gain on Derivatives, Net Realized gain on derivatives for the year ended December 31, 2024 was $21.3 million as compared to $33.8 million for the year ended December 31, 2023.
The $12.5 million decrease in realized gain on derivatives for the year ended December 31, 2024 as compared to December 31, 2023 was substantially comprised of an increase of $24.7 million in losses on TBAs and a decrease of $1.4 million in interest income on interest rate swaps, offset by a decrease of $9.2 million in losses on interest rate swaps and a decrease of $4.3 million in losses on U.S.
Unrealized Gain (Loss) on RMBS, Measured at Fair Value through Earnings, Net Unrealized loss on RMBS measured at fair value through earnings for the year ended December 31, 2024 was $19.4 million as compared to a gain of $9.8 million for the year ended December 31, 2023.
The increase of $29.2 million in unrealized loss on RMBS measured at fair value through earnings was due to a rise in interest rates during the year.
Unrealized Gain (Loss) on Derivatives Unrealized gain on derivatives for the year ended December 31, 2024 was $9.8 million as compared to a loss of $43.1 million for the year ended December 31, 2023.
The $52.9 million decrease in unrealized loss on derivatives for the year ended December 31, 2024 as compared to December 31, 2023 was primarily due to changes in interest rates and the composition of our derivatives relative to the prior year.
Unrealized Loss on Investments in Servicing Related Assets Unrealized loss on our investments in Servicing Related Assets for the year ended December 31, 2024 was $7.2 million as compared to $25.9 million for the year ended December 31, 2023.
The $18.7 million decrease in unrealized loss on our investments in Servicing Related Assets for December 31, 2024 as compared to December 31, 2023 was primarily due to changes in valuation inputs or assumptions.
General and Administrative Expense General and administrative expense for the year ended December 31, 2024 was $10.7 million as compared to $6.4 million for the year ended December 31, 2023.
The $4.3 million increase in general and administrative expense for the year ended December 31, 2024 as compared to the year ended December 31, 2023 was primarily due to an increase in professional fees relating to the Internalization.
Compensation and Benefits Compensation and benefits expense for the year ended December 31, 2024 was $1.6 million as compared to $466,000 for the year ended December 31, 2023.
The $1.1 million increase in compensation and benefits expense for the year ended December 31, 2024 as compared to the year ended December 31, 2023 was because, effective as of November 14, 2024, the Company started operating as an internally managed Company.
Net Income Allocated to Noncontrolling Interests in Operating Partnership Net income allocated to noncontrolling interests in the Operating Partnership, which are LTIP-OP Units owned by our directors, officers and employees represented approximately 2.0% and 1.9% of net income for the years ended December 31, 2024 and December 31, 2023, respectively.
For the period indicated below, our accumulated other comprehensive income (loss) changed as a result of the indicated gains and losses (dollars in thousands): Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2024 Accumulated other comprehensive loss, December 31, 2023 $ (2,545 ) Other comprehensive loss (4,725 ) Accumulated other comprehensive loss, December 31, 2024 $ (7,270 ) Year Ended December 31, 2023 Accumulated other comprehensive loss, December 31, 2022 $ (29,104 ) Other comprehensive income 26,559 Accumulated other comprehensive loss, December 31, 2023 $ (2,545 ) Our GAAP equity changes as the values of our RMBS are marked to market each quarter, among other factors.
During the year ended December 31, 2023, tightening of credit spreads and an interest rate rally in the 5-year U.S.
Treasury rate caused a net unrealized gain on our available-for-sale RMBS, which was chiefly driven by the interest and mortgage rate rally that occurred in the fourth quarter of the year and positioning of securities.
Earnings Available for Distribution EAD for the year ended December 31, 2024 as compared to the year ended December 31, 2023, decreased by approximately $6.3 million or $0.30 per average common share.
Approximately $3.9 million of this or $0.13 per average common share was due to internalization costs.
The remaining variance was primarily due to changes in interest rates.
The following table reconciles the GAAP measure of net income (loss) to EAD and related per average common share amounts, for the periods indicated (dollars in thousands): Year Ended December 31, 2024 2023 Net Income (Loss) $ 12,210 $ (35,455 ) Realized loss on RMBS, net 6,595 36,315 Realized loss on derivatives, net (A) 14,687 4,377 Realized gain on investments in MSRs, net (504 ) - Realized gain on acquired assets, net (2 ) (23 ) Unrealized loss (gain) on RMBS measured at fair value through earnings, net 19,445 (9,755 ) Unrealized loss (gain) on derivatives, net (9,809 ) 43,071 Unrealized gain on investments in MSRs, net of estimated MSR amortization (26,796 ) (12,593 ) Tax expense on realized and unrealized gain on MSRs 6,716 2,876 Total EAD: $ 22,542 $ 28,813 EAD attributable to noncontrolling interests in Operating Partnership (442 ) (537 ) Dividends on preferred stock (9,969 ) (9,853 ) EAD Attributable to Common Stockholders $ 12,131 $ 18,423 EAD Attributable to Common Stockholders, per Diluted Share $ 0.40 $ 0.70 GAAP Net Income (Loss) Per Share of Common Stock, per Diluted Share $ 0.07 $ (1.70 ) (A) Excludes drop income on TBA dollar rolls of $2.4 million and $3.2 million and interest rate swap periodic interest income of $33.6 million and $35.0 million for the years ended December 31, 2024 and December 31, 2023, respectively.
Our Portfolio MSRs Aurora’s MSR portfolio of Fannie Mae and Freddie Mac MSRs have an aggregate UPB of approximately $17.3 billion as of December 31, 2024.
The following tables set forth certain characteristics of the mortgage loans underlying those MSRs as of the dates indicated (dollars in thousands): MSR Collateral Characteristics As of December 31, 2024 Collateral Characteristics Current arrying Amount Current Principal Balance WA Coupon (A) WA Servicing Fee (A) WA Maturity (months) (A) WA Loan Age (months) (A) ARMs % (B) MSRs $ 233,658 $ 17,304,133 3.50 % 0.25 % 0.1 % MSR Total/Weighted Average $ 233,658 $ 17,304,133 3.50 % 0.25 % 0.1 % As of December 31, 2023 Collateral Characteristics Current Carrying Amount Current Principal Balance WA Coupon (A) WA Servicing Fee (A) WA Maturity (months) (A) WA Loan Age (months) (A) ARMs % (B) MSRs $ 253,629 $ 19,972,994 3.48 % 0.25 % 0.1 % MSR Total/Weighted Average $ 253,629 $ 19,972,994 3.48 % 0.25 % 0.1 % (A) Weighted average coupon, servicing fee, maturity and loan age of the underlying residential mortgage loans in the pool are based on the unpaid principal balance.

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Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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