Ellington Financial Logs 9% Portfolio Growth and Closes $400M Note Offering
Ellington Financial reported Q4 2025 adjusted distributable earnings of $0.47 per share and GAAP net income of $0.14 per share, covering a $0.39 per share dividend. The firm expanded its portfolio by 9% and its long credit portfolio by 15% to $4.1 billion, backed by a $400 million unsecured notes offering.
1. Financial Results
Ellington Financial reported GAAP net income of $0.14 per share and adjusted distributable earnings of $0.47 per share for Q4 2025, covering a $0.39 per share dividend and demonstrating core profitability.
2. Portfolio Growth and Capital Raise
The company expanded its total portfolio by 9% during the quarter and grew its adjusted long credit portfolio by 15% to $4.1 billion, while completing a $400 million unsecured notes offering to bolster its funding flexibility.
3. Leverage and Asset Quality
Recourse debt-to-equity rose to 1.9x from 1.8x as the weighted average borrowing rate fell by 32 basis points to 5.67%, unencumbered assets increased 45% to $1.77 billion, and net interest margin on the credit portfolio declined by 28 basis points.
4. Strategic Initiatives
Ellington completed seven securitizations, including its first residential transition loans deal, originated approximately $400 million of residential loans per month, and is acquiring a mortgage servicer to enhance collection protocols and portfolio optimization.