Cherry Hill Mortgage Investment Corporation Internalizes Management, Terminates Management Agreement and Concludes Strategic Alternatives Review Process
15 November 2024 - 10:06AM
Business Wire
Cherry Hill Mortgage Investment Corporation (NYSE: CHMI) (the
“Company”) today announced that the Company has commenced
operations as a fully integrated, internally managed mortgage REIT
and has terminated the management agreement with its external
manager, Cherry Hill Mortgage Management, LLC (the “Manager”),
effective as of November 14, 2024.
The management agreement was terminated upon the completion of
an internalization event in which, among other things, the Company
entered into employment arrangements with the Company’s senior
management team and other personnel supporting the Company’s
business. No termination fee is payable to the Manager, and the
Company will not pay management fees to the Manager from and after
the effective date of termination of the management agreement.
“We are very pleased to have completed the internalization
process and begin our evolution as a fully integrated mortgage
REIT,” said Jay Lown, President and CEO of Cherry Hill Mortgage
Investment Corporation. “As an internally managed REIT moving
forward, we expect to reduce expenses and enhance our earnings
profile, thereby better aligning management and the investment
community. I want to thank our team for all of their relentless
work to complete the process.”
Additional details regarding the employment arrangements for the
Company’s senior management, termination of the management
agreement and related matters will be contained in a Current Report
on Form 8-K to be filed by the Company with the U.S. Securities and
Exchange Commission by no later than November 20, 2024.
The Company also announced today that the special committee of
the Board of Directors, which is comprised entirely of independent
and disinterested directors, has concluded its previously announced
review of strategic alternatives. Following a thorough review of
strategic alternatives, the Board of Directors, based on the
recommendation of the special committee, unanimously determined
that it is in the best interests of the Company to continue to
pursue management’s execution of the Company’s residential mortgage
investment strategy as an internally managed company.
About Cherry Hill Mortgage Investment Corporation
Cherry Hill Mortgage Investment Corporation is a real estate
finance company that acquires, invests in and manages residential
mortgage assets in the United States. For additional information,
visit www.chmireit.com.
Forward-Looking Statements
This communication contains forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are
subject to numerous assumptions, risks and uncertainties, which
change over time and are beyond our control. The Company does not
assume any duty or obligation (and does not undertake) to update or
supplement any forward-looking statements. Because forward-looking
statements are, by their nature, to different degrees, uncertain
and subject to numerous assumptions, risks and uncertainties,
actual results or future events, circumstances or developments
could differ, possibly materially, from those that the Company
anticipated in its forward-looking statements, and future results
and performance could differ materially from historical
performance. No assurance can be given that the Company will
realize the intended benefits of the internalization. Certain risks
that may adversely impact the Company’s ability to realize the
intended benefits of the internalization include: the inability to
successfully retain the Company’s senior management team and other
personnel supporting the Company’s business; unforeseen or higher
than anticipated general and administrative expenses following the
internalization; potential disruptions to the Company’s ordinary
course operations, financing relationships and internal procedures;
the diversion of management’s attention caused by the
internalization and the process of transitioning from an externally
managed to an internally managed company. Factors that could cause
or contribute to such differences include, but are not limited to,
those set forth in the section entitled “Risk Factors” in the
Company’s most recent Annual Report on Form 10-K and other reports
filed by the Company with the SEC, copies of which are available on
the SEC’s website, www.sec.gov.
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