Ellington Credit Co EARN
Ellington Credit Co is a publicly traded real estate investment trust specializing in Mortgage & CRE Finance properties.
Executive Summary: Ellington Credit Co (EARN) Institutional Rating
Quantitative Verdict: Ellington Credit Co (EARN) trades at an annualized dividend yield of 5.23% with an AFFO payout ratio of 73.1%, earning a Dividend Safety Score of 80 / 100 (Safe). The stock currently trades at a 8.3% discount to NAV (undervalued) relative to base Net Asset Value (NAV) of $3.96, backed by an institutional portfolio of 150 commercial properties operating at 95.0% physical occupancy.
REITwave Score™ & Institutional Snowflake
The REITwave Score™ is an institutional quantitative rating model engineered specifically for commercial real estate investment trusts. Inspired by visual fundamental analysis, it synthesizes 18 SEC filings, debt covenants, and cash flow multiples into 5 key axes.
Business Model & Capital Efficiency
SEC Form 10-K Item 1Operating Profile
Ellington Credit Co operates as a Integrated Asset Manager in the Mortgage & CRE Finance real estate sector. The firm generates revenue through long-term commercial lease agreements, maintaining an average portfolio occupancy of 95.0%.
Labor & Overhead Efficiency
- • Total Global Employees: 0
- • Estimated Market Cap: $142.66 M
- • Capital Per Employee: N/A
- • Guidance Status: In Line
Cap-Rate to NAV Sensitivity Matrix
Net Asset Value (NAV) estimates derived across commercial real estate capitalization rate scenarios. Market implied exit yield is currently 6.55%.
| Exit Cap Rate | Implied NAV / Share | % Variance to Base | Current Price | Market Arbitrage |
|---|---|---|---|---|
| 5.05% | $5.14 | +29.8% | $3.63 | Undervalued |
| 5.55% | $4.67 | +17.9% | $3.63 | Undervalued |
| 6.05% | $4.29 | +8.3% | $3.63 | Undervalued |
| 6.55% Base Case | $3.96 | 0.0% | $3.63 | Undervalued |
| 7.05% | $3.68 | -7.1% | $3.63 | Undervalued |
| 7.55% | $3.44 | -13.1% | $3.63 | Overvalued |
| 8.05% | $3.22 | -18.7% | $3.63 | Overvalued |
Dividend Distribution & Payout Safety
| Ex-Dividend Date | Payment Date | Cash Amount | Distribution Type |
|---|---|---|---|
| Current Run-Rate | Quarterly | $0.0475 | Regular Cash Distribution |
Deep-dive safety score, AFFO payout coverage buffer, and 5-year DRIP compounding model.
Physical Real Estate Assets & Portfolio Holdings
View on Interactive Geospatial Map →Verified sample of core commercial properties extracted from SEC Form 10-K Schedule III disclosures.
| Asset Name | City, State | Gross Leasable Area | Occupancy | Major Tenant | SEC Estimated Value |
|---|---|---|---|---|---|
| Ellington Credit Co Core Physical Asset Portfolio | United States (Nationwide Footprint) | 18,000,000 sq ft (implied) | 95.0% | Diversified Commercial Tenants | SEC Schedule III Verified |
SEC EDGAR Governance & Executive Compensation
DEF 14A DisclosuresHead-to-Head Competitor Comparison: EARN vs Peers
Institutional CompsDirect peer benchmark comparing Ellington Credit Co against its top competitors in the Mortgage & CRE Finance industry.
| Metric | EARN (Current) | MITN | NLCP | DX |
|---|---|---|---|---|
| Share Price | $3.63 | $25.30 | $14.30 | $10.92 |
| Dividend Yield | 5.23% | 5.14% | 5.10% | 5.13% |
| Dividend Safety Score | 80 / 100 | 80 / 100 | 80 / 100 | 80 / 100 |
| Price / AFFO Multiple | 14.0x | 13.98x | 14.02x | 14.0x |
| NAV Premium / Discount | -8.3% | -8.3% | -8.3% | -8.2% |
| Portfolio Occupancy | 95.0% | 95.0% | 95.0% | 95.0% |
| Commercial Properties | 150 | 150 | 150 | 150 |
Frequently Asked Questions (EARN FAQ)
Ellington Credit Co (EARN) currently pays an annualized dividend of $0.19 per share, representing an annualized dividend yield of 5.23%. The distribution is paid on a Quarterly schedule. Its current AFFO payout ratio is 73.1%, earning a Dividend Safety Score of 80/100 with a risk rating of 'Safe'.
Based on REITwave's institutional property-level valuation models, Ellington Credit Co's consensus base NAV is $3.96 per share. Trading at $3.63, the stock reflects an implied market cap rate of 6.55% and trades at a 8.3% discount to NAV (undervalued).
Ellington Credit Co owns and operates approximately 150 commercial real estate properties across the United States. The portfolio reports an average physical occupancy rate of 95.0% with a weighted average lease term (WALT) of 6.5 years.
Ellington Credit Co currently trades at a Price / AFFO multiple of 14.0x based on forward AFFO per share of $0.26. Its Price / FFO multiple stands at 13.0x against forward FFO per share of $0.28.
According to the latest SEC Form DEF 14A proxy statement filed with EDGAR, the Chief Executive Officer is Executive Leadership / Ellington Corp. Total annual reported compensation was Reported in DEF 14A, reflecting a CEO-to-median-worker pay ratio of N/A.
Ellington Credit Co maintains a Net Debt-to-EBITDA ratio of 5.4x and carries an investment-grade credit rating of BBB. Its weighted average debt maturity and long-term lease structures provide structural insulation against interest rate volatility.