Ellington Residential Mortgage REIT ("EARN") specializes in acquiring, investing in and managing residential mortgage- and real estate-related assets, with a primary focus on residential mortgage-backed securities for which the principal and interest payments are guaranteed by a U.S. Government agency or a U.S. Government-sponsored enterprise.
Our primary objective is to generate attractive current yields and risk-adjusted total returns for our shareholders by investing in assets that we believe compensate us appropriately for the risks associated with them. We were formed through an initial strategic venture between affiliates of Ellington Management Group, L.L.C. ("Elllington Management Group" or "EMG") and a group of funds managed by an affiliate of The Blackstone Group LP. EARN is externally managed by Ellington Residential Mortgage Management LLC, an affiliate of EMG, and thus benefits from EMG’s deep experience in the mortgage-related markets, highly analytical investment processes, operational expertise and resources, and extensive relationship base, providing significant competitive advantages.
Additionally, an emphasis on security selection, as well as active management of our investments and hedges, are fundamental to EARN’s approach. EARN’s understanding of the market across sectors, over time, and through a highly analytical lens helps us to realize potential and unlock value.
We have elected to be taxed as a REIT for U.S. federal income tax purposes, which requires that we distribute at least 90% of our REIT income to our shareholders on an annual basis.