The Board of Directors of Chimera Investment Corporation (NYSE: CIM)
declared the fourth quarter 2012 common stock cash dividend of $0.09 per
common share. This dividend is payable January 25, 2013, to common
shareholders of record on December 31, 2012. The ex-dividend date is
December 27, 2012.
As previously announced, the Company initiated a regular quarterly
dividend of $0.09 per share for each of the third quarter and fourth
quarter of 2012, portions of which may be ordinary income, capital gains
or a return of capital. The Board of Directors has reviewed this program
and has decided to maintain a quarterly dividend of $0.09 per share for
each of the first quarter and second quarter of 2013. The Board of
Directors will review this program after the conclusion of the second
quarter of 2013. For the first three quarters of 2012, Chimera has paid
cash dividends totaling $0.29 per common share. Of this amount, $0.06 is
currently expected to be characterized as a return of capital for
federal income tax purposes, although this estimate will not be
finalized until the Company files its 2012 tax return.
The independent members of the Board of Directors also announced that
they have agreed with the Company’s manager, Fixed Income Discount
Advisory Company, to reduce the management fee to 0.75% from 1.50% per
annum. The reduction is effective as of November 28, 2012, and will
remain in effect until the Company is current on all of its filings
required under applicable securities laws.
The Company had previously announced that it would delay the filing of
its Annual Report on Form 10-K for the year ended December 31, 2011, and
its Quarterly Reports on Form 10-Q for the quarters ended March 31,
2012, June 30, 2012, and September 30, 2012. The Company announced that
its previously filed Annual Reports on Form 10-K for the years ended
December 31, 2010, 2009 and 2008, and the Quarterly Reports on Form 10-Q
beginning with the quarter ended September 30, 2008, and for all
subsequent quarters through the quarter ended September 30, 2011, will
be restated and can no longer be relied upon.
The restatement is not expected to affect the Company’s previously
announced GAAP or economic book values, actual cash flows, dividends and
taxable income for any previous period. The Company is currently unable
to estimate the timing for filing its 2011 Form 10-K, and expects to
file its Form 10-Q for the quarter ended March 31, 2012, within 60 days
after it files its 2011 Form 10-K and any subsequent unfiled Quarterly
Reports will be filed as soon as practicable.
Chimera Investment Corporation invests in residential mortgage loans,
residential mortgage-backed securities, real estate-related securities
and various other asset classes. The Company’s principal business
objective is to generate income from the spread between yields on its
investments and its cost of borrowing and hedging activities. The
Company is a Maryland corporation that has elected to be taxed as a real
estate investment trust (“REIT”).
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on the current beliefs and expectations of the
Company’s management and are subject to significant risks and
uncertainties. Because these forward-looking statements involve risks
and uncertainties, there are important factors that could cause the
Company’s actual results, as well as the Company’s expectations
regarding materiality or significance, the restatement’s quantitative
effects, the effectiveness of the Company’s disclosure controls and
procedures, material weaknesses in internal control over financial
reporting and the filing of the Company’s untimely SEC reports, to
differ materially from those in the forward-looking statements. These
factors include, among other things, the risk that additional
information may arise from the preparation of the Company’s restated
consolidated financial statements and that the Company’s internal
control over financial reporting may be inadequate or have weaknesses of
which the Company is not currently aware or which have not been
detected. The Company does not undertake to update the forward-looking
statements to reflect the impact of circumstances or events that may
arise after the date of the forward-looking statements. For a discussion
of a variety of risk factors affecting the Company’s business and
prospects, see “Item 1A — Risk Factors” in the Company’s Annual Report
on Form 10-K for the year ended December 31, 2010 (the “2010 10-K”), as
supplemented by the reports the Company has filed since the 2010 10-K.
