Recognized earnings were down from $29.5 million, or $1.59 per diluted share, in the third quarter of 2012, when it raised funds through a public offering. But the fourth-quarter 2012 numbers were up significantly from the fourth quarter of 2011, when the company recognized just $1.2 million in net income or $0.10 per diluted share.
“Our ability to rotate in and out of securities and sectors, driven by the discrepancies we see in relative value and upside potential, has driven our ability to capture net realized gains,” Laurence Penn, CEO and president, said in the company’s earnings release on Wednesday.
As of late Thursday morning during trading hours, Ellington’s shares were trading just below $26 per share. Prior to the company’s earnings release they had been trading at levels just below $25 per share.
The fourth-quarter dividend and the special dividend are payable on March 15 to shareholders of record on March 1, which includes among its investments private-label and agency residential mortgage-backed securities, mortgage-related derivatives, commercial mortgage securitizations and loans, and commercial real estate debt.
Penn said that dividends related to 2012 represent about 75% of the total 2012 net income from the company, which also invests in corporate debt and equity securities and derivatives.
“Given our outlook for 2013, we expect to continue to recommend quarterly dividends of $0.77 per share until conditions warrant otherwise,” he said.
The fourth-quarter dividend and the special dividend are payable on March 15 to shareholders of record on March 1.