Penn added that this acquisition will result in greater operating efficiencies, a larger market capitalization, and attractive long-term unsecured debt and preferred equity capital.

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“Upon closing, we believe that we will be positioned well to drive accretive earnings growth and provide strategic and financial benefits to our stockholders,” he said.

“We are thrilled to combine AAIC with the Ellington Financial team to make a combined company that we believe will be positioned to take advantage of opportunities into the future,” said J. Rock Tonkel, Jr., CEO of Arlington Asset Investment. “This transaction combines two complementary portfolios, and we look forward to working closely with the Ellington Financial team to complete the acquisition and deliver value for our stockholders.”

The firms’ boards of directors have unanimously approved the deal, which is expected to close in the fourth quarter of 2023.