Company: CIMO
Filing Date: 2025-10-01
Form Type: S-3ASR
Source: 0001193125-25-226772
Chunk: 34

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-10-01
Form: S-3ASR
Chunk 34
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IT has qualified as a REIT under the Code, we have joined the subsidiary REIT in filing a “protective” taxable REIT subsidiary election with respect to the subsidiary REIT. We cannot assure you that such “protective” taxable REIT subsidiary election would be effective to avoid adverse consequences to us. Moreover, even if the “protective” election were to be effective, the subsidiary REIT would be subject to regular corporate income tax, and we cannot assure you that we would not fail to satisfy the requirement that not more than 20%, for taxable years beginning before December 31, 2025, and 25%, for taxable years beginning after December 31, 2025, of the value of our total assets may be represented by the securities of one or more taxable REIT subsidiaries, as well as the requirement that taxable income from our taxable REIT subsidiaries plus other nonqualifying gross income not exceed 25% of our total gross income. Taxable Mortgage Pools and Excess Inclusion Income.An entity, or a portion of an entity, that does not elect to be treated as a REMIC may be classified as a taxable mortgage pool, or TMP, under the Code if:

| • |     | substantially all of its assets consist of debt obligations or interests in debt obligations; |

| • |     | more than 50% of those debt obligations are real estate mortgages or interests in real estate mortgages as of 
 specified testing dates;                                                                                      |

| • |     | the entity has issued debt obligations (liabilities) that have two or more maturities; and |

| • |     | the payments required to be made by the entity on its debt obligations “bear a relationship” to the 
 payments to be received by the entity on the debt obligations that it holds as assets.              |

Under the applicable U.S. Treasury regulations, if less than 80% of the assets of an entity (or a portion of an entity) consist of debt obligations, these debt obligations are considered not to comprise “substantially all” of its assets, and therefore the entity would not be treated as a taxable mortgage pool. A TMP generally is treated as a taxable corporation and it cannot file a consolidated U.S. federal income tax return with any other corporation. If, however, a REIT owns 100% of the equity interests in a TMP, then the TMP is a qualified REIT subsidiary and, as such, ignored as an entity separate from the REIT, but a portion of the