The mortgage real estate investment trust (REIT) reported a GAAP net loss of $0.9 million, or $0.03 a share, in the second quarter of 2025. Even so, its core earnings available for distribution were much higher, hitting $3.2 million - a sign that its daily operations are staying steady even in choppy markets. Cherry Hill also launched a new tech partnership with Real Genius, a digital mortgage platform, aiming to modernize the lending side of its business. The company raised $8.9 million through its at-the-market equity program, giving itself more flexibility as real estate markets stay volatile. While the ups and downs this quarter came mostly from shifts in mortgage derivative values, analysts remain upbeat: they rate the stock a "buy," with a median price target of $4 - almost 28% above where shares are right now.

Mortgage rates are still unpredictable and real estate investment trusts like Cherry Hill are trading at low valuations - just 5 times projected earnings, compared to 6 a few months back. But Cherry Hill's investment in digital tools and its steady core earnings have kept analysts optimistic, echoing positive sentiment across the REIT sector. If the firm's tech push works out, it could see a boost in efficiency and profits, even with lending markets under pressure.

The bigger picture: Digital transformation gains momentum in lending.

Partnering with Real Genius highlights a larger trend: mortgage lenders turning to technology to cope with volatile rates and changing borrower habits. Those firms that get ahead on digital upgrades could end up leading the pack in efficiency and growth. With analysts' consensus pointing to a 'buy' and steady tech investment, the direction for real estate firms navigating this changing landscape seems clear.