Ellington Residential Mortgage REIT is a mortgage real estate investment trust that acquires and manages a diversified portfolio of residential mortgage-backed securities, residential mortgage loans, and related mortgage investments in the U.S. residential mortgage market. The Company generates income from interest earned on its mortgage holdings, capital gains on sales of securities and loans, financing spreads from leverage arrangements, and distributions from equity investments, while funding its portfolio through equity capital, unsecured debt, and repurchase agreements with financial institutions. As a REIT, the Company is required to distribute at least 90% of its taxable income annually to stockholders and operates through an external manager as well as wholly-owned subsidiaries that include taxable REIT subsidiaries to execute its investment strategy.