Invesco Mortgage Capital ( (IVR) ) has released its Q4 earnings. Here is a breakdown of the information Invesco Mortgage Capital presented to its investors.
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Invesco Mortgage Capital Inc. is a real estate investment trust that specializes in investing in, financing, and managing mortgage-backed securities and related assets, operating within the real estate sector and managed by Invesco Advisers, Inc. In its latest earnings announcement, Invesco Mortgage Capital reported a net loss per common share of $0.09 for the fourth quarter of 2024, a significant decline from the previous quarter’s net income of $0.63 per share. The company maintained its common stock dividend at $0.40 per share, despite a decrease in earnings available for distribution. A noteworthy development was the improvement in capital structure through the redemption of Series B Preferred Stock, funded by lower-cost repurchase agreements. In terms of financial performance, the company’s book value per common share decreased to $8.92, down from $9.37 at the end of the previous quarter, resulting in an economic return of negative 0.5%. This was partly due to rising long-term Treasury yields and interest rate volatility, which negatively impacted the company’s Agency RMBS. However, improved risk premiums on Agency CMBS provided some offset. The debt-to-equity ratio increased to 6.7x, reflecting the company’s strategic adjustments. Looking ahead, the management remains cautious about the Agency RMBS market due to potential interest rate volatility, but holds a positive long-term outlook, anticipating improved demand and a steeper yield curve. The company expects robust investor demand for Agency CMBS as new issuances increase, given their attractive risk-adjusted return profiles.
