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Dynex Capital Reports $(0.31) Loss per Share

Dynex Capital, Inc. has released its financial results for the second quarter of 2024. The company reported a total economic loss of $(0.31) per common share, or (2.4)% of beginning book value. This is a decline from the comprehensive income of $20.9 million reported in the first quarter of 2024. The book value per common share also decreased to $12.50 as of June 30, 2024, from $13.31 as of December 31, 2023.

The company's interest income for the second quarter was $76,054,000, representing an increase from the $71,525,000 reported in the first quarter of 2024. However, the net interest income (expense) was reported at $(1,904,000), a decrease from the $(3,192,000) reported in the previous quarter.

Dynex Capital, Inc. raised equity capital of $124.7 million during the second quarter through a public offering of common stock and at-the-market issuances. Additionally, the company purchased $551.1 million of higher coupon agency RMBS, contributing to a total fair value of $8,624,768,000 as of June 30, 2024, compared to $8,248,659,000 as of March 31, 2024.

The company's total assets as of June 30, 2024, amounted to $6,683,602,000, up from $6,369,750,000 as of December 31, 2023. The increase was primarily driven by higher cash and cash equivalents, and mortgage-backed securities.

In terms of liabilities and shareholders’ equity, the total liabilities as of June 30, 2024, stood at $5,638,339,000, compared to $5,499,015,000 as of December 31, 2023. The shareholders' equity also increased to $1,045,263,000 from $870,735,000 over the same period.

During the second quarter of 2024, the company added $551.1 million in specified pools of agency RMBS with coupons of 5.5% or higher, which is expected to drive net interest income higher in the coming months.

The company's earnings conference call is scheduled for 10:00 a.m. Eastern Time today, where further details about the results and business outlook will be discussed.

As a result of these announcements, the company's shares have moved 0.9% on the market, and are now trading at a price of $12.45. For the full picture, make sure to review Dynex Capital's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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