Dynex Capital Reports $(0.31) Loss per Share

By Tamara Parker • Monday, July 22 15:25 • Permanent Link

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.

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