Dynex Capital Reports $0.33 Economic Return

By Bobby Samwell • Monday, April 21 15:17 • Permanent Link

Dynex Capital, Inc. has reported its first quarter 2025 financial results, indicating a total economic return of $0.33 per common share. This represents a 2.6% return of beginning book value, with dividends declared at $0.47 per common share offset by a decline in book value of $(0.14) per common share. The book value per common share stood at $12.56 as of March 31, 2025.

The company raised equity capital of $240 million, net of issuance costs, through at-the-market ("ATM") common stock issuances and purchased $895 million in agency RMBS and $55 million in agency CMBS, increasing TBA investments by $430 million. Liquidity as of March 31, 2025, was $790 million.

Total assets were reported at $9,044,836, an increase from $8,184,579 in the previous period. Shareholders’ equity also saw an increase from $1,184,936 to $1,395,915. However, the book value per common share decreased from $12.70 to $12.56, and the common shares outstanding rose from 84,491,800 to 102,226,355.

The comprehensive income of the company was $0.16 per common share, with a net loss of $(0.06) per common share. This is a decrease from the comprehensive income of $0.63 per common share and a net income of $0.60 per common share in the previous period. Additionally, the dividends declared per common share increased from $0.43 to $0.47.

The company's interest income showed an increase from $88,496 to $95,059, while interest expense decreased from $81,609 to $77,926. The net interest income rose from $6,887 to $17,133. However, the unrealized gain (loss) on investments, net, showed a significant improvement, changing from $(223,225) to $109,997.

Dynex Capital, Inc. also saw changes in its investment portfolio and financing. The amortized cost/implied cost basis for 30-year fixed-rate RMBS showed a decrease from $10,916,133 to $11,180,959, with a corresponding decrease in fair value from $9,620,630 to $10,916,133. The company's repurchase agreement borrowings outstanding increased from $6,563,120 to $7,234,723.

The hedging portfolio of the company also witnessed changes. Notional amounts for long (short) positions in various interest rate swaps fluctuated, with some increasing and others remaining constant.

Today the company's shares have moved -1.8% to a price of $11.46. For the full picture, make sure to review Dynex Capital's 8-K report.

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