Orchid Island Capital, a specialty finance company, has recently released its 10-Q report, revealing a focus on investing in residential mortgage-backed securities (RMBS) in the United States. The company's portfolio comprises traditional pass-through Agency RMBS, such as mortgage pass-through certificates and collateralized mortgage obligations, and structured Agency RMBS, including interest-only securities, inverse interest-only securities, and principal-only securities. Orchid Island Capital operates as a real estate investment trust (REIT) and aims to provide attractive risk-adjusted total returns through a combination of capital appreciation and regular monthly distributions.
In the 10-Q report, Orchid Island Capital discusses its capital raising activities, including entering into equity distribution agreements with sales agents, resulting in the issuance of shares for aggregate gross proceeds of approximately $228.8 million in March 2023, $250.0 million in June 2024, and $266.6 million in February 2025. Additionally, the company has engaged in a stock repurchase program, authorizing the repurchase of up to 6,183,601 shares of its common stock, of which 6,257,826 shares were repurchased through June 30, 2025, at an aggregate cost of approximately $84.8 million.
The report also highlights factors that may impact Orchid Island Capital's results of operations and financial condition, including interest rate trends, changes in the cost of funds, competition for investments in Agency RMBS, and market developments such as bank failures. It further discusses the company's results of operations, revealing a net loss of $16.5 million for the six months ended June 30, 2025, compared to net income of $14.8 million for the same period in 2024. The net loss for the three months ended June 30, 2025, was $33.6 million, compared to a net loss of $5.0 million for the same period in 2024. The report also includes GAAP and non-GAAP reconciliations, providing insights into the company's financial performance. As a result of these announcements, the company's shares have moved 1.51% on the market, and are now trading at a price of $7.41. For more information, read the company's full 10-Q submission here.
