Invesco Mortgage Capital Maintains Dividend at 12 Cents

By Tamara Parker • Saturday, June 13 16:03 • Permanent Link

Invesco Mortgage Capital said it will pay a June dividend of 12 cents a share, unchanged from the prior monthly payout.

At May 31, the mortgage REIT reported $8.0 billion of total investment portfolio including TBAs, with $7.97 billion shown at fair value. Agency RMBS made up $5.95 billion, or 74.7% of the portfolio, led by $1.92 billion in 5.5% coupons, $1.60 billion in 5.0% coupons, $1.25 billion in 6.0% coupons and $1.17 billion in 4.5% coupons. Agency CMBS added $902.5 million and agency CMO $65.4 million. TBAs at implied market value were $1.05 billion, or 13.2% of the portfolio.

Liquidity stood at $532.5 million in unrestricted cash and unencumbered investments. Repurchase agreement borrowings totaled $6.09 billion, carrying a weighted average interest rate of 3.75% and a 25-day average remaining maturity.

The company estimated book value per common share at $8.25, based on common equity after subtracting the $169.0 million liquidation preference on its Series C preferred stock and dividing by 98.2 million common shares outstanding.

Leverage was 6.2x on a debt-to-equity basis and 7.3x on an economic debt-to-equity basis. The economic measure included TBAs at implied cost basis of $1.1 billion. Invesco also had $4.615 billion of interest rate swaps outstanding, with a weighted average fixed pay rate of 1.92% and a floating receive rate of 3.63%. Treasury futures positions totaled $1.14 billion, split between $460 million in 10-year contracts, $375 million in ultra 10-year contracts and $305 million in 30-year contracts. Following these announcements, the company's shares moved -0.75%, and are now trading at a price of $7.94. For the full picture, make sure to review Invesco Mortgage Capital's 8-K report.

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