Invesco Mortgage Capital Declares $0.12 Dividend

By Bobby Samwell • Sunday, June 14 13:02 • Permanent Link

Invesco Mortgage Capital declared a June cash dividend of $0.12 per common share, payable July 15 to stockholders of record on June 23.

At May 31, the company’s investment portfolio, including TBAs, stood at $8.0 billion, with $6.9 billion in mortgage-backed securities and $1.1 billion in TBAs at implied market value. Unrestricted cash and unencumbered investments totaled $532.5 million.

Borrowings under repurchase agreements were $6.1 billion, with a weighted average interest rate of 3.75% and a 25-day average remaining maturity. The company’s estimated book value per common share was $8.25.

Leverage moved to 6.2x on a debt-to-equity basis and 7.3x on an economic debt-to-equity basis. The economic measure included $1.1 billion of TBAs at implied cost basis.

Within the portfolio, agency RMBS made up 74.7% of the total investment portfolio, or $5.95 billion. The largest coupon buckets were 5.5% securities at $1.92 billion, 5.0% securities at $1.60 billion, and 6.0% securities at $1.25 billion. Agency CMBS totaled $902.5 million and agency CMO holdings were $65.4 million.

The company’s interest rate swap book totaled $4.615 billion notional. The weighted average fixed pay rate was 1.92%, while the weighted average floating receive rate was 3.63%. The swaps had a weighted average maturity of 6.3 years.

Treasury futures positions totaled $1.14 billion notional, split between $460 million of 10-year futures, $375 million of ultra 10-year futures, and $305 million of 30-year futures. As a result of these announcements, the company's shares have moved -0.75% on the market, and are now trading at a price of $7.94. For more information, read the company's full 8-K submission here.

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.