Invesco Mortgage Capital Inc. Announces Quarterly Common Dividend and Provides Update on Book Value and Portfolio

Rhea-AI Summary

Invesco Mortgage Capital Inc. (IVR) declared a cash dividend of $0.40 per share for Q4 2023, with a book value per common share estimated to be in the range of $9.82 to $10.22 as of December 15, 2023. The total investment portfolio is $5.0 billion, with a debt-to-equity ratio estimated to be in the range of 5.6x to 5.8x. The dividend will be paid on January 26, 2024, to stockholders of record on December 29, 2023, with an ex-dividend date of December 28, 2023.

Insights

Financial Analyst

The announcement by Invesco Mortgage Capital Inc. regarding its fourth-quarter cash dividend and preliminary financial estimates is a significant indicator of the company's current financial health and future expectations. The declared dividend of $0.40 per share suggests a commitment to returning value to shareholders, a positive sign for investors looking for income-generating investments. Additionally, the estimated book value per common share provides insight into the company's net asset value, a critical metric for assessing the intrinsic value of a company's stock.

From a portfolio perspective, the substantial investment in Agency residential mortgage-backed securities indicates a focused strategy on a specific segment of the mortgage market. The disclosed debt-to-equity ratio range gives an indication of the company's leverage and financial risk. However, the estimates' reliance on assumptions and the disclaimer that they are not audited or reviewed by PricewaterhouseCoopers LLP warrants caution, as future adjustments could materially alter the results.

Investors should consider the potential impact of market conditions on mortgage-backed securities and the company's ability to sustain dividend payments. The unrestricted cash and unencumbered investments figure provides a snapshot of liquidity, which is essential for meeting short-term obligations and potential investment opportunities.

Industry Analyst

The real estate investment trust (REIT) sector, in which Invesco Mortgage Capital Inc. operates, is subject to interest rate fluctuations and regulatory changes that can significantly influence performance. The company's focus on Agency residential mortgage-backed securities is a strategic choice that typically offers a degree of protection due to the implied government backing, but it also correlates with the broader housing market's health and interest rate environment.

Comparing the disclosed debt-to-equity ratio with industry norms is crucial for investors. A ratio in the range of 5.6x to 5.8x is relatively high, indicating a more aggressive borrowing strategy that could enhance returns but also increases risk, especially in volatile markets. Long-term stakeholders should monitor how changes in interest rates and housing market conditions might affect the company's portfolio value and debt servicing costs.

ATLANTA, Dec. 19, 2023 /PRNewswire/ -- Invesco Mortgage Capital Inc. (the "Company") (NYSE: IVR) today announced that its Board of Directors declared a cash dividend of $0.40 per share of common stock for the fourth quarter of 2023 on December 18, 2023. The dividend will be paid on January 26, 2024 to stockholders of record on December 29, 2023, with an ex-dividend date of December 28, 2023. 

Book Value and Portfolio Update as of December 15, 2023

• Book value per common share is estimated to be in the range of $9.82 to $10.22⁽¹⁾
• Total investment portfolio of $5.0 billion, substantially all of which is Agency residential mortgage-backed securities
• Unrestricted cash and unencumbered investments totaling approximately $344 million
• Debt-to-equity ratio is estimated to be in the range of 5.6x to 5.8x

^{(1) Book value per common share as of December 15, 2023 is adjusted to exclude a pro rata portion of the current quarter's common stock dividend (which for purposes of this calculation is assumed to be the same as the previous quarter) and is calculated as total stockholders' equity less the liquidation preference of the Company's Series B Preferred Stock and Series C Preferred Stock ($109.7 million and $188.7 million, respectively), divided by total common shares outstanding of 48.5 million.}

The preliminary financial information set forth above reflects the Company's estimates with respect to such information, based on information currently available to management, and may vary from the Company's actual financial results as of and for the periods noted above. Further, these estimates are not a comprehensive statement or estimate of the Company's financial results or financial condition. These estimates should not be viewed as a substitute for financial statements prepared in accordance with U.S. GAAP, and they are not necessarily indicative of the results to be achieved in any future period. Accordingly, a reader should not place undue reliance on these estimates.

These estimates, which are the responsibility of the Company's management, were prepared by the Company's management and are based upon a number of assumptions. Additional items that may require adjustments to these estimates may be identified and could result in material changes to these estimates. These estimates are inherently uncertain and the Company undertakes no obligation to update this information. The preliminary financial data included in this press release has been prepared by, and is the responsibility of, the Company's management. PricewaterhouseCoopers LLP has not audited, reviewed, examined, compiled nor applied agreed-upon procedures with respect to the preliminary financial data. Accordingly, PricewaterhouseCoopers LLP does not express an opinion or any other form of assurance with respect thereto.

About Invesco Mortgage Capital Inc.

Invesco Mortgage Capital Inc. is a real estate investment trust that primarily focuses on investing in, financing and managing mortgage-backed securities and other mortgage-related assets. Invesco Mortgage Capital Inc. is externally managed and advised by Invesco Advisers, Inc., a subsidiary of Invesco Ltd. (NYSE: IVZ), a leading independent global investment management firm. Additional information is available at www.invescomortgagecapital.com.

Cautionary Notice Regarding Forward-Looking Statements

This press release may include statements and information that constitute "forward-looking statements" within the meaning of the U.S. securities laws as defined in the Private Securities Litigation Reform Act of 1995, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control. These forward-looking statements include those related to our intention and ability to pay dividends and estimated book value per share, as well as any other statements other than statements of historical fact. The words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may," or similar expressions and future or conditional verbs such as "will," "may," "could," "should," and "would," and any other statement that necessarily depends on future events, are intended to identify forward-looking statements.

Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect the Company. Except as required by law, the Company is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact: Greg Seals, 404-439-3323

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SOURCE Invesco Mortgage Capital Inc.

FAQ

What is the dividend declared by Invesco Mortgage Capital Inc. for Q4 2023?

Invesco Mortgage Capital Inc. declared a cash dividend of $0.40 per share of common stock for the fourth quarter of 2023.

When will the dividend be paid to stockholders?

The dividend will be paid on January 26, 2024, to stockholders of record on December 29, 2023, with an ex-dividend date of December 28, 2023.

What is the book value per common share as of December 15, 2023?

The book value per common share is estimated to be in the range of $9.82 to $10.22 as of December 15, 2023.

What is the total investment portfolio of Invesco Mortgage Capital Inc.?

The total investment portfolio of Invesco Mortgage Capital Inc. is $5.0 billion, substantially all of which is Agency residential mortgage-backed securities.

What is the debt-to-equity ratio of Invesco Mortgage Capital Inc.?

The debt-to-equity ratio is estimated to be in the range of 5.6x to 5.8x.