Orchid Island Capital Announces Estimated First Quarter 2024 Results, April 2024 Monthly Dividend and March 31, 2024 RMBS Portfolio Characteristics
- Declaration of a $0.12 per share monthly cash dividend for April 2024 by Orchid Island Capital, Inc. (NYSE: ORC).
- Estimated book value per share of $9.12 as of March 31, 2024, with a GAAP net income of $0.38 per share for the quarter ended March 31, 2024.
- Inclusion of $0.50 per share of net realized and unrealized gains on RMBS and derivative instruments in the net income figure.
- 52,973,989 shares of common stock outstanding as of April 10, 2024, with changes in outstanding shares compared to previous periods.
- Highlights of the RMBS portfolio characteristics and the estimated total return on equity of 4.2% for the quarter ended March 31, 2024.
- None.
Insights
The estimated GAAP net income of $0.38 per share for Orchid Island Capital, Inc. reflects a robust quarter, particularly noting the $0.50 per share of net realized and unrealized gains on RMBS and derivative instruments. These gains are significant as they indicate the company's ability to generate returns from its investment portfolio, a critical factor for investor confidence. The 4.2% total return on equity is a key metric for assessing the company's profitability relative to its equity base. While this figure appears solid, it is essential to compare it with industry benchmarks and historical performance to fully gauge its strength.
The monthly dividend announcement of $0.12 per share is in line with the company's distribution strategy. As a REIT, Orchid Island must distribute at least 90% of its taxable income to shareholders, which often makes these stocks attractive to income-focused investors. The consistency of dividend payments can be a sign of stability and can influence the stock's attractiveness in the market. However, the company's statement that it has not established a minimum distribution level and cannot assure future distributions may introduce an element of uncertainty for income-dependent shareholders.
Finally, the increase in shares outstanding over the quarter suggests the company might have issued new shares, which could dilute existing shareholders' equity. However, a deeper analysis would be required to understand the implications fully, including the reasons behind the potential share issuance and its impact on the company's capital structure.
Orchid Island Capital's preliminary figures, including the estimated book value per share of $9.12, provide an insight into the company's net asset value. This metric is important for investors as it helps in assessing whether the stock is trading at a discount or premium to its net asset value. A book value that is close to or higher than the market price may suggest that the stock is undervalued, potentially attracting value investors.
The RMBS portfolio characteristics are also noteworthy. RMBS, or Residential Mortgage-Backed Securities, are a type of investment that can be sensitive to interest rate changes and the overall health of the housing market. The portfolio's performance can significantly impact the company's returns and, consequently, its ability to pay dividends. Investors often look at RMBS valuation characteristics and risk measures to assess the quality and risk profile of the underlying assets.
It is also important to note that the company's financials are preliminary and subject to change upon final review by the independent registered public accounting firm. This could mean that the final reported figures may differ from these estimates, which could influence the stock's performance upon the actual earnings release.
The performance of Orchid Island Capital, as a REIT, hinges on its ability to manage and optimize its real estate investments, in this case, RMBS. The reported net gains from RMBS and derivative instruments suggest the company has been effectively navigating the market. However, the broader real estate market conditions, including interest rates and housing demand, can have a substantial impact on the performance of RMBS. It is imperative to analyze these macroeconomic factors alongside the company's financial metrics to predict future performance.
The repurchase agreement exposure by counterparty is another critical aspect for a REIT dealing with RMBS, as it indicates the level of risk associated with borrowing. If the counterparties are stable financial institutions, the risk may be mitigated, but exposure to weaker parties could pose significant risks, especially in volatile markets.
Investors should also consider the implications of the company's tax structure as a REIT, which requires the distribution of the majority of taxable income. While this can lead to high dividend yields, it also limits the amount of earnings the company can reinvest into its business, potentially affecting long-term growth.
-
April 2024 Monthly Dividend of
$0.12 -
Estimated Book Value Per Share as of March 31, 2024 of
$9.12 -
Estimated GAAP net income of
$0.38 $0.50 -
Estimated
4.2% total return on equity for the quarter - Estimated book value, net income and total return on equity amounts are preliminary, subject to change, and subject to review by the Company’s independent registered public accounting firm
- RMBS Portfolio Characteristics as of March 31, 2024
- Next Dividend Announcement Expected May 8, 2024
The Company intends to make regular monthly cash distributions to its holders of common stock. In order to qualify as a real estate investment trust (“REIT”), the Company must distribute annually to its stockholders an amount at least equal to
As of April 10, 2024, the Company had 52,973,989 shares of common stock outstanding. As of March 31, 2024, the Company had 52,826,169 shares of common stock outstanding. As of December 31, 2023, the Company had 51,636,074 shares of common stock outstanding.
Estimated March 31, 2024 Book Value Per Share
The Company’s estimated book value per share as of March 31, 2024 was
Estimated Net Income Per Share and Realized and Unrealized Gains and Losses on RMBS and Derivative Instruments
The Company estimates it generated a net income per share of
Estimated Total Return on Equity
The Company’s estimated total return on equity for the quarter ended March 31, 2024 was
RMBS Portfolio Characteristics
Details of the RMBS portfolio as of March 31, 2024 are presented below. These figures are preliminary and subject to change and, with respect to figures that will appear in the Company's financial statements and associated footnotes as of and for the quarter ended March 31, 2024, are subject to review by the Company's independent registered public accounting firm:
- RMBS Valuation Characteristics
- RMBS Assets by Agency
- Investment Company Act of 1940 (Whole Pool) Test Results
- Repurchase Agreement Exposure by Counterparty
- RMBS Risk Measures
About Orchid Island Capital, Inc.
Orchid Island Capital, Inc. is a specialty finance company that invests on a leveraged basis in Agency RMBS. Our investment strategy focuses on, and our portfolio consists of, two categories of Agency RMBS: (i) traditional pass-through Agency RMBS, such as mortgage pass-through certificates and collateralized mortgage obligations issued by Fannie Mae, Freddie Mac or Ginnie Mae, and (ii) structured Agency RMBS. The Company is managed by Bimini Advisors, LLC, a registered investment adviser with the Securities and Exchange Commission.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements include, but are not limited to, statements about the Company’s distributions. These forward-looking statements are based upon Orchid Island Capital, Inc.’s present expectations, but these statements are not guaranteed to occur. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please refer to the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
RMBS Valuation Characteristics |
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($ in thousands) |
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Realized |
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Realized |
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Jan-24 - |
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Mar-24 |
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Mar-24 |
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Net |
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Weighted |
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CPR |
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CPR |
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Weighted |
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Average |
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(1-Month) |
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(3-Month) |
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Modeled Interest |
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Current |
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Fair |
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% of |
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Current |
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Average |
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Maturity |
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(Reported |
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(Reported |
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Rate Sensitivity (1) |
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Type |
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Face |
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Value |
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Portfolio |
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Price |
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Coupon |
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GWAC |
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Age |
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(Months) |
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in Apr) |
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in Apr) |
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(-50 BPS) |
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(+50 BPS) |
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Fixed Rate RMBS |
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30yr 3.0 |
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$ |
1,370,656 |
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$ |
1,197,253 |
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30.85 |
% |
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|
87.35 |
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3.00 |
% |
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3.46 |
% |
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36 |
|
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|
318 |
|
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4.9 |
% |
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5.3 |
% |
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$ |
37,486 |
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$ |
(37,854 |
) |
30yr 3.5 |
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190,371 |
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|
174,067 |
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4.49 |
% |
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91.44 |
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3.50 |
% |
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4.04 |
% |
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49 |
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|
300 |
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5.1 |
% |
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5.7 |
% |
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4,893 |
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(4,937 |
) |
30yr 4.0 |
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557,000 |
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|
518,393 |
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13.36 |
% |
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93.07 |
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4.00 |
% |
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4.78 |
% |
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26 |
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|
331 |
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10.5 |
% |
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4.8 |
% |
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13,316 |
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(14,203 |
) |
30yr 4.5 |
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332,189 |
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318,003 |
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8.19 |
% |
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95.73 |
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4.50 |
% |
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5.45 |
% |
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21 |
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|
337 |
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7.1 |
% |
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8.9 |
% |
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6,505 |
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(7,154 |
) |
30yr 5.0 |
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543,831 |
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532,646 |
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13.72 |
% |
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97.94 |
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5.00 |
% |
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5.93 |
% |
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19 |
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|
338 |
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6.0 |
% |
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5.2 |
% |
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10,158 |
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(11,510 |
) |
30yr 5.5 |
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268,684 |
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269,800 |
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6.95 |
% |
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100.42 |
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5.50 |
% |
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6.43 |
% |
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12 |
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346 |
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0.6 |
% |
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2.9 |
% |
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4,375 |
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(5,199 |
) |
30yr 6.0 |
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436,455 |
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443,168 |
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11.42 |
% |
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101.54 |
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6.00 |
% |
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7.00 |
% |
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10 |
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346 |
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2.7 |
% |
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5.2 |
% |
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5,215 |
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(6,510 |
) |
30yr 6.5 |
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325,991 |
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334,343 |
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8.61 |
% |
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102.56 |
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6.50 |
% |
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7.39 |
% |
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8 |
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|
349 |
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13.8 |
% |
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11.5 |
% |
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2,835 |
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(3,738 |
) |
30yr 7.0 |
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73,934 |
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76,832 |
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1.98 |
% |
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|
103.92 |
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7.00 |
% |
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7.94 |
% |
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6 |
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|
350 |
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22.7 |
% |
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10.9 |
% |
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|
483 |
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(625 |
) |
30yr Total |
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4,099,111 |
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3,864,505 |
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99.57 |
% |
|
|
94.28 |
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|
|
4.38 |
% |
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5.12 |
% |
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25 |
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|
|
331 |
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6.5 |
% |
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6.0 |
% |
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|
85,266 |
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(91,730 |
) |
Total Pass Through RMBS |
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4,099,111 |
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3,864,505 |
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99.57 |
% |
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|
94.28 |
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|
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4.38 |
% |
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5.12 |
% |
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|
25 |
|
|
|
331 |
|
|
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6.5 |
% |
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6.0 |
% |
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|
85,266 |
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|
|
(91,730 |
) |
Structured RMBS |
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|
IO 20yr 4.0 |
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|
8,320 |
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|
822 |
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0.02 |
% |
|
|
9.88 |
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|
|
4.00 |
% |
|
|
4.57 |
% |
|
|
147 |
|
|
|
86 |
|
|
|
6.4 |
% |
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8.1 |
% |
|
|
5 |
|
|
|
(4 |
) |
IO 30yr 3.0 |
|
|
2,798 |
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|
|
378 |
|
|
|
0.01 |
% |
|
|
13.50 |
|
|
|
3.00 |
% |
|
|
3.63 |
% |
|
|
110 |
|
|
|
241 |
|
|
|
2.2 |
% |
|
|
18.1 |
% |
|
|
1 |
|
|
|
(1 |
) |
IO 30yr 4.0 |
|
|
78,587 |
|
|
|
14,069 |
|
|
|
0.36 |
% |
|
|
17.90 |
|
|
|
4.00 |
% |
|
|
4.60 |
% |
|
|
115 |
|
|
|
236 |
|
|
|
5.4 |
% |
|
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6.2 |
% |
|
|
(187 |
) |
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|
144 |
|
IO 30yr 4.5 |
|
|
3,385 |
|
|
|
665 |
|
|
|
0.02 |
% |
|
|
19.65 |
|
|
|
4.50 |
% |
|
|
4.99 |
% |
|
|
165 |
|
|
|
181 |
|
|
|
6.5 |
% |
|
|
5.3 |
% |
|
|
(3 |
) |
|
|
1 |
|
IO 30yr 5.0 |
|
|
1,851 |
|
|
|
392 |
|
|
|
0.01 |
% |
|
|
21.17 |
|
|
|
5.00 |
% |
|
|
5.36 |
% |
|
|
165 |
|
|
|
183 |
|
|
|
1.1 |
% |
|
|
1.8 |
% |
|
|
(5 |
) |
|
|
3 |
|
IO Total |
|
|
94,941 |
|
|
|
16,326 |
|
|
|
0.42 |
% |
|
|
17.20 |
|
|
|
4.01 |
% |
|
|
4.60 |
% |
|
|
120 |
|
|
|
220 |
|
|
|
5.3 |
% |
|
|
6.6 |
% |
|
|
(190 |
) |
|
|
142 |
|
IIO 30yr 4.0 |
|
|
25,768 |
|
|
|
247 |
|
|
|
0.01 |
% |
|
|
0.96 |
|
|
|
0.00 |
% |
|
|
4.40 |
% |
|
|
78 |
|
|
|
270 |
|
|
|
1.6 |
% |
|
|
3.4 |
% |
|
|
87 |
|
|
|
(70 |
) |
Total Structured RMBS |
|
|
120,709 |
|
|
|
16,573 |
|
|
|
0.43 |
% |
|
|
13.73 |
|
|
|
3.15 |
% |
|
|
4.55 |
% |
|
|
111 |
|
|
|
231 |
|
|
|
4.5 |
% |
|
|
5.9 |
% |
|
|
(103 |
) |
|
|
72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Mortgage Assets |
|
$ |
4,219,820 |
|
|
$ |
3,881,078 |
|
|
|
100.00 |
% |
|
|
|
|
|
|
4.34 |
% |
|
|
5.10 |
% |
|
|
27 |
|
|
|
328 |
|
|
|
6.5 |
% |
|
|
6.0 |
% |
|
$ |
85,163 |
|
|
$ |
(91,658 |
) |
|
|
Average |
|
Hedge |
|
Modeled Interest |
|
||||||
|
|
Notional |
|
Period |
|
Rate Sensitivity (1) |
|
||||||
Hedge |
|
Balance |
|
End |
|
(-50 BPS) |
|
|
(+50 BPS) |
|
|||
3-Month SOFR Futures |
|
$ |
(100,000 |
) |
Mar-26 |
|
$ |
(750 |
) |
|
$ |
750 |
|
5-Year Treasury Future(2) |
|
|
(421,500 |
) |
Jun-24 |
|
|
(8,556 |
) |
|
|
8,423 |
|
10-Year Treasury Future(3) |
|
|
(320,000 |
) |
Jun-24 |
|
|
(10,360 |
) |
|
|
10,006 |
|
Swaps |
|
|
(2,531,800 |
) |
Dec-29 |
|
|
(62,066 |
) |
|
|
59,907 |
|
TBA |
|
|
(370,700 |
) |
Apr-24 |
|
|
(10,045 |
) |
|
|
10,490 |
|
Swaptions |
|
|
(809,400 |
) |
May-24 |
|
|
(169 |
) |
|
|
508 |
|
Hedge Total |
|
$ |
(4,553,400 |
) |
|
|
$ |
(91,946 |
) |
|
$ |
90,084 |
|
Rate Shock Grand Total |
|
|
|
|
|
|
$ |
(6,783 |
) |
|
$ |
(1,574 |
) |
| (1) | Modeled results from Citigroup Global Markets Inc. Yield Book. Interest rate shocks assume instantaneous parallel shifts and horizon prices are calculated assuming constant SOFR option-adjusted spreads. These results are for illustrative purposes only and actual results may differ materially. |
| (2) |
Five-year Treasury futures contracts were valued at prices of |
| (3) |
Ten-year Treasury futures contracts were valued at prices of |
RMBS Assets by Agency |
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($ in thousands) |
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Percentage |
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Fair |
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of |
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Asset Category |
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Value |
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Portfolio |
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||
As of March 31, 2024 |
|
|
|
|
|
|
|
|
Fannie Mae |
|
$ |
2,719,139 |
|
|
|
70.1 |
% |
Freddie Mac |
|
|
1,161,939 |
|
|
|
29.9 |
% |
Total Mortgage Assets |
|
$ |
3,881,078 |
|
|
|
100.0 |
% |
Investment Company Act of 1940 Whole Pool Test |
|
|||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage |
|
|
|
|
Fair |
|
|
of |
|
||
Asset Category |
|
Value |
|
|
Portfolio |
|
||
As of March 31, 2024 |
|
|
|
|
|
|
|
|
Non-Whole Pool Assets |
|
$ |
137,811 |
|
|
|
3.6 |
% |
Whole Pool Assets |
|
|
3,743,267 |
|
|
|
96.4 |
% |
Total Mortgage Assets |
|
$ |
3,881,078 |
|
|
|
100.0 |
% |
Borrowings By Counterparty |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted |
|
Weighted |
|
|
||
|
|
|
|
|
|
% of |
|
Average |
|
Average |
|
|
|||
|
|
Total |
|
|
Total |
|
Repo |
|
Maturity |
|
Longest |
||||
As of March 31, 2024 |
|
Borrowings |
|
|
Debt |
|
Rate |
|
in Days |
|
Maturity |
||||
RBC Capital Markets, LLC |
|
$ |
290,315 |
|
|
|
|
|
|
|
|
|
11 |
|
4/11/2024 |
ASL Capital Markets Inc. |
|
|
265,535 |
|
|
|
|
|
|
|
|
|
33 |
|
7/15/2024 |
Mitsubishi UFJ Securities ( |
|
|
255,330 |
|
|
|
|
|
|
|
|
|
12 |
|
4/26/2024 |
J.P. Morgan Securities LLC |
|
|
252,936 |
|
|
|
|
|
|
|
|
|
22 |
|
4/22/2024 |
Citigroup Global Markets Inc |
|
|
243,960 |
|
|
|
|
|
|
|
|
|
24 |
|
4/24/2024 |
Cantor Fitzgerald & Co |
|
|
224,172 |
|
|
|
|
|
|
|
|
|
11 |
|
4/11/2024 |
ABN AMRO Bank N.V. |
|
|
223,932 |
|
|
|
|
|
|
|
|
|
25 |
|
5/31/2024 |
Wells Fargo Bank, N.A. |
|
|
204,977 |
|
|
|
|
|
|
|
|
|
19 |
|
4/19/2024 |
Mirae Asset Securities ( |
|
|
193,164 |
|
|
|
|
|
|
|
|
|
26 |
|
6/18/2024 |
Merrill Lynch, Pierce, Fenner & Smith |
|
|
191,904 |
|
|
|
|
|
|
|
|
|
15 |
|
4/26/2024 |
Daiwa Securities America Inc. |
|
|
175,179 |
|
|
|
|
|
|
|
|
|
24 |
|
4/24/2024 |
Bank of Montreal |
|
|
164,564 |
|
|
|
|
|
|
|
|
|
11 |
|
4/11/2024 |
StoneX Financial Inc. |
|
|
163,354 |
|
|
|
|
|
|
|
|
|
16 |
|
4/16/2024 |
Marex Capital Markets Inc. |
|
|
156,953 |
|
|
|
|
|
|
|
|
|
20 |
|
4/26/2024 |
Goldman, Sachs & Co |
|
|
154,197 |
|
|
|
|
|
|
|
|
|
18 |
|
4/18/2024 |
Banco Santander SA |
|
|
150,450 |
|
|
|
|
|
|
|
|
|
19 |
|
4/22/2024 |
ING Financial Markets LLC |
|
|
124,790 |
|
|
|
|
|
|
|
|
|
22 |
|
4/22/2024 |
DV Securities, LLC Repo |
|
|
112,001 |
|
|
|
|
|
|
|
|
|
40 |
|
5/14/2024 |
South Street Securities, LLC |
|
|
101,890 |
|
|
|
|
|
|
|
|
|
54 |
|
5/28/2024 |
Clear Street LLC |
|
|
44,558 |
|
|
|
|
|
|
|
|
|
37 |
|
5/13/2024 |
Lucid Cash Fund USG LLC |
|
|
17,337 |
|
|
|
|
|
|
|
|
|
18 |
|
4/18/2024 |
Total Borrowings |
|
$ |
3,711,498 |
|
|
|
|
|
|
|
|
|
21 |
|
7/15/2024 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240410775979/en/
Orchid Island Capital, Inc.
Robert E. Cauley
Telephone: (772) 231-1400
Source: Orchid Island Capital, Inc.
FAQ
What is the monthly cash dividend declared by Orchid Island Capital, Inc. (NYSE: ORC) for April 2024?
What was the estimated book value per share of Orchid Island Capital, Inc. (NYSE: ORC) as of March 31, 2024?
What was the GAAP net income per share for Orchid Island Capital, Inc. (NYSE: ORC) for the quarter ended March 31, 2024?
How many shares of common stock were outstanding for Orchid Island Capital, Inc. (NYSE: ORC) as of April 10, 2024?
What was the estimated total return on equity for Orchid Island Capital, Inc. (NYSE: ORC) for the quarter ended March 31, 2024?
