Orchid Island Capital Announces May 2021 Monthly Dividend and April 30, 2021 RMBS Portfolio Characteristics

Rhea-AI Summary

Orchid Island Capital, Inc. (NYSE: ORC) has declared a monthly cash dividend of $0.065 per share for May 2021, payable on June 28, 2021. Holders of record as of May 28, 2021 will receive this dividend, with an ex-dividend date of May 27, 2021. The Company aims to maintain regular monthly cash distributions to meet its obligations as a real estate investment trust (REIT), which mandates distributing at least 90% of its taxable income. As of May 12, 2021, Orchid has 95,262,758 shares outstanding.

Positive

• Monthly cash dividend of $0.065 per share enhances income for shareholders.
• Company's commitment to regular distributions supports shareholder confidence.
• Compliance with REIT regulations by distributing at least 90% of taxable income.

Negative

• No minimum distribution payment level established, raising concerns over future dividends.
• Subject to income tax if taxable income is not distributed.

Orchid Island Capital, Inc. (the “Company”) (NYSE: ORC) announced today that the Board of Directors (the “Board”) declared a monthly cash dividend for the month of May 2021. The dividend of $0.065 per share will be paid June 28, 2021, to holders of record of the Company’s common stock on May 28, 2021, with an ex-dividend date of May 27, 2021. The Company plans on announcing its next common stock dividend on June 15, 2021.

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 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gain. The Company will be subject to income tax on taxable income that is not distributed and to an excise tax to the extent that a certain percentage of its taxable income is not distributed by specified dates. The Company has not established a minimum distribution payment level and is not assured of its ability to make distributions to stockholders in the future.

As of May 12, 2021, the Company had 95,262,758 shares of common stock outstanding. As of April 30, 2021 and March 31, 2021, the Company had 94,410,960 shares of common stock outstanding.

RMBS Portfolio Characteristics

Details of the RMBS portfolio as of April 30, 2021 are presented below. These figures are preliminary and subject to change. The information contained herein is an intra-quarter update created by the Company based upon information that the Company believes is accurate:

• 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 and the expected funding of purchased assets. 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, 2020.

RMBS Valuation Characteristics

($ in thousands)

Realized

Realized

Apr 2021

Feb - Apr

Modeled

Modeled

Net

Weighted

CPR

2021 CPR

Interest

Interest

%

Weighted

Average

(1-Month)

(3-Month)

Rate

Rate

Current

Fair

of

Current

Average

Maturity

(Reported

(Reported

Sensitivity

Sensitivity

Type

Face

Value(1)

Portfolio

Price

Coupon

GWAC

Age

(Months)

in May)

in May)

(-50 BPS)(2)

(+50 BPS)(2)

Pass Through RMBS

15yr 2.5

$

234,989

$

248,468

5.85

%

$

105.74

2.50

%

2.87

FAQ

What is the dividend payment date for Orchid Island Capital in June 2021?

The dividend payment date is June 28, 2021.

How much is the dividend declared for May 2021 by ORC?

The declared dividend is $0.065 per share.

What is the ex-dividend date for Orchid Island Capital's May 2021 dividend?

The ex-dividend date is May 27, 2021.

Is Orchid Island Capital's dividend sustainable?

The company has not established a minimum distribution level, which raises concerns about future sustainability.