Two Harbors Investment Corp. Announces First Quarter 2023 Common and Preferred Stock Dividends and Company Update

Rhea-AI Summary

Two Harbors Investment Corp (NYSE: TWO) declared a $0.60 dividend per share for Q1 2023, payable on April 28, 2023. Record date for common stockholders is April 4, 2023. Additionally, preferred stock dividends were announced: $0.50781 for Series A, $0.47656 for Series B, and $0.45313 for Series C, payable on April 27, 2023. The company reported an 8% decrease in book value quarter-to-date but maintains strong liquidity of approximately $650 million. Two Harbors has no financing exposure to Credit Suisse or stressed regional banks.

Positive

• Declared a dividend of $0.60 per share, providing income for shareholders.
• Strong liquidity position with approximately $650 million in unrestricted cash.
• No exposure to Credit Suisse or stressed regional banks, ensuring stability.

Negative

• Estimated 8% decrease in book value quarter-to-date due to interest rate volatility and widening mortgage spreads.
• Heightened hedging and convexity costs impacting financials.

NEW YORK--(BUSINESS WIRE)-- Two Harbors Investment Corp. (NYSE: TWO), an Agency + MSR mortgage real estate investment trust, today declared a dividend of $0.60 per share of common stock for the first quarter of 2023. The first quarter dividend is payable on April 28, 2023 to common stockholders of record at the close of business on April 4, 2023.

Two Harbors also declared today the following preferred stock dividends:

• a dividend of $0.50781 per share of the 8.125% Series A Cumulative Redeemable Preferred Stock;
• a dividend of $0.47656 per share of the 7.625% Series B Cumulative Redeemable Preferred Stock; and
• a dividend of $0.45313 per share of the 7.25% Series C Cumulative Redeemable Preferred Stock.

The Series A, Series B and Series C preferred dividends are payable on April 27, 2023 to the applicable preferred stockholders of record at the close of business on April 12, 2023.

Two Harbors also today provided the following updates with respect to its business, through the close of business on March 22, 2023.

• We estimate that our book value has decreased approximately 8% quarter-to-date, after giving effect to dividends declared.
• Our liquidity position remains strong, with unrestricted cash of approximately $650 million.
• The Agency RMBS repurchase agreement market continues to function well and we have experienced no issues accessing this source of funding, nor any issues with our MSR financing facilities.
• We do not have any financing exposure to Credit Suisse, as a result of Credit Suisse divesting its structured products business to Atlas Securitized Products, L.P. We also do not have exposure to any stressed regional banks.

“Our book value has been impacted by heightened interest rate volatility and widening mortgage spreads over the past several weeks, particularly in higher coupons where our portfolio has exposure,” stated Bill Greenberg, Two Harbors’ President and Chief Executive Officer. “Book value was further affected by elevated hedging and convexity costs, given the magnitude of interest rate moves. Nevertheless, we have no exposure to the regional banks at issue, funding for our assets remains stable and well supported, and we have more than ample liquidity.”

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believe,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results.

Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Two Harbors does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these and other risk factors is contained in the company’s most recent filings with the Securities and Exchange Commission. All subsequent written and oral forward-looking statements concerning the company or matters attributable to the company or any person.

Two Harbors Investment Corp.

Two Harbors Investment Corp., a Maryland corporation, is a real estate investment trust that invests in residential mortgage-backed securities, mortgage servicing rights and other financial assets. Two Harbors is headquartered in St. Louis Park, MN.

Additional Information

Stockholders of Two Harbors and other interested persons may find additional information regarding the company at www.twoharborsinvestment.com, at the Securities and Exchange Commission’s Internet site at www.sec.gov or by directing requests to: Two Harbors Investment Corp., 1601 Utica Avenue South, Suite 900, St. Louis Park, MN 55416, telephone (612) 453-4100.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230323005677/en/

Margaret Karr, Head of Investor Relations, Two Harbors Investment Corp., 612-453-4080, margaret.karr@twoharborsinvestment.com

Source: Two Harbors Investment Corp.

FAQ

What is the dividend amount declared by Two Harbors in Q1 2023?

Two Harbors announced a dividend of $0.60 per share for Q1 2023.

When will the dividend be paid to shareholders of Two Harbors?

The dividend will be payable on April 28, 2023.

What is the record date for Two Harbors' dividend?

The record date is April 4, 2023.

What is the estimated impact on Two Harbors' book value?

The estimated decrease in book value is approximately 8% quarter-to-date.

What is Two Harbors' liquidity position?

Two Harbors has approximately $650 million in unrestricted cash.