Financial Performance - Comprehensive income was $0.15 per common share in Q4 2024[22] - Book value was $12.70 per common share at the end of Q4 2024[22] - Total economic return was 1.0% in Q4 2024[22] - Net income was $0.61 per common share in Q4 2024[22] - The company had $658 million of cash and unencumbered assets as of December 31, 2024[67] Portfolio Composition - The portfolio fair value was $9.8 billion as of December 31, 2024[15, 25] - Agency RMBS comprised 98% of the portfolio, with Agency RMBS Pools & TBA accounting for 98% and Agency CMBS/CMBS IO accounting for 2%[12, 14] - Agency RMBS TBA accounted for 24% of the portfolio, while Agency RMBS Pools accounted for 74%[25] Market Dynamics and Strategy - The company's annualized dividend yield was 14.2% as of December 31, 2024[13] - The company's market capitalization was $1.1 billion as of December 31, 2024[13] - The company strategically grew its balance sheet with a focus on high-quality, liquid, Agency MBS offering compelling risk-adjusted returns[24]

Group 1: Earnings Performance - Dynex Capital reported quarterly earnings of $0.10 per share, missing the Zacks Consensus Estimate of $0.38 per share, representing an earnings surprise of -73.68% [1] - The company posted revenues of $6.89 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 27.96%, compared to year-ago revenues of -$2.28 million [2] - Over the last four quarters, Dynex Capital has not surpassed consensus EPS estimates and has consistently missed revenue estimates [2] Group 2: Stock Performance and Outlook - Dynex Capital shares have lost about 0.2% since the beginning of the year, while the S&P 500 has gained 3.7% [3] - The company's earnings outlook will be crucial for future stock movements, with current consensus EPS estimates at $0.37 on $14.26 million in revenues for the coming quarter and $1.87 on $95.53 million in revenues for the current fiscal year [7] - The current Zacks Rank for Dynex Capital is 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The REIT and Equity Trust industry, to which Dynex Capital belongs, is currently in the bottom 40% of the Zacks industry rankings, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

Financial Performance - Total economic return of $0.13 per common share for Q4 2024, and $0.99 per common share for the full year 2024, representing 1.0% and 7.4% of beginning book value respectively [4] - Comprehensive income of $0.15 per common share for Q4 2024 and $1.30 per common share for the full year 2024 [4] - Net income to common shareholders was $49.2 million for Q4 2024, translating to $0.61 per common share [9] - Comprehensive income to common shareholders (GAAP) for the year ended December 31, 2024, was $92,217,000, compared to $70,741,000 for the three months ended September 30, 2024 [30] - Economic net interest income for the year ended December 31, 2024, was $21,982,000, while for the three months ended September 30, 2024, it was $5,056,000 [30] Dividends and Shareholder Returns - Dividends declared of $0.43 per common share for Q4 2024 and $1.60 for the full year 2024 [4] - The company experienced a total shareholder return of 13.7% in 2024 and 27.4% over the last two years [5] Assets and Book Value - Book value per common share decreased to $12.70 as of December 31, 2024, down from $13.31 a year earlier [8] - Total assets increased to $8.18 billion as of December 31, 2024, compared to $6.37 billion a year earlier [8] Capital and Financing - The company raised $64.4 million in equity capital during Q4 2024, bringing total capital raised for the year to $332.0 million [4] - The Company’s total borrowings from repurchase agreements increased to $6,563.1 million as of December 31, 2024, with a weighted average interest rate of 4.80% [15] Interest Income and Expenses - The Company reported net interest income of $6,887 thousand in Q4 2024, with a net interest spread of (0.34)% compared to (0.86)% in Q3 2024 [16] - The effective yield on Agency RMBS increased to 4.59% in Q4 2024 from 4.53% in Q3 2024, while the cost of financing decreased to 4.80% from 5.40% [16] - The company reported net periodic interest from interest rate swaps of $16,105,000 for the year ended December 31, 2024 [30] Agency RMBS and Derivatives - The Company purchased approximately $606.3 million in Agency RMBS with coupons of 5.0% and 5.5% during Q4 2024, increasing TBA positions by a net $415.0 million [14] - As of December 31, 2024, the total Agency RMBS fair value was $9,620.6 million, representing 97.8% of the portfolio, compared to $9,093.3 million (97.6%) as of September 30, 2024 [14] - The Company recognized a net gain on derivatives of $276.7 million in Q4 2024, compared to a loss of $154.1 million in Q3 2024 [21] Tax and Deferred Gains - The estimated benefit to be recognized in taxable income for the year ended December 31, 2024 is $99.9 million, or $1.41 per average common share outstanding [21] - The Company’s remaining estimated net deferred tax hedge gains from its interest rate hedging portfolio was $719.0 million as of December 31, 2024 [21] - Projected amortization of the Company's net deferred tax hedge gains for fiscal year 2025 is estimated at $100.1 million [24] Strategic Focus and Risks - The company anticipates future investment strategies will be influenced by changes in interest rates and market credit spreads [32] - The company is focused on ethical stewardship and disciplined capital allocation to generate long-term total returns through diversified financing of real estate assets [35] - The company faces risks including changes in domestic economic conditions and geopolitical events that could impact financial performance [33] Share Count - The weighted average common shares increased to 81,145,733 for the year ended December 31, 2024, from 70,766,410 for the year ended December 31, 2023 [30] Forward-Looking Statements - The company has no obligation to update forward-looking statements unless required by law, highlighting the inherent uncertainties in projections [34]

Industry and Company Focus - The financial researcher focuses on innovation, disruption, growth buy-outs, and value stocks, with a particular interest in high-tech and early-growth companies [1] - The researcher provides insights into current industry events and news, aiming to uncover investment opportunities through thorough analysis [1] Analyst's Position and Disclosure - The analyst holds a beneficial long position in DX shares through stock ownership, options, or other derivatives [2] - The article reflects the analyst's personal opinions and is not influenced by compensation or business relationships with mentioned companies [2] Platform Disclosure - Seeking Alpha emphasizes that past performance does not guarantee future results and does not provide specific investment recommendations [3] - The platform's analysts include both professional and individual investors, who may not be licensed or certified by regulatory bodies [3]

Core Insights - The article emphasizes the importance of consulting a registered financial advisor before making investment decisions, highlighting that the content is meant for discussion rather than financial advice [2][3] Group 1 - The article does not contain any specific company or industry analysis, focusing instead on disclaimers and the nature of the content provided [1][2][3]

We last discussed the Agency mortgage REIT Dynex Capital Series C (NYSE: DX.PR.C ) preferred stock in the middle of this year as part of our win-win preferreds framework. At that point, the stock was trading below $25 and, with the first-call dateCheck out Systematic Income and explore our Income Portfolios, engineered with both yield and risk management considerations. Use our powerful Interactive Investor Tools to navigate the BDC, CEF, OEF, preferred and baby bond markets.Read our Investor Guides: to CE ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2024 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 001-09819 | --- | --- | --- | |-------------------------------------------------------------------------------------------------------------------------|--------------------- ...

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Dynex Capital, Inc. (NYSE:DX) Q3 2024 Earnings Conference Call October 21, 2024 10:00 AM ET Company Participants Alison Griffin - Vice President, Investor Relations Byron Boston - Chairman and Co-Chief Executive Officer Smriti Popenoe - Co-Chief Executive Officer, President and Chief Investment Officer T.J. Connelly - Senior Vice President, Strategy and Research Rob Colligan - Chief Financial Officer and Chief Operating Officer Conference Call Participants Bose George - KBW Eric Hagen - BTIG Trevor Cranston ...

X DYNEX CAPITAL INC. Third Quarter 2024 Earnings Presentation October 21, 2024 Safe Harbor Statement NOTE: This presentation contains certain statements that are not historical facts and that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this presentation addressing expectations, assumptions, beliefs, projections, estimates, future plans, strategies, and events, developments that we expect or anticipate will occur in the fut ...