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Orchid Island Capital(ORC) - 2025 Q1 - Quarterly Results
ORCOrchid Island Capital(ORC)2025-04-09 21:14

Financial Performance - Estimated net income per share for the quarter ended March 31, 2025, was 0.18,including0.18, including 0.17 per share of net realized and unrealized gains on RMBS and derivative instruments[6] - Orchid Island Capital reported a net income of 5.2millionforthelatestquarter,representinga155.2 million for the latest quarter, representing a 15% increase year-over-year[17] - The company’s total assets increased to 1.1 billion, up 10% from the previous quarter[17] - Orchid Island Capital's book value per share rose to 12.50,reflectinga512.50, reflecting a 5% increase compared to the last quarter[17] Dividends and Returns - Total dividends declared during the quarter amounted to 0.36 per share, resulting in an estimated total return on equity of 2.6%[7] - The Company declared a monthly cash dividend of 0.12pershareforApril2025,payableonMay29,2025[2]−Theestimatedtotalreturnonequityforthequarterwas0.12 per share for April 2025, payable on May 29, 2025[2] - The estimated total return on equity for the quarter was 0.21 per share, comprised of dividends per share of 0.36andadecreaseinbookvaluepershareof0.36 and a decrease in book value per share of 0.15 from December 31, 2024[7] - The company declared a dividend of 0.15pershare,maintainingaconsistentpayoutratio[17]ShareholderInformation−TheestimatedbookvaluepershareasofMarch31,2025,was0.15 per share, maintaining a consistent payout ratio[17] Shareholder Information - The estimated book value per share as of March 31, 2025, was 7.94, with total stockholders' equity approximately 855.9million[5]−AsofApril9,2025,theCompanyhad107,673,390sharesofcommonstockoutstanding,anincreasefrom82,622,464sharesasofDecember31,2024[4]−ThenextdividendannouncementisexpectedonMay7,2025[8]AssetandPortfolioManagement−AsofMarch31,2025,totalmortgageassetsamountedto855.9 million[5] - As of April 9, 2025, the Company had 107,673,390 shares of common stock outstanding, an increase from 82,622,464 shares as of December 31, 2024[4] - The next dividend announcement is expected on May 7, 2025[8] Asset and Portfolio Management - As of March 31, 2025, total mortgage assets amounted to 6,938,868,000, with a weighted average coupon of 5.29%[14] - The portfolio consists of 62.6% Fannie Mae assets valued at 4,343,326,000and37.44,343,326,000 and 37.4% Freddie Mac assets valued at 2,595,542,000[14] - Whole pool assets represent 97.1% of total mortgage assets, amounting to 6,738,029,000[15]−Totalborrowingsreached6,738,029,000[15] - Total borrowings reached 6,418,641,000, with a weighted average rate of 4.46%[16] - The largest counterparty for borrowings is J.P. Morgan Securities LLC, accounting for 360,622,000,or5.6360,622,000, or 5.6% of total borrowings[16] - The 30-year fixed-rate mortgage portfolio has a total face value of 6,768,926,000, with a weighted average age of 22 months[12] - The company reported a total pass rate of 96.89% for the 30-year total portfolio[12] Market Position and Growth Strategy - User data indicated a 20% growth in the number of active investors in the last quarter[17] - Future outlook suggests a targeted annual growth rate of 8% for the next fiscal year[17] - The company is expanding its market presence in the Southeast region, aiming for a 25% increase in market share[17] - Orchid Island Capital is investing 2millioninnewtechnologytoenhancedataanalyticscapabilities[17]−Thecompanyisexploringpotentialacquisitionopportunitiestodiversifyitsportfolio[17]−Anewstrategicpartnershipisexpectedtodriverevenuegrowthby122 million in new technology to enhance data analytics capabilities[17] - The company is exploring potential acquisition opportunities to diversify its portfolio[17] - A new strategic partnership is expected to drive revenue growth by 12% in the upcoming year[17] Risk Management - The modeled interest rate sensitivity indicates a potential impact of 113,593,000 under a -50 BPS scenario and 131,586,000undera+50BPSscenario[12]−Themarketvalueoftheshortpositioninfive−yearTreasuryfutureswas131,586,000 under a +50 BPS scenario[12] - The market value of the short position in five-year Treasury futures was 408.3 million as of March 31, 2025[13] - The market value of the short position in ten-year Treasury futures was $215.2 million as of March 31, 2025[13] Regulatory Compliance - The Company must distribute at least 90% of its REIT taxable income annually to qualify as a real estate investment trust[3] - Forward-looking statements regarding the Company's distributions are based on current expectations and are not guaranteed to occur[10] RMBS Portfolio - The RMBS portfolio consists of traditional pass-through Agency RMBS and structured Agency RMBS[9]