Dynex Capital(US:DX)2025-01-27 13:02Financial 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]