Financial Performance - Net loss per common share was $0.09 compared to net income of $0.63 in Q3 2024, while earnings available for distribution per common share declined to $0.53 from $0.68[7][9] - Economic return for Q4 2024 was (0.5)%, a significant drop from 5.4% in Q3 2024[6][7] - The company reported a net loss attributable to common stockholders of $5,472,000 for the three months ended December 31, 2024, compared to a net income of $22,280,000 in the same period of 2023[28] - The company reported a comprehensive income of $3,318,000 for the three months ended December 31, 2024, compared to $27,014,000 in the same period of 2023[31] - Earnings available for distribution for the three months ended December 31, 2024, was $32,253,000, a decrease from $45,841,000 in the same period of 2023, representing a decline of approximately 29.7%[42] - The basic income (loss) per common share for the three months ended December 31, 2024, was $(0.09), compared to $0.46 for the same period in 2023[42] Interest Income and Expenses - Total interest income rose to $76.1 million, while total interest expense decreased to $62.4 million, resulting in net interest income of $13.7 million[9] - Interest income for the three months ended December 31, 2024, was $76,110,000, an increase from $62,082,000 in the same period of 2023[28] - Net interest income for the year ended December 31, 2024, was $36,827,000, down from $49,700,000 in 2023[28] - Total interest expense for the three months ended December 31, 2024, was $62,431,000, compared to $54,680,000 for the same period in 2023, reflecting an increase of approximately 14.5%[46] - The effective net interest income for the three months ended December 31, 2024, was $46,000,000, down from $56,383,000 in the same period of 2023, indicating a decrease of about 18.4%[48] - The average cost of funds decreased to 5.13% from 5.30% in Q3 2024, while the average net interest rate margin improved to 0.47%[9] Asset and Equity Management - The total assets as of December 31, 2024, were $5,688,034,000, an increase from $5,284,209,000 as of December 31, 2023[33] - The company reported a decrease in total stockholders' equity from $857,003 thousand as of September 30, 2024, to $730,729 thousand as of December 31, 2024[57] - Book value per common share decreased by 4.8% to $8.92, with an estimated range of $8.90 to $9.26 as of February 14, 2025[3][7] Debt Management - The debt-to-equity ratio increased to 6.7x at the end of Q4 2024, up from 6.1x at the end of Q3 2024[3][9] - The company's debt-to-equity ratio as of December 31, 2024, was 6.7, compared to 6.1 as of September 30, 2024[57] - The economic debt-to-equity ratio as of December 31, 2024, was also 6.7, reflecting the inclusion of TBAs at implied cost basis of $606,000 thousand[58] Investment Portfolio - Approximately 85% of the $5.4 billion investment portfolio was allocated to Agency RMBS, with 15% in Agency CMBS[3] - The portfolio composition as of December 31, 2024, included 83.4% in Agency RMBS with an average yield of 5.50%[12] - The company expects a gradual increase in Agency CMBS new issuance to meet robust investor demand due to attractive risk-adjusted return profiles[4] Stockholder Actions - The company declared a common stock dividend of $0.40 per share, payable on January 24, 2025[18] - During the fourth quarter, the company sold 993,837 shares of common stock for net proceeds of $8.3 million[19] - The company redeemed all outstanding shares of Series B Preferred Stock for a cash redemption price of $25.00 per share on December 27, 2024[20] - The company repurchased and retired 70,864 shares of Series C Preferred Stock for a total cost of $1.7 million during the three months ended December 31, 2024[21] Derivative Instruments - The Company reported a realized loss on derivative instruments of $157,864,000 for the three months ended December 31, 2024, compared to a realized loss of $199,137,000 for the same period in 2023[43]
Invesco Mortgage Capital (IVR) - 2024 Q4 - Annual Results