Invesco Mortgage Capital (US:IVR)2025-10-30 20:32Financial Performance - Net income per common share was $0.74, a significant improvement from a net loss of $0.40 in Q2 2025[8]. - For the three months ended September 30, 2025, the company reported net income of $53.471 million, a significant increase compared to a net loss of $23.327 million in the previous quarter[29]. - Net income attributable to common stockholders for Q3 2025 was $50,208, compared to a loss of $26,567 in Q2 2025 and a profit of $35,271 in Q3 2024[42]. - The comprehensive income for the three months ended September 30, 2025, was $53.471 million, reflecting the company's overall financial performance[31]. Investment and Assets - The investment portfolio totaled $5.7 billion, consisting of $4.8 billion in Agency RMBS and $0.9 billion in Agency CMBS[4]. - Total assets as of September 30, 2025, amounted to $5.961 billion, an increase from $5.688 billion at the end of 2024[34]. - Average earning assets rose to $5,382.2 million in Q3 2025, up from $5,078.9 million in Q2 2025[10]. Income and Expenses - Total interest income for Q3 2025 was $72.9 million, an increase from $70.6 million in Q2 2025[10]. - Interest income for the same period was $72.916 million, while interest expense was $55.302 million, resulting in net interest income of $17.614 million[29]. - Total interest expense for Q3 2025 was $55,302, with an effective interest expense of $26,164, resulting in an effective cost of funds of 2.14%[49]. - Total expenses for Q3 2025 were $4,465, slightly down from $4,693 in Q3 2024[45]. Dividends and Shareholder Returns - The common stock dividend remained unchanged at $0.34 per share, consistent with Q2 2025[8][20]. - The company distributed dividends to preferred stockholders totaling $3.261 million for the three months ended September 30, 2025[31]. - Earnings available for distribution per common share decreased to $0.58 in Q3 2025 from $0.68 in Q3 2024, while basic income per common share increased to $0.74 from $0.63[42]. Debt and Leverage - The debt-to-equity ratio increased slightly to 6.7x from 6.5x in Q2 2025[4][10]. - The company maintained a debt-to-equity ratio, which is a critical measure for assessing financial leverage and risk[36]. - The debt-to-equity ratio as of September 30, 2025, was 6.7, up from 6.5 as of June 30, 2025[54]. Share Transactions - The Company sold 4,638,385 shares of common stock for net cash proceeds of $36.1 million during Q3 2025[21]. - The company repurchased 89,223 shares of Series C Preferred Stock for a total cost of $2.2 million during the three months ended September 30, 2025[22]. Economic Returns - Economic return for Q3 2025 was 8.7%, compared to a negative return of (4.8)% in Q2 2025[6][8]. - Effective net interest income for Q3 2025 was $46,752, with an effective interest rate margin of 3.28%[51]. Gains and Losses - The company experienced a gain on investments of $49.540 million, contrasting with a loss of $5.268 million in the previous quarter[29]. - Realized loss on derivative instruments for Q3 2025 was $49,189, compared to a loss of $172,797 in Q3 2024[43]. Future Projections - As of October 24, 2025, estimated book value per common share is projected to be between $8.31 and $8.65[4].