Invesco Mortgage Capital Inc. Reports Fourth Quarter 2024 Financial Results

Core Viewpoint - Invesco Mortgage Capital Inc. reported a decrease in book value per common share and a net loss for the fourth quarter of 2024, influenced by rising Treasury yields and a one-time charge related to the redemption of Series B Preferred Stock. Despite short-term challenges, the long-term outlook for Agency RMBS remains favorable due to expected demand improvements and attractive valuations [2][3][4]. Financial Performance - 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 [2][7]. - The economic return for the quarter was (0.5)%, compared to 5.4% in Q3 2024 [7]. - Earnings available for distribution per common share declined to $0.53 from $0.68 in Q3 2024 [9]. Capital Structure - The company improved its capital structure by redeeming Series B Preferred Stock, resulting in an increased debt-to-equity ratio of 6.7x, up from 6.1x in the previous quarter [2][7]. - Approximately 85% of the $5.4 billion investment portfolio was allocated to Agency RMBS, with 15% in Agency CMBS [2]. Portfolio Composition - The total mortgage-backed securities (MBS) portfolio was valued at $5.45 billion as of December 31, 2024, with a weighted average yield of 5.42% [14][33]. - The Agency RMBS comprised 83.4% of the portfolio, while Agency CMBS accounted for 15% [14]. Earnings and Income - Total interest income for Q4 2024 was $76.1 million, an increase from $73.8 million in Q3 2024, while total interest expense decreased to $62.4 million from $66.3 million [9][30]. - Net income attributable to common stockholders was a loss of $5.5 million, compared to a profit of $35.3 million in Q3 2024 [9][30]. Dividends and Stock Activity - The company declared a common stock dividend of $0.40 per share, unchanged from Q3 2024, and sold 993,837 shares of common stock for net proceeds of $8.3 million during the fourth quarter [21][22]. - The redemption of Series B Preferred Stock occurred at a cash price of $25.00 per share [23].