Invesco Mortgage Capital Inc. Reports First Quarter 2025 Financial Results

Core Viewpoint - Invesco Mortgage Capital Inc. reported its financial results for Q1 2025, highlighting a challenging market environment with a modest economic return of 2.6% despite negative market sentiment and increased interest rate volatility [2][4][11]. Financial Performance - The company achieved a net income attributable to common stockholders of $16.3 million, translating to earnings per common share of$0.26, compared to a net loss of $5.5 million in Q4 2024 [11][30]. - Earnings available for distribution per common share increased to$0.64 from $0.53 in the previous quarter [11][44]. - The economic return for the quarter was 2.6$0.34 dividend and a $0.11 decline in book value per common share [2][7]. Portfolio Composition - As of March 31, 2025, the investment portfolio totaled$5.9 billion, primarily composed of $5.0 billion in Agency RMBS and$0.9 billion in Agency CMBS [3][31]. - The debt-to-equity ratio increased to 7.1x from 6.7x at the end of 2024 [3][12]. Market Conditions - The performance of Agency RMBS was consistent with Treasuries, but there was a notable underperformance in April due to heightened interest rate volatility and deteriorating risk sentiment [4][5]. - The company remains cautious about the near-term market outlook due to elevated policy uncertainty [4]. Dividends and Capital Activities - A common stock dividend of $0.34 per share was declared, payable on April 25, 2025 [22]. - The company sold 4,212,057 shares of common stock for net proceeds of$36 million during the quarter [23]. Key Financial Metrics - Total interest income for Q1 2025 was $73.8 million, while total interest expense was$55.0 million, resulting in a net interest income of $18.8 million [10][32]. - The average net interest rate margin improved to 0.99% from 0.47% in the previous quarter [10][12].