BTIG Flags Mortgage Policy Tailwind for Dynex Capital, Inc. (DX)

Core Viewpoint - Dynex Capital, Inc. is positioned to benefit from government initiatives aimed at lowering mortgage rates, with a significant increase in its asset value anticipated due to tighter mortgage-backed securities spreads [1]. Financial Performance - Dynex reported a book value per common share of $13.45 at year-end 2025, an increase from $12.67 at the end of Q3 2025 [2]. - The company raised $393 million in equity through common stock issuances in Q4 2025, bringing total capital raised in 2025 to $1.2 billion after issuance costs [2]. Investment Activity - In Q4 2025, Dynex purchased $3 billion in Agency RMBS and $284 million in Agency CMBS, with total purchases for the year amounting to $8.2 billion in Agency RMBS and $1.2 billion in Agency CMBS [3]. - The average balance of interest-earning assets increased by 58% throughout 2025, with liquidity reported at $1.4 billion as of December 31, 2025 [3]. Shareholder Returns - Dynex delivered a total shareholder return of 29.4% in 2025 and a total return of 67% over the past decade, attributed to disciplined execution and a focus on risk management [4]. - The company's market capitalization nearly tripled over the last 13 months as it raised and deployed capital into attractive opportunities [4]. Company Overview - Dynex Capital, Inc. is an internally managed REIT with a strong history of paying attractive dividends, focusing on disciplined risk management while investing in high-quality mortgage assets related to U.S. residential and commercial real estate [5].