Core Insights - AGNC Investment Corp. reported a fourth-quarter 2025 net spread and dollar roll income per common share of 35 cents, missing the Zacks Consensus Estimate of 37 cents and declining 5.4% from the previous year [1][8] - The company experienced a decline in average asset yield and reduced net interest spread, alongside a higher weighted average cost of funds, which negatively impacted results [2][11] - Despite these challenges, tangible net book value per share increased by 5.6% year-over-year, indicating a positive trend in portfolio value [6][8] Financial Performance - Adjusted net interest and dollar roll income available to common stockholders reached $457 million, up 12.8% from the year-ago quarter [2] - Comprehensive income per common share for the fourth quarter was 89 cents, compared to a comprehensive loss of 11 cents per share in the same quarter last year [3] - Net interest income (NII) was reported at $206 million, missing the Zacks Consensus Estimate by 36.3%, while for the full year 2025, NII totaled $675 million, also below estimates [4] Cost and Yield Analysis - The average asset yield on AGNC's portfolio was 4.87% in Q4 2025, down from 5.02% in Q4 2024 [4] - The combined weighted average cost of funds increased to 3.10%, up from 2.89% in the previous year [5] - The average net interest spread decreased to 1.81%, down from 1.91% year-over-year [5] Portfolio and Investment Metrics - As of December 31, 2025, AGNC's investment portfolio totaled $94.8 billion, including $81.1 billion in Agency mortgage-backed securities [7] - The average actual constant prepayment rate for the investment portfolio was 9.7%, slightly up from 9.6% in the previous year [6] - The economic return on tangible common equity was 11.6%, a significant improvement from an economic loss of 0.6% in the year-ago quarter [6] Dividend Information - AGNC announced a dividend of 36 cents per share for the fourth quarter, with total dividends declared since its IPO amounting to $15.5 billion or $50.08 per share [10]

Company Overview - AGNC Investment is a mortgage REIT that buys pooled mortgages and uses leverage to enhance returns, differing from property-owning REITs that lease buildings to tenants [2][5] - The company reports its tangible net book value quarterly, akin to the net asset value of a mutual fund, and assesses long-term performance through total return, which includes dividend reinvestment [4][8] Dividend and Performance - AGNC Investment aims for favorable long-term stockholder returns with a substantial yield component, reflected in its approximately 16% dividend yield [5][6] - Over the past three years, the dividend has remained flat while the share price has declined, but total return has stayed positive due to dividend reinvestment [8] - The tangible net book value per share decreased from $13.12 at the end of Q1 2022 to $8.25 at the end of Q1 2025, indicating a decline in the actual value of the portfolio [9] Future Outlook - The trend of declining tangible net book value is expected to continue, as the large dividend payments effectively return capital to investors while diminishing portfolio value [10] - Interest rates play a crucial role in the value of AGNC Investment's bond portfolio; falling rates could increase bond values, but the substantial dividend may still offset these gains [11] - The business model is less favorable for dividend-focused investors, with total return investors being the primary target market for the stock [12]