Financial Data and Key Metrics Changes - Year-to-date shareholder returns were 20% as of last Friday's close, 23% over the last year, and nearly 72% over the last three years with dividends reinvested [4] - Total economic return for the quarter was 10.3% and 11.5% year-to-date, reflecting disciplined management of Agency RMBS [4] - The common equity market cap is now above $1.8 billion, indicating growth in investor trust [5] Business Line Data and Key Metrics Changes - Net interest income continues to trend upward due to new investments with attractive yields, with over $130 million of gains on the portfolio in the third quarter [8] - The portfolio has grown over 50% larger since the beginning of the year and is 10% larger since the end of the second quarter [9] Market Data and Key Metrics Changes - Agency mortgages offered wide spreads to Treasuries and interest rate swaps, with implied volatility declining early in the quarter [11] - The agency current coupon yield declined from nearly 5.75% to nearly 5%, leading to a sharp increase in the refinance index [12] Company Strategy and Development Direction - The company aims to build a resilient platform at the intersection of capital markets and housing finance, focusing on risk discipline and liquidity management [4] - A new office in New York City is being opened to attract talent and strengthen business partnerships [10] Management's Comments on Operating Environment and Future Outlook - The operating environment remains complex with vulnerabilities due to persistent inflation and geopolitical factors [5] - The Federal Reserve is committed to bringing rates down to more neutral levels, but uncertainty in the rate path is significant [6] - The company is prepared for potential surprises in the market, emphasizing a deliberate growth strategy [7] Other Important Information - The company has raised $254 million in new capital in the third quarter and $776 million year-to-date, allowing for capital growth at a premium to book value [9] - The company is focused on disciplined risk management and liquidity to weather future volatility, with liquidity at over $1 billion [9] Q&A Session Summary Question: Current ROEs and dividend implications - ROEs in Agency RMBS remain in the high teens net of hedging costs, with gross in the mid-20s on a large percentage of the coupon stack [23] Question: Update on book value - Estimated book value is $1,271 net of the dividend accrual as of Friday's close [25] Question: Mortgage spreads and historical context - Mortgage spreads are still in the top quartile of the widest levels when compared to interest rate swaps [29] Question: Demand side outlook for GSEs - GSE holdings of Agency MBS could increase, with the capacity to add as much as $450 billion under current agreements [36] Question: Impact of implied volatility on hedging strategy - The company is looking at pockets of cheap volatility to stabilize the duration of the portfolio [41] Question: Market's reaction to volatility themes - The market has reacted to increased certainty in policy outcomes, but the company remains prepared for unexpected events [45]

Financial Data and Key Metrics Changes - Year-to-date shareholder returns were 20% as of last Friday's close, and 23% over the last year, with nearly 72% returns over the last three years when dividends are reinvested [6] - Total economic return for the quarter was 10.3% and 11.5% year-to-date, reflecting disciplined management of Agency RMBS [6] - The common equity market cap surpassed $1.8 billion, indicating broadening trust from individuals and institutions [7] - Estimated book value was $12.71 net of the dividend accrual as of Friday's close [31] Business Line Data and Key Metrics Changes - Net interest income continues to trend upward due to new investments with attractive yields, with over $130 million in gains on the portfolio in the third quarter [12][13] - The portfolio has grown over 50% larger since the beginning of the year and is 10% larger since the end of the second quarter [14] Market Data and Key Metrics Changes - Agency mortgages offered wide spreads to treasuries and interest rate swaps, with nominal spreads remaining wide [16] - The GSEs have the capacity to add up to $450 billion under current stock purchase agreements, which could increase demand for Agency MBS [44] Company Strategy and Development Direction - The company aims to build a resilient platform at the intersection of capital markets and housing finance, focusing on risk discipline and liquidity management [5] - The strategy includes a deliberate bias towards lower coupons, which are expected to outperform as mortgage rates decline [17] - The company is opening a new office in New York City to attract talent and strengthen market position [15] Management's Comments on Operating Environment and Future Outlook - The operating environment remains complex, with vulnerabilities due to persistent inflation and geopolitical factors [7] - The Federal Reserve is committed to bringing rates down to more neutral levels, but uncertainty in the rate path is significant [8] - The company is prepared for potential surprises in the private credit market, emphasizing a deliberate growth strategy [10] Other Important Information - The company has raised $254 million in new common equity capital in the third quarter, bringing year-to-date new capital growth to $776 million [13][17] - The company continues to focus on disciplined risk management and liquidity to weather future volatility [14] Q&A Session Summary Question: Where do you see incremental spreads and current ROEs? - ROEs in agency RMBS remain in the high teens net of hedging costs, with gross in the mid-twenties for a large percentage of the coupon stack [29] Question: Can we get an update on book value quarter to date? - Estimated book value is $12.71 net of the dividend accrual as of Friday's close [31] Question: Can you discuss the demand side outlook for agencies? - GSE holdings of Agency MBS could increase, with the capacity to add significant amounts under current agreements [44] Question: How are you thinking about swap spreads? - The federal deficit is a major factor, and while spreads could go more negative, there is a buffer at current levels [38] Question: What are the implications of lower volatility on your hedging strategy? - Lower volatility allows for the repurchase of options that were short in a levered mortgage position, stabilizing the portfolio's duration [48] Question: Do you see opportunities to pick up alpha within the coupon stack? - There are tremendous opportunities across the coupon stack, allowing for flexibility beyond the current coupon [60]

Financial Data and Key Metrics Changes - Year-to-date shareholder returns were 20% as of last Friday's close, 23% over the last year, and nearly 72% over the last three years with dividends reinvested [4] - Total economic return for the quarter was 10.3% and 11.5% year-to-date, reflecting disciplined management of Agency RMBS [4] - The common equity market cap is now above $1.8 billion, indicating growth in investor trust [5] - Estimated book value is $1,271 net of the dividend accrual as of Friday's close [24] Business Line Data and Key Metrics Changes - Net interest income continues to trend upward due to new investments with attractive yields, with over $130 million of gains on the portfolio in the third quarter [9] - The portfolio has grown over 50% larger since the beginning of the year and is 10% larger since the end of the second quarter [10] Market Data and Key Metrics Changes - Agency mortgages offered wide spreads to Treasuries and interest rate swaps, with nominal spreads remaining wide [12] - The agency current coupon yield declined from nearly 5.75% to nearly 5%, leading to a sharp increase in the refinance index [13] - GSE holdings of Agency MBS could potentially increase, with the capacity to add as much as $450 billion under current agreements [32] Company Strategy and Development Direction - The company focuses on building a resilient platform at the intersection of capital markets and housing finance, emphasizing risk discipline and liquidity management [4] - The strategy includes opportunistic investing and focused value creation, with a deliberate bias towards lower coupons expected to outperform [12][15] - The company is opening a new office in New York City to attract talent and enhance business partnerships [11] Management's Comments on Operating Environment and Future Outlook - The operating environment remains complex, with vulnerabilities due to persistent inflation and geopolitical factors [5] - The Federal Reserve is committed to bringing rates down to more neutral levels, but uncertainty in the rate path is significant [6] - The company is prepared for potential surprises in the market and remains focused on strengthening its market position [8] Other Important Information - The company raised $254 million in new capital in the third quarter, bringing year-to-date new capital growth to $776 million [10] - The liquidity at quarter end was over $1 billion, representing over 50% of total equity [10] Q&A Session Summary Question: Where do you see incremental spreads and current ROEs? - ROEs in Agency RMBS remain in the high teens net of hedging costs, with gross in the mid-20s on a large percentage of the coupon stack [22] Question: Can we get an update on book value quarter to date? - Estimated book value is $1,271 net of the dividend accrual as of Friday's close [24] Question: Can you elaborate on mortgage spreads being wide relative to history? - Mortgage spreads are still in the top quartile of the widest levels when compared to interest rate swaps [27] Question: What is the potential for GSEs as a player on the demand side? - GSE holdings of Agency MBS could increase, with a capacity to add as much as $450 billion under current agreements [32] Question: How are you thinking about the hedging strategy with lower volatility? - The company is looking to repurchase options that are inherently short in a levered mortgage position, focusing on pockets of cheap volatility [36] Question: Why has the market shrugged off volatility themes? - There is more certainty in the market due to policy commitments from the Fed and clearer policy outcomes from the administration [40]

Group 1 - The focus is on income-producing asset classes such as REITs, ETFs, Preferreds, and 'Dividend Champions' that target premium dividend yields up to 10% [1] - iREIT®+HOYA Capital is highlighted as a premier income-focused investing service that offers sustainable portfolio income, diversification, and inflation hedging [2] - The article discusses preferred stocks of AG Mortgage Investment Trust, Inc. (NYSE: MITT), a mortgage REIT, indicating a move down the capital structure from previously discussed notes [3]

Core Insights - The focus is on income-producing asset classes such as REITs, ETFs, Preferreds, and 'Dividend Champions' that target premium dividend yields up to 10% [1] - iREIT®+HOYA Capital is highlighted as a premier income-focused investing service, emphasizing sustainable portfolio income, diversification, and inflation hedging [2] - The article discusses preferred stocks of AG Mortgage Investment Trust, Inc. (NYSE: MITT), a mortgage REIT, indicating a move down the capital structure from previously discussed notes [3] Investment Strategies - The service offers a free two-week trial to explore top ideas across exclusive income-focused portfolios [2] - The author has a background in data analysis and pension fund management, focusing on strategies for retirement preparation through various investment vehicles [3] Market Position - The emphasis on premium dividend yields and income-producing assets positions the service as a valuable resource for investors seeking income and diversification [1][2]

Core Insights - The article promotes Systematic Income's Income Portfolios, which are designed with a focus on yield and risk management considerations [1] Group 1 - Systematic Income offers powerful Interactive Investor Tools to assist in navigating various markets, including BDC, CEF, OEF, preferred, and baby bond markets [1] - The company provides Investor Guides specifically for CEFs, Preferreds, and PIMCO CEFs, indicating a commitment to educating investors [1] - A promotional offer is available for a 2-week free trial, allowing potential clients to explore the services without risk [1]

Core Insights - The mortgage REITs (mREITs) have significantly outperformed the Business Development Company (BDC) sector this year, driven by falling short-term rates and increased investor caution due to bankruptcies among some borrowers [1][4]. Performance Comparison - The VanEck Mortgage REIT Income ETF (MORT) has consistently outperformed the VanEck BDC Income ETF (BIZD) and Putnam BDC Income ETF (PBDC) over the past 12 months, with substantial outperformance noted [4]. - The top holdings in MORT include Annaly Capital Management Inc. (15.08% of total holdings) and Agni Investment Corp. (14.51% of total holdings), indicating a strong focus on agency mortgage-backed securities [4][5]. Interest Rate Sensitivity - Agency mortgage REITs are particularly sensitive to interest rate changes, but there is a common misconception that they only benefit from lower rates. In reality, a significant decline in mortgage rates can lead to increased prepayments, negatively impacting mREITs [5][6]. - The ideal scenario for mortgage REITs is stable mortgage rates with a gradual decline in the Fed Funds Rate, allowing them to manage their portfolios effectively [12][11]. Valuation Insights - The price-to-book value for major mortgage REITs is estimated at approximately 1.08x to 1.23x, with projected increases in book values of about 4% to 5% from mid-2025 to the present [13]. - Some mortgage REITs may report declines in book value per share for Q3 2025, indicating potential volatility in valuations across the sector [13]. Investment Opportunities - There are opportunities within the mortgage REIT sector, with some shares becoming relatively cheap, although the focus has been more on BDCs recently due to their price declines [14]. - The company is also exploring investments in preferred shares and baby bonds, which offer attractive yields with more stable prices compared to common shares [15].

Core Points - Annaly Capital Management, Inc. has announced the dates for its third quarter 2025 financial results and conference call [1] Summary by Category Company Information - The financial results for the third quarter of 2025 will be released on a specified date, followed by a conference call to discuss the results [1]

Core Insights - Arbor Realty Trust, Inc. (NYSE:ABR) is recognized as one of the 12 best REIT dividend stocks to buy currently [1] - The company operates as a mortgage REIT focusing on multifamily properties, utilizing a diversified revenue model that includes servicing fees, escrow income, net interest income, and origination fees [2] - Arbor Realty Trust has maintained consistent earnings across various market cycles, demonstrating a strong track record of paying dividends at least equal to the previous quarter for over ten years [3] Financial Performance - Arbor Realty Trust has not increased its dividends recently but has consistently rewarded shareholders with regular dividends, currently offering a quarterly dividend of $0.30 per share [4] - The company boasts a dividend yield of 10.75%, as of October 1 [4]

Core Insights - Investing in dividend stocks can provide a reliable income stream, with a potential annual income of nearly $200 from a $2,500 investment in selected high-yield stocks [1][2] Group 1: Energy Transfer - Energy Transfer operates a diversified portfolio of midstream energy assets, generating approximately 90% of its earnings from stable, fee-based sources [4] - The company reported nearly $4.3 billion in cash flow during the first half of the year, distributing around $2.3 billion to investors while retaining $2 billion for expansion [5] - Plans to invest about $5 billion in growth capital projects this year, with expected contributions to cash flow starting in 2026 and 2027, aiming for a 3% to 5% annual increase in high-yield payouts [6] Group 2: Healthpeak Properties - Healthpeak Properties is a REIT with a diversified portfolio in the healthcare sector, generating steady income through long-term leases [7] - The company pays out about 75% of its adjusted funds from operations in dividends, maintaining financial flexibility for new investments [8] - Recent investments of $148 million in outpatient medical development projects position Healthpeak for growth, with a recent 2% increase in dividends after years of stable payments [9] Group 3: Starwood Property Trust - Starwood Property Trust is a mortgage REIT with a diversified portfolio, focusing on delivering reliable income through various asset classes [10] - More than half of Starwood's assets are commercial loans, supplemented by residential and infrastructure lending, providing a mix of interest and rental income [11] - The acquisition of Fundamental Income Properties for $2.2 billion enhances Starwood's portfolio, ensuring stable cash flow and consistent dividends despite market fluctuations [12] Group 4: Investment Strategy - A diversified basket of dividend stocks, including Energy Transfer, Healthpeak Properties, and Starwood Property Trust, can provide a dependable stream of passive income and mitigate risks associated with individual stock performance [13]