Dividend Announcement - Orchid Island Capital, Inc. declared a monthly cash dividend of $0.12 per share for February 2026, payable on March 30, 2026, to shareholders of record as of February 27, 2026, with an ex-dividend date of February 27, 2026 [1][7] Company Overview - Orchid Island Capital, Inc. is a specialty finance company that invests in Agency RMBS (Residential Mortgage-Backed Securities) on a leveraged basis, focusing on traditional pass-through Agency RMBS and structured Agency RMBS [4] Shareholder Distribution Requirements - To qualify as a real estate investment trust (REIT), the company must distribute at least 90% of its REIT taxable income annually to stockholders, excluding net capital gains [2] Share Count - As of February 11, 2026, the company had 190,281,372 shares of common stock outstanding, an increase from 183,345,932 shares as of January 31, 2026 [3] RMBS Portfolio Characteristics - The RMBS portfolio as of January 31, 2026, includes various categories of Agency RMBS, with a total fair value of $10,492,794, where Fannie Mae assets account for 53.3% and Freddie Mac assets account for 46.7% [11][12] Borrowings and Counterparty Exposure - The company has total borrowings of $9,993,257, with various counterparties, and the average borrowing rate is 3.86% [13]

Financial Data and Key Metrics Changes - GAAP net income for Q4 2025 was $7 million or $0.08 per share, while full-year net income was $144 million or $1.72 per share [10] - GAAP book value at the end of Q4 was $19.70 per share, with an economic return on GAAP book value of -0.9% for Q4 and +7.4% for the full year [11] - Earnings available for distribution (EAD) for Q4 was $45 million or $0.53 per share, and for the full year, it was $141 million or $1.68 per share [11] Business Line Data and Key Metrics Changes - The investment portfolio segment reported economic net interest income of $65 million for Q4, with a yield on average interest-earning assets of 5.9% and a net interest spread of 1.4% [12] - HomeXpress funded $1 billion in production during Q4 with a gain-on-sale premium of 358 basis points, and its EBITDA was $11 million for the quarter [13] Market Data and Key Metrics Changes - The company ended the year with $528 million in total cash and unencumbered assets, down from $752 million at the end of Q3 [14] - Agency swap OAS tightened by approximately 22 basis points in Q4, while generic non-QM AAAs firmed by 5 basis points [20] Company Strategy and Development Direction - The company aims to build a hybrid REIT focused on diversification, liquidity, and fee-based income, with a clear plan to grow Agency RMBS and acquire MSRs [5][9] - The acquisition of HomeXpress is expected to enhance capabilities and reach, contributing to a diversified residential platform [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, focusing on unlocking capital and redeploying into earnings-accretive investments [24] - The company anticipates strong demand for non-QM loans and related securitized products, projecting significant growth in the market [25] Other Important Information - Compensation, general, and administrative expenses increased by $22 million year-over-year due to staffing costs related to acquisitions [16] - The company generated over $600 million of capital through portfolio and capital markets activity, supporting its portfolio realignment [18] Q&A Session Summary Question: Update on HomeXpress volume and gain on sale - Management noted typical seasonal reduction in volume but expects a strong first quarter compared to last year, with good gain on sale premiums [32][33] Question: Context for dividend increase - The company balanced dividend size with the need to retain capital for growth, ensuring sufficient EAD coverage [40][41] Question: Originating second liens and non-QM volume outlook - Currently not originating second mortgages but sees significant growth potential in non-QM loans, projecting a 20%-25% market growth in 2026 [46][48] Question: Change in book value and securitized debt - The decline in book value is attributed to faster increases in the value of securitized debt compared to loan values, but this does not affect economic risk [49][50] Question: Credit enhancement levels in securitization trusts - Management does not expect a material decline in credit enhancement levels, viewing securitization as an economic consideration [53][54]

Financial Data and Key Metrics Changes - GAAP net income for Q4 2025 was $7 million or $0.08 per share, while for the full year it was $144 million or $1.72 per share [10] - GAAP book value at the end of Q4 was $19.70 per share, with an economic return on GAAP book value of -0.9% for the quarter and +7.4% for the full year [11] - Earnings available for distribution (EAD) for Q4 was $45 million or $0.53 per share, and for the full year, it was $141 million or $1.68 per share [11] Business Line Data and Key Metrics Changes - The investment portfolio segment reported economic net interest income of $65 million in Q4, with a yield on average interest-earning assets of 5.9% and a net interest spread of 1.4% [12] - Home Express funded $1 billion in production in Q4 with a gain-on-sale premium of 358 basis points, and its EBITDA was $11 million for the quarter [13] Market Data and Key Metrics Changes - The company ended the year with $528 million in total cash and unencumbered assets, down from $752 million at the end of Q3 [14] - Agency swap OAS tightened by approximately 22 basis points in Q4, while generic non-QM AAAs firmed by 5 basis points [20] Company Strategy and Development Direction - The company aims to build a hybrid REIT focused on diversification, liquidity, and fee-based income, with a clear plan to grow Agency RMBS and acquire MSRs [5][9] - The acquisition of Home Express is expected to enhance capabilities and reach, contributing to a diversified residential platform [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, focusing on unlocking capital and redeploying into earnings-accretive investments [24] - The company anticipates strong demand for non-QM loans and related securitized products, projecting significant growth in the non-QM market [25][48] Other Important Information - Compensation, general, and administrative expenses increased by $22 million year-over-year due to staffing costs related to acquisitions [16] - The company generated over $600 million of capital through portfolio and capital markets activity, supporting its portfolio realignment [18][19] Q&A Session Summary Question: Update on HomeXpress volume and gain on sale - Management noted typical seasonal reduction in volume post-holidays but remains optimistic about Q1 2026 performance compared to last year [33] Question: Relative value between adding more agencies versus securitizations - Management emphasized the importance of portfolio construction and maintaining a balance between agency and credit components [35] Question: Context for dividend increase - The company aims to balance dividend payouts with sufficient EAD coverage to support growth in operating aspects of the business [40] Question: Non-QM volume outlook for 2026 - Management anticipates significant growth in the non-QM market, projecting origination volumes to increase by 20%-25% [46][48] Question: Change in book value and securitized debt - Management explained that while loan values increased, the faster increase in securitized debt value led to a reduction in reported book value [49][50]

Financial Data and Key Metrics Changes - GAAP net income for Q4 2025 was $7 million or $0.08 per share, while for the full year it was $144 million or $1.72 per share [11] - GAAP book value at the end of Q4 was $19.70 per share, with an economic return on GAAP book value of -0.9% for the quarter and +7.4% for the full year [12] - Earnings available for distribution (EAD) for Q4 was $45 million or $0.53 per share, and for the full year, it was $141 million or $1.68 per share [12] Business Line Data and Key Metrics Changes - The investment portfolio segment reported an economic net interest income of $65 million for Q4, with a yield on average interest-earning assets of 5.9% and a net interest spread of 1.4% [13] - Home Express funded $1 billion in production during Q4 with a gain-on-sale premium of 358 basis points, and its EBITDA was $11 million for the quarter [13][27] - The company ended the year with a total leverage of 5.1-to-1, compared to the REIT average of 2.4-to-1 [13] Market Data and Key Metrics Changes - Agency swap OAS tightened by approximately 22 basis points in Q4, while generic non-QM AAAs firmed by 5 basis points [19] - Treasury yields had a tightening bias, with the two-year, ten-year Treasury spread ending the year at 69 basis points, approximately 37 wider than at the beginning of the year [20] - Mortgage rates decreased by approximately 70 basis points for the year, ending at 6.15% [20] Company Strategy and Development Direction - The company aims to build a diversified residential platform capable of generating long-term value, focusing on portfolio diversification, liquidity expansion, and fee-based income growth [10] - The acquisition of Home Express is a key part of the strategy to enhance capabilities and reach within the residential mortgage market [6][10] - The company is committed to maintaining a long-term orientation while adapting to market conditions and evolving its operational capabilities [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the first quarter of 2026, expecting strong revenue and gain on sale premiums despite typical seasonal reductions in volume [33] - The company anticipates continued growth in the non-QM and business purpose loan markets, projecting a market growth of 20%-25% in 2026 [46] - Management emphasized the importance of capital allocation and the balance between dividend payouts and reinvestment for growth [39] Other Important Information - The company raised approximately $120 million in unsecured debt, with the majority of funding for transformation coming from its own portfolio [6] - Compensation, general, and administrative expenses increased by $22 million year-over-year, primarily due to staffing costs related to acquisitions [16] - The company is focused on managing capital at risk and evaluating cash flow generating capital rather than short-term valuation movements [50] Q&A Session Summary Question: Update on Home Express volume and gain on sale - Management noted a typical seasonal reduction in volume but expressed optimism for Q1 2026, expecting good revenue compared to the previous year [33] Question: Relative value between adding more agencies versus securitizations - Management highlighted the importance of portfolio construction and maintaining a balance between agency and credit components, with a focus on MSR allocation [34][35] Question: Context of dividend increase - Management explained that the dividend increase was sized to ensure sufficient EAD coverage while allowing for growth in operating aspects of the business [39] Question: Originating second liens and non-QM volume outlook - Management confirmed they are not currently originating second mortgages but anticipate significant growth in the non-QM market in 2026 [46] Question: Change in book value and securitized debt - Management clarified that the reduction in book value was due to the faster increase in the value of securitized debt compared to loan values, emphasizing the focus on managing capital at risk [49][50]

Core Viewpoint - Dynex Capital operates as a mortgage REIT focusing on Agency RMBS and CMBS, offering a high dividend yield of 14.3%, but faces challenges in sustaining this dividend due to high payout ratios and leverage concerns [2][3][4]. Financial Performance - For fiscal 2025, Dynex reported a net income of $319.1 million with an implied payout ratio of 81%, indicating that the dividend is technically covered by earnings [3]. - However, operating cash flow in 2024 was only $14.4 million while dividends paid amounted to $117.8 million, resulting in a payout ratio of 820% [4]. - In the first three quarters of 2025, Dynex paid $167.8 million in dividends against $106.5 million in operating cash flow, leading to a payout ratio of 157% [4][9]. Leverage and Liquidity - As of December 31, 2025, Dynex had $13.9 billion in short-term debt and $2.5 billion in shareholder equity, resulting in a debt-to-equity ratio of 5.65x, with debt constituting 80.3% of the capital structure [6]. - The current ratio of 0.07x indicates severe liquidity constraints, with only $930 million in cash available against $13.9 billion in short-term debt, necessitating continuous refinancing [7][9]. Management Perspective - CEO Smriti Popenoe highlighted a strong year for Dynex in 2025, with a total shareholder return of 29.4% and a decade-long total return of 67%, attributing success to disciplined execution and risk management [8]. - The company raised $1.2 billion in equity capital during 2025, indicating proactive balance sheet management [8].

Core Viewpoint - Dynex Capital operates as an internally managed mortgage REIT specializing in Agency RMBS and CMBS [1] Company Overview - Dynex Capital is listed on the NYSE under the ticker symbol DX [1] - The company focuses on investments in Agency Residential Mortgage-Backed Securities (RMBS) and Commercial Mortgage-Backed Securities (CMBS) [1]

Financial Data and Key Metrics Changes - Financial conditions improved during Q4 2025, supported by two Federal Reserve rate cuts and strong economic growth, leading to an 8% economic return for the quarter and a 3.7% increase in book value per common share to $8.72 [3][5][19] - The company's portfolio at year-end was valued at $6.3 billion, with $5.4 billion in Agency mortgages and $900 million in Agency CMBS [6][18] Business Line Data and Key Metrics Changes - The Agency RMBS portfolio increased by 11% quarter over quarter, focusing on 5% and 5.5% coupons, while the allocation in 6% and 6.5% coupons declined due to paydowns [14][15] - Agency CMBS risk premiums remained largely unchanged, with no new purchases made during the quarter, but the sector continues to provide benefits through prepayment protection and fixed maturities [16][17] Market Data and Key Metrics Changes - The 10-year Treasury yield ended the year at 4.17%, with a steepening yield curve benefiting longer-term investments [8][9] - Agency mortgages delivered strong performance in 2025, driven by reduced interest rate volatility and increased demand from GSEs [11][12] Company Strategy and Development Direction - The company remains positive on Agency mortgages, viewing conditions as favorable due to lower interest rate volatility and expectations for broadening demand [6][21] - The strategy includes selectively accessing the ATM for capital raising when conditions are favorable, with a focus on maintaining a robust capital structure [36][40] Management's Comments on Operating Environment and Future Outlook - Management noted that while near-term risks are balanced, the current environment of low volatility in interest rates and spreads is expected to provide a positive backdrop for agency mortgages over the long term [21] - The conclusion of quantitative tightening and the announcement of T-bill purchases by the Fed have solidified funding markets, serving as a tailwind for the company's strategy [20][21] Other Important Information - The liquidity position remains strong, with $453 million in unrestricted cash and unencumbered assets [6] - The company modestly increased leverage to 7 times, consistent with the constructive investment environment [5][6] Q&A Session Summary Question: How is the company approaching leverage levels post the tightening? - The company increased leverage slightly in Q4, reflecting a positive environment, and remains comfortable with current levels despite tighter spreads [25] Question: Have there been any surprises in prepayment reports for higher coupons? - No significant surprises were noted; prepayment speeds increased in higher coupons but were less impacted due to prepayment protection [27] Question: Is the decision on the ATM solely based on stock price? - The decision is based on a combination of price to book and the availability of accretive investment opportunities [40] Question: What would trigger a tighter spread range for MBS? - An increase in the GSEs' caps or a notable increase in the pace of purchases could signal a tighter spread range [46] Question: How should investors think about book value sensitivity to spread changes? - The magnitude of change in book value to spread changes remains consistent, but expectations for further spread tightening are reduced [50]

Core Viewpoint - Adamas Trust, Inc. (NASDAQ:ADAM) is identified as one of the most undervalued REIT stocks currently available for investment, with a Buy rating and a price target of $9 set by B. Riley [1] Group 1: Company Overview - Adamas Trust, Inc. is an internally managed REIT focused on acquiring, investing in, financing, and managing mortgage-related single-family and multi-family residential assets [3] Group 2: Financial Projections - B. Riley has provided forward adjusted EPS expectations of $0.90 for FY25, $1.00 for FY26, and $1.15 for FY27, indicating anticipated growth in the first three quarters of 2025 alongside increased mortgage acquisitions and lending [2] - The firm is optimistic that Adamas Trust shares will trade closer to GAAP book value as origination volumes increase, with a consistent exposure to agency RMBS and a quarterly dividend of $0.23 that appears to be well-covered [2] Group 3: Portfolio Composition - Adamas Trust's portfolio has been adjusted to include 63% Agency RMBS, suggesting that this growing percentage should command a higher multiple and premium compared to its peers [1]

Fourth Quarter 2025 Earnings Call Invesco Mortgage Capital Inc. January 30, 2026 John Anzalone Kevin Collins Mark Gregson David Lyle Brian Norris Chief Executive Officer President Chief Financial Officer Chief Operating Officer Chief Investment Officer Cautionary Notice Regarding Forward-Looking Statements This presentation and comments made in the associated conference call, may include statements and information that constitute "forward-looking statements" within the meaning of the U.S. securities laws as ...

Core Viewpoint - Invesco Mortgage Capital Inc. reported improved financial results for Q4 2025, driven by favorable economic conditions, including interest rate cuts and strong corporate earnings, leading to an 8.0% economic return for the quarter [2][9]. Financial Performance - Book value per common share increased by 3.7% to $8.72 at the end of Q4 2025, compared to $8.41 at the end of Q3 2025 [2][9]. - Net income per common share was $0.68, down from $0.74 in Q3 2025 [9]. - Earnings available for distribution per common share decreased to $0.56 from $0.58 in Q3 2025 [9]. Investment Portfolio - The investment portfolio totaled $6.3 billion, comprising $5.4 billion in Agency RMBS and $0.9 billion in Agency CMBS [3]. - The average earning assets increased to $5,868.9 million from $5,382.2 million in Q3 2025 [8]. - The debt-to-equity ratio rose to 7.0x from 6.7x, reflecting a more favorable investment environment [3]. Economic Environment - The company remains optimistic about Agency RMBS due to reduced interest rate volatility and increased investor demand, with Fannie Mae and Freddie Mac planning to purchase $200 billion in Agency RMBS [4]. - Agency CMBS is noted for its attractive risk-adjusted yields and stable cash flow profile [4]. Capital Activities - A common stock dividend of $0.36 per share was declared, with a shift from quarterly to monthly dividend payments starting at $0.12 per share [20]. - The company issued 849,987 shares of common stock for net cash proceeds of $7.2 million during the quarter [21]. - The company repurchased 76,356 shares of Series C Preferred Stock with a carrying value of $1.8 million [22].