legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

ATLANTA, Nov. 6, 2023 – Invesco Mortgage Capital Inc. (NYSE: IVR) (the “Company”) today reported its financial results for the third quarter ended September 30, 2023. The Company experienced a net loss per common share of $1.62, compared to $0.03 in the second quarter of 2023. Earnings available for distribution per common share stood at $1.51, slightly higher than $1.45 in the previous quarter. The company’s book value per common share fell to $9.93 from $11.98 as of June 30, 2023. Additionally, the economic return for the quarter was -13.8%, compared to -1.8% in the second quarter of 2023.

The challenging financial environment in the third quarter was characterized by shifting expectations for fiscal and monetary policies, resulting in higher interest rates and increased interest rate volatility. As a result, the Company’s Agency RMBS assets underperformed, leading to a decline in book value per common share. This decline, combined with the common stock dividend, resulted in an economic return of -13.8%.

Despite these challenges, the Company maintained a debt-to-equity ratio of 6.4x, up from 5.9x as of June 30th. The majority of the Company’s $5.4 billion investment portfolio remained invested in Agency RMBS, and it held a sizeable balance of unrestricted cash and unencumbered investments totaling $392 million at the end of the quarter.

The Company’s earnings available for distribution continued to benefit from attractive interest income, favorable funding, and low-cost, pay-fixed swaps on its target assets. However, in response to elevated interest rate volatility and further pressure on Agency RMBS valuations, the Company actively reduced the size of its portfolio, impacting its current earnings power. As of November 3, 2023, the estimated book value per common share is between $9.07 and $9.45.

Looking ahead, the Company remains cautious about the near-term outlook for the sector due to the uncertain path of fiscal and monetary policy and heightened geopolitical risks. However, it believes that the potential reduction in interest rate volatility associated with the normalization of monetary policy could be supportive of its target assets. The Company continues to view Agency RMBS investments as offering historically attractive valuations for long-term investors.

How AI legalese decoder Can Help:

The AI legalese decoder can assist in simplifying legal jargon and complex financial statements, making it easier for both professionals and non-professionals to understand the content. By providing concise explanations and definitions, the AI legalese decoder can help individuals grasp the financial performance and outlook of companies like Invesco Mortgage Capital Inc. This AI-powered tool can eliminate confusion and save time by presenting the information in a straightforward and user-friendly manner.

legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Reference link