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Invesco Mortgage Capital adds former FHLBank CEO to board

EditorBrando Bricchi
Published 24/06/2024, 21:28
IVR
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ATLANTA - Invesco Mortgage Capital Inc. (NYSE: NYSE:IVR), a real estate investment trust, announced today the appointment of W. Wesley McMullan to its Board of Directors. McMullan, who has a longstanding career in the finance industry, brings to the table a wealth of experience from his tenure at the Federal Home Loan Bank of Atlanta (FHLBank Atlanta).

McMullan, 61, served as President and CEO of FHLBank Atlanta from 2010 until his retirement in 2021, marking the end of a 33-year career at the institution. His background includes a variety of financial disciplines such as banking, mortgage-backed securities (MBS), SEC regulatory compliance, asset and liability management, as well as portfolio management.

The new board member is also set to join the Audit, Compensation, and Nomination and Corporate Governance committees of Invesco Mortgage Capital's Board of Directors. His expertise is expected to contribute significantly to the company's strategic focus and management of its core portfolio, especially given his experience in trading, managing mortgage-related assets, and implementing risk management and hedging strategies during different economic cycles.

John Day, Chair of Invesco Mortgage Capital's Board of Directors, expressed enthusiasm about McMullan's appointment, highlighting the value of his extensive experience and the immediate positive impact he is anticipated to have on the board's function and the company’s strategic direction.

Invesco Mortgage Capital Inc. specializes in the acquisition, financing, and management of mortgage-backed securities and other mortgage-related assets. The company is externally managed and advised by Invesco Advisers, Inc., a subsidiary of the global investment management firm Invesco Ltd.

This appointment comes as part of the company's ongoing efforts to strengthen its leadership and governance, aiming to bolster its market position in the real estate investment trust sector. The information regarding McMullan's appointment is based on a press release statement from Invesco Mortgage Capital Inc.

"In other recent news, Invesco Mortgage Capital Incorporated reported a positive economic return of 4.8% for the first quarter of 2024. The company's investment portfolio, primarily composed of agency mortgages, is valued at $5 billion. Despite this positive outlook, Invesco Mortgage has expressed caution due to increased market volatility and a tightening of spreads leading to a slowdown in purchase activity. The company's debt-to-equity ratio stands at 5.6 times, with agency mortgages making up 94% of the portfolio. While the effective interest rate margin has declined, it remains over 4%. Invesco Mortgage anticipates robust liquidity to navigate future market volatility. These are the recent developments for Invesco Mortgage, without any speculation on future performance."

InvestingPro Insights

As Invesco Mortgage Capital Inc. (NYSE: IVR) welcomes W. Wesley McMullan to its Board of Directors, investors may consider the current financial health and market performance of the company to understand the potential impact of this strategic move. Here are some key insights based on real-time data from InvestingPro and InvestingPro Tips:

InvestingPro Data highlights that Invesco Mortgage Capital has a market capitalization of $454.08 million and is carrying a negative P/E ratio of -14.63, reflecting challenges in profitability. However, the company's revenue has shown a remarkable growth of 108.83% over the last twelve months as of Q1 2024, suggesting a strong potential for future earnings. Additionally, the company boasts a high dividend yield of 17.26%, which could be particularly attractive to income-focused investors.

An InvestingPro Tip indicates that analysts are expecting net income to grow this year, which could signal a turnaround from the previous period's performance. Moreover, Invesco Mortgage Capital has a track record of maintaining dividend payments for 16 consecutive years, demonstrating a commitment to shareholder returns even in challenging times.

While two analysts have revised their earnings expectations downwards for the upcoming period, the appointment of McMullan, with his deep expertise in financial disciplines and risk management, could provide the necessary oversight to navigate the anticipated sales decline and leverage the company's substantial revenue growth.

Investors looking for more in-depth analysis and additional InvestingPro Tips can find them at https://www.investing.com/pro/IVR. There are a total of 10 InvestingPro Tips available to help guide investment decisions. For those considering an InvestingPro subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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