Wednesday saw Invesco Mortgage (NYSE:IVR) Capital Inc. release preliminary financial results for the second quarter ended June 30, 2024. The real estate investment trust, specializing in mortgage-backed securities, reported a total investment portfolio valued at approximately $5.0 billion. This includes $4.4 billion in Agency residential mortgage-backed securities, $0.4 billion in Agency commercial mortgage-backed securities, and $0.2 billion in to-be-announced (TBA) securities.
The Atlanta-based company, listed on the New York Stock Exchange under the ticker NYSE:IVR, also reported unrestricted cash and unencumbered investments of around $446 million. Furthermore, Invesco Mortgage's debt-to-equity ratio, a measure of financial leverage, is estimated at 5.6 times, while the economic debt-to-equity ratio, which includes TBAs, is estimated at 5.9 times.
In addition to the preliminary financial data, Invesco Mortgage provided an estimated book value per common share range of $9.49 to $9.87 as of July 12, 2024. This figure is adjusted to exclude a proportion of the current quarter’s common stock dividend and takes into account the liquidation preference of the company's preferred stock.
The company emphasized that the figures are preliminary and subject to the completion of standard financial statement closing and review procedures. They also cautioned that these preliminary estimates should not be seen as a substitute for financial statements prepared in accordance with U.S. GAAP, and may differ from the actual financial results.
Invesco Mortgage Capital has clarified that PricewaterhouseCoopers LLP has not audited, reviewed, or compiled this preliminary financial data. Consequently, no opinion or form of assurance has been expressed by the accounting firm regarding these estimates.
This financial disclosure is based on a press release statement and is presented without speculation or subjective assessment, providing only verified facts and data.
In other recent news, Invesco Mortgage Capital reported a positive economic return of 4.8% for the first quarter of 2024, with an investment portfolio valued at $5 billion, primarily composed of agency mortgages. Despite this outlook, the company 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. Although the effective interest rate margin has declined, it remains over 4%.
In addition to the financial highlights, Invesco Mortgage Capital announced the appointment of W. Wesley McMullan, former CEO of Federal Home Loan Bank of Atlanta, to its Board of Directors. McMullan's expertise in various financial disciplines, including banking, mortgage-backed securities, and risk management, is expected to contribute significantly to the company's strategic focus and management of its core portfolio.
These are the recent developments for Invesco Mortgage, with no speculation on future performance.
InvestingPro Insights
Amidst the latest financial disclosure by Invesco Mortgage Capital Inc., real-time data and insights from InvestingPro shed light on the company's performance and prospects. With a market capitalization of approximately $482.15 million, the company's stock price movements have shown a strong return over the last three months, with a 26.45% increase. This could be indicative of investor optimism or a response to market conditions.
InvestingPro Tips highlight that Invesco Mortgage Capital is expected to see net income growth this year, a crucial factor for potential investors. Additionally, the company has a history of rewarding its shareholders, maintaining dividend payments for 16 consecutive years, with a notable dividend yield of 16.26% as of the last recorded date. These factors, combined with the anticipated profitability this year, provide a multifaceted view of the company's financial health beyond the preliminary figures released.
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