Q3 2024 Invesco Mortgage Capital Inc Earnings Call Transcript
Key Points
- Invesco Mortgage Capital Inc (IVR) reported a 1.1% increase in book value per common share to $9.37, contributing to an economic return of 5.4% for the quarter.
- The company maintained a sizable balance of unrestricted cash and unencumbered investments totaling $520 million, providing strong liquidity.
- Invesco Mortgage Capital Inc (IVR) announced the redemption of its series B preferred shares, which is expected to optimize its capital structure and reduce dividend obligations.
- The agency CMBS portfolio increased to approximately 12% of the total investment portfolio, offering benefits such as prepayment protection and fixed maturities.
- The company remains constructive on agency CMBS and agency RMBS, expecting them to benefit from normalization of monetary policy and attractive valuations.
- The estimated book value of Invesco Mortgage Capital Inc (IVR) decreased by approximately 5.8% since September 30, due to increased treasury yields and interest rate volatility.
- Earnings available for distribution per common share decreased from $0.86 in the second quarter to $0.68 in the third quarter, primarily due to changes in the hedging portfolio.
- Interest rate volatility and a flattening yield curve led to underperformance in the agency mortgage sector in October.
- The company's debt-to-equity ratio increased from 5.6 to 6.1 times, indicating higher leverage.
- The implied financing via the dollar roll market for TBA investments remained relatively unattractive throughout the quarter.
Welcome to the Invesco Mortgage Capital third quarter, 2024 earnings call. All participants will be in a listen-only mode until the question-and-answer session. At that time to ask a question, press the start followed by one on your telephone keypad.
Also, as a reminder, this call is being recorded. Now would like to turn the call over to Greg Seals an investor relation. Mr. Seals, you may begin.
Thanks operator and to all of you joining us on Invesco Mortgage Capital's quarterly earnings call. In addition to today's press release, we have provided a presentation that covers the topics we plan to address today. The press release and presentation are available on our website Invesco Mortgage capital.com. This information can be found by going to the investor relations section of the website. Our presentation today will include forward-looking statements and certain non-GAAP financial measures. Please review the disclosures on slide 2 of the presentation regarding these statements and measures
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