ATLANTA, June 27,
2022 /PRNewswire/ -- Invesco Mortgage Capital Inc.
(the "Company") (NYSE: IVR) today announced that its Board of
Directors declared a cash dividend of $0.90 per share of common stock for the second
quarter of 2022. The dividend will be paid on July 27, 2022 to stockholders of record on
July 11, 2022, with an ex-dividend
date of July 8, 2022.
Increased expectations for accelerated interest rate hikes and
balance sheet reduction by the U.S. Federal Reserve continue to
weigh on Agency residential mortgage-backed securities ("Agency
RMBS") valuations. The Company has taken actions to prudently
manage its investment portfolio during recent market
volatility. These actions include reducing leverage and
rotating the Agency RMBS portfolio into higher coupons by selling
30-year 2.0% and 2.5% coupons and purchasing 4.0%, 4.5% and 5.0%
Given recent market volatility, the Company has elected to
provide the following preliminary financial information. The below
estimates are subject to change.
Portfolio and Liquidity Update as of June 17, 2022
- Total investment portfolio of $5.2
billion, including $4.4
billion of Agency RMBS and $628
million of to-be-announced securities forward contracts
- Maintained a sizeable balance of unrestricted cash and
unencumbered investments totaling approximately $623 million
- Debt-to-equity ratio estimated to be 4.1x
- Economic debt-to-equity ratio** estimated to be 4.7x
Book Value as of June 17,
- Book value per common share*** estimated to be in the range of
$15.94 to $16.60
*Represents the implied cost basis of TBAs that are accounted
for as derivative financial instruments under U.S. Generally
Accepted Accounting Principles ("GAAP").
**Economic debt-to-equity ratio is a non-GAAP financial measure
calculated as U.S. GAAP debt-to-equity ratio adjusted to include
the implied cost basis of TBAs.
***Book value per common share is calculated as (i) total equity
less the liquidation preference of outstanding Series B Preferred
Stock ($153.9 million) and Series C
Preferred Stock ($272.0 million),
divided by (ii) total shares of common stock outstanding of 33.0
million as of June 17, 2022.
The preliminary financial information set forth above reflects
the Company's estimates with respect to such information, based on
information currently available to management, and may vary from
the Company's actual financial results as of and for the periods
noted above. Further, these estimates are not a comprehensive
statement or estimate of the Company's financial results or
financial condition. These estimates should not be viewed as
a substitute for financial statements prepared in accordance with
U.S. GAAP, and they are not necessarily indicative of the results
to be achieved in any future period. Accordingly, a reader
should not place undue reliance on these estimates.
These estimates, which are the responsibility of the Company's
management, were prepared by the Company's management and are based
upon a number of assumptions. Additional items that may
require adjustments to these estimates may be identified and could
result in material changes to these estimates. These
estimates are inherently uncertain and the Company undertakes no
obligation to update this information. The preliminary
financial data included in this press release has been prepared by,
and is the responsibility of, the Company's management.
PricewaterhouseCoopers LLP ("PwC") has not audited, reviewed,
compiled or applied agreed-upon procedures with respect to the
preliminary financial data. Accordingly, PwC does not express
an opinion or any other form of assurance with respect thereto.
About Invesco Mortgage Capital
Invesco Mortgage Capital Inc. is a real estate investment trust
that primarily focuses on investing in, financing and managing
mortgage-backed securities and other mortgage-related assets.
Invesco Mortgage Capital Inc. is externally managed and advised by
Invesco Advisers, Inc., a subsidiary of Invesco Ltd. (NYSE: IVZ), a
leading independent global investment management firm.
Additional information is available
Cautionary Notice Regarding
This press release may include statements and information that
constitute "forward-looking statements" within the meaning of the
U.S. securities laws as defined in the Private Securities
Litigation Reform Act of 1995, as amended, and such statements are
intended to be covered by the safe harbor provided by the
same. Forward-looking statements are subject to substantial
risks and uncertainties, many of which are difficult to predict and
are generally beyond the Company's control. These
forward-looking statements include those related to our intention
and ability to pay dividends, as well as any other statements other
than statements of historical fact. The words "believe,"
"expect," "anticipate," "estimate," "plan," "continue," "intend,"
"should," "may," or similar expressions and future or conditional
verbs such as "will," "may," "could," "should," and "would," and
any other statement that necessarily depends on future events, are
intended to identify forward-looking statements.
Any forward-looking statement speaks only as of the date on
which it is made. New risks and uncertainties arise over
time, and it is not possible to predict those events or how they
may affect the Company. Except as required by law, the
Company is not obligated to, and does not intend to, update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
Investor Relations Contact: Jack Bateman, 404-439-3323
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SOURCE Invesco Mortgage Capital Inc.