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Mar 31, 2021
Dynex Capital Q1 2021 Earnings Report
Reported positive financial results driven by investment strategy and team skills, with a total economic return of 7.2% for common shareholders and strategic capital deployment.
Key Takeaways
Dynex Capital reported strong first-quarter results, driven by its investment strategy and team. The company generated a 7.2% total economic return for common shareholders and raised $128 million in common equity. The company also redeemed the remaining shares of Series B Preferred Stock.
Total economic return to common shareholders was 7.2%, including $0.39 in dividends and a $0.99 increase in book value per share.
Comprehensive income was $1.76 per common share, and net income was $4.20 per common share.
Core net operating income (non-GAAP) was $0.46 per common share.
Leverage, including TBA dollar roll positions, increased to 6.9x shareholders' equity.
Forward Guidance
The company anticipates continued volatility in the macroeconomic environment, which will demand ongoing active management of mortgage portfolios. Dynex believes its track record demonstrates that it can thrive and deliver returns across wide-ranging investment environments.
Positive Outlook
- Positioned the company for long-term success by raising a total of $128 million in common equity.
- Grew book value.
- Leverage ratio remaining under 7.0x.
- Positioned balance sheet to take advantage of accretive capital deployment opportunities.
- Disciplined investment process remains focused on delivering long-term value to shareholders.
Challenges Ahead
- Anticipate continued volatility in the macroeconomic environment.
- Demand ongoing active management of mortgage portfolios.
- Decline in the fair value of the majority of the Company's investment portfolio.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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