Invesco Mortgage Capital ( (IVR) ) has released its Q1 earnings. Here is a breakdown of the information Invesco Mortgage Capital presented to its investors.
Invesco Mortgage Capital Inc. is a real estate investment trust that focuses on investing in, financing, and managing mortgage-backed securities and other mortgage-related assets, primarily operating within the financial sector. The company is externally managed by Invesco Advisers, Inc., a subsidiary of Invesco Ltd., a global investment management firm.
Invesco Mortgage Capital Inc. reported its financial results for the first quarter of 2025, showcasing a notable improvement in net income per common share, which rose to $0.26 from a net loss of $0.09 in the previous quarter. The company also reported earnings available for distribution per common share of $0.64, an increase from $0.53 in the fourth quarter of 2024.
Key financial metrics highlighted in the report include a common stock dividend of $0.34 per share, a slight decrease from $0.40 in the previous quarter. The book value per common share saw a minor decline to $8.81 from $8.92. The economic return for the quarter was 2.6%, a significant improvement from the negative return of 0.5% in the previous quarter. The company’s debt-to-equity ratio increased to 7.1x from 6.7x at the end of 2024, with a $5.9 billion investment portfolio primarily consisting of Agency RMBS and Agency CMBS.
Despite challenges in the financial markets due to U.S. fiscal and trade policy concerns, Invesco Mortgage Capital Inc. managed to maintain a stable performance in its Agency RMBS, which aligned closely with Treasuries. The company remains cautious about the near-term market outlook due to elevated policy uncertainty but holds a favorable long-term view on Agency RMBS, expecting strengthened investor demand in higher coupons.
Looking ahead, Invesco Mortgage Capital Inc. plans to continue managing its investment portfolio and liquidity prudently, anticipating an eventual decline in interest rate volatility and a steeper yield curve, which could bolster the performance of Agency RMBS. The company also expects the Agency CMBS sector to be supported by limited issuance and strong fundamental performance, despite current elevated risk premiums.