Dynex Capital reports Q1 total economic return of 28c per common share

The company’s total economic return of 28c per common share for the first quarter of 2024 consisted of a decline in book value of (11c) per common share and dividends declared of 39c per common share. Operating expenses for the first quarter of 2024 included a 5c increase in share-based compensation expense due to accelerated vesting conditions for certain March 2024 grants. Net gains on the company’s hedging portfolio exceeded net losses on its investment portfolio by $37.3M. Though the 10-year U.S. Treasury rate increased over 30 basis points during the first quarter, which negatively impacted the fair value of the company’s investment portfolio, losses were offset by modest spread tightening on some of the company’s investments and gains on U.S. Treasury futures used as interest rate hedging instruments. Book value was also impacted by approximately (7c) per common share from equity issued during the first quarter. Reports book value per common share of $13.20 as of March 31. “We believe Dynex is uniquely positioned for this environment. We are generating income from highly liquid, Agency-guaranteed securities. We have an experienced team, with a stewardship mindset, a disciplined process, and a track record of performance. Our returns this quarter are a result of our preparation and execution of our long-term strategy,” said Byron Boston, Chairman and CEO, in an earnings release earlier this morning.