Q2 2025 Dynex Capital Inc Earnings Call Transcript
Key Points
- Dynex Capital Inc (DX) reported a significant increase in market capitalization, reaching over $1.5 billion as of June 30, representing nearly 50% growth since June 2024.
- The company successfully raised $560 million of new capital this year, allowing it to continue raising capital at a premium to book value, which is accretive to shareholders.
- Net interest income continues to trend upwards due to new investments with attractive yields and swaps contributing to economic net interest income.
- The portfolio has grown by 25% since the end of the first quarter, now standing at $14 billion, which is over 50% larger than the same time last year.
- Dynex Capital Inc (DX) increased its dividend above pre-COVID levels, highlighting its focus on generating long-term returns and creating value for shareholders.
- The market experienced unusual volatility, especially in April, with unpredictable price action and dislocation not seen since early 2020.
- The preferred markets have been very spotty and perhaps not even open, limiting the company's ability to raise capital through preferred shares.
- There is a medium-term headwind for spread tightening due to low net supply of Agency RMBS and demand not fully materializing.
- The company faces a mixed technical picture in the medium term, with many money managers remaining overweight in the sector.
- The G&A expenses were higher in the first half of the year due to annual meetings and compensation increases, which may impact overall profitability.
Thank you for standing by. My name is Carla, and I will be your conference operator today. At this time, I would like to welcome everyone to the Dynex Capital, Inc. Second Quarter Earnings Conference Call. (Operator Instructions)
I would now like to turn the call over to Alison Griffin, Vice President, Investor Relations. You may begin.
Good morning. The press release associated with today's call was issued and filed with the SEC this morning, July 21, 2025. You may view the press release on the homepage of the Dynex website at dynexcapital.com as well as on the SEC's website at sec.gov. Before we begin, we wish to remind you that this conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
The words believe, expect, forecast, anticipate, estimate, project, plan and similar expressions identify forward-looking statements that are inherently subject to risks and uncertainties, some of which cannot
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