Q1 2026 Invesco Mortgage Capital Inc Earnings Call Transcript
Key Points
- Invesco Mortgage Capital Inc (IVR) has a well-positioned capital structure to support long-term success, with plans to selectively access the ATM for raising common stock when beneficial to shareholders.
- The company has successfully reduced preferred equity to less than 20% of total equity, reducing costs and benefiting returns for common stockholders.
- Invesco Mortgage Capital Inc (IVR) has transitioned to monthly dividend distributions, aligning better with income investors' cash flow needs and providing regular financial updates.
- The company's Agency CMBS investments performed well, providing stability and outperforming Agency RMBS across the coupon stack for the quarter.
- Invesco Mortgage Capital Inc (IVR) maintains a sizable balance of unrestricted cash and unencumbered investments totaling $493.1 million, ensuring ample liquidity to withstand market stress and deploy capital as opportunities arise.
- The company's book value declined by 7.9% to $8.08 at quarter end, resulting in an economic return of negative 3.2% for the quarter.
- Increased geopolitical tensions, higher energy prices, and renewed inflation concerns led to increased interest rate volatility, negatively impacting risk assets and Agency RMBS valuations.
- The economic debt-to-equity ratio increased to 7.5 turns from 7 turns, reflecting a decline in book value per share and a more constructive outlook on Agency RMBS.
- Earnings available for distribution declined modestly from $0.56 in the fourth quarter of last year to $0.55 in the first quarter.
- The company faced challenges in the first quarter due to escalating geopolitical tensions and increased interest rate volatility, leaving the sector vulnerable to further bouts of volatility.
Welcome to the Invesco Mortgage Capital first-quarter 2026 earnings call.
(Operator Instructions) As a reminder, this call is being recorded.
Now I would like to turn the call over to Greg Seals in Investor Relations. Mr. Seals, you may begin the call.
Thanks, operator, and to all of you joining us on Invesco Mortgage Capital's first-quarter 2026 earnings call. In addition to today's press release, we have provided a presentation that covers the topics we plan to address today. The press release and presentation are available on our website, invescomortgagecapital.com. This information can be found by going to the Investor Relations section of the website.
Our presentation today will include forward-looking statements and certain non-GAAP financial measures. Please review the disclosures on slide 2 of the presentation regarding these statements and measures, as well as the appendix for the appropriate reconciliations to GAAP.
Finally, Invesco Mortgage Capital is
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