Invesco Mortgage Capital's Q4 net income per share falls

Overview

• Real estate investment trust's Q4 net income per share decreased from Q3 2025

• Book value per common share increased to $8.72, reflecting improved conditions

• Company declared a higher dividend of $0.36 per share, up from $0.34

Outlook

• Invesco Mortgage Capital sees balanced near-term risks following strong sector performance

• Company expects favorable environment for Agency MBS investments longer term

Result Drivers

• INTEREST RATE CUTS - Co benefited from two Federal Reserve interest rate cuts, which improved financial conditions and supported Agency RMBS performance

• AGENCY RMBS OUTPERFORMANCE - Agency RMBS outperformed Treasuries due to lower interest rate volatility and increased investor demand

• SWAP SPREADS - Widening swap spreads provided additional positive contribution to performance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for Invesco Mortgage Capital Inc is $8.25, about 7.8% below its January 28 closing price of $8.95

• The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 3 three months ago

Press Release: ID:nPn1ZMsf0a

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