Dynex Capital, Inc. · NYSE:DX
Dynex Capital — Q3 2025 Earnings Presentation
29 slides from Dynex Capital's earnings presentation, Oct 20, 2025
Slide 1: Third Quarter 2025 Earnings Presentation
Third Quarter 2025 Earnings Presentation October 20, 2025 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement NOTE: This presentation contains certain statements that are not historical facts and that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this presentation addressing expectations, assumptions, b
Slide 3: Dynex strategy delivers attractive, consistent, monthly returns
Dynex Capital's strategy delivers attractive, consistent, monthly returns over the long term through disciplined risk management, strategic asset selection and active management of a portfolio of real estate mortgage assets. 3 3
Slide 4: Dynex's Strategy Delivers Strong Returns
Dynex’s Strategy Delivers Strong Returns We employ a global, top-down macroeconomic approach that informs our disciplined risk management – driving and protecting investor value across market cycles. This process involves: Macroeconomic Insight – A global view and Preparation for Decision Making – D
Slide 5: A Differentiated Mortgage Investment Strategy Delivers Consistent, Monthly Dividends
A Differentiated Mortgage Investment PERFORMANCE AT A GLANCE Strategy Delivers Consistent, Monthly $15.8B Portfolio Fair Value $1.8B Market Cap Dividends 493% 16.6% What we do today Stock return since IPO Annualized Dividend Yield (dividends reinvested) We generate dividend income and long-term tota
Slide 6: Dynex Has Delivered Industry-Leading Returns
Dynex Has Delivered Industry-Leading Returns Cumulative Total Shareholder Returns 62.3% Owner-operated structure 58.8% and high-performance culture 53.5% have resulted in reliable 47.6% 46.1% returns that have consistently 39.0% outperformed the S&P 500 30.4% Financials and the REM (iShares Mortgage
Slide 7: Third Quarter 2025 Performance
Third Quarter 2025 Performance 7
Slide 8: Quarterly Performance Highlights
Quarterly Performance Highlights Q3 25 Q2 25 Average Earning Assets $14.4B $11.4B (inclusive of Agency RMBS TBAs) Book Value $12.67 $11.95 (per common share) Leverage (2) 7.5x 8.3x Total Economic Return (1) 10.3% (0.8)% Comprehensive Income (Loss) $1.20 $(0.11) (per common share) (1) Equals sum of d
Slide 9: Well-Positioned for Residential Mortgage Rebound
Well-Positioned for Residential Mortgage Rebound (as of dates indicated) September 30, 2025 June 30, 2025 Portfolio Fair Value $15.8 Billion Portfolio Fair Value $14.2 Billion Dynex’s diversified Agency RMBS TBA (1) Agency RMBS TBA (1) 70% portfolio remains Agency RMBS Pools Agency CMBS 77% 6% 1% Ag
Slide 10: Selected Components of Portfolio Returns
Selected Components of Portfolio Returns (excluding mark-to-market) (1) (2) Interest Income Hedge Benefit-Tax Basis $200.0 $100.0 $149.7 Interest income $150.0 $75.0 ($s in millions) $s in millions) $111.7 continues to $100.0 $83.5 $88.5 $95.1 $50.0 increase as higher $50.0 $25.0 $26.7 $22.0 $24.9 $
Slide 11: Key Macroeconomic Themes
Key Macroeconomic Themes Dynex remains 01 Global Power Shifts 04 Fed Policy vigilant and Shifting geopolitical dynamics impact global capital flows and the demand for U.S. Treasuries and Agency Fed policy on rates and the balance sheet (with ongoing MBS runoff) will continue to impact mortgage mindf
Slide 12: Spreads remain attractive for private capital
Spreads remain attractive for private capital Private capital Private capital dominates Growth in GSE retained portfolios Fed Quantitative Easing returning 12
Slide 13: Agency RMBS Market Dynamics and Portfolio Strategy
Agency RMBS Market Dynamics and Portfolio Strategy Renewed policy Fundamentals: Technicals: focus on • Steeper Curve – positive for mortgage carry, including dollar rolls • Fed Balance Sheet – Fed MBS runoff continues but broadly "QT" could slow or end entirely in the coming mortgage rates • Focused
Slide 14: CMBS Market Dynamics and Strategy
CMBS Market Dynamics and Strategy Stable Agency Fundamentals: Technicals: CMBS offer • Multifamily (MF) – demographic demand for housing is strong, driving tight markets for MF. High • Issuance - non-agency CMBS issuance has rebounded due to increases in single asset / borrower transactions prices a
Slide 15: Hedging Dynamics
Hedging Dynamics Focus on Fundamentals: Technicals: generating • Swap Yields – lower than Treasury yields by 20-75bps, offering potential to earn more spread • Futures vs. Cash UST & Swaps - UST futures are some of the deepest, most liquid markets in world, income on assets relative to hedges. tradi
Slide 16: Funding Market Dynamics and Strategy
Funding Market Dynamics and Strategy Fundamentals: Technicals: Funding • Evolving Economic Data – expect to take • Money Market Funds - $7.3T in assets, inflows of availability advantage of fluctuations in pricing of Fed rate moves amid periodic volatility in economic data. $220B in 2025, underscori
Slide 17: Dynex Positioned to Generate Income and Drive Value
Dynex Positioned to Generate Income and Drive Value 01 Income Opportunity 04 Policy We expect to create Mortgage spreads remain at historically wide spreads versus swaps, and especially versus Lighter regulation improves financing and allows for more investment in RMBS. Policymakers value through op
Slide 18: Our Core Values Guide Us
Our Core Values Guide Us These values keep us grounded – and allow us to sustain our high-performance culture while consistently generating attractive, long-term returns. We Deliver Value We Build Trust We are unwavering in our commitment to deliver lasting We earn trust by acting with integrity, fo
Slide 19: Supplemental Financials
wy DYNEX mM CAPITAL INC. Supplemental Financials
Slide 20: Capital Structure
Capital Structure Common Stock Series C Preferred Stock NYSE Ticker DX DX PRC Shares Outstanding 145.7 million 4.5 million Book Value per share Outstanding $12.67 — Third Quarter 2025 Dividends Declared per share $0.51 $0.64 Annualized Dividend Yield 16.6% 9.8% Share Price $12.29 $26.19 Market Capit
Slide 21: RMBS Portfolio Details
RMBS Portfolio Details (as of September 30, 2025) Unamortized 3-month Par/Notional Amortized Fair Value % of Total WAVG Pay Premium Market Yield WAVG Yield 3-month ($ in thousands) Value Cost (%) (3) Fair Value (%) Portfolio up to TBA (3) Balance (3) (4) (3) CPR (3) (5) Agency RMBS Pools: 2.0% coupo
Slide 22: CMBS and CMBS IO Portfolio Details
CMBS and CMBS IO Portfolio Details (as of September 30, 2025) Portfolio Characteristics Financing Details 3-month Amortized % of Total WAVG Life WAVG WAVG Repo Equity ($ in thousands) Cost Fair Value Portfolio Remaining (1) Yield Market Yield (2) Outstanding Invested Agency CMBS $ 929,273 $ 933,839
Slide 23: Risk Position - Interest Rate and Spread Sensitivity
Risk Position - Interest Rate and Spread Sensitivity Interest Rate Sensitivity to Instantaneous Shocks Percentage Change in Percentage Change in Common Shareholders’ Equity Curve Shift Common Shareholders’ Equity Parallel Curve Shift As of As of As of (bps) September 30, 2025 June 30, 2025 2 year 10
Slide 24: Hedge Position Changes
Hedge Position Changes September 30, 2025 June 30, 2025 Notional Notional Our hedge strategy is ($ in thousands) Amount / Long (Short) WAVG Fixed Pay Rate Amount / Long (Short) WAVG Fixed Pay Rate constructed to 5-year U.S. Treasury futures $ (30,000) n/a $ — n/a protect and optimize 10-year U.S. Tr
Slide 25: Funding Strategy
Funding Strategy (as of September 30, 2025) Fair Value of MBS Balance Weighted Pledged as Collateral Collateral Type ($s in thousands) Average Rate ($s in thousands) Agency RMBS $11,123,089 4.43 % $11,715,608 Balancing and Agency CMBS 545,954 4.44 % 576,591 Diversifying Risk Agency CMBS IO 81,018 4.
Slide 26: Comprehensive Income
Comprehensive Income September 30, 2025 June 30, 2025 Income Per Common Income Per Common ($ in thousands, except per share amounts) (Expense) Share* (Expense) Share* Interest income $ 149,679 $ 1.10 $ 111,746 $ 0.99 Interest expense (119,068) (0.88) (88,618) (0.78) Net interest Income 30,611 0.23 2
Slide 27: Book Value Rollforward
Book Value Rollforward - Quarter Ended September 30, 2025 Common Equity Common equity, beginning of period (1) $ 1,498,493 Net interest income $ 30,611 Net periodic interest from interest rate swaps 14,265 Operating expenses (11,998) Preferred stock dividends (2,827) Changes in fair value: MBS and l
Slide 28: Reconciliation of GAAP Measures to Non-GAAP Measures
Reconciliation of GAAP Measures to Non-GAAP Measures (1) ($ in thousands except per share amounts) 3Q25 2Q25 1Q25 4Q24 3Q24 Comprehensive income (loss) to common shareholders $ 162,527 $ (12,222) $ 14,391 $ 12,562 $ 70,741 Adjustments: Change in fair value of investments (2) (157,435) (37,716) (129,
Slide 29: 140 East Shore Drive, Suite 100 Glen Allen, Virginia 23059
140 East Shore Drive, Suite 100 Glen Allen, Virginia 23059 804-217-5800 dynexcapital.com 29