Invesco Mortgage Capital Inc · NYSE:IVR
Invesco Mortgage Capital — Q3 2021 Earnings Presentation
12 slides from Invesco Mortgage Capital's earnings presentation, Nov 4, 2021
Slide 1: Invesco Mortgage Capital Inc. Third Quarter 2021 Earnings Call
Invesco Mortgage Capital Inc. Third Quarter 2021 Earnings Call November 4, 2021 John Anzalone Kevin Collins Lee Phegley David Lyle Brian Norris Chief Executive Officer President Chief Financial Officer Chief Operating Officer Chief Investment Officer
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
Cautionary Notice Regarding Forward-Looking Statements This press release, the related presentation and comments made in the associated conference call, may include statements and information that constitute “forward-looking statements” within the meaning of the U.S. securities laws as defined in th
Slide 3: Q3 2021 Results
Q3 2021 Results Investment Allocation(1) ▪ Financial results – Net income per common share of $0.17 – Earnings available for distribution per Agency common share(2) of $0.10 RMBS $10.4 99% – Book value per common share of $3.25 at billion quarter end – Dividend per common share of $0.09 Credit – Eco
Slide 4: Macro Environment
Macro Environment Treasury yields ended Q3 largely unchanged given improving economic data offset by concerns over the COVID-19 Delta variant. Bank and Fed demand for MBS remained robust. Treasury Yields Money Market Rates 3.0% 3.0% 0.3% 0.3% 2.0% 2.0% 0.2% 0.2% 1.0% 1.0% 0.1% 0.1% 0.0% 0.0% 0.0% 0.
Slide 5: Agency RMBS Market
Agency RMBS Market Agency RMBS performance was mixed, as lower coupons underperformed given more clarity on Fed’s taper timeline, while higher coupons outperformed as prepayments stabilized. Agency MBS Performance vs. Swaps Specified Pool Payups (basis points) ($150k max, in points) 150 150 6.0 6.0
Slide 6: Agency RMBS Investments
Agency RMBS Investments Coupon Distribution (in billions) ▪ Agency RMBS investment allocation increased by 1.0% to $10.3 billion $5.8 3/31/2021 – Actively managed specified pool allocation, rotating $2.1 6/30/2021 billion of low yielding pools into higher yields, improving $4.1 $3.9 $3.8 $4.1 $4.0 9
Slide 7: Credit Investment Characteristics
Credit Investment Characteristics Credit Allocation ▪ 90% of credit investments are rated single-A or Joint Ventures 11% higher(1) ▪ Majority of non-Agency CMBS investments are collateralized by loans benefitting from property Commercial type diversification and improved underwriting Loan $108 Non-A
Slide 8: Financing & Hedging
Financing & Hedging Cost of Funds Protection(1)(2) ▪ Financed Agency RMBS investments with (in billions) repurchase agreements across 18 counterparties $8.2 $7.2 $7.9 $7.9 ▪ All credit assets are unlevered $6.3 $6.3 $5.2 $4.6 $5.3 $5.3 ▪ Hedged 67% of our borrowing costs with a net $5.3 billion noti
Slide 9: IVR Value Proposition
IVR Value Proposition ▪ Seek to provide attractive risk-adjusted returns generated by real estate-related investments, primarily through dividends and secondarily through capital appreciation ▪ Enable investors to: – Capitalize on opportunities in our target assets, including residential and commerc
Slide 10: Appendix - Non-GAAP Financial Information
Appendix - Non-GAAP Financial Information The Company's business objective is to provide attractive risk-adjusted returns to its stockholders, primarily through dividends and secondarily through capital appreciation. The Company uses earnings available for distribution as a measure of its investment
Slide 11: Appendix - Non-GAAP Financial Information
Appendix - Non-GAAP Financial Information The table below provides a reconciliation of U.S. GAAP net income (loss) attributable to common stockholders to earnings avai lable for distribution for the following periods: Three Months Ended Nine Months Ended $ in thousands, except per share data Septemb
Slide 12: Appendix - Definitions
Appendix - Definitions Agency RMBS – Residential mortgage-backed securities ("RMBS") that are guaranteed by a U.S.government agency such as the Government National Mortgage Association ("Ginnie Mae") or a federally chartered corporation such as the Federal National Mortgage Association ("Fannie Mae"
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