Invesco Mortgage Capital Inc · NYSE:IVR
Invesco Mortgage Capital — Q4 2024 Earnings Presentation
13 slides from Invesco Mortgage Capital's earnings presentation, Feb 21, 2025
Slide 1: Fourth Quarter 2024 Earnings Call
Invesco Mortgage Capital Inc. Fourth Quarter 2024 Earnings Call February 21, 2025 John Anzalone Kevin Collins Mark Gregson 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 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 the Private Securities Litiga
Slide 3: Q4 2024 Results
Q4 2024 Results Financial Results Investment Allocation3 Q4 24 Q3 24 Net income (loss) per common share $(0.09) $0.63 Earnings available for distribution per Agency RMBS $0.53 $0.68 Credit Portfolio 83.4% common share1 0.3% $5.4 Book Value per common share2 $8.92 $9.37 billion Agency CMO Common stoc
Slide 4: Macro Environment
Macro Environment Interest rates rose across the yield curve and expectations for monetary policy adjusted to a higher neutral rate as the disinflationary trend stalled and economic growth remained robust Treasury Yields Money Market Rates 5.0% 5.7% 4.5% 5.3% 4.0% 4.9% 3.5% 4.5% 3.0% 4.1% 0 yr 5 yr
Slide 5: Agency RMBS Market
Agency RMBS Market Valuations deteriorated in the 4th quarter as interest rate volatility increased while specified pool pay-ups were negatively impacted by the upward shift in Treasury yields Performance vs. Treasuries1 Specified Pool Pay-ups (basis points) ($200k max, in points) 150 $2.0 100 $1.5
Slide 6: Agency RMBS Investments
Agency RMBS Investments Coupon Allocation • Agency RMBS investment portfolio decreased 11% to $4.5 12/31/23 9/30/24 12/31/24 40% billion in Q4 2024 ◦ Rotated $129 million lower coupon specified pools into 30% 30-year 6% specified pools ◦ Sold $181 million specified pools and reallocated into 20% Age
Slide 7: Agency CMBS Investments
Agency CMBS Investments Allocation • Added $181 million of Fannie DUS in Q4 2024 • Agency CMBS benefits from: Freddie Multi PCs ◦ Guarantee of principal and interest from the 21% issuing agency or federally chartered corporation ◦ Lower sensitivity to interest rate volatility than $816 Agency RMBS g
Slide 8: Agency CMO and Credit Investments
Agency CMO and Credit Investments Agency CMO Allocation Credit Allocation 30 Year 2.0% 30 Year 3.5% 9% 18% Non-Agency RMBS 42% $71 $17 30 Year 3.0% million 14% million Non-Agency CMBS 58% 30 Year 2.5% 59% • Q4 2024 Agency CMO characteristics • Credit investments benefit from collateral diversificati
Slide 9: Financing & Hedging
Financing & Hedging Cost of Funds Protection1 Hedge Portfolio Composition (in billions) Treasury Futures Interest Rate $6.0 100% Notional Swap Notional Interest Rate Swap Maturities2 ($ millions) ($ millions) Pay Rate3 $5.0 90% Less than 3 years - 1,730 1.06% $4.0 80% $3.0 70% 3 to 5 years - 375 0.3
Slide 10: Capital Structure
Capital Structure Improved capital structure and reduced cost of capital by redeeming Series B Preferred Stock As of December 31, 2024 As of September 30, 2024 Common Stock Preferred Stock Common Stock Preferred Stock NYSE Ticker IVR IVR-PC IVR IVR-PB / IVR-PC Shares Outstanding 61.7 million 7.2 mil
Slide 11: 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 12: Appendix – Reconciliation of GAAP to Non-GAAP Financial Information
Appendix – Reconciliation of GAAP to Non-GAAP Financial Information Three Months Ended $ in thousands December 31, 2024 September 30, 2024 December 31, 2023 Net income (loss) attributable to common stockholders $ (5,472) $ 35,271 $ 22,280 Adjustments: (Gain) loss on investments, net 187,714 (165,168
Slide 13: Appendix - Definitions
Appendix - Definitions Agency CMO – Interest Only - An interest only security is created by separating the principal and interest portions of the payments on the underlying loan pool and selling them as distinct products. The investor in the interest only security benefits when the prepayment rate o
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