Dynex Capital, Inc. · NYSE:DX
Dynex Capital — Q4 2025 Earnings Presentation
29 slides from Dynex Capital's earnings presentation, Jan 26, 2026
Slide 1: Fourth Quarter and Full Year 2025 Earnings Presentation
Fourth Quarter and Full Year 2025 Earnings Presentation January 26, 2026 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 Capital's 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 $19.4B Portfolio Fair Value $2.4B Market Cap Dividends 593% 14.6% 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 64.8% The Company's high- performance culture has resulted in returns that have 45.8% 42.6% consistently outperformed 36.7% REM (iShares Mortgage RE 29.4% 28.7% ETF). 24.7% 24.6% 17.1% 13.4% 8.5% 0.5% 12-Mo Tot Ret (%)
Slide 7: Fourth Quarter 2025 Performance
Fourth Quarter 2025 Performance 7
Slide 8: Quarterly Performance Highlights
Quarterly Performance Highlights Q4 25 Q3 25 Average Earning Assets $16.2B $14.4B (inclusive of Agency RMBS TBAs) Book Value $13.45 $12.67 (per common share) Leverage (2) 7.3x 7.5x Total Economic Return (1) 10.2% 10.3% Comprehensive Income $1.22 $1.20 (per common share) (1) Equals sum of dividend de
Slide 9: Well-Positioned for Residential Mortgage Rebound
Well-Positioned for Residential Mortgage Rebound (as of dates indicated) December 31, 2025 September 30, 2025 Portfolio Fair Value $19.4 Billion Portfolio Fair Value $15.8 Billion Dynex’s diversified Agency RMBS TBA (1) Agency RMBS TBA (1) 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 $177.0 $149.7 Interest income $150.0 $75.0 ($s in millions) $s in millions) $111.7 continues to $100.0 $88.5 $95.1 $50.0 increase as higher $50.0 $25.0 $22.0 $24.9 $25.0
Slide 11: Key Macroeconomic Themes
Key Macroeconomic Themes Dynex remains 01 Government Policy 04 Fed Policy vigilant and Policymakers are challenging post-war norms more rapidly than at any time in modern history. Domestic We expect Fed policy will continue to be pressured by politicians with an agenda outside the Fed’s mandate. Tha
Slide 12: Spread Regime Shifts
Spread Regime Shifts GSEs Private capital dominates Growth in GSE retained portfolios Fed Quantitative Easing Private capital return Return 12
Slide 13: Agency RMBS Market Dynamics and Portfolio Strategy
Agency RMBS Market Dynamics and Portfolio Strategy Policy directives Fundamentals: Technicals: with a focus on • Positively Sloped Yield Curve – Positive for mortgage carry, including dollar rolls • GSE Balance Sheets – The presidential directive for the GSEs to buy $200 billion of mortgages likely
Slide 14: CMBS Market Dynamics and Strategy
CMBS Market Dynamics and Strategy Fundamentals: Technicals: Stable Agency • Multifamily (MF) – Demographic demand for • Issuance – Non-agency CMBS issuance has rebounded housing is strong, driving tight markets for MF. High due to increases in single asset / borrower transactions, CMBS offer prices
Slide 15: Hedging Dynamics
Hedging Dynamics Focus on Fundamentals: Technicals: generating • Swap Yields – Lower than Treasury yields by 15-65bps, offering potential to earn more spread • Futures vs. Cash UST & Swaps – UST futures are some of the deepest, most liquid markets in world, returns from the income on assets relative
Slide 16: Funding Market Dynamics and Strategy
Funding Market Dynamics and Strategy Fundamentals: Technicals: Funding • Evolving Economic Data –Expect fluctuations in • Fed Reserve Management Purchases – Fed availability pricing of Fed rates move amid periodic volatility in economic data as economic data trends become management of reserve level
Slide 17: Dynex Positioned to Generate Income and Drive Value
Dynex Positioned to Generate Income and Drive Value 01 Income & New Regime 04 Policy We expect to create Mortgage spreads remain wide enough to swaps to generate compelling leveraged Lighter regulation improves financing and allows for more investment in RMBS. Policymakers value through opportunisti
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 174.8 million 4.5 million Book Value per share Outstanding $13.45 — Fourth Quarter 2025 Dividends Declared per share $0.51 $0.61 Annualized Dividend Yield 14.6% 9.6% Share Price $14.01 $25.58 Market Capi
Slide 21: RMBS Portfolio Details
RMBS Portfolio Details (as of December 31, 2025) Unamortized 3-month Par/Notional Amortized Fair Value % of Total WAVG Pay Premium Market Yield WAVG Yield 3-month ($ in thousands) Value Cost (%) (3) Fair Value (%) Portfolio up to TBA (3) Balance (3) (4) (3) CPR (3) (5) Agency RMBS Pools: 2.0% coupon
Slide 22: CMBS and CMBS IO Portfolio Details
CMBS and CMBS IO Portfolio Details (as of December 31, 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 $ 1,213,107 $ 1,218,3
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 As of (bps) December 31, 2025 September 30, 2025
Slide 24: Hedge Position Changes
Hedge Position Changes December 31, 2025 September 30, 2025 Our hedge strategy is ($ in thousands) Notional Amount WAVG Fixed Pay Rate Notional Amount WAVG Fixed Pay Rate constructed to 5-year U.S. Treasury futures $ (30,000) n/a $ (30,000) n/a protect and optimize 10-year U.S. Treasury futures (1,4
Slide 25: Funding Strategy
Funding Strategy (as of December 31, 2025) Fair Value of MBS Balance Weighted Pledged as Collateral Collateral Type ($s in thousands) Average Rate ($s in thousands) Agency RMBS $12,857,827 4.09 % $13,496,489 Balancing and Agency CMBS 967,024 4.07 % 1,012,532 Diversifying Risk Agency CMBS IO 77,057 4
Slide 26: Comprehensive Income
Comprehensive Income For the Quarter Ended For the Year Ended December 31, 2025 September 30, 2025 December 31, 2025 Income Per Common Income Per Common Income Per Common ($ in thousands, except per share amounts) (Expense) Share* (Expense) Share* (Expense) Share* Interest income $ 177,036 $ 1.13 $
Slide 27: Book Value Rollforward
Book Value Rollforward - Quarter Ended December 31, 2025 Common Equity Common equity, beginning of period (1) $ 1,846,048 Net interest income $ 43,484 Net periodic interest from interest rate swaps 7,598 Operating expenses (16,639) Preferred stock dividends (2,760) Changes in fair value: MBS and loa
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) 4Q25 3Q25 2Q25 1Q25 4Q24 Comprehensive income (loss) to common shareholders $ 189,606 $ 162,527 $ (12,222) $ 14,391 $ 12,562 Adjustments: Change in fair value of investments (2) (91,740) (157,435) (37,
Slide 29: Dynex Capital Contact Information
140 East Shore Drive, Suite 100 Glen Allen, Virginia 23059 804-217-5800 dynexcapital.com 29