Invesco Mortgage Capital Inc · NYSE:IVR
Invesco Mortgage Capital — Credit Suisse Mortgage REIT and Specialty Finance Conference 2014
12 slides from Invesco Mortgage Capital's conference presentation, Nov 19, 2014
Slide 1: Credit Suisse Mortgage REIT and Specialty Finance Conference
Invesco Mortgage Capital Inc. Credit Suisse Mortgage REIT and Specialty Finance Conference November 19, 2014 Richard King President & Chief Executive Officer John Anzalone Chief Investment Officer
Slide 2: Forward-looking statements
Forward-looking statements This presentation, and comments made in the associated conference call today, may include “forward-looking statements” within the meaning of the U.S. securities laws as defined in the Private Securities Litigation Reform Act of 1995, and such statements are intended to be
Slide 3: Overview
Overview 3 Financial Metrics Q3 YTD Dividend $1.50 Q3 YTD Core Earnings $1.41 2014 Quarterly Average $0.47 Book Value $19.16 2014 YTD Change $1.19 Comprehensive Income Q3: ($0.11) Q3 YTD: $2.68 Economic Return Q3: (0.71%) Q3 YTD: 14.97% (1) Core EPS is a non-GAAP financial measure. See sli
Slide 4: Asset allocation goal - high quality predictable cash flows
Asset allocation goal - high quality predictable cash flows 4 Dramatically reduced the interest rate and spread sensitivity in our portfolio – Decreased 30 Year MBS – Positioned up in coupon in 30’s and 15’s to position for higher interest rates – Increased allocation to Hybrid ARMS – Substantiall
Slide 5: Financing: Steady progress on increasing financial flexibility
Financing 5 Steady progress on increasing financial flexibility Diversification Diversification of Funding Sources Reduction of Short-Term Repurchase Agreement Financing IVR Financing Mix 2009 2010 2011 2012 2013 2014 Repurchase Agreements X X X X X X Series A Preferred Stock X X X Asset Backed Se
Slide 6: Performance and Value
Performance and Value 6 IVR portfolio has consistently provided high economic returns in 2014 and over the past 3 years Performance was driven by a competitive dividend and growth in book value Book value growth was generated through strong asset selection and prudent interest rate hedging 0.0
Slide 7: Portfolio Update
Portfolio Update 7 In the third quarter, we continued to migrate the portfolio away from interest rate risk and toward credit exposure Reduced interest rate exposure – Lower coupon Agency 30 Year MBS are now a small part of our portfolio – The rest of our assets are either much shorter duration or
Slide 8: Agency Highlights
Agency 8 Highlights: Reduced 30 year fixed and added hybrids Asset sales focused on lower coupon 30 year MBS Average 30 year fixed coupon is 4.30% Average 15 year fixed coupon is 4.05% Repurchase agreement debt-to-equity ratio decreased to 9.0x* *Repurchase agreement debt-to-equity ratio i
Slide 9: Residential Mortgage Credit
Residential Mortgage Credit 9 Developments: Purchased additional Non-Agency RMBS, including recently issued securities collateralized by seasoned subprime and re-performing loans Added exposure to $847M of recently originated jumbo prime loans, with two additional securitizations expected in the
Slide 10: Commercial Mortgage Credit
Commercial Mortgage Credit Highlights: CMBS fair value increased by $419M largely due to purchases of triple and double-A rated classes Closed two CRE loan investments totaling $48M, including IVR’s first cross-border transaction Commercial mortgage credit (1) now comprises 39% of equity CRE
Slide 11: Appendix — Non-GAAP Financial Information
Appendix — Non-GAAP Financial Information In addition to the results presented in accordance with U.S. GAAP, this presentation contains the non-GAAP financial measures of “core earnings” and repurchase agreement debt-to-equity. The Company’s management uses these non-GAAP financial measures in its i
Slide 12: Appendix — Non-GAAP Financial Information: Debt-to-Equity Reconciliation
Appendix — Non-GAAP Financial Information Reconciliation of Total Debt-to Equity to Repurchase Agreement Debt-to-Equity Ratio 12 Past Performance is not a guarantee of future results Equity Allocation As of September 30, 2014 $ in thousands Agency GSE CRT Non-Agency CMBS CRE Consolidated VIE (4) Oth
Invesco Mortgage Capital — Credit Suisse Mortgage REIT and Specialty Finance Conference 2014 on 6ix