Invesco Mortgage Capital Inc · NYSE:IVR

Invesco Mortgage Capital — Investor Presentation (June 2010)

13 slides from Invesco Mortgage Capital's investor presentation, June 2010

  1. Slide 1: Invesco Mortgage Capital Inc.

    Invesco Mortgage Capital Inc. June 2010 All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This is not to be construed as an offer to buy or sell any financial instruments and should not be relied upon as the sole factor in an inve

  2. Slide 2: Forward-looking statements

    Forward-looking statements This presentation, and comments made in the associated Q&A, may include “forward- looking statements” and information that constitute “forward-looking statements” within the meaning of the U.S. securities laws. Forward-looking statements include statements with respect to

  3. Slide 3: Presenters

    Presenters Richard King, CEO, Invesco Mortgage Capital Inc. Experience – 25 years of investment management experience – 8 years with Invesco Advisers, Inc. Jason Marshall, Portfolio Manager, Invesco Mortgage Capital Inc. Experience – 13 years of investment management experience – 2 years with Invesc

  4. Slide 4: Invesco Mortgage Capital Inc. (NYSE: IVR)

    Invesco Mortgage Capital Inc. (NYSE: IVR) A hybrid mortgage REIT that can invest in agency MBS, non- agency RMBS, CMBS and residential and commercial loans  IVR is managed by Invesco Advisers Inc., a subsidiary of Invesco Ltd. with $419.6 BN in assets under management globally  Quality platform wi

  5. Slide 5: IVR update

    IVR update Management has executed its plan while being transparent  Quick deployment of capital raises to minimize ROE drag  Continued successful execution of hybrid residential mortgage REIT strategy generating attractive returns with moderate risk  Generated $2.44 in dividends to date(1)  Onl

  6. Slide 6: The Value We Deliver to Our Clients

    The Value We Deliver to Our Clients Distinctive investment capabilities globally Invesco Ltd. Investment Teams • $419.6 billion in assets under management • Approximately 600 investment professionals • On-the-ground research in 13 countries • Traditional and alternative asset classes • Disciplined i

  7. Slide 7: IVR is supported by Invesco Ltd.

    IVR is supported by Invesco Ltd. Specialist real estate resources support the REIT and will allow IVR’s shareholders to benefit from new investment opportunities Invesco WL Ross and Co. Invesco Fixed Income Real Estate PPIP Program FDIC Loan Program CMBS and CRE Loans • Large experienced team • Join

  8. Slide 8: Loan level credit analysis drives security selection

    Loan level credit analysis drives security selection  Invesco provides resources and expertise across the mortgage market  Credit process includes focus on macro outlook, originator and servicer due diligence, and loan level analytics to support investment decisions  Sophisticated analytical tool

  9. Slide 9: Q1 Allocation and May follow-on offering

    Q1 Allocation and May follow-on offering Net proceeds of May offering $178 million Why raise additional capital? Q1 equity allocation PPIP 4% CMBS 12%  Great opportunity to invest in mortgage assets Agency Non- MBS Agency 27% 57%  Scale and ability to quickly invest proceeds Allocation of new equi

  10. Slide 10: Invesco Mortgage Recovery Master Fund L.P. (Mortgage Recovery Fund)

    Invesco Mortgage Recovery Master Fund L.P. (Mortgage Recovery Fund) The Mortgage Recovery Fund, PPIP and its importance to IVR Key Features of Mortgage Recovery Fund UST’s Invesco Legacy Securities Master  Invests in Invesco Legacy Securities Master Fund, L.P. (PPIP Fund, L.P Gross Returns Fund), a

  11. Slide 11: Capturing attractive funding is a competitive advantage

    Capturing attractive funding is a competitive advantage Attractive financing drives returns Ample funding capacity Attractive interest rate environment Fed funds: 0–0.25% 25 23 1-month LIBOR: 0.28% 20 15 Agency REPO: 0.25% 9 10 5 CMBS REPO: 1.50% At IPO Current Non-Agency REPO: 1.50% # of IVR counte

  12. Slide 12: IVR mitigated the impact of GSE buyouts

    IVR mitigated the impact of GSE buyouts We believe IVR’s strategy protects against Agency MBS prepayment speeds (CPR) prepayment and margin call risk March  Hybrid exposure was reduced in anticipation of GSE buyouts 60.0% 45.5% 40.0%  Limited earnings impact - < $1 million 30.8% 17.8% 20.1% 20.0%

  13. Slide 13: The IVR Model Works

    The IVR Model Works  Hybrid model is designed to generate an attractive dividend while protecting book value  Strong platform covers the breadth of a dynamic mortgage market  Compelling opportunities now and for the long-term Past performance is not a guarantee of future results. 12

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