Invesco Mortgage Capital Inc · NYSE:IVR

Invesco Mortgage Capital — Q4 2009 Earnings Presentation

11 slides from Invesco Mortgage Capital's earnings presentation, Feb 18, 2010

  1. Slide 1: 2009 Fourth Quarter Earnings Call

    Invesco Mortgage Capital Inc. 2009 Fourth Quarter Earnings Call February 18, 2010 Richard J. King President & Chief Executive Officer John M. Anzalone Chief Investment Officer Donald R. Ramon Chief Financial Officer

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements This presentation, and comments made in the associated conference call today, may include 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 o

  3. Slide 3: Overview

    Overview  ‘09 Highlights  Successful implementation of our IPO strategy  Achieved asset allocation, leverage and portfolio return targets  $1.66 per share dividend for 6 months – 16.6% yield from IPO  22.1% total return from $20.00 IPO share price  Capital deployment from January ’10 offering

  4. Slide 4: Performance

    Performance ($ in millions except per share) Q4 '09 Q3 '09 Total(1) Interest Income $ 12.6 $ 11.0 $ 23.6 Interest Expense 2.6 2.1 4.7 Net Interest Income 10.0 8.9 18.9 Other Income 2.1 - 2.1 Total Income 12.1 8.9 21.0 Management Fee 0.8 0.8 1.6 Other G&A 0.8 0.9 1.7 Total Expenses 1.6 1.7 3.3 Net In

  5. Slide 5: Selected Balance Sheet Data

    Selected Balance Sheet Data ($ in millions except per share) 12/31/09 09/30/09 Mortgage-Backed Securities $ 802.6 $ 881.9 Cash and Restricted Cash 38.5 14.8 Other Assets 12.3 9.4 Total Assets $ 853.4 $ 906.1 Repurchase Agreements $ 546.0 $ 615.0 TALF Financing 80.4 64.8 Other Liabilities 16.7 10.8 T

  6. Slide 6: Portfolio Summary

    Portfolio Summary ($ in millions) Equity Allocation as of 12/31/09 Other (1) Agency  Rebalanced portfolio to place 14% RMBS greater emphasis on non-agency PPIP 19% and CMBS 2% CMBS  Total investment portfolio and total 10% borrowings declined as overall leverage was reduced to 3.0x  CMBS balance

  7. Slide 7: Portfolio Yield and Financing

    Portfolio Yield and Financing Average Yield (1) 12/31/09 09/30/09 Agency RMBS: 15 year fixed-rate 3.80% 3.77%  Total portfolio yield 30 year fixed-rate 5.02% 4.46% increased 24 bps ARM 1.99% 2.34%  Total leverage declined to Hybrid ARM 3.55% 4.08% 3.0x Total Agency 4.07% 4.06% MBS – CMO 4.83% 4.23

  8. Slide 8: Agency RMBS

    Agency RMBS 30-Year Fixed Rate Collateral  Concentration in Higher Coupons  Primarily loan balance paper and seasoned pools  23 Constant Prepayment Rate (“CPR”) versus approximately 27 CPR for comparable generic collateral 15-Year Fixed Rate Collateral  Lower coupon and loan balance paper  15 C

  9. Slide 9: Non-agency RMBS and CMBS

    Non-agency RMBS and CMBS Non-agency RMBS  Book value appreciation of approximately 7.5%  Voluntary prepayment speeds have been faster than expected  3 Month CPR was 16  Continue to focus on senior or super-senior tranches  Credit performance remains within expectations CMBS  All positions are

  10. Slide 10: Summary

    Summary  Successfully executed our diversified asset strategy  Delivered 16.6% dividend yield from IPO and 22.1% total return in 2009 while deploying capital  Continue to see opportunities in a changing mortgage market  Tighter spreads but improved borrowing opportunities  Asset selection and d

  11. Slide 11: Questions and Answers

    Questions and Answers 2009 Fourth Quarter Earnings Call February 18, 2010

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