Invesco Mortgage Capital Inc · NYSE:IVR
Invesco Mortgage Capital — Q1 2025 Earnings Presentation
13 slides from Invesco Mortgage Capital's earnings presentation, May 8, 2025
Slide 1: Invesco Mortgage Capital Inc. First Quarter 2025 Earnings Call
Invesco Mortgage Capital Inc. First Quarter 2025 Earnings Call May 8, 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: Q1 2025 Results
Q1 2025 Results Financial Results Investment Allocation Q1 25 Q4 24 Net income (loss) per common share $0.26 $(0.09) Earnings available for distribution per Agency RMBS $0.64 $0.53 Non-Agency RMBS 83.7% common share1 0.1% $5.9 Common stock dividend per share $0.34 $0.40 billion Agency CMO Book value
Slide 4: Macro Environment
Macro Environment Interest rates declined across the yield curve and expectations for monetary policy adjusted lower as trade wars threatened the global economy, increasing the risk of a recession in the U.S. 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
Slide 5: Agency RMBS Market
Agency RMBS Market Valuations improved to start the year as interest rate volatility trended lower but deteriorated as trade policy uncertainty led to a broader selloff in risk assets Performance vs. Treasuries1 Specified Pool Pay-ups (basis points) ($200k max, in points) 150 $2.0 100 $1.5 50 $1.0 0
Slide 6: Agency RMBS Investments
Agency RMBS Investments • Agency RMBS investment portfolio increased 9.5% to $5.0 Coupon Allocation billion in Q1 2025 3/31/24 12/31/24 3/31/25 40% ◦ Invested proceeds from ATM issuances and sales into 30- year 5.0% to 6.5% coupons given more attractive 30% available returns and relative value ◦ Inc
Slide 7: Agency CMBS Investments
Agency CMBS Investments • Added $52 million of Fannie DUS in Q1 2025 Allocation • Agency CMBS benefits from: Freddie Multi PCs ◦ Guarantee of principal and interest from the 19% issuing agency or federally chartered corporation ◦ Lower sensitivity to interest rate volatility than $890 Agency RMBS gi
Slide 8: 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 - 1,480 0.54% $4.0 80% $3.0 70% 3 to 5 years - 375 0.3
Slide 9: Portfolio Update as of April 30
Portfolio Update as of April 30 Agency RMBS Coupon Allocation Portfolio Composition 12/31/24 3/31/25 4/30/25 40% QTD Investments % of Total Fair Value Change 30% Agency RMBS 81.0% $4,108 ($866) 20% Agency CMBS 17.6% $894 $3 Agency TBA 0.0% $0 $0 10% Agency CMO 1.4% $73 ($1) 0% Credit 0.0% $0 ($7) 4.
Slide 10: Capital Structure
Capital Structure Improved capital structure and reduced cost of capital by issuing common stock and repurchasing preferred stock As of March 31, 2025 As of December 31, 2024 As of March 31, 2024 Common Preferred Common Preferred Common Preferred Stock Stock Stock Stock Stock Stock NYSE Ticker IVR I
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 March 31, 2025 December 31, 2024 March 31, 2024 Net income (loss) attributable to common stockholders $ 16,289 $ (5,472) $ 23,730 Adjustments: (Gain) loss on investments, net (82,158) 187,714 66,153
Slide 13: Appendix - Definitions
Appendix - Definitions Agency CMO - Collateralized mortgage obligations created from Agency RMBS pools that divide cash flows into different tranches, where each tranche has a different priority for receiving principal and interest payments. All of our Agency CMOs are interest only securities, which
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