Invesco Mortgage Capital : Q2 2025 Invesco Mortgage Capital Inc. Earnings Conference Call

About this update from Invesco Mortgage Capital Inc

Invesco Mortgage Capital Inc. Second Quarter 2025 Earnings Call July 25, 2025 John Anzalone Chief Executive Officer Kevin Collins President Mark Gregson Chief Financial Officer David Lyle Chief Operating Officer Brian Norris Chief Investment Officer Q2 2025 Results Financial Results Investment Allocation Q2 25 Q1 25 Net income (loss) per common share ($0.40) $0.26 Earnings available for distribution per common share 1 $0.58 Common stock dividend per share $0.34 Book value per common share 2 $8.05 Economic return 2 (4.8%) Debt-to-equity ratio 6.5x Agency RMBS $0.64 81.4% $5.2 $0.34 Agency CMO billion $8.81 1.4% 2.6% Agency CMBS 7.1x 17.2% Company Activity Issued $2.2 million of common stock under the at-the-market program Repurchased Series C Preferred Stock with a carrying value of $2.3 million Held $362 million of unrestricted cash and unencumbered investments at quarter end Earnings available for distribution is a non-GAAP financial measure. Refer to Appendix for additional information Refer to Appendix for additional information Past performance is not a guarantee of future results Macro Environment The yield curve steepened in the second quarter as futures markets priced in additional cuts to the Fed Funds target rate, reflecting expectations of slower economic growth driven by trade policy concerns Treasury Yields Money Market Rates 5.0% 4.5% 4.0% 3.5% 5.7% 5.3% 4.9% 4.5% 3.0% 0 yr 5 yr 10 yr 15 yr 20 yr 25 yr 30 yr 6/30/2024 3/31/2025 6/30/2025 4.1% 6/24 8/24 10/24 12/24 2/25 4/25 6/25 Agency MBS Repo 1 Month SOFR 3 Month SOFR Federal Funds Futures 4.5% Agency MBS Holdings (in trillions) $2.8 4.0% $2.6 3.5% $2.4 3.0% $2.2 2.5% 6/25 12/25 6/26 12/26 6/27 12/27 6/30/2024 3/31/2025 6/30/2025 Current $2.0 6/24 8/24 10/24 12/24 2/25 4/25 6/25 Fed MBS Holdings US Bank MBS Holdings Agency RMBS Market Valuations declined in April as trade policy changes unsettled financial markets but rebounded notably by quarter end, supported by a downward trend in interest rate volatility in May and June Performance vs. Treasuries 1 (basis points) 150 100 50 0 -50 -100 6/24 8/24 10/24 12/24 2/25 4/25 6/25 Spread to Treasuries 2 (basis points) 150 135 120 105 90 6/24 8/24 10/24 12/24 2/25 4/25 6/25 30 year current coupon hedged performance vs. Treasuries 30 year current coupon zero volatility spread to Treasuries Specified Pool Pay-ups ($200k max, in points) $2.0 $1.5 $1.0 $0.5 $0.0 6/24 8/24 10/24 12/24 2/25 4/25 6/25 FN 5.0% FN 5.5% FN 6.0% FN 6.5% Dollar Roll Implied Financing Rate 6.5% 5.5% 4.5% 3.5% 2.5% 6/24 8/24 10/24 12/24 2/25 4/25 6/25 FN 5.0% FN 5.5% FN 6.0% FN 6.5% 1M SOFR Attention : This is an excerpt of the original content. To continue reading it, access the original document here .

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