Real estate investment trust (REIT) Invesco Mortgage Capital (IVR) posted a $13.2m net Q110 income, compared with $10.5m in the previous quarter. A $4.4m increase in net interest income on higher average earning assets drove the increase from last quarter. Invesco attributed the higher earning assets to the stock offering completed in January. “During the first quarter of 2010, we completed a successful follow-on common stock offering, deployed the capital consistent with the plan we outlined for investors and delivered strong earnings for our shareholders,” said CEO Richard King in a press statement. “We believe this demonstrates the strength of our investment team and highlights the benefits of the hybrid mortgage REIT model.” Average earning assets rose to $1.2bn from $861.9m in Q409. At the same time, operating expenses rose to $2.2m from $1.6m. Average portfolio yield increased modestly to 5.88% from 5.82%. Earning per share, however decreased to $0.77 per share in Q110 from $1.02 per share in Q409. A $1.3m lower gain on sale of securities pushed down earnings per share, Invesco said. In February, Fannie Mae (FNM) and Freddie Mac (FRE) increased the buyouts of delinquent mortgages from certain residential mortgage-backed securities (RMBS). For RMBS purchased at a premium, the effect would be to accelerate the amount of premium amortization and thereby reducing interest income, Invesco said. In Q409, Invesco anticipated the increased buyouts and sold a portion of agency RMBS it believed to be at risk. As a result, the company estimates the increased buyouts reduced interest income by less than $1m and expects a similar impact for Q210. Write to Diana Golobay. Disclosure: the author holds no relevant investments.
Diana Golobay was a reporter with HousingWire through mid-2010, providing wide-ranging coverage of the U.S. financial crisis. She has since moved onto other roles as a writer and editor.see full bio
Most Popular Articles
Latest Articles
Test
The story for the housing market over the past three years has been, “Home sales are down, home prices are up.” Because inventory was so restricted after the pandemic, prices pushed higher even as demand weakened. That story may finally be inverting as unsold inventory of homes is now great enough that home prices are […]
-
Freddie Mac’s Donna Spencer on their Servicing Excellence initiative
-
Lower mortgage rates attracting more homebuyers
-
Rocket Pro TPO raises conforming loan limit to $802,650 ahead of FHFA’s decision
-
Show up, don’t show off: Laura O’Connor is redefining success in real estate
-
Between the lines: Understanding the nuances of the NAR settlement
Diana Golobay was a reporter with HousingWire through mid-2010, providing wide-ranging coverage of the U.S. financial crisis. She has since moved onto other roles as a writer and editor.see full bio