BETHESDA, Md., Oct. 10,
2022 /PRNewswire/ -- AGNC Investment Corp. (Nasdaq:
AGNC) ("AGNC" or the "Company") announced today that its Board of
Directors has declared a cash dividend of $0.12 per share of common stock for October 2022. The dividend is payable on
November 9, 2022 to common
stockholders of record as of October
31, 2022.
In light of recent market volatility, the Company also announced
preliminary estimates for certain financial measures for the third
quarter 2022:
- As of September 30, 2022, AGNC's
tangible net book value per common share was estimated to be
between $9.06 and $9.10 per share, after deductions for common and
preferred stock dividends declared through September 30, 2022.
- For the quarter ended September 30,
2022, AGNC's comprehensive loss per common share was
estimated to be between $1.99 and
$2.03 per share.
- For the quarter ended September 30,
2022, AGNC's net spread and dollar roll income (a non-GAAP
financial measure) was estimated to be between $0.82 and $0.86 per
common share, excluding approximately $0.03 per common share of estimated "catch-up"
premium amortization benefit.1
- As of September 30, 2022, AGNC
had approximately $3.6 billion of
cash and unencumbered Agency MBS, which includes approximately
$0.8 billion at the Company's captive
broker-dealer Bethesda Securities and excludes unencumbered CRT and
non-Agency securities. Cash and unencumbered Agency MBS represented
approximately 54% of the Company's tangible equity as of
September 30, 2022, largely unchanged
from June 30, 2022.
- For the quarter ended September 30,
2022, AGNC's average "at risk" leverage was approximately
8.1x. As of September 30, 2022, the
Company's "at risk" leverage was approximately
8.7x.2
- As of September 30, 2022, AGNC's
total investment portfolio was approximately $61.5 billion, which includes approximately
$17.9 billion of To-Be-Announced
("TBA") Agency MBS and approximately $1.7
billion of credit risk transfer and non-Agency
securities.
- As of September 30, 2022, AGNC's
hedge portfolio covered approximately 118% of the Company's funding
liabilities,3 and its duration
gap4 was approximately one year.
The Company will report full financial results for the third
quarter of 2022 on October 24, 2022,
as previously announced. The financial estimates provided above
reflect the views and assumptions of Company management based on
information currently available to them in connection with the
preparation of the Company's financial statements as of and for the
quarter ended September 30, 2022.
Management has not yet completed procedures to verify the
completeness and accuracy of this information, which could result
in material adjustments when reflected in the Company's actual
reported financial results. Furthermore, this information is
unaudited and has not been verified or reviewed by any third party,
including the Company's independent auditors. Estimates are
subject to inherent uncertainties, and investors should not place
undue reliance on them. The Company undertakes no obligation
to update or revise these estimates.
THIRD QUARTER STOCKHOLDER CALL AND WEBCAST
AGNC will report third quarter 2022 earnings after market close
on October 24, 2022. AGNC will hold a
stockholder call and audio webcast on October 25, 2022 at 8:30
am ET. Interested persons who do not plan on asking a
question and have internet access are encouraged to utilize the
free webcast at www.AGNC.com. Those who plan on participating in
the Q&A or do not have internet available may access the call
by dialing (877) 300-5922 (U.S. domestic) or (412) 902-6621
(international). A slide presentation will accompany the call and
will be available at www.AGNC.com.
An archived audio of the stockholder call combined with the
slide presentation will be available on the AGNC website after the
call on October 25, 2022. In
addition, there will be a phone recording available one hour after
the call on October 25, 2022 through
November 1, 2022. Those who are
interested in hearing the recording of the presentation, can access
it by dialing (877) 344-7529 (U.S. domestic) or (412) 317-0088
(international), passcode 8033374.
For further information or questions, please contact Investor
Relations at (301) 968-9300 or IR@AGNC.com.
ABOUT AGNC INVESTMENT CORP.
AGNC Investment Corp. is an internally-managed real estate
investment trust that invests primarily in residential
mortgage-backed securities for which the principal and interest
payments are guaranteed by a U.S. Government-sponsored enterprise
or a U.S. Government agency. For further information, please refer
to www.AGNC.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act.
Forward-looking statements are based on estimates, projections,
beliefs and assumptions of management of the Company at the time of
such statements and are not guarantees of future performance.
Forward-looking statements involve risks and uncertainties in
predicting future results and conditions. Actual results could
differ materially from those projected in these forward-looking
statements or from our historic performance due to a variety of
important factors, including, without limitation, changes in
monetary policy and other factors that affect interest rates, MBS
spreads to benchmark interest rates, the forward yield curve, or
prepayment rates; the availability and terms of financing; changes
in the market value of the Company's assets; general economic or
geopolitical conditions; liquidity and other conditions in
the market for Agency securities and other financial markets; and
legislative and regulatory changes that could adversely affect the
business of the Company. Certain factors that could cause actual
results to differ materially from those contained in the
forward-looking statements, are included in the Company's periodic
reports filed with the Securities and Exchange
Commission ("SEC"). Copies are available on the SEC's website,
www.sec.gov. The Company disclaims any obligation to update or
revise any forward-looking statements based on the occurrence of
future events, the receipt of new information, or otherwise.
- Projected net spread and dollar roll income, excluding
"catch-up" premium amortization benefit, per common share is a
non-GAAP measure. It is measured as estimated (i) total
comprehensive loss of approximately $1.99 to $2.03 per
common share adjusted to (a) exclude net unrealized losses on
investment securities measured at fair value through net income and
other comprehensive income totaling approximately $4.00 per common share, (b) exclude net realized
losses on sale of investment securities of approximately
$1.06 per common share, (c) exclude
net gains on derivative instruments and other securities of
approximately $2.80 per common share, (d) exclude retrospective
"catch-up" adjustments to premium amortization cost due to a
decrease in the Company's projected CPR estimates for securities
acquired prior to the third quarter 2022 of a benefit of
approximately $0.03 per common share, (e) include TBA dollar roll
income of approximately $0.22 per common share, and (f) include
interest rate swap net periodic income of approximately $0.40 per
common share. The Company believes that this non-GAAP measure
provides greater transparency into the information used by the
Company's management in its financial and operational
decision-making and that it provides additional context for users
of its financial information to consider when evaluating the
Company's current performance and operations. However, this measure
is an incomplete measure of its estimated financial results as
computed in accordance with GAAP and should be considered as
supplementary to and not as a substitute for results computed in
accordance with GAAP. In addition, not all companies use identical
calculations, and the Company's presentation of non-GAAP measure
estimates may not be comparable to other similarly-named measures
of other companies. Accordingly, undue reliance should not be
placed on this non-GAAP measure. A more complete presentation and
reconciliation of non-GAAP measures and related information will be
provided in the Company's announcement of its financial results and
its periodic report to be filed with the SEC for the quarter ended
September 30, 2022. For additional information pertaining to the
Company's use of non-GAAP measures, please refer to its most recent
Quarterly Report on Form 10-Q for the quarter ended June 30,
2022.
- "At risk" leverage is calculated as the sum of Agency and
non-Agency repurchase agreements, net TBA position (at cost), and
net receivable/payable for unsettled investment securities divided
by total stockholders' equity, adjusted to exclude goodwill.
Leverage excludes U.S. Treasury repurchase agreements.
- The Company's funding liabilities include Agency repo, other
debt and net TBA position.
- Duration is a model estimate of interest rate sensitivity
measured in years as of a point in time. Duration gap is a measure
of the difference between the interest rate sensitivity of the
Company's assets and liabilities.
CONTACT:
Investor Relations - (301) 968-9300
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SOURCE AGNC Investment Corp.