BETHESDA, Md., Oct. 23,
2023 /PRNewswire/ -- AGNC Investment Corp.
(Nasdaq: AGNC) ("AGNC" or the "Company") announced preliminary
estimates for certain financial measures for the third quarter
2023:
- As of September 30,
2023, AGNC's tangible net book value was estimated to be
$8.08 per share of common stock;
- For the third quarter 2023, AGNC's total comprehensive
loss was estimated to be $(1.02) per
common share;
- For the third quarter 2023, AGNC's net spread and dollar roll
income (a non-GAAP financial measure) was estimated to be
$0.65 per common share, excluding
$0.05 per common share of estimated
"catch-up" premium amortization benefit;1
- As of September 30, 2023, AGNC's
total investment portfolio was approximately $59.3 billion, which includes approximately
$2.4 billion of To-Be-Announced
("TBA") Agency MBS and $1.1 billion
of credit risk transfer and non-Agency securities;
- As of September 30, 2023, AGNC's
tangible net book value "at risk" leverage ratio was approximately
7.9x;2
- For the third quarter, AGNC's estimated economic return on
tangible common equity was (10.1)%, comprised of $0.36 dividends per share of common stock
declared during the third quarter and an estimated $(1.31) decrease in tangible net book value per
common share;
- As of September 30, 2023, AGNC
had approximately $3.6 billion of
cash and unencumbered Agency MBS, which represented approximately
52% of the Company's tangible equity as of September 30, 2023;
- As of September 30, 2023, AGNC's
hedge portfolio covered approximately 116% of the Company's funding
liabilities,3 and its duration gap4 was
approximately 0.2 years; and
- During the third quarter, the Company issued 44.7 million
shares of common stock through "at the market" offerings at an
average offering price of $9.67 per
share, net of offering costs, or $432
million.
In light of recent market volatility, the Company also provided
an update regarding its estimated tangible net book value per
common share and its "at risk" leverage ratio. The Company
estimated that its tangible net book value per common share as of
October 20, 2023 was between
$6.80 and $7.00 per common share, or between $6.68 and $6.88 per
common share after deduction for the Company's common dividend
previously declared for the month of October
2023, which has a record date of October 31, 2023 and payment date of November 9, 2023. The Company estimated that its
"at risk" leverage ratio as of October 20,
2023 was approximately 8.2x.2
The Company will report full financial results for the third
quarter of 2023 on October 30, 2023,
as previously announced. The financial estimates for the third
quarter provided above reflect the views and assumptions of the
Company's management based on information currently available to
them in connection with the preparation of the Company's financial
statements as of and for such period. 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. The
Company's tangible net book value per common share and "at risk"
leverage ratio as of October 20, 2023
reflect the views and assumptions of management based on
information currently available to them, including information
derived from third-party pricing services, which has not been
verified for completeness or accuracy. Furthermore, the financial
estimates presented above are unaudited and have 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 2023 earnings after market close on
October 30, 2023. AGNC will hold a
stockholder call and audio webcast on October 31, 2023 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 31, 2023. In
addition, there will be a phone recording available one hour after
the call on October 31, 2023 through
November 7, 2023. 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 2598892.
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.
- 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
$1.02 per common share adjusted to
(a) exclude estimated net unrealized losses on investment
securities measured at fair value through net income and other
comprehensive income totaling $2.52
per common share, (b) exclude estimated net realized losses on sale
of investment securities of $0.86 per
common share, (c) exclude estimated net gains on derivative
instruments and other securities of $2.53 per common share, (d)
exclude estimated 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 2023
of a benefit of approximately $0.05 per common share, (e) include
estimated TBA dollar roll income of less than $0.01 per common
share, (f) include estimated interest rate swap net periodic income
of $0.94 per common share and (g) include estimated other net
interest expense of $0.07 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, 2023. 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,
2023.
- "At risk" leverage is calculated as the sum of Agency,
non-Agency, and CRT repurchase agreements ("Agency Repo"), 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.