Two Harbors Investment Corp. Announces Preliminary Financial Results for Fourth Quarter 2022
20 Januar 2023 - 12:11AM
Business Wire
Two Harbors Investment Corp. (NYSE: TWO), an
Agency + MSR mortgage real estate investment trust, today announced
preliminary estimated financial results for the quarter ended
December 31, 2022.
Quarterly Estimates(1)
- Book value per common share was estimated to be between $17.70
and $17.74 per common share as of December 31, 2022, after
deducting for fourth quarter 2022 common and preferred dividends
declared.
- Comprehensive Income was estimated to be between $1.83 and
$1.87 per weighted average basic common share.
- Earnings Available for Distribution was estimated to be between
$0.25 and $0.27 per weighted average basic common share.(2)
- GAAP debt-to-equity was estimated to be 4.4x and economic
debt-to-equity was estimated to be 6.3x as of December 31,
2022.(3)
- Estimate quarter-to-date book value increase of approximately
3% through January 18, 2023.
These preliminary estimated financial results for the fourth
quarter of 2022 are unaudited and subject to change as the
company’s quarter end closing process is completed. While the
company believes the estimates are based on reasonable assumptions,
actual results may vary and such variations may be material.
Factors that could cause actual results to differ from estimates
include, but are not limited to: (i) adjustments in the calculation
of, or application of accounting principles for, the financial
results for the quarter ended December 31, 2022; (ii) the discovery
of new information that impacts the valuation methodologies
underlying these results; (iii) errors in the assessment of
portfolio value; and (iv) accounting changes required by GAAP. The
company undertakes no obligation to update or revise these
estimates, and investors should not place undue reliance on these
estimates because they may prove to be materially inaccurate.
Fourth quarter actual results remain subject to the review by the
company’s independent auditors.
As previously disclosed, the company will report full fourth
quarter financial results on February 8, 2023 and will host a
conference call on February 9, 2023 at 9:00 a.m. ET. The conference
call will be webcast live and accessible in the Investors section
of the company’s website at www.twoharborsinvestment.com/investors.
To participate in the teleconference, please call toll-free (877)
502-7185 approximately 10 minutes prior to the above start time.
For those unable to attend, a telephone playback will be available
beginning February 9, 2023 at 12:00 p.m. ET through February 23,
2023 at 12:00 p.m. ET. The playback can be accessed by calling
(877) 660-6853 and providing the Conference Code 13734900. The call
will also be archived on the company’s website in the News &
Events section.
_________________
(1)
On November 1, 2022, the company completed
its previously announced one-for-four reverse stock split of its
outstanding shares of common stock. In accordance with generally
accepted accounting principles, all common share and per common
share amounts presented herein have been adjusted on a retroactive
basis to reflect the reverse stock split.
(2)
Earnings Available for Distribution, or
EAD, is a non-GAAP measure defined as comprehensive loss
attributable to common stockholders, excluding realized and
unrealized gains and losses on the aggregate portfolio, provision
for (reversal of) credit losses, reserve expense for representation
and warranty obligations on MSR, non-cash compensation expense
related to restricted common stock and other nonrecurring expenses.
As defined, EAD includes net interest income, accrual and
settlement of interest on derivatives, dollar roll income on TBAs,
U.S. Treasury futures income, servicing income, net of estimated
amortization on MSR and recurring cash related operating expenses.
EAD provides supplemental information to assist investors in
analyzing the company’s results of operations and helps facilitate
comparisons to industry peers. EAD is one of several measures the
company’s board of directors considers to determine the amount of
dividends to declare on the company’s common stock and should not
be considered an indication of taxable income or as a proxy for the
amount of dividends the company may declare.
(3)
Defined as total borrowings to fund RMBS,
MSR and Agency Derivatives, plus the implied debt on net TBA cost
basis and net payable (receivable) for unsettled RMBS, divided by
total equity. Effective as of December 31, 2022, net payable
(receivable) on unsettled RMBS is now included in the calculation
for economic debt-to-equity.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. Actual results
may differ from expectations, estimates and projections and,
consequently, readers should not rely on these forward-looking
statements as predictions of future events. Words such as “expect,”
“target,” “assume,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,”
“believe,” “predicts,” “potential,” “continue,” and similar
expressions are intended to identify such forward-looking
statements. These forward-looking statements involve significant
risks and uncertainties that could cause actual results to differ
materially from expected results.
Readers are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made.
Two Harbors does not undertake or accept any obligation to release
publicly any updates or revisions to any forward-looking statement
to reflect any change in its expectations or any change in events,
conditions or circumstances on which any such statement is based.
Additional information concerning these and other risk factors is
contained in the company’s most recent filings with the Securities
and Exchange Commission. All subsequent written and oral
forward-looking statements concerning the company or matters
attributable to the company or any person.
Two Harbors Investment Corp.
Two Harbors Investment Corp., a Maryland corporation, is a real
estate investment trust that invests in residential mortgage-backed
securities, mortgage servicing rights and other financial assets.
Two Harbors is headquartered in St. Louis Park, MN.
Additional Information
Stockholders of Two Harbors and other interested persons may
find additional information regarding the company at
www.twoharborsinvestment.com, at the Securities and Exchange
Commission’s Internet site at www.sec.gov or by directing requests
to: Two Harbors Investment Corp., 1601 Utica Avenue South, Suite
900, St. Louis Park, MN 55416, telephone (612) 453-4100.
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version on businesswire.com: https://www.businesswire.com/news/home/20230119005929/en/
Margaret Karr, Head of Investor Relations, Two Harbors
Investment Corp., (612) 453-4080,
Margaret.Karr@twoharborsinvestment.com
Two Harbors Investment (NYSE:TWO)
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