IVR - Invesco Mortgage cuts dividend; says portfolio stands at $4.9B cash at $609M

Invesco Mortgage Capital ( NYSE: IVR ) stock slipped 1.3% in Wednesday after-hours trading after the mortgage REIT cut its dividend amid market volatility and provided a business update.

"Despite continued strength in earnings available for distribution, reducing the cash dividend for the third quarter allows the company to retain additional capital and further improve its capital structure," the company said in a statement.

In a portfolio and liquidity update, the company said its total investment portfolio as of Aug. 31, 2022 is $4.9B, including $4.7B of agency RMBS and $145M of to-be-announced securities forward contracts. total portfolio as of June 30, 2022 was $4.3B, including $4.2B of agency RMBS.

The majority of the company's agency RMBS portfolio was invested in 4.0%, 4.5%, and 5.0% coupon investments as of Aug. 31, 2022, the company said.

It has unrestricted cash and unencumbered investments totaling ~$609M at the end of August vs. $677.1M at June 30.

81% of $4.2B repurchase agreement borrowings are hedged with a net $3.4B notional pay fixed/receive floating interest rate swaps.

Debt-to-equity ratio is estimated to be 4.7x vs. 3.4x at June 30.

Its book value is estimated to be $15.59-$16.23 per share as of Aug. 31 vs. $16.16 at June 30.

Invesco Mortgage Capital's ( IVR ) board cut its quarterly cash dividend of by 28% to $0.65 per common share .

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