IVR - Invesco Mortgage's Performance For Q1 2024

2024-06-26 06:00:55 ET

Summary

• This earnings assessment article reviews IVR’s BV and core earnings/EAD performance during Q1 2024 and compares results to my expectations. Earnings remain a key driver of stock performance.
• IVR’s BV modestly outperformed my/our expectations (near top end of range; minor increase) while its core earnings/EAD was a modest-notable underperformance (modest decrease).
• IVR’s minor quarterly BV increase basically matched the company’s agency mREIT sub-sector peers, but its quarterly core earnings/EAD decline was more severe.

By Scott Kennedy; Produced with Colorado Wealth Management Fund

A modestly outperforming quarter regarding Invesco Mortgage’s ( IVR ) BV fluctuation, in my opinion. First, IVR slightly decreased the company’s on-balance sheet fixed-rate agency MBS portfolio. This included a modest decrease to the company’s agency residential MBS sub-portfolio, while starting a very small agency commercial MBS sub-portfolio. In comparison, I projected a minor portfolio increase. This resulted in some BV outperformance when compared to my expectations (lower portfolio size as MBS pricing decreased during the quarter)....

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