Dynex Capital ( NYSE: DX ) on Monday posted earnings available for distribution of $0.03 per share for the last quarter of 2022 as the mortgage REIT faced headwinds of widening rate spreads as the Federal Reserve raised its key policy rate.
"We enter 2023 with a highly liquid balance sheet and are prepared to be opportunistic investors this year," said CEO Byron Boston.
Q4 earnings available for distribution were $0.03, trailing the average analyst estimate of $0.19 and declining from $0.24 in Q3. Dynex ( DX ) stock slipped 1.9% in Monday premarket trading.
Net interest income of $6.21M, exceeding the $5.46M consensus, fell from $7.12M in Q3 and from $14.1M in Q2 2021. Adjusted net interest income dropped to $11.7M from $23.4M in the prior quarter and from $25.1M in Q2 2022.
Q4 adjusted net interest spread of 0.07% vs. 1.12% in Q3.
Realized gains on interest rate hedges included in GAAP net income were $204.8M for Q4, up from $149.6M in the prior quarter.
Book value rose to $14.73 per share at Dec. 31, 2022 from $14.23 per share at Sept. 30.
Total economic return of $0.89 per share, or 6.2% of beginning book value. For the year, total economic loss was -$1.71 per share, or -9.5% of beginning book value.
The company raised equity capital of $92.4M during the quarter through at-the-market common stock issuances.
Cash and cash equivalents were $332.0M at Dec. 31, 2022 vs. $260.4M at Sept. 30.
Conference call at 10:00 AM ET.
Earlier, Dynex Capital ( DX ) non-GAAP EPS of $0.03 misses by $0.16, net interest income of $6.21M beats by $0.75M
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Dynex Capital Q4 earnings trail consensus as interest rate spread narrows