Invesco Mortgage Capital Inc. February 2026 Dividend Announcement and January 31, 2026 Financial Update
MWN-AI** Summary
Invesco Mortgage Capital Inc. (NYSE: IVR) announced a cash dividend of $0.12 per share for February 2026, payable on March 13, 2026, to stockholders of record by February 24, 2026. This declaration reflects the company’s ongoing commitment to returning capital to shareholders amid fluctuating market conditions.
As of January 31, 2026, Invesco reported a total investment portfolio of $7.1 billion, which includes $510.7 million in unrestricted cash and unencumbered investments. The company holds $5.4 billion in repurchase agreement borrowings, resulting in a debt-to-equity ratio of 6.1x and an economic debt-to-equity ratio of 7.1x. The estimated book value per common share was noted at $8.91, calculated after accounting for the liquidation preference of the Series C Preferred Stock.
The portfolio is primarily invested in agency mortgage-backed securities (MBS), with a weighted average yield of approximately 5.34%. As of January 31, the portfolio composition included various types of securities such as 30-year fixed-rate agency RMBS, highlighting its focus on stable yield generation. The company’s approach to leverage includes managing interest rate swaps to balance its exposure and cost of funds effectively.
Invesco Mortgage Capital is externally managed by Invesco Advisers, Inc. and primarily focuses on investing in and managing mortgage-related assets. Their financial updates provide a snapshot of the company’s operating health and market positioning, crucial for current and prospective investors assessing performance and strategic direction.
However, Invesco cautioned that the reported figures are preliminary and unaudited, emphasizing the importance of not over-relying on these estimates for future performance projections.
MWN-AI** Analysis
Invesco Mortgage Capital Inc. (NYSE: IVR) recently announced a cash dividend of $0.12 per share for February 2026, a critical indicator of the firm's ongoing value proposition for investors. This dividend, payable on March 13, suggests the company remains committed to returning capital to shareholders despite the volatile economic landscape.
As of January 31, 2026, Invesco reported an investment portfolio valued at $7.1 billion, primarily comprising Agency RMBS, underscoring the firm's focus on mortgage-backed securities. A total of $510.7 million remains in unrestricted cash and unencumbered investments, offering a healthy liquidity buffer in a potentially rising interest rate environment. The reported debt-to-equity ratio of 6.1x and an economic debt-to-equity ratio of 7.1x reflect a leveraged strategy, which can amplify both risks and returns.
The weighted average yield of the Company's investments in Agency RMBS stands at 5.34%, relatively attractive in the current market. However, investors should closely monitor the implications of the Federal Reserve's monetary policy as interest rate fluctuations can significantly affect mortgage-backed securities.
Moreover, the preliminary figures from the company indicate a book value per common share of $8.91, representing a solid net worth per stockholder. This metric is essential for potential investors as it implies a cushion against market volatility.
In conclusion, while Invesco's dividends and book value present a stable investment picture, the high leverage ratios warrant cautious evaluation. Prospective investors should assess their risk tolerance and consider macroeconomic factors, particularly interest rate trends, when evaluating this investment opportunity. Keeping abreast of further updates and hedging strategies, especially in interest rates, will be crucial for anyone invested in mortgage REITs like Invesco.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
ATLANTA, Feb. 13, 2026 /PRNewswire/ -- Invesco Mortgage Capital Inc. (NYSE: IVR) (the "Company") today announced that the Company declared a cash dividend of $0.12 per share of common stock for the month of February 2026. The dividend will be paid on March 13, 2026 to stockholders of record at the close of business on February 24, 2026, with an ex-dividend date of February 24, 2026.
Financial Highlights as of January 31, 2026
- Total investment portfolio including TBAs of $7.1 billion
- Unrestricted cash and unencumbered investments of $510.7 million
- Total repurchase agreement borrowings of $5.4 billion
- Estimated book value per common share(1) of $8.91
- Debt-to-equity ratio of 6.1x and economic debt-to-equity ratio(2) of 7.1x
(1) Estimated book value per common share as of January 31, 2026 is calculated as total stockholders' equity less the liquidation preference of the Company's Series C Preferred Stock ($170.5 million), divided by total common shares outstanding of 80.7 million. |
(2) Economic debt-to-equity ratio is a non-GAAP financial measure and is calculated as the ratio of total repurchase agreements and TBAs at implied cost basis ($963.7 million as of January 31, 2026) to total stockholders' equity. Refer to the section titled 'Economic Debt-to-Equity Ratio' below for additional information. |
The Company is providing certain preliminary, unaudited month-end financial data as of January 31, 2026 including updates on the Company's book value, portfolio activity, leverage and liquidity. The information in this press release has been prepared by, and is the responsibility of, the Company's management. The Company's independent auditors have not audited, reviewed, examined, compiled nor applied agreed-upon procedures with respect to this information and, accordingly, they do not express an opinion or provide any form of assurance on the figures presented.
The preliminary metrics and estimates included in this press release are based on information that the Company believes to be reliable as of today's date and reflect management's judgment at this stage of the month-end closing process. This month-end update should not be viewed as a substitute for financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP") and is not necessarily indicative of results to be achieved in any future period. Additional items may be identified as part of the ongoing month-end and quarter-end closing processes, and such items could result in material revisions to the data presented in this press release. Accordingly, readers should not place undue reliance on the preliminary figures contained in this press release. The Company undertakes no obligation to update or revise the information contained herein, whether as a result of new information, subsequent events, or otherwise.
Portfolio Composition
The following table summarizes certain characteristics of the Company's investment portfolio as of January 31, 2026.
As of January 31, 2026 | |||||||
$ in thousands | Fair Value | Percentage | Period-end | ||||
Agency RMBS: | |||||||
30 year fixed-rate pass-through coupon: | |||||||
4.5 % | 781,889 | 11.0 % | 4.89 % | ||||
5.0 % | 1,477,148 | 20.8 % | 5.20 % | ||||
5.5 % | 1,640,590 | 23.2 % | 5.50 % | ||||
6.0 % | 1,256,630 | 17.7 % | 5.93 % | ||||
Total 30 year fixed-rate pass-through | 5,156,257 | 72.7 % | 5.43 % | ||||
Agency CMO | 68,548 | 1.0 % | 8.88 % | ||||
Agency CMBS | 900,253 | 12.7 % | 4.62 % | ||||
Total MBS portfolio | 6,125,058 | 86.4 % | 5.34 % | ||||
TBAs, at implied market value(1) | 963,739 | 13.6 % | |||||
Total investment portfolio including TBAs | 7,088,797 | 100.0 % |
(1) The presentation of TBAs in the table above represents management's view of the investment portfolio and does not reflect how the Company records TBAs on its balance sheet under U.S. GAAP. Under U.S. GAAP, the Company records TBAs that it does not intend to physically settle on the contractual settlement date as derivative financial instruments. The Company values TBAs on its balance sheet at net carrying value, which represents the difference between implied fair market value and implied cost basis of the TBAs. |
The following table summarizes certain characteristics of the Company's borrowings as of January 31, 2026.
$ in thousands | As of January 31, 2026 | |||||
Amount | Weighted Average | Weighted Average | ||||
Repurchase agreements - Agency MBS | 5,404,619 | 3.83 % | 23 |
The following table summarizes certain characteristics of the Company's interest rate swaps whereby the Company pays fixed interest rates and receives floating interest rates based upon the secured overnight financing rate as of January 31, 2026.
$ in thousands | As of January 31, 2026 | |||||||
Maturities | Notional Amount | Weighted | Weighted | Weighted | ||||
Less than 3 years | 1,575,000 | 0.70 % | 3.68 % | 1.6 | ||||
3 to 5 years | 1,150,000 | 1.05 % | 3.68 % | 4.2 | ||||
5 to 7 years | 335,000 | 3.63 % | 3.68 % | 7.0 | ||||
7 to 10 years | 755,000 | 3.92 % | 3.68 % | 8.8 | ||||
Greater than 10 years | 410,000 | 1.83 % | 3.68 % | 17.8 | ||||
Total | 4,225,000 | 1.71 % | 3.68 % | 5.6 |
The following table summarizes certain characteristics of the Company's U.S. Treasury futures contracts as of January 31, 2026.
As of January 31, 2026 | ||
$ in thousands | Notional Amount - Short | |
10 year U.S. Treasury futures | 420,000 | |
Ultra 10 year U.S. Treasury futures | 205,000 | |
30 year U.S. Treasury futures | 375,000 | |
Total | 1,000,000 |
Economic Debt-to-Equity Ratio
The Company presents an economic debt-to-equity ratio, a non-GAAP financial measure of leverage that considers the impact of the off-balance sheet financing of its investments in TBAs that are accounted for as derivative instruments under U.S. GAAP. The Company includes these types of TBAs at implied cost basis in its measure of leverage because a forward contract to acquire Agency RMBS in the TBA market carries similar risks to Agency RMBS purchased in the cash market and funded with on-balance sheet liabilities. Similarly, a contract for the forward sale of Agency RMBS has substantially the same effect as selling the underlying Agency RMBS and reducing the Company's on-balance sheet funding commitments. The Company believes that presenting its economic debt-to-equity ratio, when considered together with its U.S. GAAP financial measure of debt-to-equity ratio, provides information that is useful to investors in understanding how management evaluates at-risk leverage and gives investors a comparable statistic to those of other mortgage real estate investment trusts who also invest in TBAs and present a similar non-GAAP measure of leverage.
About Invesco Mortgage Capital Inc.
The Company is a real estate investment trust that primarily focuses on investing in, financing and managing mortgage-backed securities and other mortgage-related assets. The Company is externally managed and advised by Invesco Advisers, Inc., a registered investment adviser and an indirect wholly-owned subsidiary of Invesco Ltd., a leading independent global investment management firm.
Cautionary Notice Regarding Forward-Looking Statements
This press release may include statements and information that constitute "forward-looking statements" within the meaning of the U.S. securities laws as defined in the Private Securities Litigation Reform Act of 1995, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements include our views on the risk positioning of our portfolio, domestic and global market conditions (including the Agency RMBS, Agency CMBS and residential and commercial real estate markets), the market for our target assets, our financial performance, including our earnings available for distribution, economic return, comprehensive income and changes in our book value, our intention and ability to pay dividends, our ability to continue performance trends, the stability of portfolio yields, interest rates, spreads, prepayment trends, financing sources, cost of funds, our leverage, liquidity, capital structure and equity allocation. In addition, words such as "believes," "expects," "anticipates," "intends," "plans," "estimates," "projects," "forecasts," and future or conditional verbs such as "will," "may," "could," "should," and "would" as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements.
Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. There can be no assurance that actual results will not differ materially from our expectations. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks identified under the captions "Risk Factors," "Forward-Looking Statements" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our annual report on Form 10-K and quarterly reports on Form 10-Q, which are available on the Securities and Exchange Commission's website at www.sec.gov.
All written or oral forward-looking statements that we make, or that are attributable to us, are expressly qualified by this cautionary notice. We expressly disclaim any obligation to update the information in any public disclosure if any forward-looking statement later turns out to be inaccurate.
Greg Seals,
Investor Relations
404-439-3323
SOURCE Invesco Mortgage Capital Inc.
FAQ**
How does the announced cash dividend of $0.per share for February 2026 reflect the financial health of INVESCO MORTGAGE CAPITAL INC IVR, particularly in light of the January 32026 financial update?
What factors contributed to the estimated book value per common share of $8.91 for INVESCO MORTGAGE CAPITAL INC IVR, and how does this ratio correlate with the company’s dividend payout strategy?
Considering the total repurchase agreement borrowings of $5.4 billion, how does INVESCO MORTGAGE CAPITAL INC IVR plan to manage its leverage going forward, especially with a debt-to-equity ratio of 6.1x reported as of January 31, 2026?
With the investment portfolio valued at $7.1 billion, what specific sectors within this portfolio does INVESCO MORTGAGE CAPITAL INC IVR see as having the most growth potential in the current market conditions, as outlined in the February 2026 announcement?
**MWN-AI FAQ is based on asking OpenAI questions about INVESCO MORTGAGE CAPITAL INC (NYSE: IVR).
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