Invesco Mortgage Capital Stock Earnings Reports

Invesco Mortgage Capital reported a challenging Q1 2026 driven by higher interest rate volatility and geopolitical-driven inflation concerns. Book value fell 7.9% to $8.08 per share, producing an economic return of negative 3.2% for the quarter; earnings available for distribution were roughly flat sequentially at $0.55. Leverage (economic debt-to-equity) rose to 7.5 turns from 7.0, partly reflecting the decline in book value and a more constructive view of Agency RMBS entering Q2. The investment portfolio totaled $7.3 billion (5.2B Agency RMBS, 1.2B Agency TBA, 0.9B Agency CMBS) with $493.1 million of unrestricted cash and unencumbered investments. The company hedged ~96% of borrowing costs and reports stable repo financing and robust liquidity. Management raised ~ $134 million net via their ATM during the quarter, reduced preferred equity to ~20% of total equity, and moved from quarterly to monthly dividends to better align with income investors. Agency CMBS outperformed Agency RMBS during the quarter and remains a diversification tool; TBAs were increased to capture attractive dollar-roll financing and are being used structurally while specified pools remain preferred for durable returns. April saw some recovery (book value up ~2% since quarter end). Key risks include ongoing geopolitical tensions, inflation and rate volatility, and tighter swap spreads, while supportive supply/demand (GSEs, banks, offshore buyers, money managers) and ample liquidity are cited as mitigating factors.