Dynex Capital (DX) investor relations material

Executive summary

• Delivered differentiated, top-tier performance and industry-leading shareholder returns amid volatile markets, leveraging disciplined risk management and strategic asset selection.

• Portfolio is primarily composed of high-quality, liquid Agency RMBS, with a fair value of $23.4B–$24.8B as of March 31, 2026.

• Book value per common share was $12.60 as of March 31, 2026, with a total economic return of -2.5%.

• Capital base grew by $442 million–$447 million in the quarter, supporting $6 billion in net new investments.

• Maintained high liquidity and a strong balance sheet, supporting resilience and flexibility in volatile markets.

Financial highlights

• Book value per share ended the quarter at $12.60, down from $13.45 at year-end.

• Net interest income rose to $79.3 million ($0.40 per share), up from $43.5 million prior quarter.

• Economic net interest income (non-GAAP) was $81.0 million, with a net interest spread of 1.15%.

• Liquidity stood at $1.3 billion, representing over 46% of total equity.

• Leverage increased to 8.6x total equity, with repurchase agreement borrowings rising to $21 billion.

Outlook and guidance

• Expects Fed policy to shift toward lower rates, supporting mortgage repo funding and liquidity.

• Management anticipates tighter mortgage spreads and healthy long-term returns for Agency MBS.

• Expenses expected to normalize in Q2, with full-year expense ratio flat or modestly lower.

• No material changes in risk factors or critical accounting estimates anticipated for the remainder of 2026.

• Portfolio positioned to benefit from potential spread tightening and GSE support for MBS.