Invesco Mortgage Capital (IVR) investor relations material

Executive summary

• Economic return for Q2 2026 was 3.8%, with book value per share at $8.03 and net income per share of $0.34.

• Portfolio grew 12.4% to $8.2 billion, mainly through Agency RMBS specified pool purchases.

• $118 million in common equity was raised in Q2, increasing total common equity to $821.8 million.

• Maintained a sizable liquidity buffer with $548.3 million in unrestricted cash and unencumbered investments.

• Focused on disciplined investment management, prudent risk-taking, and attractive risk-adjusted returns.

Financial highlights

• Net income attributable to common stockholders was $31.8 million, or $0.34 per share, reversing a Q1 loss.

• Earnings available for distribution were $47.1 million, or $0.50 per share, down from $0.55 in Q1.

• Dividend yield stood at 18.2% as of quarter-end, with $0.36 per share declared.

• Economic debt-to-equity ratio was 7.5x; leverage at 9x debt-to-common equity.

• Effective interest rate margin was 2.82%, down from 3.05% in Q1 2026.

Outlook and guidance

• Management remains constructive on Agency RMBS and CMBS, citing favorable valuations and moderating volatility.

• Portfolio positioned to benefit from higher coupon Agency RMBS as pay-ups declined.

• Dynamic hedging and flexible capital structure to manage interest rate risk and pursue opportunities.

• Dividend policy evaluated quarterly, aiming for coverage by long-term earnings power.