Dynex Capital (DX) Registration Filing summary

Company overview and business model

• Internally managed mortgage REIT investing in residential and commercial mortgage-backed securities (MBS), primarily financed with repurchase agreements.

• Seeks attractive risk-adjusted returns through a leveraged, high-quality fixed income portfolio, focusing on capital preservation and regular quarterly dividends.

• Portfolio includes Agency MBS (with government or GSE guarantees) and non-Agency MBS, with dynamic capital allocation based on macroeconomic and market analysis.

• Uses derivatives to hedge interest rate risk and regularly reviews investment strategy and risk position.

Financial performance and metrics

• As of June 30, 2024, 74,707,776 shares of common stock and 4,460,000 shares of Series C Preferred Stock were outstanding.

• Financial statements and internal control effectiveness for 2023 audited by BDO USA, P.C.

Use of proceeds and capital allocation

• Net proceeds from securities sales will be used for acquiring mortgage assets or other investments, repayment of debt, working capital, and liquidity needs.

• Management retains broad discretion over allocation of net proceeds.