Invesco Mortgage Capital (IVR) Q1 2026 earnings summary

Executive summary

• Leadership transition with Kevin Collins as CEO and David Lyle as President, following John Anzalone's retirement after 17 years.

• Focused on investing in, financing, and managing agency mortgage-backed securities (RMBS and CMBS) and TBAs, aiming to provide attractive risk-adjusted returns primarily through dividends.

• Operates as a REIT, distributing at least 90% of taxable income to shareholders and managed externally by Invesco Advisers, Inc.

• Net loss per common share was $0.28 for Q1 2026, down from $0.68 in Q4 2025, while earnings available for distribution per share remained stable at $0.55 compared to $0.56 in the prior quarter.

• Book value per common share declined 7.3% to $8.08 from $8.72 at year-end 2025, resulting in a negative economic return of -3.2%.

Financial highlights

• Net loss attributable to common stockholders was $23.1 million for Q1 2026, compared to net income of $54.9 million in Q4 2025.

• Earnings available for distribution totaled $44.7 million ($0.55 per share), up from $39.9 million in the previous quarter.

• Book value per common share decreased 7.3% to $8.08 as of March 31, 2026, from $8.72 at year-end 2025.

• Economic debt-to-equity ratio increased to 7.5x from 7.0x, while the debt-to-equity ratio decreased to 6.1x.

• Raised $133.6 million net through ATM equity issuance in Q1 2026.

Outlook and guidance

• Management expects a more constructive backdrop for Agency RMBS due to manageable net issuance and steady GSE demand.

• Risk sentiment improved entering Q2 2026, with expectations for manageable Agency RMBS net issuance and continued demand from GSEs and banks.

• Agency CMBS continues to offer attractive risk-adjusted yields and diversification.

• Management highlighted ongoing inflationary pressures and reduced expectations for near-term monetary easing, contributing to increased interest rate volatility.

• Further reduction in geopolitical tensions could support risk assets and sector performance.