Invesco Mortgage Capital (IVR) Q2 2026 earnings summary

Executive summary

• Focused on disciplined investment management, prudent risk-taking, and delivering attractive risk-adjusted returns for shareholders, primarily through investments in Agency RMBS and Agency CMBS.

• Book value per share was $8.03 at June 30, 2026, with a 3.8% economic return and net income per share of $0.34 for Q2 2026.

• Portfolio increased 12.4% to $8.2 billion, mainly through purchases of Agency RMBS specified pools, with Agency RMBS, TBA, and CMBS comprising the majority.

• $118 million in common equity was raised in Q2, supporting portfolio growth and operating efficiency.

• Maintained a sizable balance of unrestricted cash and unencumbered investments totaling $548.3 million at quarter end.

Financial highlights

• Net income attributable to common stockholders was $31.8 million ($0.34 per share), reversing a loss in Q1 2026.

• Earnings available for distribution were $47.1 million ($0.50 per share), down from $0.55 in Q1 2026.

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

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

• Effective interest rate margin was 2.82% in Q2 2026, down from 3.05% in Q1 2026.

Outlook and guidance

• Management remains constructive on Agency RMBS and Agency CMBS, expecting favorable supply and demand dynamics and moderating volatility.

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

• Plan to continue raising capital through ATM issuance when market conditions are favorable.

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