Invesco Mortgage Capital (IVR) Q3 2026 earnings summary

Executive summary

• Economic return was (11.6)%; book value per share fell 16.1% to $6.74, including $0.36 in common dividends.

• GAAP net loss attributable to common stockholders was $98.8M, or $0.92 per share; earnings available for distribution were $0.47 per share.

• Higher Treasury yields and volatility widened Agency RMBS spreads, pressuring portfolio value and returns.

• After quarter-end, book value rose ~4%; accrued dividends brought economic return to ~6%.

Financial highlights

• Net interest income was $33.9M, with $99.0M of interest income and $65.0M of interest expense.

• Net investment losses of $402.1M were partly offset by $277.7M in net derivative gains; total other losses were $124.4M.

• Earnings available for distribution declined to $0.47 per share from $0.50 in Q2, while total distribution earnings rose to $50.3M from $47.1M.

• Investment portfolio market value declined 2.3% to $7.967B despite $429M of net purchases.

• EAD declined to $0.47 from $0.50 in Q2, largely reflecting swap portfolio repositioning; management said this did not affect economic return.

Outlook and guidance

• Q4 outlook for Agency RMBS and Agency CMBS was constructive, with spread widening improving relative value and projected returns.

• Medium- to long-term outlook remained constructive, supported by valuations and supply-demand technicals; lower rate volatility and easing Middle East tensions could help.

• Dividend level to be reviewed with the board based on market conditions, current earnings, portfolio composition, investment opportunities and sustainable earnings power.