Thu, Feb 20, 10:26 PM (24 days ago)
**Invesco Mortgage Capital Inc. (IVR) 2024 Annual Report Summary** **Financial Performance:** For the fiscal year ending December 31, 2024, Invesco Mortgage Capital Inc. reported a net income of $59.9 million, significantly recovering from a loss of $15.9 million in 2023. Total interest income increased to $286.5 million, driven by higher average earning assets and yields, while interest expenses rose to $249.7 million. The net interest income was $36.8 million, reflecting a decline from the previous year. **Revenue and Expenses:** Revenue primarily stemmed from mortgage-backed securities (MBS), which accounted for most of the interest income. Operating expenses totaled $19 million. The company recognized significant unrealized losses on investments, totaling $133.9 million, driven by market volatility and interest rate fluctuations. **Earnings Per Share:** Earnings per share for common stockholders was $0.65, up from a loss of $0.85 in 2023. **Strategic Overview and Future Outlook:** Invesco continues to focus on Agency RMBS, which constituted 83% of its portfolio. The company aims to leverage favorable long-term trends despite short-term volatility. The outlook remains cautiously optimistic with expectations of improved demand for Agency CMBS. **Risk Factors:** Risks include interest rate fluctuations, credit risks associated with mortgage investments, and market competition. The company actively manages these risks through derivatives and careful asset selection. **Market Position Changes:** The company’s leverage increased, with a debt-to-equity ratio of 6.7 as of December 31, 2024. The strategic shift towards higher coupon Agency RMBS and CMBS investments reflects a response to changing market conditions. In summary, IVR's financial performance improved in 2024 with a focus on risk management and strategic asset allocation, positioning the company favorably for future growth.