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AGNC Investment Corp. declares monthly common stock dividend of $0.12 per common share for October 2022 and announces preliminary estimates for the third quarter of 2022

By on October 10, 2022 0

BETHESDA, MD., October 10, 2022 /PRNewswire/ — AGNC Investment Corp. (Nasdaq: AGNC) (“AGNC” or the “Company”) today announced that its Board of Directors has declared a cash dividend of $0.12 per ordinary share for October 2022. The dividend is payable on November 9, 2022 to ordinary shareholders registered on the October 312022.

Given recent market volatility, the Company also announced preliminary estimates of certain financial metrics for the third quarter of 2022:

  • From September 30, 2022the tangible net book value per common share of AGNC has been estimated between $9.06 and $9.10 per share, after deducting common and preferred stock dividends declared by September 302022.
  • For the quarter ended September 30, 2022AGNC’s aggregate loss per common share was estimated to be between $1.99 and $2.03 per share.
  • For the quarter ended September 30, 2022AGNC’s net variance and dollar roll revenue (a non-GAAP financial measure) were estimated to be between $0.82 and $0.86 per ordinary share, excluding approximately $0.03 per common share of the estimated “catch-up” bonus amortization benefit.1
  • From September 30, 2022AGNC had approximately $3.6 billion unencumbered cash and agency MBS, which include approximately $0.8 billion at the Company’s captive broker-dealer, Bethesda Securities, and excludes unencumbered CRT securities and non-agency securities. Cash and unencumbered agency MBS represented approximately 54% of the Company’s tangible equity at September 30, 2022largely unchanged from June 30, 2022.
  • For the quarter ended September 30, 2022, AGNC’s average “at risk” leverage was around 8.1x. From September 30, 2022the Company’s “at risk” leverage was approximately 8.7x.2
  • From September 30, 2022AGNC’s total investment portfolio was approximately $61.5 billionwhich includes approximately $17.9 billion from To-Be-Announced (“TBA”) Agency MBS and about $1.7 billion the transfer of credit risk and non-agency securities.
  • From September 30, 2022AGNC’s hedge portfolio covered approximately 118% of the Company’s financing liabilities,3 and its duration difference4 was about a year.

The Company will release its full financial results for the third quarter of 2022 on October 24, 2022, as previously announced. The financial estimates provided above reflect the views and assumptions of the Company’s management based on information currently available to them in connection with the preparation of the Company’s financial statements as of and for the quarter ended September 30, 2022. Management has not yet completed procedures to verify the completeness and accuracy of this information, which could result in material adjustments when reflected in the Company’s actual financial results. Further, this information is unaudited and has not been verified or reviewed by any third party, including the Company’s independent auditors. Estimates are subject to inherent uncertainties and investors should not place undue reliance on them. The Company assumes no obligation to update or revise these estimates.

CALL TO SHAREHOLDERS AND THIRD QUARTER WEBCAST

AGNC to Report Third Quarter 2022 Results After Market Close October 24, 2022. AGNC will host a conference call with shareholders and an audio webcast on October 25, 2022 at 8:30 a.m. ET. Interested persons who do not intend to ask a question and who have internet access are encouraged to use the free webcast at www.AGNC.com. Those planning to participate in the Q&A or who do not have internet access can access the call by dialing (877) 300-5922 (US) or (412) 902-6621 (international). A slide presentation will accompany the call and will be available at www.AGNC.com.

An archived audio of the shareholder call combined with the slide presentation will be available on the AGNC website after the call on October 25, 2022. In addition, a telephone recording will be available one hour after the call on October 25, 2022 through November 1, 2022. Those wishing to hear the recording of the presentation can access it by dialing (877) 344-7529 (US) or (412) 317-0088 (international), access code 8033374.

For more information or questions, please contact Investor Relations at (301) 968-9300 or [email protected].

ABOUT AGNC INVESTMENT CORP.

AGNC Investment Corp. is an internally managed real estate investment trust that invests primarily in residential mortgage-backed securities for which payment of principal and interest is guaranteed by a US government-sponsored company or US government agency. For more information, please see www.AGNC.com.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are based on estimates, projections, beliefs and assumptions of the Company’s management at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. Actual results could differ materially from those projected in these forward-looking statements or from our historical performance due to a variety of important factors, including, without limitation, changes in monetary policy and other factors that affect interest rates, MBS deviations from benchmark interest rates, the forward yield curve or prepayment rates; the availability and terms of financing; changes in the market value of the Company’s assets; general economic or geopolitical conditions; the liquidity and other market conditions of the Agency’s securities and other financial markets; and legislative and regulatory changes that could adversely affect the Company’s business. Certain factors that could cause actual results to differ materially from those contained in the forward-looking statements are included in the Company’s periodic reports filed with the Securities and Exchange Commission (“SEC”). Copies are available on the SEC website, www.sec.gov. The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise.

  1. Projected net spread and dollar roll income, excluding “catch-up” premium amortization benefit, per common share is a non-GAAP measure. It is measured as an estimate of (i) the total global loss of approximately $1.99 at $2.03 per common share adjusted to (a) exclude net unrealized losses on investment securities measured at fair value through profit or loss and other comprehensive income totaling approximately $4.00 per common share, (b) exclude net realized losses on sale of investment securities of approximately $1.06 per common share, (c) exclude net gains on derivatives and other securities of approximately $2.80 per common share, (d) exclude retrospective “catch-up” adjustments to premium amortization cost due to a decrease in the Company’s projected CPR estimates for securities acquired prior to the third quarter of 2022 of a benefit of approximately $0.03 per common share, (e) include a TBA dollar roll income of approximately 0.22 $ per common share, and (f) includes periodic net interest rate swap income of approximately $0.40 per common share. The Company believes that this non-GAAP measure provides greater transparency in the information used by the Company’s management in its financial and operating decision-making and provides additional context for users of its financial information to consider. account when evaluating the current performance and operations of the Company. . However, this measure is an incomplete measure of its estimated financial results calculated in accordance with GAAP and should be considered supplemental to and not a substitute for results calculated in accordance with GAAP. Additionally, not all companies use identical calculations, and the Company’s presentation of estimated non-GAAP measures may not be comparable to similarly titled measures of other companies. Accordingly, undue reliance should not be placed on this non-GAAP measure. A more complete presentation and reconciliation of non-GAAP measures and related information will be provided in the Company’s announcement of its financial results and in its periodic report to be filed with the SEC for the three months ended September 30, 2022. For additional information regarding the Company’s use of non-GAAP measures, please refer to its most recent Quarterly Report on Form 10-Q for the quarter ended June 30, 2022.
  2. Leverage “at risk” is calculated as the sum of agency and non-agency repurchase agreements, net position TBA (at cost) and net receivable/payable for unsettled investment securities divided by total equity, adjusted to exclude goodwill. Leverage excludes US Treasury repurchase agreements.
  3. The company’s funding liabilities include agency repo, other payables and TBA net position.
  4. Duration is a modeled estimate of interest rate sensitivity measured in years from a point in time. The duration gap is a measure of the difference between the interest rate sensitivity of the Company’s assets and liabilities.

CONTACT:
Investor Relations – (301) 968-9300

SOURCE AGNC Investment Corp.