BETHESDA, Md. – AGNC Investment Corp. (NASDAQ:) reported better-than-expected third-quarter earnings, but missed revenue as the mortgage real estate investment trust weathered a challenging interest rate environment.
The company’s third-quarter earnings per share were $0.63, beating analysts’ consensus estimates of $0.51 by $0.12. However, sales came in at $376 million, well below expectations of $707.77 million.
AGNC generated economic return on tangible common stock of 9.3% in the quarter. This consisted of a $0.36 dividend per common share and a $0.42 increase in tangible net book value per share. The company’s net tangible book value rose to $8.82 per share as of Sept. 30, up 5% from $8.40 at the end of the second quarter.
“AGNC generated a very strong economic return of 9.3% in the third quarter due to strong book value growth and an attractive monthly dividend that has remained stable at $0.12 per common share for 55 consecutive months. ” said Peter Federico, President and President of AGNC. CEO.
The company maintained a leverage ratio of 7.2x net tangible book value at quarter end. AGNC’s investment portfolio totaled $73.1 billion as of September 30 and consists primarily of agency mortgage-backed securities.
Management noted that the outlook for agency MBS has improved since the Federal Reserve’s first rate cut in September, with further easing expected over the next 12 to 24 months.
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