Dynex Capital Reports 21.6% Increase in Economic Return and Significant Growth in 2025 Fiscal Year

Dynex Capital, Inc. reported significant financial growth in its 2025 fiscal year, with total economic return reaching $2.75 per common share, representing a 21.6% increase from the beginning book value. The company declared total dividends of $2.00 per common share for the year, reflecting a strong performance driven by asset appreciation and higher net interest income. The increase in book value was primarily attributed to tighter spreads between asset yields and the yields on interest rate swaps and Treasury futures. The company’s total equity and market capitalization more than doubled to approximately $2.46 billion, largely due to the issuance of over 90 million shares of common stock, raising $1.2 billion through its at-the-market (ATM) program.

Compared to the previous fiscal year, Dynex Capital's net interest income surged to $114.4 million, up from $5.9 million in 2024, as the company capitalized on higher yielding Agency mortgage-backed securities (MBS) while benefiting from lower financing costs following three Federal Reserve rate cuts. The company’s total assets increased to $17.34 billion, a 112% rise from $8.18 billion in 2024, with mortgage-backed securities valued at $16.31 billion as of December 31, 2025. The company also reported a substantial increase in its repurchase agreement borrowings, which rose to $13.9 billion from $6.56 billion in the prior year.

Operationally, Dynex Capital expanded its investment portfolio significantly, adding $8.2 billion in Agency RMBS and $1.2 billion in Agency CMBS during 2025. The company’s strategy included a focus on high-quality, liquid assets, which positioned it well amid a favorable macroeconomic environment. The company also reported a total of 28 employees as of December 31, 2025, with an average tenure of 8.9 years, reflecting a stable workforce. The company’s human capital strategy emphasizes employee engagement and development, which is seen as critical to its long-term success.

Looking ahead, Dynex Capital expressed optimism for 2026, anticipating continued favorable conditions for Agency MBS due to supportive government policies and a stable macroeconomic environment. The company highlighted a directive from the U.S. government to purchase $200 billion in Agency MBS to support housing affordability, which is expected to create a positive technical tailwind for the market. The company plans to maintain its focus on disciplined capital allocation and risk management to navigate potential market fluctuations and capitalize on investment opportunities.