Dynex Capital, Inc. reported significant financial performance improvements for the fiscal year ending December 31, 2024, with total assets increasing by over 28% to approximately $8.18 billion, compared to $6.37 billion in the previous year. The company achieved a net interest income of $5.9 million, a notable recovery from a loss of $7.9 million in 2023. This turnaround was attributed to the acquisition of approximately $2.2 billion in higher coupon Agency mortgage-backed securities (MBS) and a favorable shift in the interest rate environment, which included three Federal Reserve rate cuts in the latter half of 2024.
In terms of operational metrics, Dynex's total shareholders' equity rose by over 36% to $1.18 billion, with a book value per share of $12.70. The company declared a total dividend of $1.60 per common share for 2024, reflecting its commitment to returning value to shareholders. The average number of common shares outstanding increased significantly due to capital raising activities, including a public offering and an at-the-market (ATM) program, which collectively raised over $332 million.
Strategically, Dynex Capital has shifted its hedging strategy, moving from U.S. Treasury futures to interest rate swaps, which contributed $16.1 million to its earnings for the year. The company also increased its TBA positions by a notional amount of $1.0 billion, indicating a proactive approach to managing its investment portfolio amidst changing market conditions. As of December 31, 2024, the company had 22 employees, with a low voluntary turnover rate of 4% over the past three years, highlighting its stable workforce.
Looking ahead, Dynex Capital expressed optimism regarding the investment landscape, citing a favorable yield curve and wide spreads that present opportunities for attractive returns. The company plans to continue expanding its capital base through its ATM program to capitalize on market conditions while remaining vigilant about potential volatility and regulatory changes that could impact its operations. The management remains focused on maintaining compliance with REIT requirements and ensuring liquidity to support its investment strategy.
About DYNEX CAPITAL INC
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