Invesco Mortgage Capital Inc. reported a net loss attributable to common stockholders of $26.6 million for the second quarter of 2025, translating to a loss of $0.40 per share, compared to a loss of $18.8 million or $0.38 per share in the same period last year. The company's total interest income increased to $70.6 million from $68.0 million year-over-year, while interest expense decreased to $52.9 million from $59.4 million. This resulted in a net interest income of $17.7 million, up from $8.6 million in the prior year. For the first half of 2025, the company reported a net loss of $10.3 million, contrasting with a net income of $5.0 million in the first half of 2024.
The company's total assets decreased to $5.4 billion as of June 30, 2025, down from $5.7 billion at the end of 2024. This decline was primarily driven by a reduction in mortgage-backed securities, which fell to $5.2 billion from $5.4 billion. The company’s liabilities also decreased, with total liabilities at $4.7 billion compared to $5.0 billion at the end of 2024. The reduction in both assets and liabilities reflects a strategic decision to manage leverage and maintain liquidity amid fluctuating market conditions.
Invesco Mortgage Capital has continued to focus on its investment strategy, primarily in Agency RMBS and Agency CMBS. As of June 30, 2025, the company held approximately 81% of its investment portfolio in 30-year fixed-rate Agency RMBS. The company has also repurchased and retired 96,803 shares of its Series C Preferred Stock during the second quarter, part of an ongoing share repurchase program. The total stockholders' equity stood at $709.4 million, down from $730.7 million at the end of 2024.
The company’s management noted that the financial conditions were volatile during the second quarter, with tightening observed in early April due to tariff announcements. However, conditions improved towards the end of the quarter, supported by a delay in tariff implementation. The outlook remains cautious, with expectations for continued uncertainty in the near term due to macroeconomic factors such as inflation and interest rate volatility. Invesco Mortgage Capital anticipates that demand for higher coupon Agency RMBS will improve, supported by attractive valuations and stabilization in interest rate volatility.
Looking ahead, Invesco Mortgage Capital aims to maintain its REIT qualification by distributing at least 90% of its taxable income to stockholders. The company is focused on managing its investment portfolio effectively while navigating the challenges posed by market conditions. The management remains committed to providing attractive risk-adjusted returns to stockholders through dividends and capital appreciation.
About Invesco Mortgage Capital Inc.
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