Invesco Mortgage Capital Inc. reported its financial results for the third quarter of 2025, revealing a net income attributable to common stockholders of $50.2 million, or $0.74 per share, compared to $35.3 million, or $0.63 per share, in the same period last year. The company’s total interest income for the quarter was $72.9 million, slightly down from $73.8 million in the prior year, while interest expenses decreased significantly to $55.3 million from $66.3 million. This resulted in a net interest income of $17.6 million, up from $7.5 million in the third quarter of 2024. For the nine months ended September 30, 2025, net income attributable to common stockholders was $39.9 million, down from $40.2 million in the same period of 2024.
The company’s total assets increased to $5.96 billion as of September 30, 2025, up from $5.69 billion at the end of 2024. This growth was primarily driven by an increase in mortgage-backed securities, which rose to $5.75 billion from $5.45 billion. Invesco's liabilities also increased, with total liabilities reaching $5.19 billion, compared to $4.96 billion at the end of the previous year. The company’s stockholders' equity rose to $769.6 million, reflecting a slight increase from $730.7 million at the end of 2024.
In terms of operational developments, Invesco Mortgage Capital continued to focus on its investment strategy, primarily in residential and commercial mortgage-backed securities. The company reported a significant gain on investments of $49.5 million for the third quarter, although this was a decrease from $165.2 million in the same quarter of the previous year. The company also experienced a reduction in losses from derivative instruments, reporting a loss of $9.2 million compared to a loss of $127.3 million in the prior year. The total average borrowings for the quarter were approximately $4.89 billion, with a cost of funds of 4.52%, down from 5.30% in the same quarter of 2024.
Looking ahead, Invesco Mortgage Capital expressed a constructive outlook for Agency RMBS, citing a favorable environment due to lower interest rate volatility and a steeper yield curve. The company anticipates that demand for Agency RMBS and Agency CMBS will increase, supported by expected changes to bank regulatory capital rules. However, the company remains cautious about potential risks associated with market conditions, including inflation and interest rate fluctuations, which could impact its investment performance and financial condition.
About Invesco Mortgage Capital Inc.
Invesco Mortgage Capital Inc. is a REIT specializing in investing, financing, and managing mortgage-backed securities (MBS) and related assets. Its portfolio includes agency and non-agency RMBS, CMBS, mortgage loans, and real estate ventures. The company leverages sophisticated risk management, strategic relationships, and active portfolio management to generate attractive risk-adjusted returns for shareholders through dividends and capital appreciation.
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