Invesco Mortgage Capital Inc. reported its financial results for the first quarter of 2025, revealing a net income attributable to common stockholders of $16.3 million, or $0.26 per share, a decrease from $23.7 million, or $0.49 per share, in the same period last year. The company's total interest income rose to $73.8 million, up from $68.6 million, while interest expenses decreased to $55.0 million from $61.6 million, resulting in a net interest income of $18.8 million, compared to $7.0 million in the prior year. The increase in net interest income was primarily attributed to a lower cost of funds, which fell to 4.46% from 5.57%.
The company's total assets increased to $6.16 billion as of March 31, 2025, compared to $5.69 billion at the end of 2024. This growth was driven by an increase in mortgage-backed securities (MBS), which rose to $5.95 billion from $5.45 billion. Invesco's repurchase agreements also saw a significant increase, totaling $5.35 billion, up from $4.89 billion. The company repurchased and retired 90,146 shares of its Series C Preferred Stock during the quarter, continuing its share repurchase program initiated in May 2022.
In terms of operational metrics, Invesco's average earning assets increased to $5.42 billion from $4.97 billion year-over-year. The company reported a total of 65,942,495 outstanding shares of common stock as of April 30, 2025. The firm’s investment strategy remains focused on Agency RMBS, which constituted approximately 84% of its total investment portfolio, with a weighted average yield of 5.61%. The company also noted a shift in its investment strategy towards specified pools with attractive prepayment profiles.
Looking ahead, Invesco expressed caution regarding the near-term outlook for Agency RMBS due to potential impacts from proposed changes in U.S. fiscal and trade policy, which could lead to slower economic growth and increased market volatility. However, the long-term outlook remains favorable, with expectations for improved demand in higher coupon securities as interest rate volatility declines. The company continues to evaluate new investment opportunities to enhance its portfolio diversification while maintaining compliance with its REIT qualification requirements.
About Invesco Mortgage Capital Inc.
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