Invesco Mortgage Capital Inc. reported a net income of $34.8 million for the fiscal year ending December 31, 2024, a significant recovery from a net loss of $37.5 million in the previous year. The company's total interest income increased to $286.5 million, up from $277.9 million in 2023, primarily driven by higher average earning assets and yields. However, net interest income decreased to $36.8 million from $49.7 million, reflecting increased interest expenses, which rose to $249.7 million from $228.2 million due to higher borrowing costs and a reduction in amortization of net deferred gains on interest rate swaps.
The company’s investment portfolio as of December 31, 2024, was heavily weighted towards Agency RMBS, which constituted 83% of total investments, down from 98% in 2023. Invesco's strategy included a resumption of investments in Agency CMBS, which represented approximately 15% of the portfolio. The firm also reported unrealized losses on investments totaling $133.9 million, compared to losses of $107.3 million in 2023, indicating ongoing challenges in the market environment.
In terms of operational metrics, Invesco's total stockholders' equity decreased to $730.7 million from $782.7 million in the prior year, with a book value per common share of $8.92, down from $10.00. The company maintained a debt-to-equity ratio of 6.7, reflecting its leverage strategy primarily through repurchase agreements. As of December 31, 2024, Invesco had approximately $4.9 billion in repurchase agreement borrowings, with a weighted average remaining maturity of 29 days.
Looking ahead, Invesco expressed a cautious outlook for Agency RMBS due to anticipated interest rate volatility and shifting monetary policy expectations. However, the long-term outlook remains favorable, with expectations for improved demand in higher coupon securities as interest rate volatility declines. The company plans to continue leveraging its investment strategy while managing risks associated with interest rates and credit spreads, aiming to provide attractive risk-adjusted returns to its stockholders.
About Invesco Mortgage Capital Inc.
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