- Dynex Capital (DX, Financial) reports a total economic return of $0.33 per common share for Q1 2025.
- The company successfully raised $240 million through ATM stock issuances.
- DX maintained a leverage ratio of 7.4x shareholders' equity.
Dynex Capital, Inc. (DX) announced its financial results for the first quarter of 2025, revealing a total economic return of $0.33 per common share. This represents 2.6% of the company's beginning book value. The economic return was driven by dividends declared at $0.47 per share, partially offset by a $0.14 decrease in book value.
Significant achievements for the quarter include the successful raising of $240 million in equity capital through at-the-market (ATM) common stock issuances. The company also expanded its investment portfolio by purchasing $895 million in Agency Residential Mortgage-Backed Securities (RMBS) and $55 million in Agency Commercial Mortgage-Backed Securities (CMBS), alongside an increase in to-be-announced (TBA) investments by $430 million.
Dynex Capital maintained a strong liquidity position with $790 million and a leverage ratio, including TBA securities, of 7.4 times shareholders' equity. The book value per share as of March 31, 2025, was $12.56, a slight decrease from $12.70 as of December 31, 2024.
Despite a comprehensive income of $0.16 per share, the company reported a net loss of $(0.06) per share. The overall strategic positioning, including substantial capital raising and portfolio expansion, highlights Dynex Capital's adaptability in a volatile market environment.
The management emphasized their proactive approach towards achieving resilience amidst shifting macroeconomic conditions, with a focus on robust liquidity and strategic flexibility to navigate future market challenges.
