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AGNC Investment (AGNC) Q4 Earnings Beat Estimates, BVPS Up
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AGNC Investment Corp. (AGNC - Free Report) reported fourth-quarter 2020 net spread and dollar-roll income (excluding estimated catch-up premium amortization costs) of 75 cents per share, beating the Zacks Consensus Estimate of 64 cents. However, the reported figure was lower than the prior-quarter figure of 81 cents.
For 2020, the company reported net spread and dollar-roll income (excluding estimated catch-up premium amortization costs) of $2.70 per share, beating the consensus mark of $2.60. The figure came in line with the prior year’s tally.
Adjusted net interest and dollar roll income (excluding catch-up premium amortization) was $459 million, surpassing the Zacks Consensus Estimate of $384 million. The reported figure, however, sequentially declined from $494 million posted in the September-end quarter.
Net interest income (NII) of $183 million declined from the prior quarter’s $302 million.
The company reported fourth-quarter comprehensive income per common share of $1.16 compared with the prior quarter’s $1.28.
Also, as of Dec 31, 2020, its tangible net book value per share (“BVPS”) was $16.71, up 5.2% from $15.88 as of Sep 30, 2020. However, it compares unfavorably with BVPS of $17.66 as of Dec 31, 2019.
The economic loss on tangible common equity for the company during the reported quarter was 7.5%. This included a dividend per share of 36 cents and an increase of 83 cents in BVPS.
Inside the Headlines
As of Dec 31, 2020, the company’s investment portfolio aggregated $97.9 billion. This included $65.1 billion of Agency mortgage backed securities (MBS), $31.5 billion of to-be-announced (TBA) securities and $1.3 billion of credit risk transfer and non-Agency securities.
Inclusive of its net TBA position and net payable/ (receivable) for unsettled securities, AGNC Investment’s tangible net book value "at risk" leverage ratio was 8.5X as of Dec 31, 2020, compared with 8.8X in the prior quarter.
For the December-end quarter, the company's investment portfolio bore a weighted average actual constant prepayment rate (CPR) of 27.6%, up from 24.3% witnessed in third-quarter 2020.
Excluding net TBA position, AGNC Investment's average asset yield on its portfolio, excluding the net TBA position, was 1.64% in the fourth quarter, down from 2.28% recorded in the previous quarter.
For the December-end quarter, the combined average cost of funds, inclusive of interest rate swap costs, was 0.05%, down from 0.15% witnessed in the previous quarter.
Average net interest spread (excluding catch-up premium amortization) was 2.02%, down from 2.15% reported in the prior quarter.
Also, as of Dec 31, 2020, AGNC Investment’s cash and cash equivalents totaled $1.01 billion, up from $831 million as of Dec 31, 2019.
Dividend Update and Share Repurchase
During the fourth quarter, AGNC Investment announced a monthly dividend of 12 cents per share each for October, November and December. Notably, the company announced $10.4 billion in common stock dividends or $42.88 per common share since its initial public offering in May 2008 through fourth-quarter 2020.
During the fourth quarter, the company repurchased 6.6 million shares or $101 million of its common stock for an average price of $15.32 per share.
For 2020, repurchase transactions amounted to $402 million, net of repurchase costs.
We now look forward to the earnings releases of other REITs like Welltower Inc. (WELL - Free Report) , Highwoods Properties (HIW - Free Report) and Healthpeak Properties . All three companies are slated to report fourth-quarter earnings on Feb 9.
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AGNC Investment (AGNC) Q4 Earnings Beat Estimates, BVPS Up
AGNC Investment Corp. (AGNC - Free Report) reported fourth-quarter 2020 net spread and dollar-roll income (excluding estimated catch-up premium amortization costs) of 75 cents per share, beating the Zacks Consensus Estimate of 64 cents. However, the reported figure was lower than the prior-quarter figure of 81 cents.
For 2020, the company reported net spread and dollar-roll income (excluding estimated catch-up premium amortization costs) of $2.70 per share, beating the consensus mark of $2.60. The figure came in line with the prior year’s tally.
Adjusted net interest and dollar roll income (excluding catch-up premium amortization) was $459 million, surpassing the Zacks Consensus Estimate of $384 million. The reported figure, however, sequentially declined from $494 million posted in the September-end quarter.
Net interest income (NII) of $183 million declined from the prior quarter’s $302 million.
The company reported fourth-quarter comprehensive income per common share of $1.16 compared with the prior quarter’s $1.28.
Also, as of Dec 31, 2020, its tangible net book value per share (“BVPS”) was $16.71, up 5.2% from $15.88 as of Sep 30, 2020. However, it compares unfavorably with BVPS of $17.66 as of Dec 31, 2019.
The economic loss on tangible common equity for the company during the reported quarter was 7.5%. This included a dividend per share of 36 cents and an increase of 83 cents in BVPS.
Inside the Headlines
As of Dec 31, 2020, the company’s investment portfolio aggregated $97.9 billion. This included $65.1 billion of Agency mortgage backed securities (MBS), $31.5 billion of to-be-announced (TBA) securities and $1.3 billion of credit risk transfer and non-Agency securities.
Inclusive of its net TBA position and net payable/ (receivable) for unsettled securities, AGNC Investment’s tangible net book value "at risk" leverage ratio was 8.5X as of Dec 31, 2020, compared with 8.8X in the prior quarter.
For the December-end quarter, the company's investment portfolio bore a weighted average actual constant prepayment rate (CPR) of 27.6%, up from 24.3% witnessed in third-quarter 2020.
Excluding net TBA position, AGNC Investment's average asset yield on its portfolio, excluding the net TBA position, was 1.64% in the fourth quarter, down from 2.28% recorded in the previous quarter.
For the December-end quarter, the combined average cost of funds, inclusive of interest rate swap costs, was 0.05%, down from 0.15% witnessed in the previous quarter.
Average net interest spread (excluding catch-up premium amortization) was 2.02%, down from 2.15% reported in the prior quarter.
Also, as of Dec 31, 2020, AGNC Investment’s cash and cash equivalents totaled $1.01 billion, up from $831 million as of Dec 31, 2019.
Dividend Update and Share Repurchase
During the fourth quarter, AGNC Investment announced a monthly dividend of 12 cents per share each for October, November and December. Notably, the company announced $10.4 billion in common stock dividends or $42.88 per common share since its initial public offering in May 2008 through fourth-quarter 2020.
During the fourth quarter, the company repurchased 6.6 million shares or $101 million of its common stock for an average price of $15.32 per share.
For 2020, repurchase transactions amounted to $402 million, net of repurchase costs.
AGNC Investment currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AGNC Investment Corp. Price, Consensus and EPS Surprise
AGNC Investment Corp. price-consensus-eps-surprise-chart | AGNC Investment Corp. Quote
We now look forward to the earnings releases of other REITs like Welltower Inc. (WELL - Free Report) , Highwoods Properties (HIW - Free Report) and Healthpeak Properties . All three companies are slated to report fourth-quarter earnings on Feb 9.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>