Invesco Mortgage slides as co delays qtrly dividend payments
24/03/2020 13:10
** Invesco Mortgage Capital Inc IVR.N slides ~25%
premarket to $3.99 after co issues margin call warning due to
COVID-19 pandemic-fueled market disruptions and delays dividend
payments
** Co says in discussions with financing counterparties
about entering forbearance agreements, but cannot predict
whether such agreements will be executed
** IVR delays payments of previously announced qtrly cash
dividends on its common and preferred stocks, while it assesses
fixed income market conditions
** Common stock dividend of $0.50, declared on Mar 17, was
to be paid on Apr 28 to holders of record as of Mar 30
** IVR says will continue to evaluate its liquidity
situation; will provide updates regarding new payment dates and,
if necessary, new record dates, for dividends
** News comes one day after AG Mortgage Investment Trust
Inc's MITT.N margin call warning and recent comments by
billionaire real estate investor Thomas Barrack saying U.S.
commercial real estate mortgage market "stands on the brink of
collapse" chilled the sector urn:newsml:reuters.com:*:nL1N2BG1K5
** The Fed early Mon announced new steps, including buying
an unlimited amount of treasury and mortgage-backed securities,
to combat coronavirus hit to the economy urn:newsml:reuters.com:*:nL1N2BG0ED
** MTD, IVR's stock has lost two-thirds of its value. This
compares to Dow Jones Mortgage REIT index's .DJUSMR ~54% drop
and the iShares Mortgage Real Estate ETF's REM.N ~58% decline
in Mar
** The S&P 500 .SPX and S&P 500 Real Estate index
.SPLRCR have fallen 24% and 30%, respectively, in Mar
(Reporting by Lance Tupper)
((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 646-223-5017))