Invesco Mortgage Capital Q1 loss as book value drops 7.3%, risk sentiment improves

Invesco Mortgage Capital

30/04/2026 21:35

Overview

U.S. mortgage REIT reported Q1 net loss, reversing profit from prior quarter

Earnings available for distribution per share held steady at $0.55 vs $0.56 in Q4

Company cites higher rate volatility and Agency RMBS underperformance for book value decline

Outlook

Company says risk sentiment has improved entering Q2, supported by lower interest rate volatility

Company expects Agency RMBS net issuance to remain manageable and GSE demand to stay steady

Company sees a more constructive backdrop for Agency RMBS holdings as spread levels widen

Result Drivers

AGENCY RMBS UNDERPERFORMANCE - Co said higher coupon Agency RMBS underperformed Treasuries, weighing on results

INTEREST RATE VOLATILITY - Rising geopolitical tensions, higher energy prices and renewed inflation concerns drove increased interest rate volatility and pushed U.S. Treasury yields higher, per incoming CEO Kevin Collins

SWAP SPREAD TIGHTENING - Co said swap spread tightening also contributed to book value decline

Company press release: ID:nPn3fhDhLa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
-$0.28
Q1 Net Income
-$23.10 mln
Q1 Net Interest Income
$27 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the specialized reits peer group is "buy."

Wall Street's median 12-month price target for Invesco Mortgage Capital Inc is $8.25, about 2% above its April 29 closing price of $8.09

The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)