Orchid Island Capital posts Q2 profit as portfolio grows

Orchid Island Capital

23/07/2026 21:31

    

    Overview
  
U.S. mortgage REIT reported Q2 net income of $89.2 mln, reversing a year-ago loss
Q2 net interest income rose to $60.0 mln as average portfolio size increased
Book value per share rose to $7.22; stock repurchase authorization expanded to 26.6 mln shares

    

    Outlook
  
Company says market for Agency RMBS remains attractive with stable rates and low volatility
Orchid expects sector returns to remain approximately equal to current dividend yield
Company says monetary policy not likely to become too restrictive based on current market pricing

    

    Result Drivers
  
HIGHER NET INTEREST INCOME - Q2 net interest income rose due to a larger average Agency RMBS portfolio and slightly lower borrowing costs
GAINS ON RMBS AND DERIVATIVES - Net realized and unrealized gains on Agency RMBS and derivative instruments contributed to quarterly profit
LOWER PREPAYMENT RATES - Prepayment rates declined from the previous quarter, potentially supporting portfolio returns

    
Company press release: ID:nGNXJ7bc7

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 EPS
 
$0.44
 
Q2 Net Income
 
$89.19 mln
 
Q2 Net Interest Income
 
$59.97 mln
 

    

    Analyst Coverage
  
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialized reits peer group is "hold"
Wall Street's median 12-month price target for Orchid Island Capital Inc is $7.50, about 12.1% above its July 22 closing price of $6.69
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

    

    Reuters Recommended Reads
  
July 22 - ARMOUR Residential REIT Q2 net income rises, book value up 0.6%
July 21 - Annaly Capital Q2 EPS rises sharply as securization activity hits record
July 20 - AGNC Investment Q2 net spread income slips on lower asset yields

    
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(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.)