Orchid Island Capital posts Q3 loss as book value falls

Orchid Island Capital

22/10/2026 21:13

Overview
U.S. Agency RMBS REIT reported Q3 net loss and book value decline amid turbulent markets
Company repurchased about 4.95 mln shares during Q3 as stock traded below book value
Liquidity remained strong with $515.7 mln in cash and unpledged securities at quarter end

Outlook
Company declares monthly dividend of $0.10 per share for November 2026

Result Drivers
MARKET TURBULENCE - Co said significant global interest rate increases and volatility led to widespread deleveraging and forced selling in Agency RMBS market
RMBS AND DERIVATIVE LOSSES - Co recorded net realized and unrealized losses of $231.7 mln on Agency RMBS assets and derivative instruments
HEDGING STRATEGY - Co increased hedge coverage and extended hedge duration to counter leverage expansion as book value declined

Company press release: ID:nGNX5cg8hK

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Loss Per Share
 
$0.90
 
Q3 Net Loss
 
$178.92 mln
 
Q3 Net Interest Income
 
$59.13 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 "buy."
Wall Street's median 12-month price target for Orchid Island Capital Inc is $7.50, about 54% above its October 21 closing price of $4.87
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads
Oct 19 - AGNC Investment Q3 net loss widens on Agency MBS market weakness
Oct 20 - Annaly Capital posts Q3 net loss amid challenging fixed-income markets
Oct 21 - ARMOUR Residential REIT posts Q3 loss due to widening mortgage spreads

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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.)