Orchid Island Capital swings to net loss in Q1 as RMBS losses widen

Orchid Island Capital

23/04/2026 21:23

Overview

U.S. Agency RMBS REIT posted Q1 net loss as market volatility drove realized and unrealized losses

Book value per share fell to $7.08 from $7.54 at year-end 2025

Net interest income rose, but was offset by RMBS and derivative losses

Outlook

Company says return prospects in mortgage market are slightly lower but still attractive

Orchid Island Capital views current conditions as conducive for levered Agency RMBS investing

Result Drivers

MARKET VOLATILITY - Co said Q1 results were negatively affected by sharp rise in interest rates and mortgage spreads after outbreak of war in Middle East

REALIZED AND UNREALIZED LOSSES - Co reported $69.6 mln in net realized and unrealized losses on RMBS and derivatives, offsetting higher net interest income

HIGHER PREPAYMENT SPEEDS - Co said prepayment fears mounted and speeds increased dramatically in March, eroding sector performance

Company press release: ID:nGNX1457tV

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
-$0.11
Q1 Net Income
-$19.96 mln
Q1 Net Interest Income
$57.06 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "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 7.9% above its April 22 closing price of $6.95

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 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.)