Brief: Two Harbors Investment Q2 Net Income USD -272.28 Million

Two Harbors Investment

28/07/2025 21:15

Overview

Two Harbors reports Q2 2025 comprehensive loss of $221.8 mln due to litigation costs

Book value per share falls to $12.14, with a negative 14.5% economic return

Company issued $115 mln in senior notes and settled $6.6 bln in MSR acquisitions

Outlook

Company sees opportunity in wide Agency RMBS spreads

Two Harbors expects stable prepayments to benefit core strategy

Two Harbors sees opportunity in current market environment

Result Drivers

LITIGATION COSTS - $199.9 mln expense related to ongoing litigation with PRCM Advisers LLC impacted results

MSR ACQUISITIONS - Settled $6.6 bln in unpaid principal balance of MSR through various acquisitions

SENIOR NOTES ISSUANCE - Issued $115 mln in senior notes due 2030, indicating continued financial activity

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Income
-$272.28 mln
Q2 Dividend
$0.39


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "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 Two Harbors Investment Corp is $12.75, about 18% above its July 25 closing price of $10.45

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nBw4bnbJFa

(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.)