Two Harbors posts Q4 net loss

Two Harbors Investment

02/02/2026 21:25

Overview

MSR-focused REIT announced merger with UWM Holdings in all-stock transaction

Company reported Q4 book value of $11.13 per common share

Generated Q4 comprehensive income of $50.4 mln

Outlook

Company expects merger with UWMC to close in Q2 2026

Two Harbors to pay regular dividends until merger closes

Result Drivers

MSR PORTFOLIO PERFORMANCE - Added $399.1 mln in unpaid principal balance through acquisitions and recapture, sold $9.6 bln on a subservicing-retained basis

RMBS RETURNS - RMBS returns benefited from lower volatility and increased demand from GSEs, according to CIO Nick Letica

MORTGAGE SPREAD TIGHTENING - Significant mortgage spread tightening realized, contributing to RMBS performance

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Net Income
-$1.33 mln
Q4 Dividend
$0.34


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 8 "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 $11.75, about 2.4% above its January 30 closing price of $11.47

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

Press Release: ID:nBw4TVRTra

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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.)