Press Release: Dynex Capital, Inc. Announces Third Quarter 2025 Results

Dow Jones
Oct 20
GLEN ALLEN, Va.--(BUSINESS WIRE)--October 20, 2025-- 

Dynex Capital, Inc. (the "Company") $(DX)$ reported its third quarter 2025 financial results today. Management will host a call today at 10:00 a.m. Eastern Time to discuss the results and business outlook. Details to access the call can be found below under "Earnings Conference Call."

Third Quarter Financial Performance and Other Highlights

   --  Total economic return of $1.23 per common share, or 10.3% of beginning 
      book value, comprised of an increase in book value of $0.72 per common 
      share and dividends declared of $0.51 per common share 
 
   --  Book value per common share of $12.67 as of September 30, 2025 
 
   --  Comprehensive income of $1.20 per common share and net income of $1.09 
      per common share 
 
   --  Raised equity capital of $254 million, net of issuance costs, through 
      at-the-market ("ATM") common stock issuances 
 
   --  Purchased $2.4 billion in Agency RMBS and $464 million in Agency CMBS 
 
 
   --  Liquidity of over $1 billion as of September 30, 2025 
 
   --  Leverage including to-be-announced ("TBA") securities at cost was 7.5 
      times shareholders' equity as of September 30, 2025 

Management Remarks

"In the third quarter, we continued to execute on our strategy of raising and deploying capital. The results this quarter reflect our opportunistic positioning, expert risk management and the opportunity in a leveraged Agency mortgage-backed securities portfolio. We continue to invest in highly liquid, transparent, and readily valued securities while maintaining a focus on effective risk management and a disciplined investment process," said Smriti Laxman Popenoe, Co-Chief Executive Officer and President.

Earnings Conference Call

As previously announced, the Company's conference call to discuss these results is today at 10:00 a.m. Eastern Time and may be accessed via telephone by dialing 1-888-330-2022 for North America or 1-646-960-0690 for International and providing the conference ID 1957092 or by live audio webcast by clicking the "Webcast" button on the Investors page of the Company's website (www.dynexcapital.com), which includes a slide presentation. To listen to the live conference call via telephone, please dial in at least 10 minutes before the call begins. An archive of the webcast will be available on the Company's website approximately 2 hours after the live call ends.

 
Consolidated Balance Sheets 
(unaudited) 
--------------------------------- 
($s in thousands except per share 
data)                               September 30, 2025    June 30, 2025 
                                   --------------------  --------------- 
ASSETS 
    Cash and cash equivalents       $          490,989   $    387,520 
    Cash collateral posted to 
     counterparties                            332,818        318,317 
    Mortgage-backed securities 
     (including pledged of 
     $12,382,611 and $9,066,756, 
     respectively)                          13,230,145     10,510,006 
    Due from counterparties                     25,255         12,349 
    Derivative assets                           14,100         31,816 
    Accrued interest receivable                 55,931         43,309 
    Other assets, net                            9,456          7,948 
                                       ---------------    ----------- 
  Total assets                      $       14,158,694   $ 11,311,265 
                                       ===============    =========== 
 
LIABILITIES AND SHAREHOLDERS' 
EQUITY 
Liabilities: 
    Repurchase agreements           $       11,753,522   $  8,600,143 
    Due to counterparties                      270,719        976,506 
    Derivative liabilities                       4,635             31 
    Cash collateral posted by 
     counterparties                             18,424         29,323 
    Accrued interest payable                   110,517         60,855 
    Accrued dividends payable                   30,688         26,125 
    Other liabilities                           12,641          8,289 
                                       ---------------    ----------- 
  Total liabilities                         12,201,146      9,701,272 
 
Shareholders' equity: 
    Preferred stock                 $          107,843   $    107,843 
    Common stock                                 1,457          1,253 
    Additional paid-in capital               2,524,286      2,268,143 
    Accumulated other 
     comprehensive loss                       (134,069)      (149,035) 
    Accumulated deficit                       (541,969)      (618,211) 
                                       ---------------    ----------- 
  Total shareholders' equity                 1,957,548      1,609,993 
                                       ---------------    ----------- 
Total liabilities and 
 shareholders' equity               $       14,158,694   $ 11,311,265 
                                       ===============    =========== 
 
Preferred stock aggregate 
 liquidation preference             $          111,500   $    111,500 
Book value per common share         $            12.67   $      11.95 
Common shares outstanding                  145,714,136    125,358,375 
 
 
Consolidated Comprehensive Statements of Income 
(Loss) (unaudited) 
--------------------------------------------------- 
                                                       Nine Months 
                            Three Months Ended            Ended 
                       ---------------------------- 
($s in thousands 
except per share       September 30,                  September 30, 
data)                       2025      June 30, 2025        2025 
                       -------------  -------------  --------------- 
INTEREST INCOME 
  Interest income      $    149,679   $    111,746   $    356,484 
  Interest expense         (119,068)       (88,618)      (285,612) 
                        -----------    -----------    ----------- 
Net interest income          30,611         23,128         70,872 
 
OTHER GAINS (LOSSES) 
  Unrealized gain on 
   investments, net         142,469         33,652        286,118 
  Loss on 
   derivatives, net         (10,694)       (58,093)      (186,875) 
                        -----------    -----------    ----------- 
Total other gains 
 (losses), net              131,775        (24,441)        99,243 
 
EXPENSES 
  General and 
   administrative 
   expenses                 (11,464)       (11,913)       (35,140) 
  Other operating 
   expense, net                (534)          (380)        (1,268) 
                        -----------    -----------    ----------- 
Total operating 
 expenses                   (11,998)       (12,293)       (36,408) 
 
Net income (loss)           150,388        (13,606)       133,707 
  Preferred stock 
   dividends                 (2,827)        (2,680)        (7,431) 
                        -----------    -----------    ----------- 
Net income (loss) to 
 common shareholders   $    147,561   $    (16,286)  $    126,276 
                        ===========    ===========    =========== 
 
Other comprehensive 
income: 
  Unrealized gain on 
   available-for-sale 
   investments, net          14,966          4,064         38,420 
                        -----------    -----------    ----------- 
Total other 
 comprehensive 
 income                      14,966          4,064         38,420 
                        -----------    -----------    ----------- 
Comprehensive income 
 (loss) to common 
 shareholders          $    162,527   $    (12,222)  $    164,696 
                        ===========    ===========    =========== 
 
Weighted average 
 common shares-basic    135,952,339    113,177,331    113,373,853 
Weighted average 
 common 
 shares-diluted         136,927,985    113,177,331    114,202,402 
Net income (loss) per 
 common share-basic    $       1.09   $      (0.14)  $       1.11 
Net income (loss) per 
 common 
 share-diluted         $       1.08   $      (0.14)  $       1.11 
Dividends declared 
 per common share      $       0.51   $       0.51   $       1.49 
 

Summary of Third Quarter 2025 Results

The Company's increase in book value of $0.72 per common share for the third quarter of 2025 was largely driven by asset appreciation resulting from the decline in the 10-year U.S. Treasury rate and the tightening of mortgage spreads to U.S. Treasuries. Asset appreciation also partially drove the decline in the Company's leverage during the third quarter. The Company's net interest income and net interest spread continued to improve as a result of higher yielding investments added to the portfolio while financing costs as a percentage of average borrowings have remained steady. Management anticipates continued improvement in the Company's financing rate during the fourth quarter of 2025 due to the Federal Open Market Committee's lowering of the targeted Federal Funds rate by 25 basis points in September of 2025. The Company continues to raise capital through its ATM program.

The following table summarizes the changes in the Company's financial position during the third quarter of 2025:

 
($s in thousands                     Components of        Common 
except per share     Net Changes     Comprehensive        Equity 
data)                in Fair Value       Income         Rollforward 
-----------------   --------------  ---------------  ---------------- 
Balance as of June 
 30, 2025 (1)                                         $  1,498,493 
  Net interest 
   income                             $     30,611 
  Net periodic 
   interest from 
   interest rate 
   swaps                                    14,265 
  Operating 
   expenses                                (11,998) 
  Preferred stock 
   dividends                                (2,827) 
  Changes in fair 
  value: 
      MBS and 
       other         $    157,435 
      TBAs                 27,571 
      U.S. 
       Treasury 
       futures            (20,423) 
      Options on 
       U.S. 
       Treasury 
       futures               (508) 
      Interest 
       rate swaps         (30,320) 
      Interest 
       rate 
       swaptions           (1,279) 
                        --------- 
  Total net change 
   in fair value                           132,476 
                                    ---  --------- 
Comprehensive 
 income to common 
 shareholders                                              162,527 
Capital 
transactions: 
  Net proceeds 
   from stock 
   issuance (2)                                            256,347 
  Common dividends 
   declared                                                (71,319) 
                                                         --------- 
Balance as of 
 September 30, 
 2025 (1)                                             $  1,846,048 
                                                         ========= 
 
 
(1)    Amounts represent total shareholders' equity less the aggregate 
       liquidation preference of the Company's preferred stock of $111,500. 
(2)    Net proceeds from common stock issuances include approximately $254 
       million from ATM issuances and approximately $2 million from 
       amortization of share-based compensation, net of grants. 
 

Investment Portfolio and Financing

The following table provides detail on the Company's MBS investments, including TBA securities, as of the periods indicated:

 
                             September 30, 2025                         June 30, 2025 
                    -------------------------------------  --------------------------------------- 
                     Amortized                 Unrealized   Amortized 
                    Cost/Implied                  Gain     Cost/Implied                Unrealized 
($ in thousands)     Cost Basis    Fair Value    (Loss)     Cost Basis   Fair Value    Gain (Loss) 
-----------------   ------------  -----------  ----------  ------------  -----------  ------------ 
Fixed rate Agency RMBS: 
  2.0% coupon       $    626,357  $   505,258  $(121,099)  $    639,437  $   506,027  $(133,410) 
  2.5% coupon            546,065      451,782    (94,283)       561,012      455,838   (105,174) 
  4.0% coupon            300,076      286,028    (14,048)       309,469      291,063    (18,406) 
  4.5% coupon (1)      1,749,387    1,764,268     14,881      1,766,385    1,755,138    (11,247) 
  5.0% coupon          3,402,253    3,464,184     61,931      2,814,838    2,831,069     16,231 
  5.5% coupon          5,153,380    5,220,402     67,022      3,787,911    3,801,864     13,953 
  6.0% coupon            505,328      511,272      5,944        292,046      295,837      3,791 
  TBA 4.0%             1,183,947    1,184,816        869      1,178,398    1,192,572     14,174 
  TBA 4.5% (2)           833,230      834,619      1,389        849,450      858,382      8,932 
  TBA 5.0%               252,163      251,912       (251)       900,205      903,920      3,715 
  TBA 5.5%               251,709      251,953        244        723,974      727,943      3,969 
                     -----------   ----------   --------    -----------   ----------   -------- 
Total Agency RMBS   $ 14,803,895  $14,726,494  $ (77,401)  $ 13,823,125  $13,619,653  $(203,472) 
                     ===========   ==========   ========    ===========   ==========   ======== 
 
Agency CMBS         $    929,273  $   933,839  $   4,566   $    470,882  $   472,426  $   1,544 
CMBS IO                   94,227       93,112     (1,115)       101,670      100,746       (924) 
                     -----------   ----------   --------    -----------   ----------   -------- 
  Total             $ 15,827,395  $15,753,445  $ (73,950)  $ 14,395,677  $14,192,825  $(202,852) 
(1) Includes a par value of $9 million of 4.5% 15-year Agency RMBS at September 30, 2025. 
 
(2) Includes notional of $690 million and $700 million of 4.5% 15-year TBA securities at September 
30, 2025 and June 30, 2025, respectively. 
 

The following table provides detail on the Company's repurchase agreement borrowings outstanding as of the dates indicated:

 
                             September 30, 2025                   June 30, 2025 
                     ----------------------------------  -------------------------------- 
                                                WAVG                               WAVG 
                                   Weighted    Original               Weighted   Original 
Remaining Term                      Average    Term to                 Average   Term to 
 to Maturity           Balance       Rate      Maturity   Balance       Rate     Maturity 
------------------   -----------  ----------  ---------  ----------  ----------  -------- 
($s in thousands) 
Less than 30 days    $ 7,845,206   4.44%             86  $7,037,298   4.49%            67 
30 to 90 days          3,130,470   4.44%            117          --     --%            -- 
91 to 180 days           777,846   4.42%            177   1,562,845   4.37%           184 
                      ----------  -----       ---------   ---------  -----       -------- 
  Total              $11,753,522   4.44%            100  $8,600,143   4.47%            88 
                      ==========  =====       =========   =========  =====       ======== 
 

The following table provides details on the performance of the Company's MBS, repurchase agreement financing, and interest rate swaps for the third quarter of 2025 compared to the prior quarter:

 
                                                        Three Months Ended 
                    ------------------------------------------------------------------------------------------- 
                                 September 30, 2025                               June 30, 2025 
                    ---------------------------------------------  -------------------------------------------- 
                                                      Effective                                     Effective 
                                          Average       Yield/                          Average       Yield/ 
                         Interest         Balance      Financing        Interest        Balance      Financing 
($s in thousands)     Income/Expense      (1)(2)      Cost(3)(4)     Income/Expense      (1)(2)     Cost(3)(4) 
                    ------------------  -----------  ------------  ------------------  ----------  ------------ 
Agency RMBS          $    136,921       $11,137,193    4.92%        $   102,738        $8,663,590    4.74% 
Agency CMBS                 5,380           488,441    4.32%              1,945           189,815    4.05% 
CMBS IO(5)                  1,740            97,693    7.02%              2,612           105,162    9.62% 
Other investments              16               841    3.84%                 12               940    4.40% 
                        ---------  ---   ----------  ------   ---      --------  ----   ---------  ------ --- 
  Subtotal                144,057        11,724,168    4.91%            107,307         8,959,507    4.79% 
Cash equivalents            5,622                                         4,439 
                        ---------  ---                                 --------  ---- 
  Total interest 
   income            $    149,679                                   $   111,746 
 
Repurchase 
 agreement 
 financing               (119,068)       10,468,568   (4.45)%           (88,618)        7,871,627   (4.45)% 
                        ---------                    ------            --------   ---              ------ 
  Net interest 
   income/net 
   interest 
   spread            $     30,611                      0.46%        $    23,128                      0.33% 
                        =========  ===               ======   ===      ========  ====              ====== === 
 
Net periodic 
 interest from 
 interest rate 
 swaps                     14,265                      0.54%             12,349                      0.63% 
                        ---------  ---               ------   ---      --------  ----              ------ --- 
  Economic net 
   interest income 
   (6)               $     44,876                      1.00%        $    35,477                      0.96% 
                        =========  ===               ======   ===      ========  ====              ====== === 
  *Table Note: Data may not foot due to rounding. 
 
 
(1)     Average balance for assets is calculated as a simple average of the 
        daily amortized cost and excludes securities pending settlement if 
        applicable. 
(2)     Average balance for liabilities is calculated as a simple average of 
        the daily borrowings outstanding during the period. 
(3)     Effective yield is calculated by dividing annualized interest income 
        by the average balance of asset type outstanding during the reporting 
        period. Unscheduled adjustments to premium/discount 
        amortization/accretion, such as for prepayment compensation, are not 
        annualized in this calculation. 
(4)     Financing cost is calculated by dividing annualized interest expense 
        by the total average balance of borrowings outstanding during the 
        period with an assumption of 360 days in a year. 
(5)     CMBS IO ("Interest only") includes Agency and non-Agency issued 
        securities. 
(6)     Represents a non-GAAP measure. See "Non-GAAP Financial Measures" below 
        for a reconciliation to the most comparable GAAP financial measure. 
 

Hedging Portfolio

The following tables provide details on the Company's interest rate hedging portfolio as of the dates indicated:

 
                       September 30, 2025        June 30, 2025 
                     -----------------------  ------------------- 
                                                            WAVG 
                       Notional      WAVG       Notional    Fixed 
                     Amount Long   Fixed Pay  Amount Long    Pay 
Derivative Type        (Short)       Rate       (Short)     Rate 
------------------   ------------  ---------  ------------  ----- 
($s in thousands) 
5-year U.S. 
 Treasury futures    $   (30,000)     n/a     $        --    n/a 
10-year U.S. 
 Treasury futures     (1,190,000)     n/a      (1,521,500)   n/a 
30-year U.S. 
 Treasury futures       (953,500)     n/a        (953,500)   n/a 
                      ----------               ---------- 
                     $(2,173,500)             $(2,475,000) 
                      ----------               ---------- 
 
3-5 year interest 
 rate swaps          $(1,550,000)    3.42%    $(1,275,000)  3.42% 
5-7 year interest 
 rate swaps           (3,760,000)    3.67%     (3,760,000)  3.67% 
7-10 year interest 
 rate swaps           (2,550,000)    3.90%     (1,875,000)  3.93% 
10-15 year interest 
 rate swaps                   --      --%        (250,000)  3.73% 
                      ----------               ---------- 
                     $(7,860,000)             $(7,160,000) 
                      ==========               ========== 
 
 
                       September 30, 2025         June 30, 2025 
                     -----------------------  ---------------------- 
                                   Average                Average 
                                    Fixed                  Fixed 
                      Notional     Receive    Notional    Receive 
($s in thousands)      Amount       Rate       Amount       Rate 
                     ----------  -----------  --------  ------------ 
1-2 year interest 
 rate swaption       $  750,000     3.25%     $500,000     3.25% 
3-month options on    1,000,000      n/a         --         n/a 
 U.S. Treasury 
 futures 
 

The following table provides detail on the Company's "gain (loss) on derivatives, net" recognized in the Company's consolidated statements of comprehensive income (loss) during the periods indicated:

 
                                              Three Months Ended 
                                   ----------------------------------------- 
                                     September 30, 2025      June 30, 2025 
                                   ----------------------  ----------------- 
Unrealized gain (loss): 
   TBA securities                   $         (28,541)      $      28,622 
   U.S. Treasury futures                       41,174             (51,950) 
   Options on U.S. Treasury 
    futures                                      (508)                 -- 
   Interest rate swaps                        (30,320)            (84,552) 
   Interest rate swaptions                     (1,279)                182 
                                       --------------          ---------- 
                                              (19,474)           (107,698) 
Realized gain (loss) upon 
settlement, maturity or 
termination: 
   TBA securities                              56,112             (21,014) 
   U.S. Treasury futures                      (61,597)             58,270 
   Interest rate swaps                             --                  -- 
                                       --------------          ---------- 
                                               (5,485)             37,256 
Net periodic interest: 
   Interest rate swaps                         14,265              12,349 
                                       --------------          ---------- 
Loss on derivatives, net            $         (10,694)      $     (58,093) 
                                       ==============          ========== 
 

The Company typically designates certain of its interest rate derivatives as hedges for tax purposes. Gains and losses realized upon maturity or termination of derivatives designated as hedges for tax purposes are amortized into the Company's REIT taxable income over the original periods hedged by those derivatives. These hedge gains are not included in the Company's current or future earnings available for distribution ("EAD"), a non-GAAP measure, but will be part of the Company's future distribution requirements. The table below provides the projected amortization of the Company's net deferred tax hedge gains that may be recognized as taxable income over the periods indicated, given conditions known as of September 30, 2025; however, uncertainty inherent in the forward interest rate curve makes future realized gains and losses difficult to estimate, and as such, these projections are subject to change for any given period.

 
Projected Period of Recognition for Tax Hedge Gains, 
Net                                                      September 30, 2025 
-----------------------------------------------------   -------------------- 
                                                          ($ in thousands) 
Fiscal year 2025                                          $           99,310 
Fiscal year 2026                                                      97,916 
Fiscal year 2027                                                      93,327 
Fiscal year 2028 and thereafter                                      396,988 
                                                        ---  --------------- 
                                                          $          687,541 
                                                        ===  =============== 
 

Non-GAAP Financial Measures

In evaluating the Company's financial and operating performance, management considers book value per common share, total economic return to common shareholders, and other operating results presented in accordance with GAAP as well as certain non-GAAP financial measures, which include earnings available for distribution ("EAD") to common shareholders (including per common share) and economic net interest income (and the related metric economic net interest spread). Management believes these non-GAAP financial measures may be useful to investors because they are viewed by management as a measure of the investment portfolio's return based on the effective yield of its investments, net of financing costs and, with respect to EAD, net of other normal recurring operating income/expenses.

Drop income/loss generated by TBA dollar roll positions, which is included in "gain (loss) on derivatives instruments, net" on the Company's consolidated statements of comprehensive income, is included in EAD because management views drop income/loss as the economic equivalent of net interest income on the underlying Agency security from trade date to settlement date. However, drop income/loss does not represent the total realized gain/loss from the Company's TBA securities.

Management also includes net periodic interest from its interest rate swaps, which is included in "gain (loss) on derivatives instruments, net", in each of these non-GAAP measures because interest rate swaps are used by the Company to economically hedge the impact of changing interest rates on its borrowing costs from repurchase agreements, and including net periodic interest from interest rate swaps is a helpful indicator of the Company's total financing cost in addition to GAAP interest expense.

Non-GAAP financial measures are not a substitute for GAAP earnings and may not be comparable to similarly titled measures of other REITs because they may not be calculated in the same manner. Furthermore, though EAD is one of several factors our management considers in determining the appropriate level of distributions to common shareholders, it should not be utilized in isolation, and it is not an accurate indication of the Company's REIT taxable income or its distribution and dividend requirements in accordance with the Internal Revenue Code.

Reconciliations of each non-GAAP measure to certain GAAP financial measures are provided below.

 
                                              Three Months Ended 
                                      ---------------------------------- 
($s in thousands except per share      September 30, 
data)                                       2025         June 30, 2025 
                                      ----------------  ---------------- 
Comprehensive income (loss) to 
 common shareholders (GAAP)           $    162,527      $    (12,222) 
Less: 
  Change in fair value of 
   investments, net (1)                   (157,435)          (37,716) 
  Change in fair value of derivative 
   instruments, net (2)                     28,507            75,200 
                                       -----------       ----------- 
EAD to common shareholders 
 (non-GAAP)                           $     33,599      $     25,262 
                                       ===========       =========== 
 
Weighted average common shares         135,952,339       113,177,331 
EAD per common share (non-GAAP)       $       0.25      $       0.22 
 
Net interest income (GAAP)            $     30,611      $     23,128 
  Net periodic interest from 
   interest rate swaps                      14,265            12,349 
                                       -----------       ----------- 
Economic net interest income                44,876            35,477 
  TBA drop income (3)                        3,548             4,758 
  Operating expenses                       (11,998)          (12,293) 
  Preferred stock dividends                 (2,827)           (2,680) 
                                       -----------       ----------- 
EAD to common shareholders 
 (non-GAAP)                           $     33,599      $     25,262 
                                       ===========       =========== 
 
Net interest spread (GAAP)                    0.46%             0.33% 
Net periodic interest as a 
 percentage of average repurchase 
 borrowings                                   0.54%             0.63% 
                                       -----------       ----------- 
Economic net interest spread 
 (non-GAAP)                                   1.00%             0.96% 
                                       ===========       =========== 
 
 
 
(1)     Amount includes realized and unrealized gains and losses from the 
        Company's MBS. 
(2)     Amount includes unrealized gains and losses from changes in fair value 
        of derivatives (including TBAs accounted for as derivative 
        instruments) and realized gains and losses on terminated derivatives 
        and excludes TBA drop income and net periodic interest from interest 
        rate swaps. 
(3)     TBA drop income/loss is calculated by multiplying the notional amount 
        of the TBA dollar roll positions by the difference in price between 
        two TBA securities with the same terms but different settlement 
        dates. 
 

Forward Looking Statements

This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe, " "expect," "forecast," "anticipate," "estimate," "project," "plan," "may," "could," "will," "continue" and similar expressions identify forward-looking statements that are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Forward-looking statements in this release, including statements made in Ms. Popenoe's quote, may include, without limitation, statements regarding the Company's financial performance in future periods, future interest rates, future market credit spreads, management's views on expected characteristics of future investment and macroeconomic environments, central bank strategies, prepayment rates and investment risks, future investment strategies, future leverage levels and financing strategies, the use of specific financing and hedging instruments and the future impacts of these strategies, future actions by the Federal Reserve, and the expected performance of the Company's investments. The Company's actual results and timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements as a result of unforeseen external factors. These factors may include, but are not limited to, the Company's ability to find suitable investment opportunities; changes in domestic economic conditions; geopolitical events, such as terrorism, war, or other military conflict, including the war between Russia and Ukraine and the conflict in the Middle East and the related impacts on macroeconomic conditions as a result of such conflicts; tariffs that the U.S. imposes on trading partners or tariffs imposed on the U.S. from trading partners; global government policy changes and the ability or inability to react to rapidly changing global economic policies; changes in interest rates and credit spreads, including the repricing of interest-earning assets and interest-bearing liabilities; the Company's investment portfolio performance, particularly as it relates to cash flow, prepayment rates, and credit performance; the impact on markets and asset prices from changes in the Federal Reserve's policies regarding purchases of Agency RMBS, Agency CMBS, and U.S. Treasuries; actual or anticipated changes in Federal Reserve monetary policy or the monetary policy of other central banks; adverse reactions in U.S. financial markets related to actions of foreign central banks or the economic performance of foreign economies, including in particular China, Japan, the European Union, and the United Kingdom; uncertainty concerning the long-term fiscal health and stability of the United States; the cost and availability of financing, including the future availability of financing due to changes to regulation of, and capital requirements imposed upon, financial institutions; the cost and availability of new equity capital; changes in the Company's use of leverage; changes to the Company's investment strategy, operating policies, dividend policy, or asset allocations; the quality of performance of third-party servicer providers, including the Company's sole third-party service provider for our critical operations and trade functions; the loss or unavailability of the Company's third-party service provider's service and technology that supports critical functions of the Company's business related to the Company's trading and borrowing activities due to outages, interruptions, or other failures; the level of defaults by borrowers on loans underlying MBS; changes in the Company's industry; increased competition; changes in government regulations affecting the Company's business; changes or volatility in the repurchase agreement financing markets and other credit markets; changes to the market for interest rate swaps and other derivative instruments, including changes to margin requirements on derivative instruments; uncertainty regarding continued government support of the U.S. financial system and U.S. housing and real estate markets, or to reform the U.S. housing finance system including the resolution of the conservatorship of Fannie Mae and Freddie Mac; the composition of the Board of Governors of the Federal Reserve; the political environment in the U.S.; the effect of the U.S. federal government shutdown on economic conditions; systems failures or cybersecurity incidents; and exposure to current and future claims and litigation. For additional information on risk factors that could affect the Company's forward-looking statements, see the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and other reports filed with and furnished to the Securities and Exchange Commission.

All forward-looking statements are qualified in their entirety by these and other cautionary statements that the Company makes from time to time in its filings with the Securities and Exchange Commission and other public communications. The Company cannot assure the reader that it will realize the results or developments the Company anticipates or, even if substantially realized, that they will result in the consequences or affect the Company or its operations in the way the Company expects. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, the Company. Forward-looking statements speak only as of the date made. The Company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances arising after the date on which they were made, except as otherwise required by law.

Company Description

Dynex Capital delivers value at the intersection of capital markets and housing finance, using our expertise to transform residential real estate into compelling long-term yields for our shareholders. We are committed to ethical stewardship of stakeholders' capital, expert risk management, disciplined capital allocation, and social responsibility. We generate dividend income and long-term total returns through the financing of real estate assets, and by doing so, support the growth and vitality of housing communities in the United States. Dynex Capital operates as a real estate investment trust $(REIT)$ and is internally managed to maximize stakeholder alignment. Additional information is available at www.dynexcapital.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251020792741/en/

 
    CONTACT:    Alison Griffin 

(804) 217-5897

 
 

(END) Dow Jones Newswires

October 20, 2025 08:00 ET (12:00 GMT)

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10