Quarterly ResultOct 19, 2026, 08:06 AM
Dynex Capital Q3 Loss: Book Value Down, Leverage Up
AI Summary
Dynex Capital Inc. reported a significant decline in its third quarter 2026 financial results, with a total economic return of $(1.48) per common share and a decrease in book value per common share to $10.91. The company's investment portfolio grew to $28.3 billion due to substantial MBS purchases, funded in part by $384 million in capital raised. However, leverage increased to 9.0 times shareholders' equity. Despite the negative financial performance, the company declared a dividend of $0.51 per common share and maintained $1.3 billion in liquidity.
Key Highlights
- Dynex Capital reported a Q3 2026 economic loss of $(1.48) per common share, a (11.5)% decrease from beginning book value.
- Book value per common share decreased to $10.91 as of September 30, 2026, down from $12.90 on June 30, 2026.
- Total investment portfolio grew 3% to $28.3 billion, driven by $3.2 billion in MBS purchases.
- The company raised $384 million in capital, including $268 million in common equity and $116 million in preferred stock.
- Leverage increased to 9.0 times shareholders' equity from 8.1 times in the prior quarter.
- Dividends declared were $0.51 per common share.
- Liquidity stood at $1.3 billion of cash and unpledged securities, representing 42% of total equity.
Price Impact
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