Seeking Alpha

Capstead beats as margin widens, prepayments dive

  • A nice beat by Capstead Mortgage (CMO) sets the stock and maybe the entire mREIT sector up for a good day tomorrow. EPS of $0.35 is $0.04 ahead of estimates and compares to $0.23 per share in Q3. The quarterly dividend is $0.31 per share.
  • Financing spreads rose a big 38 basis points from Q3 to 1.25%. Prepayments declined 33% to a CPR of 17.14.
  • Book value per share of $12.47 is $0.12 higher than Q3 and compares to the share price of $12.37.
  • Management: Prepayment rates declined to levels not seen since early 2012; "We anticipate reporting earnings in 2014 sufficient to pay dividends at or above our 2013 quarterly dividend level."
  • CC tomorrow at 9 ET
  • Press release
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Comments (1)
  • Tucker Leppa
    , contributor
    Comments (343) | Send Message
     
    Census estimates were actually $.32 so it'd be a $.03 beat
    (http://bit.ly/1ehn1pK)
    Long (CMO) 12/17/13 @ 12.10
    29 Jan, 06:47 PM Reply Like
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