More on Arlington Asset results

Non-GAAP core operating income of $16.4M of $0.97 per share compares to $1.03 in Q3 and quarterly payout of $0.88.

Non-agency portfolio of $485.9M in face value compares to $1.5B in face value for agency portfolio. Company leverage is about 3:1.

Agency portfolio CPR  of 6.27%, non-agency at 14.2%.

After strongly outperforming the mREIT sector in 2013 thanks to its agency portfolio being fully hedged while the non-agency holdings improved along with the economy and the housing market, Arlington (AI) has struggled in 2014 - the fall in rates doesn't help the hedged agency paper, and the slowing economy bodes ill for the non-agency. The stock was off 4.7% yesterday.

CC at 9 ET

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Comments (2)
  • Darren McCammon
    , contributor
    Comments (4405) | Send Message
    Well covered the dividend and increased book value. The fall in rates doesn't hurt the hedged agency paper either and improving housing prices, if that continues, help the non-agency paper as would HARP 3.0.


    Seeking Alpha, sometimes the reason you are looking for of why the stock dropped is Mr. Market it just wrong.
    4 Feb 2014, 10:49 AM Reply Like
  • DAVE22Q
    , contributor
    Comments (417) | Send Message
    Darren nailed it and the proof is in today's bounce-back. I saw nothing in the report to make me consider switching to an Agency focused mREIT at this time
    4 Feb 2014, 03:10 PM Reply Like
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