The Q1 quarterly payout will be $0.14 per share vs. $0.08 previously for an annualized yield of 10.7%. The company this quarter discontinued hedge accounting for its interest rate swaps after determining they were "no longer necessary or effective components of the company's asset/liability management strategy."
In particular, the assets the swaps were intended to hedge now have substantially lower principal balances and thus less sensitivity to unexpected rises in short-term rates. The swaps themselves remain in effect.
The company expects the $0.14 payout is inline with its earnings power this quarter and into the future, and notes the fair value of these legacy swaps is already reflected in book value - thus there should be no book value hit from the higher dividend.
Board member Charles Black has decided to step down and will be replaced by Mark Maron, a parter at Acre Corp., a private equity commercial real estate firm.
No trades yet premarket, but the stock closed last night at $5.21, continuing to trade at a substantial discount to Dec. 31 book value of $5.98.