Yesterday, 3:26 PM
- A 1.55% decline in Europe amid worries over the financial condition of Deutsche Bank has helped send the U.S. averages lower by 0.85%, and Treasury yields to their slimmest this month. At the short end, traders are cutting bets on the chance of a rate hike at any point in 2016.
- Fading that negative action are the REITs, with the Vanguard REIT Index Fund (NYSEARCA:VNQ) higher by 0.3% and the iShares U.S. Real Estate ETF (NYSEARCA:IYR) up 0.2%. The iShares Mortgage REIT ETF (NYSEARCA:REM) is also up 0.2%.
- Among individual issues: Annaly Capital (NLY +0.8%), American Capital Agency (AGNC +0.7%), Realty Income (O +1.1%), Omega Healthcare (OHI +1%), HCP (HCP +0.8%), Aimco (AIV +1.7%), Simon Property (SPG +0.5%), Kimco (KIM +0.8%), Public Storage (PSA +0.9%), Stag Industrial (STAG +0.5%)
Wed, Sep. 14, 4:12 PM
Wed, Sep. 14, 4:09 PM
- Alongside declaration of its $0.18 monthly dividend, American Capital Agency (NASDAQ:AGNC) announces Aug. 31 book value per share of $22.71 and tangible book value per share of $21.01.
- Tangible book excluded estimates of intangible assets acquired as part of the internalization of management.
- Book value per share was $22.24 on July 31.
- Today's close of $19.30 is a 15% discount to book; an 8% discount to tangible book.
Wed, Aug. 17, 10:48 AM
- July 31 book value per share of $22.24 is up $0.02 from one month earlier. This includes deductions for not just July's $0.20 dividend, but August's $0.18 payout which was declared on July 27. Adding that $0.18 back in means book value gained $0.20 per share during July.
- Estimated tangible book value per share (after adding in the August payment) is $20.72.
- AGNC is lower by 0.8% this morning to $19.55.
Thu, Jul. 28, 2:27 PM
- The deal for American Capital Agency (AGNC +0.6%) to internalize management closed on July 1, and AGNC now provides management to American Capital Mortgage (MTGE +0.9%), giving it a stream of management income.
- Annual run-rate operating costs should be below 0.9% of shareholder equity - or below 0.75% if adding in the management fee from MTGE.
- This would be the lowest cost structure of any mortgage REIT, and well below the average of 2.91% (measured against shareholder equity).
- See presentation slides (now hosted on Seeking Alpha).
- Previously: Strong quarter for American Capital Agency (July 27)
- Previously: American Capital Agency declares $0.18 dividend (July 27)
Wed, Jul. 27, 4:43 PM
Wed, Jul. 27, 4:10 PM
- Q2 net spread and dollar roll income of $0.56 per share vs. $0.52 earned in Q1. Quarterly dividend run rate is $0.60.
- Book value per share of $22.22 vs. $22.09 three months earlier. Today's close of $19.49 is a 12.3% discount to book value.
- Economic return for the quarter of 3.3%, or 13.3% annualized.
- Net interest spread of 1.38% up seven basis points from Q1. 11.8% CPR up from 8.8%.
- Earnings call tomorrow at 11 ET
- Previously: American Capital Agency reports Q2 results (July 27)
- AGNC flat after hours
Wed, Jul. 27, 4:04 PM
Tue, Jul. 26, 5:35 PM
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Tue, Jul. 26, 1:13 PM
- "We see an obvious flaw in this analysis," says David Einhorn in his Q2 letter to Greenlight Capital investors. He's referring to Andrew Left's Citron's short of Chemours (CC +8.5%). Left contended Chemours could face $5B in liabilities thanks to 3.5K lawsuits from people living near its Teflon plant in Parkersburg, WV. Double-checking with Left, Einhorn found no math to justify that lofty figure.
- Others have pegged the liability at just several hundred million dollars, not enough to topple the company.
- Greenlight is an owner of 8.8M shares as of March 31.
- In other Greenlight news, the hedge fund took advantage of the post-Brexit panic to cover shorts against Intuitive Surgical (ISRG +0.2%), Under Armour (UA -5.8%), and United Rentals (URI +2.3%).
- Longs sold out of include: American Capital Agency (AGNC +0.4%), Baxter International (BAX +3.3%), Ingram Micro (IM -0.7%), and Oil States International (OIS +0.7%).
- Greenlight fell 2.6% in Q2, bringing it nearly back to break-even for the year.
Tue, Jul. 19, 10:21 AM
- Details aren't yet available, but it's not hard to imaging similar reasoning as today KBW follows JPMorgan (yesterday) in downgrading American Capital Agency (AGNC +0.8%).
- Rates have fallen at the long end and are steady (or possibly soon to be rising) at the short end. It adds up to boosted prepayment risk and slimmer margins.
- The stock's roughly 20% rally since bottoming in early January leaves the valuation a lot fuller today than it was then.
Mon, Jul. 18, 7:36 AM| Mon, Jul. 18, 7:36 AM | 8 Comments
Thu, Jul. 14, 4:04 PM
Wed, Jun. 29, 9:47 AM
- Alongside its downgrade of Western Asset Mortgage, BAML upgrades American Capital Agency (AGNC unch) to Neutral from Underperform.
- BAML's action comes after more than a 20% run higher for AGNC from lows hit in mid-January. At the current price of $19.50, the stock is trading at an 11.7% discount to March 31 book value.
Fri, Jun. 24, 10:30 AM
- A sharp drop in long-term rates and vanquished expectations for even one rate hike this year has income players bidding up the prices of utility stocks (XLU +0.7%) and certain REITs even as the major average fall more than 2% post-Brexit.
- A check of Fed Funds futures finds traders not fully pricing in a 25 basis point rate hike until 2018!
- The mortgage REIT sector (REM +0.5%) welcomes the news, with players like Annaly (NLY +1.7%), American Capital Agency (AGNC +1.1%), Two Harbors (TWO +1.7%), and Chimera (CIM +1.3%) leading the way. Western Asset Mortgage (WMC -0.8%) is a laggard after slashing its dividend by more than 30% last night.
- Equity REITs are decidedly mixed. Retail names like Realty Income (O +2.4%), National Retail (NNN +2%), and Vereit (VER +0.9%) are higher, as are healthcare players like HCP (HCP +1.2%) and Medical Properties Trust (MPW +0.1). Apartment REITs are mostly lower, as are mall operators like Simon Property (SPG -0.8%) and General Growth (GGP -0.7%).
- The dollar is surging post-Brexit, however, and that's taking a chunk out of the hotel REITs: Hospitality Properties (HPT -1.5%), Sunstone Hotel (SHO -2.7%), LaSalle (LHO -3.8%), Pebblebrook (PEB -2.4%), RLJ Lodging (RLJ -2.5%).
- ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, PUI, SDP, PSCU, FUGAX, UTLF, JHMU, VNQ, IYR, DRN, RQI, URE, SCHH, ICF, RWR, SRS, RNP, RFI
Wed, Jun. 15, 3:20 PM
- Fed Funds futures markets are pricing in just a 50% chance of a rate hike in 2016 after the FOMC stayed on hold in June and cut its expectations for future moves higher in interest rates.
- The mREITs (REM +0.7%) are up just modestly, but all higher now than they were prior to the FOMC news.
- Annaly Capital (NLY +0.6%), American Capital Agency (AGNC +0.9%), Armour (ARR +1.4%), CYS Investments (CYS +1%), New York Mortgage (NYMT +1.4%), Capstead Mortgage (CMO +1.1%).
- ETFs: MORL, REM, MORT