Western Asset Mortgage Capital CorporationNYSE
Tue, Nov. 29, 2:31 PM
- Though lagging the S&P 500 by about 100 basis points since the election (and the banks by a mile), the mortgage REITs are nevertheless higher since the election despite the sharp rise in interest rates.
- Mortgage REITs are carry players, of course, and can expect to see boosts to income if long rates rise faster than short rates (though book value could take a hit).
- The iShares FTSE Nareit Mortgage REIT ETF (REM +1.2%) today is outperforming the S&P 500's 0.35% advance. The 10-year Treasury yield is down five basis points to 2.30%.
- Annaly (NLY +1%), AGNC Investment (AGNC +1.7%), Two Harbors (TWO +2.9%), Chimera (CIM +2.1%), CYS Investments (CYS +2%), Invesco (IVR +1.5%), Capstead (CMO +1.5%), Western Asset (WMC +1.5%), AG Mortgage (MITT +2.7%)
- ETFs: MORT, MORL
Thu, Nov. 3, 11:38 AM
- With more than half the sector having reported their Q3s, the general themes are rising earnings (covering payouts) and gains in book value leading to sizable returns. Among those who reported last night or this morning - Armour Residential (ARR +1.9%), American Capital Mortgage (MTGE +2.1%), MFA Financial (MFA +1.9%), Western Asset (WMC +1.8%), Anworth (ANH +2%).
- The iShares FTSE Nareit mREIT ETF (REM +1%)
- Other ETFs: MORL, MORT
Wed, Nov. 2, 5:09 PM
- Q3 core earnings plus drop income of $14.8M or $0.35 per share vs. $12.7M and $0.30 earned in Q2. Dividend is $0.31.
- Book value per share $11.48 up from $11.01 at end of Q2. Today's close of $9.87 is a 14% discount to book.
- Economic return for the quarter of $0.78 per share, or 28% annualized on book value.
- Conference call at 11 ET
- Previously: Western Asset Mortgage Capital beats by $0.06 (Nov. 2)
- WMC flat after hours
Wed, Nov. 2, 4:36 PM
Tue, Nov. 1, 5:35 PM
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Tue, Oct. 4, 4:29 PM
- Chatter of the ECB's plan to begin tapering monthly bond purchases sent interest rates sharply higher today, and REITs sharply lower.
- The 10-year Treasury yield gained 6.3 basis points to 1.688%.
- The mortgage REITs (REM -2.2%): Annaly (NLY -3.1%), Armour (ARR -1.2%), Two Harbors (TWO -2.9%), Chimera (CIM -3.9%), CYS (CYS -2.4%), Invesco (IVR -3%), Western Asset (WMC -2.8%), MFA Financial (MFA -2.7%), AG Mortgage (MITT -3.1%)
- Equity REITs (VNQ -1.4%): Realty Income (O -2.6%), WellTower (HCN -2.6%), HCP (HCP -2%), Vereit (VER -2.3%), Equity Residential (EQR -0.9%), Simon Property (SPG -1.5%), Public Storage (PSA -1.8%), Government Properties (GOV -2.7%), Gramercy Property (GPT -2.2%), Stag Industrial (STAG -3%)
- ETFs: VNQ, IYR, MORL, REM, MORT, DRN, RQI, URE, SCHH, ICF, RWR, SRS, RNP, RFI, JRS, KBWY, NRO, DRV, RIT, RIF, REK, DRA, FRI, FTY, FREL, LRET, PSR, WREI, XLRE, IARAX
Thu, Sep. 22, 4:24 PM
Fri, Aug. 5, 1:00 PM
Wed, Aug. 3, 4:38 PM
- Q2 core earnings plus drop income of $12.7M or $0.30 per share vs. $9.5M and $0.23 in Q1. Dividend is $0.31.
- Book value per share of $11.01 up from $10.90 three months earlier. Today's close of $9.93 is a 9.8% discount to book.
- Economic return of $0.42 per share, or 15.4% annualized.
- CC tomorrow at 11 ET
- Previously: Western Asset Mortgage Capital misses by $0.02 (Aug. 3)
- See also: Q1's tough report
- WMC +0.7% after hours
Wed, Aug. 3, 4:32 PM
Tue, Aug. 2, 5:35 PM
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Wed, Jun. 29, 8:50 AM
- With declining ROE now inline with its mREIT peers, Western Asset Mortgage (NYSE:WMC) should lose its premium valuation to the group, says analyst Kenneth Bruce, downgrading to Neutral from Buy, and taking the price target to $9.50 from $10.
- At last night's close of $9.67, WMC trades at an 11.3% discount to March 31 book. It's hard to call that a much of a premium to the rest of the mREIT sector these days, but it does seem a little pricey given the value destruction at the company over the past couple of years.
Mon, Jun. 27, 7:15 AM| Mon, Jun. 27, 7:15 AM | 5 Comments
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%).
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Thu, Jun. 23, 5:35 PM
Thu, Jun. 23, 4:23 PM