Business Wire (Feb 11, 2014)
Business Wire (Feb 10, 2014)
Business Wire (Jan 28, 2014)
Business Wire (Jan 27, 2014)
Business Wire (Dec 23, 2013)
Business Wire (Dec 13, 2013)
at MarketWatch.com (Jun 5, 2012)
at CNBC.com (Aug 5, 2011)
Anworth Mortgage Asset Corporation is in the business of investing in U.S., agency mortgage-backed securities, or agency MBS, which are obligations guaranteed by the U.S. government, such as Ginnie Mae, or federally sponsored enterprises.
Tuesday, Feb 114:17 PM
Tuesday, Feb 114:17 PM| Comment!
- Book value per share of $5.98 is up from $5.89 at the end of Q3 and compares to today's close of $4.89, putting the stock at a 18.2% discount to book. Is Kain a buyer?
- The company made quick work on its December authorization to buy up to 5M more shares, purchasing 2.97M shares in Q4 at an average price of $4.41 each. Thus far in Q1, Anworth (ANH) has repurchased another 1.55M shares at an average price of $4.68 each. The float is about 140M shares.
- CC tomorrow at 1 ET
- Press release, Q4 results
Tuesday, Feb 114:08 PM
Friday, Jan 3110:26 AM
Friday, Jan 3110:26 AM| 5 Comments
- Working today - and for the whole month of January - as the broader market sells off are the REITs. The sector - both the equity REITs and mREITs - had been punished in 2013 as rates moved higher starting last May, but another four basis point decline this morning brings the 10-year Treasury yield down to 2.66% after starting the year at about 3%.
- At least for the mREITs, nearly all put in what may turn out to be major bottoms late in 2013 amid jitters over year-end tax-loss selling and the commencement of the taper - sell the rumor, buy the news ... indeed.
- Mortgage REITs: Annaly (NLY +1.1%) +7.4% YTD, American Capital (AGNC +1.3%) +9.1%, Invesco (IVR +0.5%) +6.7%, Anworth (ANH +0.6%) +10.9%, Apollo Residential (AMTG +0.7%) +9.1%, AG Mortgage Investment (MITT +0.6%) +5.6%.
- ETFs: REM, MORT, MORL
- Equity players: Realty Income (O +0.5%) +9.6% YTD, National Retail (NNN +0.7%) +9.8%, AvalonBay (AVB +0.8%) +4.1%, Public Storage (PSA +0.6%) +4.9%, Boston Properties (BXP +0.2%) +7.8%, Liberty Trust (LRY +1%) +7.9%.
- Related ETFs: IYR, VNQ, REM, DRN, REZ, URE, SRS, RWR, ICF, SCHH, DRV, ROOF, KBWY, RTL, REK, FRI, FTY, PSR, FNIO, WREI
Thursday, Jan 232:23 PM
Thursday, Jan 232:23 PM| 16 Comments
- One sector nearly fully in the green on a big down day for the broad averages is the mortgage REITs (REM +0.6%) as investors - worried about further declines in book value - take comfort from a big 10 basis point dip in the 10-year Treasury yield to 2.76% (off from 3% at the start of the year).
- Leading are CYS Investments (CYS +3.1%), Annaly (NLY +1.7%), American Capital (AGNC +1.4%), (MTGE +1.5%), Invesco (IVR +1.8%), Anworth (ANH +1.3%), and AG Mortgage Investment (MITT +0.7%). The sector elephants - Annaly and American Capital Agency - are head 6% and 8% YTD, respectively.
- With the big drop in yields at the long end, how long will it be before investors stop fretting about declines in book value and shift to concern over narrowing spreads!
- Related ETFs: MORT, MORL
Thursday, Jan 1610:00 AM
Thursday, Jan 1610:00 AM| 2 Comments
- It's mission accomplished at Javelin Mortgage (JMI) for Phil Goldstein's Bulldog Investors, but there are other "vulnerable companies," says JMP's Steve Delaney. “Management doesn’t have a lot to stand on if the REIT’s stock is trading at 80 percent of its book value."
- Javelin has returned 33% since Bulldog disclosed a stake (and called for fast buybacks) late last summer even as the rest of the sector - including giants Annaly (NLY) and American Capital Agency (AGNC) - continued to decline. Goldstein has deferred to comment on his next target but has said he's eyeing both equity and mortgage REITs.
- Anworth Mortgage (ANH) - trading in the area of a 30% discount to book - is a "clear target" for an investor like Goldstein, says Delaney. The company repurchased 2.8M shares in Q4 and boosted its authorization to another 5M.
- Annaly and American Capital are likely too big to be targets, says Delaney, as is a smaller shop with a big backer like Leon Black's Apollo Residential Mortgage (AMTG).
- Related ETFs: REM, MORT, MORL
Tuesday, Dec 242013, 11:05 AM
Tuesday, Dec 242013, 11:05 AM| Comment!
- Anworth (ANH +1.6%) gains after boosting its stock repurchase program by 5M shares. Thus far this quarter, the company has bought back 2.8M shares vs. a float of 140M.
- Earlier this month, Anworth slashed its quarterly dividend by 33% to $0.08 per share. The payout was $0.12 in Q3 and $0.15 a quarter before that. The annualized yield of 7.6% is light for the mREITs, but the discount to Sept. 30 book of 30% is large even by the standards of the beaten-up sector.
- Press release
Friday, Dec 202013, 12:12 PM
Friday, Dec 202013, 12:12 PM| 7 Comments
- "Do the math," says SA contributor REIT Analyst, eyeing a short opportunity in Western Asset Management (WMC +5.4%) following its surprising $2.35 dividend announcement last night.
- The rise in the stock today puts it above November 30 estimated book value per share of $16.76 - this at a time when the rest of the mREIT sector (REM+1.2%) is trading at a significant discount to book, including American Capital Agency (AGNC +1.3%) at more than a 20% discount, and Anworth (ANH+1%) at nearly 30% - just to name two. And don't forget the dilutive share issuance necessary to pay out the stock portion of the dividend.
- Among others who announced dividends last night, Annaly (NLY +2.1%) gains after surprising no one by cutting a nickel to $0.30, and Chimera (CIM+2.2%) rises after announcing a special $0.20 dividend.
- Lumped in with the mREITs, but with a slightly different business model is Arlington Asset Management (AI +3.3%) which continues a big run this year after holding its payout steady. SA contributor Darren McCammon reminds Arlington is a C corp, so - for taxable accounts - its yield is taxed at lower qualified rates, making its 13.4% annualized payout comparable to an mREIT paying 16%. Check McCammon's post for the rest of the advantages. The stock is up 28% YTD vs. big declines for the mREIT sector.
- Related ETFs: MORT, MORL
Monday, Dec 162013, 3:35 PM
Monday, Dec 162013, 3:35 PM| 27 Comments
- The mortgage REIT sector (REM -0.6%) is lower on a bright green day for the rest of the market, with Anworth Mortgage's (ANH -1.2%) 33% dividend cut Friday night offering another excuse to Sell. Anworth is an agency mortgage player, investing mostly in adjustable mortgages. Anworth's new forward yield of 7.5% is so far out of line with the double digits of the rest of the industry, it suggests even more declines are in store for the stock, or big dividend cuts lie ahead for competitors. At $4.19, Anworth is selling for a near-30% discount to September 30 book value.
- Down the most today is American Capital Mortgage (AGNC -2.7%), and its non-agency cousin, American Capital Agency (MTGE -1.7%) is off sharply as well.
- Others: Annaly (NLY -1.3%), Armour (ARR -1.2%), Western Asset (WMC -1.8%), Apollo (AMTG -1.4%), Ellington (EFC -0.4%), (EARN +0.2%)
- Related ETFs: MORT, MORL
Friday, Dec 132013, 5:06 PM|Friday, Dec 132013, 5:06 PM| 2 Comments
Friday, Nov 12013, 3:52 PM
Friday, Nov 12013, 3:52 PM| Comment!
- The stock now rates a Hold with $5 price target following last night's earnings report. Relative to some of the other mortgage REITs, Anworth's (ANH -4.1%) results weren't horrible.
- Book value fell 2%, but the company earned its $0.12 dividend. Net interest income slipped 18 basis points to a barely visible 0.82% as funding costs increased. Prepayments, however, didn't see a spike like other ARMs players Capstead Mortgage and Hatteras Financial.
- Anworth earnings coverage.
Thursday, Oct 312013, 4:37 PM
Thursday, Oct 312013, 4:37 PM| Comment!
- Core EPS of $0.12 vs. $0.15 in Q2, and current $0.12 dividend.
- Book value per share of $5.89 slips 2% from the end of Q2.
- Portfolio size taken down to $8.77B from $9.45B. Leverage drops to 8x from 8.7x.
- Net interest spread of 0.82 falls 18 basis points from Q2, with cost of funds on repo agreements and hedging instruments jumping 14 bps to 1.12%.
- CC tomorrow at 1 ET.
- Q3 results, press release.
- ANH +0.4% AH.
Thursday, Oct 312013, 4:06 PM
Thursday, Oct 312013, 12:10 AM|Thursday, Oct 312013, 12:10 AM| Comment!
Wednesday, Oct 302013, 5:35 PM|Wednesday, Oct 302013, 5:35 PM| 4 Comments
Tuesday, Oct 292013, 3:23 PM
Tuesday, Oct 292013, 3:23 PM| Comment!
- "A good quarter, all things considered," says Nomura's Bill Carcache, maintaining his Hold rating and $22 price target on American Capital Agency (AGNC -8.7%) after Q3 results. Carcache seems copacetic with CIO Kain's defensive stance - a view not shared by all, judging by the earnings call and the direction of the stock today.
- KBW, meanwhile, maintains its Buy rating, but cuts the price target to $25.50 from $27. The team sees Kain loosening up on his "fully hedged" stance and lifting earnings power "north of the $0.80 dividend."
- You take what you get when you buy an actively managed mREIT like AGNC, says Nomura. Some quarters are going to be terrific, and others - like Q3 - will have a ton of activity with little to show for it.
- AGNC continues to be a major drag on the sector (REM -3.7%). Other names: Two Harbors (TWO -2.6%), Hatteras (HTS -2.9%), Anworth (ANH -3.8%), Western Asset (WMC -2.6%), Ellington (EFC -1.9%), (EARN -3%), AG Mortgage Investment (MITT -5.1%), Apollo Residential (AMTG -4.9%).
Tuesday, Oct 222013, 12:50 PM
Tuesday, Oct 222013, 12:50 PM| 6 Comments
- Throwing a small party in wake of the slow jobs number and resultant tumble in interest rates is the mREIT sector (REM +1.5%). The stocks were mercilessly punished all late spring and summer as interest rates rose, but have regained their footing since about September. The 10-year Treasury yield is at a 3-month low of 2.53%.
- Sector giants American Capital (AGNC +2%) and Annaly (NLY +1.5%) are now up about 15% from their 52-week lows set a couple of months ago.
- Sector fans will recall the stocks getting hit late in 2012 over fears rates - rate spreads, actually - were too low for the companies to earn any return on. With the taper off the table, will those worries return? Tough business.
- Other big movers today: Invesco (IVR +2.6%), Hatteras (HTS +2.9%), CYS (CYS +2.8%), Anworth (ANH +4.7%), New York Mortgage (NYMT +1.5%), Western Asset (WMC +1.1%).
- Other ETFs: MORT, MORL.
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