Wed, Jan. 28, 4:47 PM
- Q4 net income of $33.5M or $0.31 per share vs. $32.4M and $0.30 in Q3. Q4 dividend was $0.34.
- Net interest spread of 1.10% up one basis point.
- Prepayments fell 160 basis points (mostly seasonal factors) to 17.58%.
- Book value of $12.52 per share down from $12.60. Today's close of $12.25 is a 2.2% discount to book.
- Management: "Future levels of mortgage prepayments will be key to our portfolio yields and operating results in the coming quarters ... Recent declines in longer-term U.S. Treasury rates, if sustained, could put downward pressure on mortgage interest rates, leading to higher mortgage prepayment levels."
- Earnings call tomorrow at 9 ET
- Previously: Capstead Mortgage misses by $0.02, beats on revenue (Jan. 28)
- CMO flat after hours
Wed, Jan. 28, 4:33 PM| Comment!
Tue, Jan. 27, 5:35 PM| 4 Comments
Oct. 29, 2014, 4:44 PM
- Q3 net income of $32.4M or $0.30 per share vs. $36.6M and $0.35 in Q2. Dividend is $0.34.
- Book value per share of $12.60 down $0.09 from the end of Q2. Today's close of $12.76 makes Capstead (NYSE:CMO) one of the rare mortgage REITs trading above book value.
- Financing spread on RMBS of 1.09% down 13 bps from Q2 as CPR rises to 19.18% from 17.22%. October CPR slipped to 17.57% and management suggests the rest of Q4 and Q1 next year could see further declines.
- Conference call tomorrow at 9 ET
- Previously: Capstead Mortgage misses by $0.05, misses on revenue
Oct. 29, 2014, 4:32 PM| Comment!
Oct. 28, 2014, 5:35 PM
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Jul. 30, 2014, 4:31 PM
- Net income of $36.6M or $0.35 per share vs. $38.4M and $0.37 in Q1. Dividend is $0.34.
- Book value per share up $0.10 to $12.69. Today's close of $12.96 is a 2% premium to book.
- Financing spreads slipped eight basis points to 1.22%. CPR of 17.22% is up 206 basis points.
- CEO Andrew Jacobs: Increase in prepayments knocked $0.02 per share off of earnings.
- Conference call tomorrow at 9 ET
- Previously: Capstead Mortgage misses by $0.01, misses on revenue
- CMO flat AH
Jul. 30, 2014, 4:21 PM| 2 Comments
Jul. 29, 2014, 5:35 PM
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Apr. 30, 2014, 5:24 PM| Comment!
Apr. 30, 2014, 4:59 PM
- Net income of $0.37 per share compares to the same amount in Q4 and a $0.34 dividend. Book value of $12.59 per share is up from $12.47 at 2013's end. Net interest spread of 1.30% is up five basis points. CPR falls to 15.16%.
- Portfolio size about unchanged at $13.5B. Leverage about unchanged at 8.52:1.
- "We are continuing to see lower repo borrowing rates in April, which could, if this trend continues, offset modest upward pressure on borrowing costs from additional forward-starting swaps moving into current-pay status in the second quarter ... More importantly, a healthy repo market allows us to continue executing our strategy of managing a conservatively leveraged portfolio of agency-guaranteed residential ARM securities."
- Today's close of $12.78 puts the stock at 2.5% above book value - fairly rich for the mREIT sector these days.
- CC tomorrow at 9 ET
- Source: Press Release
- CMO no trades AH
Apr. 29, 2014, 5:35 PM
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Jan. 30, 2014, 10:20 AM
- You're seeing a lot of demand in the assets we hold, says Capstead Mortgage (CMO +1.5%) management on the conference call after reporting a blowout Q4. In a steepening yield curve environment - the short-end anchored while long rates move higher - Capstead is benefitting from tightening spreads in the 5/1 ARMs it mostly holds.
- Mr. Market seems to have fleshed this out, and Capstead was already trading for right around book value (reported at $12.47 as of Dec. 31) vs. the double-digit discounts for long-end players like Annaly (NLY +0.2%), American Capital (AGNC -0.3%), Armour (ARR), and CYS Investments (CYS -0.5%).
- Another in the adjustable-rate arena is Hatteras Financial (HTS +1.5%).
- Related ETFs: REM, MORT, MORL
Jan. 29, 2014, 4:45 PM
- A nice beat by Capstead Mortgage (CMO) sets the stock and maybe the entire mREIT sector up for a good day tomorrow. EPS of $0.35 is $0.04 ahead of estimates and compares to $0.23 per share in Q3. The quarterly dividend is $0.31 per share.
- Financing spreads rose a big 38 basis points from Q3 to 1.25%. Prepayments declined 33% to a CPR of 17.14.
- Book value per share of $12.47 is $0.12 higher than Q3 and compares to the share price of $12.37.
- Management: Prepayment rates declined to levels not seen since early 2012; "We anticipate reporting earnings in 2014 sufficient to pay dividends at or above our 2013 quarterly dividend level."
- CC tomorrow at 9 ET
- Press release
Jan. 29, 2014, 4:33 PM
Jan. 29, 2014, 12:10 AM| 5 Comments
CMO vs. ETF Alternatives
Capstead Mortgage Corp operates as a self-managed real estate investment trust. The Company together with its subsidiaries invests in leveraged portfolio of residential mortgage pass-through securities consisting of adjustable-rate mortgage securities.
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