Fri, Jul. 31, 8:33 AM
Thu, Jul. 30, 5:30 PM
Tue, Jul. 28, 9:52 AM
- Investors take a least a small hiatus from selling the mortgage REITs after last night's clunker of an earnings report from American Capital Agency (AGNC +2%).
- Book value fell by 6% during Q2, with higher rates, widening MBS spreads, and faster prepayments making for an ugly combination.
- The company, however, entered Q3 with its lowest leverage since the financial crisis, giving it the firepower to buy assets on the cheap. At the close yesterday, the stock was selling for a 22% discount to June 30 book value. At some point, the bad news is priced in?
- The earnings call is set for 11 ET.
- Annaly Capital (NLY +1.6%), CYS Investments (CYS +0.8%), Western Asset (WMC +1.2%), New York Mortgage (NYMT +0.5%).
- ETFs: MORL, REM, MORT, LMBS
Wed, May 6, 8:52 AM
- Q1 core earnings plus drop income of $34.4M or $0.82 per share vs. $36.4M and $0.87 in Q4. Dividend was $0.67.
- Book value per share of $14.55 slips from $14.94 at start of year. Last night's close of $14.60 puts the stock at a tiny premium to book, and premiums are pretty rare in the mREIT sector at the moment.
- Economic return - change in book value plus the dividend - of 1.9% for the quarter.
- Net interest spread continues to bounce back - up to 3.16% from 2.71% in Q4, 1.95% in Q3. CPR on agency portfolio of 7.6% up from 6.8% in Q4.
- $4.2B investment portfolio at 6x leverage, or 7.2x when adjusted for net TBA position. 28% of portfolio is in non-government or non-agency paper.
- Management notes the company cut exposure to residential whole loans and made first investment in commercial whole loans during quarter.
- Conference call at 11 ET
- Previously: Western Asset Mortgage Capital reports Q1 results (May 6)
- WMC flat premarket
Wed, May 6, 8:33 AM
Fri, Feb. 27, 8:42 AM
- Q4 core earnings plus drop income of $36.4M or $0.87 per share vs. $27.8M and $0.67 in Q3. Dividend is $0.70.
- Book value per share of $14.94 slips from $15.26 at Q3's end. Last night's close of $14.38 is a 3.7% discount to book.
- Economic return for quarter of 2.5% (dividend plus the decline in book value). Full-year economic return of 15.8%.
- Net interest spread bounces back from Q3's big decline (caused by a bad bet on yields), 2.71% vs. 1.95%. CPR on agency portfolio of 6.8% vs. 6.5%.
- Conference call at 11 ET
- Previously: Western Asset Mortgage Capital EPS of $0.87 (Feb. 27)
- WMC flat premarket
Fri, Feb. 27, 8:33 AM
Thu, Feb. 26, 5:30 PM
Nov. 5, 2014, 4:52 PM
- Q3 core earnings plus drop income of $27.8M or $0.67 per share vs. $30M and $0.75 in Q2. Dividend is $0.70.
- Book value per share of $15.26 vs. $15.31 at end of Q2. Today's close of $14.97 is a 1.9% discount to book.
- Net interest spread of 1.95% down a whopping 74 basis points from Q2. CPR on agency portfolio of 6.5% up 160 basis points.
- Total portfolio size of $4.4B vs. $4.71B. 27% of portfolio is in credit investments.
- Net interest spread declined as company was positioned for Treasury yields to stay in range. The big drop in the 10-year towards the end of the quarter forced an adjustment in hedges which increased WMC's effective cost of funds.
- Western Asset has completed steps necessary to invest in residential whole loans and completed first deal in this asset class in October.
- Conference call tomorrow at 8 ET
- Governance changes: Board has created the position of Lead Independent Director and appointed current audit committee chair M. Christian Mitchell to fill it. The board has also added a new independent member.
- Previously: Western Asset Mortgage Capital misses by $0.04, misses on revenue
Nov. 5, 2014, 4:35 PM
Aug. 7, 2014, 9:01 AM
- Q2 core earnings of $30M or $0.75 per share vs. $0.46 in Q1. Dividend of $0.67.
- Book value per share of $15.31 vs. $14.19 at end of Q1. Last night's close of $13.83 is a 9.7% discount to book.
- 2.69% weighted average net interest spread up from 1.8% in Q1. CPR on agency MBS portfolio of 4.9% up from 3.8%.
- Total portfolio of $4.71B. $3.17B is agency MBS. CMBS holdings up to $436.6M.
- Conference call at 12 ET
- Previously: Western Asset Mortgage Capital beats by $0.19, beats on revenue
- WMC +3.1% premarket
Aug. 7, 2014, 8:33 AM
May 8, 2014, 8:52 AM
- Actions taken to diversity portfolio away from agency REIT to more of a hybrid model "had a negative impact on both operating results for the period and book value."
- Core earnings of $0.46 per share compares to $0.70 in Q4. Quarterly dividend was $0.67.
- March 31 book value per share of $14.19 falls from $15.27.
- Since quarter's end, a mammoth stock offering boosted the market cap by about 50% and was accretive to book value, with company estimating May 5 book at between $14.92 and $15.02 per share. "The proceeds were invested immediately in a diversified selection of assets across the mortgage spectrum ... We have increased our leverage to approximately eight times as we believe that there are currently opportunities to generate leveraged ROE at relatively attractive levels on new capital invested in a variety of Non-Agency assets."
- CC at 12 ET
- Source: Press Release
- Previously: Western Asset Mortgage Capital misses by $0.17
- WMC -3.4% premarket
May 8, 2014, 8:37 AM
Mar. 7, 2014, 9:11 AM
- Core earnings of $0.70 per share fell from $0.83 in Q3.
- Book value per share of $15.27 fell from $16.81, but the decline includes the payout of $2.35 (cash and stock) in dividends. The stock portion of the dividend boosted the share count to 26.85M shares from 24.3M.
- Net interest spread of 2.15% falls 13 basis points from Q3. CPR of 5% dips from 5.3%. Leverage drops to 6.4x (6.9x when adjusted for TBA position) from 8.1x (9x when adjusted for TBA position).
- Company continues to move portfolio more into non-agency holdings which account for 15% of exposure at year's end vs. 8% at the end of Q3.
- WMC -0.9% premarket to $16.19.
- CC at 11 ET
- Press release, Q4 results
Mar. 7, 2014, 8:32 AM
WMC vs. ETF Alternatives
Western Asset Mortgage Capital Corp is a residential real estate finance company that invests in residential mortgage assets in the United States. The Company focuses on investing in, financing and managing Agency RMBS.
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