Dynex Capital, Inc. Announces First Quarter 2026 Results

Published: 2026-04-22 04:34:36 ET DX

Published on 04/22/2026 at 04:34 am EDT

GLEN ALLEN - Dynex Capital, Inc. (the 'Company') (NYSE: DX), a REIT with a long track record of generating dividends from high-quality mortgage assets, reported its first quarter financial results today.

Management will host a call today at 10:00 a.m. Eastern Time to discuss the results and business outlook. Details to access the call can be found below under 'Earnings Conference Call.'

Financial Performance Summary and Other Highlights

Total economic return of $(0.34) per common share, or (2.5)% of beginning book value

Book value per common share of $12.60 as of March 31, 2026

Comprehensive loss of $(0.42) per common share and net loss of $(0.41) per common share

Dividends declared of $0.51 per common share

Raised equity capital of $442 million through at-the-market ('ATM') common stock issuances

Investment purchases of $6.0 billion, net of sales, during the quarter

Liquidity of $1.3 billion, or 46% of total equity, as of March 31, 2026

Leverage including to-be-announced ('TBA') securities at cost was 8.6 times shareholders' equity as of March 31, 2026

Management Remarks

'Dynex entered 2026 from a position of strength, building on the momentum of an outstanding 2025 through disciplined execution and rigorous risk management,' said Smriti Laxman Popenoe, Co-Chief Executive Officer and President. 'Navigating periods like the first quarter with discipline remains a core strength of the Dynex team. Current asset returns continue to support healthy long-term performance, and we believe our growing scale and consistent execution position us to deliver durable value for our shareholders.'

Earnings Conference Call

As previously announced, the Company's conference call to discuss these results is today at 10:00 a.m. Eastern Time and may be accessed via telephone by dialing (800) 330-6710 and providing the Conference Code 1563213 or by live audio webcast by clicking the 'Webcast' button on the Investors page of the Company's website (www.dynexcapital.com), which includes a slide presentation. To listen to the live conference call via telephone, please dial in at least 10 minutes before the call begins. A full replay of the presentation will be available on the same webcast link on the Company's website shortly after the conclusion of the live presentation.

Non-GAAP Financial Measures

In addition to reporting the Company's financial results determined in accordance with GAAP, management of the Company believes that investors' understanding of our operating results may be enhanced by the use of non-GAAP financial measures, which are used by management internally, along with GAAP measures, to evaluate our performance. Our non-GAAP financial measures include earnings available for distribution ('EAD') to common shareholders (including per common share) and economic net interest income and the related metric economic net interest spread. Management believes these non-GAAP financial measures may be useful to investors because they are viewed by management as additional measures of the investment portfolio's return.

Drop income generated by TBA dollar roll positions, which is included in 'gain (loss) on derivatives instruments, net' on the Company's consolidated statements of comprehensive income, is included in EAD because management views drop income as the economic equivalent of net interest income (interest income less implied financing cost) on the underlying Agency security from trade date to settlement date. However, drop income does not represent the total realized gain/loss from the Company's investments in TBA securities.

Management also includes net periodic interest from its interest rate swaps, which is included in 'gain (loss) on derivatives instruments, net,' in EAD and economic net interest income because interest rate swaps are used by the Company to economically hedge the impact of changing interest rates on its borrowing costs from repurchase agreements, and including net periodic interest from interest rate swaps is a helpful indicator of the Company's total financing cost in addition to GAAP interest expense.

Non-GAAP financial measures are not a substitute for GAAP measures and may be different from non-GAAP measures used by other companies. In addition, other companies, including in our industry, may calculate comparable measures differently, which reduces their usefulness as comparative measures. Investors should not rely on any single financial measure when evaluating our business. These non-GAAP measures should be considered as supplemental in nature and not as a substitute for our operating results in accordance with GAAP.

Contact:

Alison Griffin

Tel: (804) 217-5897