Dynex Capital took a lack of $46.7 million within the third quarter, a interval when it and different mortgage real-estate funding trusts needed to deal with extra fast-moving market gyrations.
Earnings per share missed estimates by almost 22%, in keeping with Google Finance. Its income of $20.4 million ($7.1 million on an adjusted foundation) was off by greater than 46%.
“Whereas we skilled a decline in e-book worth throughout the quarter associated to this volatility and unfold widening, our liquidity stays stable. We’re ready and well-positioned to learn when the markets discover equilibrium,” CEO Byron Boston mentioned in a press launch.
Dynex Capital’s earnings have been down from $29.3 million in web revenue the earlier quarter, when volatility pushed by the Federal Reserve’s rate of interest coverage additionally damage the worth of its mortgage investments, however not as a lot because it did in 3Q.
The mortgage REIT’s borrowing prices rose resulting from Fed charge hikes, and the market worth of its company mortgage-backed securities portfolio fell, outpacing positive aspects in hedging devices designed to offset rate of interest adjustments. Its web curiosity revenue fell 50% from the second quarter in consequence.
Additionally affecting Dynex’s numbers have been $27 million or $0.06 per share price of non-recurring severance prices related to the departure of Stephen Benedetti, a former chief monetary officer, who stepped down from his publish in early August and left the corporate on the finish of that month. The corporate’s present CFO is Robert Colligan, a former Chimera govt.