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Get filing alertsDynex Capital posts 2.5% loss, raises $442M equity amid portfolio expansion
Filed April 20, 2026 · Period ending April 20, 2026 · ~1 min read
Key Changes
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high
Book value fell 6.3% to $12.60/share; comprehensive loss of $0.42/share driven by widening mortgage spreads late in quarter, resulting in $140M net portfolio loss after hedges.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
high
Raised $442M via ATM stock sales, diluting shares outstanding 18% (174.8M to 207.2M shares); proceeds funded $6.0B net investment purchases, lifting MBS holdings from $19.4B to $25.0B.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
medium
Leverage rose to 8.6x equity as company deployed capital; net interest spread improved from 0.75% to 1.11% on lower repo costs (4.19% to 3.86%) following Fed rate cuts.
Exhibit 99.1 view on EDGAR → -
medium
Maintained $0.51 quarterly dividend despite losses; liquidity at $1.3B (46% of equity) provides cushion for market volatility.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
low
Operating expenses jumped $4.7M quarter-over-quarter, including $3.4M one-time charge for accelerated equity vesting tied to former CFO departure.
Exhibit 99.1 view on EDGAR →
Summary
Dynex Capital reported a challenging first quarter marked by portfolio losses offset by aggressive capital deployment. The mortgage REIT's book value declined 6.3% to $12.60 per share as widening mortgage spreads late in the quarter generated a $140 million net loss on its investment portfolio despite hedging.
The company posted a comprehensive loss of $0.42 per share while maintaining its $0.51 quarterly dividend, resulting in a negative 2.5% total economic return. The company responded to market conditions by raising $442 million in new equity through ATM offerings—an 18% dilution of the share base—and deploying $6.0 billion into net MBS purchases.
This expanded total holdings from $19.4 billion to $25.0 billion and pushed leverage to 8.6 times equity. Net interest spread improved from 0.75% to 1.11% as Federal Reserve rate cuts lowered repo financing costs by 33 basis points, partially offsetting portfolio mark-to-market losses. Strong liquidity at $1.3 billion (46% of equity) provides a buffer, but the combination of book value erosion, significant dilution, and elevated leverage warrants monitoring as the company navigates volatile mortgage markets.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Dynex Capital reported Q1 2026 results: $12.60 book value/share, -2.5% economic return, $0.51 dividend, and raised $442M via ATM equity.
Added in current filing · verify on EDGAR →
Total economic return of $(0.34) per common share, or (2.5)% of beginning book value
The company reported a negative economic return of $0.34 per share, representing a 2.5% decline from beginning book value for Q1 2026. This reflects losses during the quarter, likely driven by market conditions affecting the mortgage REIT's portfolio.
Added in current filing · verify on EDGAR →
Dividends declared of $0.51 per common share •Raised equity capital of $442 million through at-the-market ("ATM") common stock issuances
The company declared a $0.51 per share dividend for the quarter and raised $442 million in new equity capital through ATM stock offerings. The substantial equity raise provides capital for investment opportunities and strengthens the balance sheet despite the quarterly losses.
Added in current filing · verify on EDGAR →
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
The company made net investment purchases of $6.0 billion during the quarter, funded by the equity raise and leverage. Liquidity remained strong at $1.3 billion (46% of equity), while leverage including TBA securities stood at 8.6x shareholders' equity, indicating an actively managed portfolio with moderate leverage for a mortgage REIT.
Event · Exhibit 99.1
Dynex Capital reported Q1 2026 results: book value declined to $12.60/share, comprehensive loss of $0.42/share, raised $442M equity via ATM.
Added in current filing · verify on EDGAR →
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
Dynex Capital reported a negative total economic return of $(0.34) per share for Q1 2026, driven by a decline in book value from $13.45 to $12.60 per share. The company recorded a comprehensive loss of $(0.42) per share and a net loss of $(0.41) per share, primarily due to widening mortgage spreads late in the quarter that resulted in a net loss of $(140) million on the investment portfolio net of hedges. Despite the loss, the company maintained its quarterly dividend at $0.51 per share.
Added in current filing · verify on EDGAR →
Investment purchases of $6.0 billion, net of sales, during the quarter ... Leverage including to-be-announced ("TBA") securities at cost was 8.6 times shareholders' equity as of March 31, 2026
Dynex significantly expanded its investment portfolio with $6.0 billion in net purchases during Q1 2026, funded by the equity raise and increased borrowings. Total MBS holdings grew from $19.4 billion to $25.0 billion at cost. The company's leverage ratio increased to 8.6 times shareholders' equity, up from prior levels, as it used repurchase agreement borrowings to partially finance the purchases.
Added in current filing · view on EDGAR →
Net interest income/net interest spread $79,254 1.11 % $43,484 0.75 %
Net interest income increased to $79.3 million in Q1 2026 from $43.5 million in Q4 2025, with the net interest spread widening from 0.75% to 1.11%. The improvement was driven by deployment of capital into Agency MBS purchases and a 33 basis point decline in repurchase agreement financing costs (from 4.19% to 3.86%) resulting from the Federal Reserve's 2025 rate cuts.
Added in current filing · view on EDGAR →
Operating expenses for the first quarter of 2026 included an increase of $3.4 million in share-based compensation expense, largely due to accelerated vesting conditions of equity grants associated with the departure of the Company's former chief financial officer.
Operating expenses increased to $21.3 million in Q1 2026 from $16.6 million in Q4 2025, with $3.4 million of the increase attributed to accelerated vesting of equity grants related to the departure of the company's former CFO. This represents a one-time charge associated with the executive transition.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 21, 2026 · How we verify