Open report — full analysis, no account required.
Sign up to generate reports and read filings that aren't on the open list.
Get notified when DX files again. Create a free account and we'll email you the moment its next filing is analyzed.
Get filing alertsDynex Capital reports 6.4% Q2 return, raises $391M equity, grows portfolio 11% to $27.6B
Filed July 20, 2026 · Period ending July 20, 2026 · ~1 min read
Key Changes
-
high
Book value per share rose $0.30 (2.4%) to $12.90 at June 30, 2026, from $12.60 at March 31, 2026, driven by $102M net gain on investment portfolio as Agency MBS spreads tightened late in quarter.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
high
Total economic return of $0.81/share (6.4% of beginning book value) comprised $0.30 book value increase and $0.51 declared dividend; comprehensive income and net income both $0.80/share.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
high
Raised $391M net equity through ATM program (approximately 30M shares) and deployed proceeds into $2.8B of Agency MBS purchases, expanding portfolio 11% to $27.6B (99.99% Agency securities).
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
medium
Leverage including TBAs declined to 8.1x shareholders' equity from 8.6x at March 31, 2026; liquidity remained strong at $1.6B (51% of equity) as of June 30, 2026.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
medium
Net interest spread improved to 1.16% from 1.11% prior quarter; economic net interest spread (including swap income) reached 1.17% versus 1.15%, as net interest income rose to $93.8M from $79.3M.
Exhibit 99.1 view on EDGAR →
Summary
Dynex Capital delivered a strong second quarter, posting a 6.4% total economic return driven by favorable Agency MBS performance and disciplined capital deployment. Book value per share increased 2.4% to $12.90, reflecting a $102 million net gain on the investment portfolio as Agency MBS spreads tightened late in the quarter while hedges mitigated interest rate impacts.
The company generated comprehensive income of $0.80 per share and declared a $0.51 dividend, representing a 64% payout ratio. The quarter saw significant portfolio expansion: Dynex raised $391 million in net equity through its ATM program (approximately 30 million shares) and deployed the proceeds into $2.8 billion of Agency MBS purchases, growing the total portfolio 11% to $27.6 billion.
The portfolio remains concentrated in highly liquid Agency securities (99.99%), with 95% in Agency RMBS and 5% in Agency CMBS. Despite the growth, leverage declined to 8.1x from 8.6x as portfolio gains outpaced the capital raise, and liquidity remained robust at $1.6 billion (51% of equity). Net interest spread improved to 1.16% from 1.11%, supported by portfolio growth and stable financing costs of 3.79%. Operating expenses fell $5 million quarter-over-quarter due to the absence of one-time compensation costs recognized in Q1 2026. The results demonstrate effective execution of the company's strategy to scale the portfolio while maintaining prudent risk management.
Section-by-Section Diff
Event · Exhibit 99.1
Dynex Capital reports Q2 2026 results: 6.4% total economic return, book value up $0.30 to $12.90/share, raised $391M equity, grew portfolio 11% to $27.6B.
Added in current filing · verify on EDGAR →
Total economic return of $0.81 per common share, or 6.4% of beginning book value •Book value per common share of $12.90 as of June 30, 2026, an increase of $0.30 from $12.60 as of March 31, 2026 •Comprehensive income of $0.80 per common share and net income of $0.80 per common share •Dividends declared of $0.51 per common share
Dynex Capital delivered a 6.4% total economic return in Q2 2026, comprising a $0.30 increase in book value per share (to $12.90) and $0.51 in declared dividends. Comprehensive income and net income both came in at $0.80 per common share. The book value increase was driven by a net gain of $102 million on the investment portfolio net of hedges, as Agency MBS benefited from spread tightening late in the quarter while hedges mitigated the impact of higher interest rates on asset valuations.
Added in current filing · verify on EDGAR →
Raised $391 million of common equity, net of commissions, representing approximately 30 million shares, through the Company's at-the-market ("ATM") program ... •Total investment portfolio of $27.6 billion, an increase of 11% relative to March 31, 2026 driven by $2.8 billion of MBS purchases
The company raised $391 million of net equity capital through its ATM program (approximately 30 million shares) and deployed the proceeds into Agency MBS purchases totaling $2.8 billion. This drove an 11% quarter-over-quarter increase in the total investment portfolio, which reached $27.6 billion as of June 30, 2026. The portfolio remains 99.99% in highly liquid Agency securities (95% Agency RMBS, 5% Agency CMBS).
Added in current filing · verify on EDGAR →
Liquidity of $1.6 billion of cash and unpledged securities, representing 51% of total equity, as of June 30, 2026 •Leverage including to-be-announced ("TBA") securities at cost was 8.1 times shareholders' equity as of June 30, 2026, compared to 8.6 times shareholders' equity as of March 31, 2026
Dynex maintained strong liquidity of $1.6 billion (51% of total equity) as of quarter-end. Leverage including TBAs at cost decreased to 8.1 times shareholders' equity from 8.6 times in the prior quarter, primarily due to the favorable performance of the portfolio. The company's repurchase agreement borrowings totaled $22.6 billion with a weighted average rate of 3.79% and weighted average original term to maturity of 96 days.
Added in current filing · view on EDGAR →
Net interest income/net interest spread $ 93,783 1.16 % $ 79,254 1.11 % Net periodic interest from interest rate swaps 542 0.01 % 1,698 0.04 % Economic net interest income (6) $ 94,325 1.17 % $ 80,952 1.15 %
Net interest income increased to $93.8 million in Q2 2026 from $79.3 million in Q1 2026, driven by the continued deployment of capital into Agency MBS purchases. The net interest spread improved to 1.16% from 1.11%, and economic net interest spread (including net periodic interest from interest rate swaps) reached 1.17% versus 1.15% in the prior quarter. Interest income rose due to portfolio growth while the weighted average financing cost remained stable at 3.79%.
Show 1 minor / wording change
Added in current filing · view on EDGAR →
Operating expenses decreased by $5 million quarter over quarter, driven by the absence of one time compensation and personnel related costs recognized during the first quarter of 2026.
Operating expenses declined by $5 million quarter-over-quarter, falling to $16.2 million in Q2 2026 from $21.3 million in Q1 2026. The decrease was due to the absence of one-time compensation and personnel-related costs that were recognized in the first quarter. This expense reduction contributed to the improved profitability in the second quarter.
Thanks — your feedback helps us improve report quality.
Figures/quotes linked to EDGAR · Narrative written by AI · Jul 21, 2026 · How we verify