BETHESDA, Md. - AGNC Investment Corp. (NASDAQ:AGNC) reported better-than-expected third quarter earnings but fell short on revenue as the mortgage real estate investment trust navigated a challenging interest rate environment.
The company posted earnings per share of $0.63 for Q3, surpassing the analyst consensus estimate of $0.51 by $0.12. However, revenue came in at $376 million, significantly below expectations of $707.77 million.
AGNC generated a 9.3% economic return on tangible common equity for the quarter, comprised of $0.36 in dividends per common share and a $0.42 increase in tangible net book value per share. The company's tangible net book value rose to $8.82 per share as of September 30, up 5% from $8.40 at the end of Q2.
"AGNC generated a very strong economic return of 9.3% in the third quarter, driven by significant book value growth and our compelling monthly dividend, which has remained stable at $0.12 per common share for 55 consecutive months," said Peter Federico, AGNC's President and CEO.
The company maintained its leverage ratio at 7.2x tangible net book value at quarter-end. AGNC's investment portfolio totaled $73.1 billion as of September 30, primarily consisting of Agency mortgage-backed securities.
Management noted that the outlook for Agency MBS has improved following the Federal Reserve's initial interest rate cut in September, with expectations for further easing over the next 12-24 months.
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