[ACCESSWIRE]
Upcoming AWS Coverage on Equity Residential Post-Earnings Results
LONDON, UK / ACCESSWIRE / November 2, 2016 / Active Wall St. announces its post-earnings coverage on AGNC Investment Corp. (NASDAQ: AGNC). The company posted its financial results for the third quarter fiscal 2016 (Q3 FY16) on October 24, 2016. The Bethesda, Maryland-based company's net interest income improved marginally on year-over-year basis and reported a positive comprehensive income. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of AGNC Investment's competitors within the REIT - Residential space, Equity Residential (NYSE: EQR), reported its financial results for the quarter and nine months ended September 30, 2016, on October 25, 206. AWS will be initiating a research report on Equity Residential in the coming days.
Today, AWS is promoting its earnings coverage on AGNC; touching on EQR. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=AGNC
http://www.activewallst.com/registration-3/?symbol=EQR
Earnings Reviewed
In Q3 FY16, AGNC Investment's quarterly net interest income came in at $291 million, marginally above $218 million reported in the year-ago quarter. Net interrest income numbers for the reported quarter missed Wall Street's estimates of $235 million.
For the quarter ended September 30, 2016, the company reported comprehensive income of $414 million, or $1.25 per common diluted share, compared to comprehensive loss of $149 million, or $0.43 loss per common diluted share. The comprehensive income included $1.52 net income per common share and other comprehensive loss of $0.27 per common share. AGNC Investment's net spread and dollar roll income, excluding "catch-up" premium amortization, stood at $0.64 per common share compared to $0.51 per common share in the year ago comparable quarter. The company's net spread and dollar roll income beat market consensus estimates of $0.55 per common share.
Gary Kain, Chief Executive Officer, President, and Chief Investment Officer of AGNC Investment, said:
"Importantly, our financial performance in the third quarter reflects, for the first time, the recent internalization of our management, which significantly reduced our ongoing operating expenses. The reduction in our cost structure is a material and durable benefit for our stockholders and was the main driver of the improvement in our net spread and dollar roll income during the quarter."
Operating Metrics
The company's Q3 FY16 economic return on equity was a positive of 5.6%, or 22.4% annualized. The economic return on equity comprised of $0.56 as dividend per common share and a $0.69 rise in net book value per share.
As on September 30, 2016, the real estate investment trust's net book value per common share stood at $22.91 versus $23.00 per common share in the year ago comparable quarter. Furthermore, tangible net book value per common share was $21.23 as of September 30, 2016.
Portfolio Standings and Liquidity
AGNC's Investment portfolio as on September 30, 2016, totaled $62.9 billion, which included $47.2 billion of agency mortgage backed securities (MBS), $15.6 billion of to-be-announced (TBA) mortgage positions and $0.1 billion of AAA non-agency MBS and government-sponsored enterprise (GSE) credit risk transfer (CRT) securities.
As on September 30, 2016, the company's Investment's "at risk" leverage ratio was 7.7x compared to last quarter's figure of 7.2x. For Q3 FY16, the company's investment portfolio bore a weighted-average constant repayment rate of 14.3% compared to 11.8% in the prior quarter.
During Q3 FY16, the company's average asset yield on its "balance sheet funded assets" (investment portfolio excluding the net TBA position) came in at 2.60% versus 2.42% in Q3 FY15. Furthermore, AGNC Investment's combined annualized net interest rate spread on the company's balance sheet and dollar roll funded assets for the quarter was 1.42% compared to 1.14% in the prior year's comparable quarter.
Also, as of September 30, 2016, AGNC Investment's cash and cash equivalents aggregated to $1.25 billion, down from $1.51 billion as on September 30, 2015.
Dividend and Share Buyback
In a separate press release on October 12, 2016, AGNC Investment's Board of Directors declared a cash dividend of $0.18 per share of common stock for October 2016. The dividend is payable on November 08, 2016 to common stockholders of record as of October 31, 2016, with an ex-dividend date of October 27, 2016.
The company has announced a replacement repurchase plan for the existing stock repurchase plan which was due to expire December 31, 2016, but which has been terminated earlier. As per the new stock repurchase plan, the AGNC Investment is authorized to repurchase outstanding shares of common stock worth $1 billion through December 31, 2017.
Stock Performance
On Tuesday, the stock closed the trading session at $19.74, slipping 1.60% from its previous closing price of $20.06. A total volume of 3.36 million shares have exchanged hands, which was higher than the 3-month average volume of 2.73 million shares. AGNC Investment's stock price advanced 3.14% in the last month, 3.02% in the past three months, and 13.55% in the previous six months. Furthermore, since the start of the year, shares of the company have surged 26.23%. The stock is trading at a PE ratio of 42.54 and has a dividend yield of 10.94%.
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SOURCE: Active Wall Street
