IVR Invesco Mortgage Capital Inc

ATLANTA, June 27, 2022 /PRNewswire/ -- Invesco Mortgage Capital Inc. (the "Company") (NYSE: IVR) today announced that its Board of Directors declared a cash dividend of $0.90 per share of common stock for the second quarter of 2022.  The dividend will be paid on July 27, 2022 to stockholders of record on July 11, 2022, with an ex-dividend date of July 8, 2022.

Increased expectations for accelerated interest rate hikes and balance sheet reduction by the U.S. Federal Reserve continue to weigh on Agency residential mortgage-backed securities ("Agency RMBS") valuations.  The Company has taken actions to prudently manage its investment portfolio during recent market volatility.  These actions include reducing leverage and rotating the Agency RMBS portfolio into higher coupons by selling 30-year 2.0% and 2.5% coupons and purchasing 4.0%, 4.5% and 5.0% coupons.

Given recent market volatility, the Company has elected to provide the following preliminary financial information. The below estimates are subject to change.

Portfolio and Liquidity Update as of June 17, 2022

• Total investment portfolio of $5.2 billion, including $4.4 billion of Agency RMBS and $628 million of to-be-announced securities forward contracts ("TBAs")*
• Maintained a sizeable balance of unrestricted cash and unencumbered investments totaling approximately $623 million
• Debt-to-equity ratio estimated to be 4.1x
• Economic debt-to-equity ratio** estimated to be 4.7x

Book Value as of June 17, 2022

• Book value per common share*** estimated to be in the range of $15.94 to $16.60

*Represents the implied cost basis of TBAs that are accounted for as derivative financial instruments under U.S. Generally Accepted Accounting Principles ("GAAP").

**Economic debt-to-equity ratio is a non-GAAP financial measure calculated as U.S. GAAP debt-to-equity ratio adjusted to include the implied cost basis of TBAs.

***Book value per common share is calculated as (i) total equity less the liquidation preference of outstanding Series B Preferred Stock ($153.9 million) and Series C Preferred Stock ($272.0 million), divided by (ii) total shares of common stock outstanding of 33.0 million as of June 17, 2022.

The preliminary financial information set forth above reflects the Company's estimates with respect to such information, based on information currently available to management, and may vary from the Company's actual financial results as of and for the periods noted above.  Further, these estimates are not a comprehensive statement or estimate of the Company's financial results or financial condition.  These estimates should not be viewed as a substitute for financial statements prepared in accordance with U.S. GAAP, and they are not necessarily indicative of the results to be achieved in any future period.  Accordingly, a reader should not place undue reliance on these estimates.

These estimates, which are the responsibility of the Company's management, were prepared by the Company's management and are based upon a number of assumptions.  Additional items that may require adjustments to these estimates may be identified and could result in material changes to these estimates.  These estimates are inherently uncertain and the Company undertakes no obligation to update this information.  The preliminary financial data included in this press release has been prepared by, and is the responsibility of, the Company's management.  PricewaterhouseCoopers LLP ("PwC") has not audited, reviewed, compiled or applied agreed-upon procedures with respect to the preliminary financial data.  Accordingly, PwC does not express an opinion or any other form of assurance with respect thereto.

Invesco Mortgage Capital Inc. is a real estate investment trust that primarily focuses on investing in, financing and managing mortgage-backed securities and other mortgage-related assets. Invesco Mortgage Capital Inc. is externally managed and advised by Invesco Advisers, Inc., a subsidiary of Invesco Ltd. (NYSE: IVZ), a leading independent global investment management firm.  Additional information is available at www.invescomortgagecapital.com.

This press release may include statements and information that constitute "forward-looking statements" within the meaning of the U.S. securities laws as defined in the Private Securities Litigation Reform Act of 1995, as amended, and such statements are intended to be covered by the safe harbor provided by the same.  Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control.  These forward-looking statements include those related to our intention and ability to pay dividends, as well as any other statements other than statements of historical fact.  The words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may," or similar expressions and future or conditional verbs such as "will," "may," "could," "should," and "would," and any other statement that necessarily depends on future events, are intended to identify forward-looking statements.

Any forward-looking statement speaks only as of the date on which it is made.  New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect the Company.  Except as required by law, the Company is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact: Jack Bateman, 404-439-3323

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SOURCE Invesco Mortgage Capital Inc.