Western Asset Mortgage Capital Corporation Announces Second Quarter 2017 Results

PASADENA, Calif., Aug. 8, 2017

SECOND QUARTER 2017 HIGHLIGHTS

• $0.31 per share common dividend declared.
• GAAP net income of $20.7 million, or $0.49 per basic and diluted share.
• Core earnings plus drop income of $13.3 million, or $0.32 per basic and diluted share.^1,2
• 2.25% annualized net interest margin on our investment portfolio.^1,4
• Constant prepayment rate ("CPR") on the Company's Agency RMBS portfolio of 9.9% for the quarter.
• $10.64 per share net book value as of June 30, 2017, net of second quarter common dividend.
• Economic return on book value was 4.8%^1,3 for the quarter.
• 6.3x leverage as of June 30, 2017.

1	Non – GAAP measure.
2	Drop income is income derived from the use of 'to-be-announced' forward contract ("TBA") dollar roll transactions which is a component of our gain (loss) on derivative instruments on our consolidated statements of operations, but is not included in core earnings. Drop income was approximately $0.7 million for the three months ended June 30, 2017.
3 ARIVA.DE Börsen-Geflüster Kurse Western Asset Mortgage Capital Corp -   0,00%	Economic return is calculated by taking the sum of: (i) the total dividends declared; and (ii) the change in book value during the period and dividing by the beginning book value.
4	Includes interest-only securities accounted for as derivatives, total return swap and the cost of interest rate swaps.

MANAGEMENT COMMENTARY

"I am very pleased to report that we delivered another quarter of strong economic return on book value of 4.8% for the second quarter, bringing our economic return for the first half of 2017 to 9.6%," said Jennifer Murphy, Chief Executive Officer of the Company. "In addition, core earnings plus drop income increased 28.0% from the first quarter, to $0.32 per share as the combination of our repositioned portfolio and our simplified hedge book enabled us to increase our net interest margin and lower our operating expenses. Our second quarter dividend remained stable at $0.31 per share for the fifth quarter in a row, which reflects our commitment to our long-term goal of generating a strong total return for our shareholders through attractive dividends derived from sustainable core earnings and potential appreciation in the value of our portfolio."

Anup Agarwal, Chief Investment Officer of the Company, commented, "Our solid performance for both the first and second quarters is a result of a shift in our asset composition and our ongoing focus on achieving operating efficiencies. Our second quarter performance was driven by contributions across our holdings and reflects the benefit of our strategy of investing in a diversified portfolio in a number of sub-sectors of the mortgage market. During the quarter, we continued to benefit from spread tightening on the credit portion of our portfolio, which helped support an increase in our book value to $10.64, or 1.8%, at June 30, 2017.  Also, despite the expected fed funds rate increase, our effective borrowing costs declined, primarily due to lower hedging costs resulting from our reconfigured hedge book."

"Our current expectations are for a continuing moderate pace of economic growth and an improving global backdrop combined with a low inflation environment, both in the U.S. and abroad. We believe that a balanced portfolio consisting of Agency CMBS, Agency RMBS and credit-sensitive investments continues to be appropriate and in our opinion, positions us well to continue to generate attractive risk-adjusted total economic returns for our shareholders," Mr. Agarwal concluded.

SECOND QUARTER 2017 RESULTS

The below table reflects a summary of our operating results:

(1)	For a reconciliation of GAAP Income to Core Earnings, please refer to the Reconciliation of Core Earnings at the end of this press release.
(2)	Includes interest-only securities accounted for as derivatives, foreign currency swaps and total return swaps.
(3)	Includes the net amount paid, including accrued amounts for interest rate swaps and premium amortization for MAC interest rate swaps during the periods. Werbung Mehr Nachrichten zur Western Asset Mortgage Capital Corp Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 12:07 - PR Newswire Fidelity China Special Situations Plc - Transaction in Own Shares 10:59 - PR Newswire BlackRock Income and Growth Investment Trust Plc - Transaction in Own Shares 09:10 - PR Newswire Oscillate Plc - Holding(s) in Company Solarboom 2024:    5 Gründe die für diese Aktie sprechen… weiterlesen» Anzeige wo-site-teaser-box-16746_site-teaser-box_2024-04-24_08%253A00%253A00_2024-04-25_09%253A00%253A59