Overview

• U.S. mortgage REIT reported Q1 net loss and negative EPS, book value per share declined

• Company raised $442 mln in equity capital and made $6 bln net investment purchases

• Book value decline driven by widening mortgage spreads late in the quarter

Outlook

• Company did not provide specific guidance for future quarters or the full year in its press release

Result Drivers

• MORTGAGE SPREADS - Book value decline and net loss driven by widening mortgage spreads late in the quarter

• CAPITAL RAISE AND INVESTMENTS - Co raised $442 mln in equity and made $6 bln net investment purchases, increasing leverage

• INTEREST INCOME AND FINANCING COSTS - Interest income increased from Agency MBS purchases; repurchase agreement financing costs declined due to Fed rate cuts

Company press release: ID:nBw8tYkrGa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 EPS		-$0.41
Q1 Net Income		-$80.36 mln
Q1 Net Interest Income		$79.25 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for Dynex Capital Inc is $15.25, about 12% above its April 17 closing price of $13.61

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.