ATLANTA, May 11, 2020 /PRNewswire/ -- Invesco
Mortgage Capital Inc. (NYSE: IVR) today made the following
announcements.
Common Stock Dividend
On May 9, 2020, the Company's
board of directors approved the payment of the Company's previously
declared dividend for the first quarter of 2020 of $0.50 per share of common stock (the "first
quarter dividend"). The first quarter dividend will be paid on
June 30, 2020 in a combination of
cash and shares of the Company's common stock to stockholders of
record as of May 21, 2020. Given the
uncertain and rapidly changing financial markets resulting from the
COVID-19 pandemic, the Company's board of directors has determined
that the cash component of the first quarter dividend (other than
cash paid in lieu of fractional shares) will not exceed 10% in the
aggregate, or $0.05 per share, with
the balance payable in shares of the Company's common stock. This
will allow the Company to preserve capital and enhance the
Company's financial flexibility.
In accordance with the provisions of the applicable IRS Revenue
Procedures, stockholders will be asked to make an election to
receive the first quarter dividend all in cash or all in shares. To
the extent that stockholders elect to receive more than 10% of the
aggregate payment in cash, the cash portion of the payment will be
prorated. Stockholders who elect to receive the dividend in cash
will receive a cash payment of at least $0.05 per share. Stockholders who elect to
receive the dividend in Company common stock will only receive
shares of Company common stock. Additionally, stockholders who do
not make an election will receive 90% of the dividend in Company
common stock and 10% of the dividend payment in cash. The number of
shares issued as a result of the dividend will be calculated based
upon the volume weighted average trading prices of the Company's
common stock on the New York Stock Exchange on June 17, June 18
and June 19, 2020. Cash will be paid
in lieu of fractional shares so that stockholders receive a whole
number of shares of common stock.
An information letter and election form will be mailed to
stockholders of record after the May 21,
2020 record date. The properly completed election form to
receive cash or common shares must be received by Computershare
Trust Company, N.A., the Company's transfer agent, prior to
5:00 p.m. Eastern Time on
June 16, 2020 (the "Election
Deadline"). Registered stockholders with questions regarding the
dividend election may call Computershare Trust Company, N.A. at
(800) 756-8200. Stockholders who hold their shares through a bank,
broker or nominee, and have questions regarding the dividend
election should contact such bank, broker or nominee, who will also
be responsible for distributing to such stockholders the
information letter and election form and submitting the election
form on behalf of such stockholders. Election forms are not
available for download from the Company's website.
The board of directors will evaluate future quarterly dividends
based on market conditions and other factors. The Company reserves
the right to pay future dividends entirely in cash, in stock, or in
a combination of cash and shares of common stock.
Preferred Stock Dividends
On May 9, 2020, the Company's
board of directors determined that the Company would proceed with
the payment of the previously declared cash dividends on the
Company's 7.75% Series A Cumulative Redeemable Preferred Stock (the
"Series A Preferred Stock"), 7.75% Fixed-to-Floating Series B
Cumulative Redeemable Preferred Stock (the "Series B Preferred
Stock"), and 7.50% Fixed-to-Floating Series C Cumulative Redeemable
Preferred Stock (the "Series C Preferred Stock"). Payment of the
Series A Preferred Stock cash dividend of $0.4844 per share that was declared on
March 17, 2020 for stockholders of
record as of April 1, 2020, will be
made on May 22, 2020. Payment of the
Series B Preferred Stock cash dividend of $0.4844 per share, and payment of the Series C
Preferred Stock cash dividend of $0.46875 per share, each of which was declared on
February 18, 2020 for stockholders of
record as of March 5, 2020, will also
be made on May 22, 2020.
On May 9, 2020, the Company's
board of directors also declared the following cash dividends on
its Series B and Series C Preferred Stock to its stockholders of
record as of June 5, 2020: a Series B
Preferred Stock dividend of $0.4844
per share payable on June 29, 2020,
and a Series C Preferred Stock dividend of $0.46875 per share payable on June 29, 2020.
Portfolio Update
As previously reported, the Company has taken various actions to
prudently manage the Company's portfolio through unprecedented
market volatility resulting from the COVID-19 pandemic. These
actions include the sale of investments and the reduction of
amounts due under the Company's repurchase agreement facilities and
secured loans.
The Company has elected to provide the following updates through
the close of business on May 7,
2020.
- The Company has a total investment portfolio, excluding cash,
of approximately $1.6 billion
consisting of 93% commercial credit investments, 6% residential
credit investments, and 1% agency mortgage-backed securities;
approximately $534 million of the
investment portfolio is unencumbered.
- The Company has repaid all repurchase agreement debt and
reduced the amount due under secured loans to a balance of
$837 million.
- The Company has a cash balance of $286
million, $52 million of which
is restricted cash posted as collateral for the Company's secured
loans.
- The Company's book value per diluted common share* is estimated
to be in the range of $2.25 to
$3.25.
* Book value per diluted common share is calculated as
approximately (i) total equity less the liquidation preference of
Series A Preferred Stock ($140.0
million), Series B Preferred Stock ($155.0 million) and Series C Preferred Stock
($287.5 million), divided by (ii)
total shares of common stock outstanding of 164,966,357 as of
May 7, 2020.
The 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, you 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 of results
are inherently uncertain and the Company undertakes no obligation
to update this information. PricewaterhouseCoopers LLP ("PwC"), the
Company's independent registered public accounting firm, has not
audited, reviewed, compiled or performed any procedures with
respect to the information provided herein. Accordingly, PwC does
not express an opinion or any other form of assurance with respect
thereto.
About Invesco Mortgage Capital Inc.
Invesco Mortgage Capital Inc. is a real estate investment trust
that focuses on investing in, financing and managing residential
and commercial mortgage-backed securities and mortgage loans.
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.
Cautionary Notice Regarding Forward-Looking
Statements
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.
The forward-looking statements are based on management's
beliefs, assumptions and expectations of the Company's future
performance, taking into account all information currently
available. You should not place undue reliance on these
forward-looking statements. These beliefs, assumptions and
expectations can change as a result of many possible events or
factors, not all of which are known to the Company, including,
without limitation: the Company's ability to accurately estimate
its book value per common share; its portfolio composition and cash
balances (particularly in light of the highly volatile and
uncertain market conditions); changes in interest rates; changes in
the yield curve; changes in default and prepayment rates; the
availability and terms of financing; changes in the market value of
the Company's assets; general economic conditions; conditions in
the market for the Company's mortgage backed securities and
commercial credit investments; the timing and amount of
distributions to stockholders; conditions in the real estate
market; legislative and regulatory changes that could adversely
affect the business of the Company; and the ongoing spread and
economic and operational effects of the COVID-19 virus. Some of the
other factors are described in the Company's most recent annual
report on Form 10-K and subsequent filings, including the Company's
April 17, 2020 report on Form 8-K,
which are available on the SEC's website at www.sec.gov, under the
headings "Risk Factors," "Forward-Looking Statements," "Business"
and "Management's Discussion and Analysis of Financial Condition
and Results of Operations" and "Risk Factor Update."
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: Brandon
Burke, 404-439-3468
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SOURCE Invesco Mortgage Capital Inc.