Upcoming AWS Coverage on Camden Property Trust Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 15, 2017 / Active Wall St. announces its post-earnings coverage on AGNC Investment Corp. (NASDAQ: AGNC). The Company announced its financial results for the fourth quarter and fiscal on February 01, 2017. The Residential REIT's net interest income increased on q-o-q basis. Register with us now for your free membership at:

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One of AGNC Investment's competitors within the REIT - Residential space, Camden Property Trust (NYSE: CPT), reported its Q4 2016 earnings results on Tuesday, February 07, 2017. AWS will be initiating a research report on Camden Property Trust in the coming days.

Today, AWS is promoting its earnings coverage on AGNC; touching on CPT. Get our free coverage by signing up to

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Earnings Reviewed

During the quarter ended December 31, 2016, AGNC reported net interest income of $295 million compared to net interest income of $219 million for Q3 2016. The Company's net interest income number surpassed analysts' consensus of $230 million.

For Q4 2016, AGNC reported net spread and dollar roll income of $212 million, or $0.64 per common share (excluding estimated "catch-up" premium amortization benefit), flat on a q-o-q basis and surpassing analysts' consensus estimates of $0.60 per share. The net spread and dollar roll income for the reported quarter included $0.21 per common share of dollar roll income associated with the Company's $14.1 billion average net long position in forward purchases and sales of agency mortgage-backed securities in the "to-be-announced" ("TBA") market.

For Q4 2016, AGNC posted comprehensive loss attributable to common stockholders of $395 million, or $1.19 per share, compared to comprehensive income attributable to common stockholders of $414 million, or $1.125 per share, for Q4 2015. AGNC posted a negative 5.2% economic return on common equity for Q4 2015, comprising of $0.54 dividend per common share and $(1.74) decrease in net book value per common share.

Net Book Value

As of December 31, 2016, AGNC's net book value per common share was $21.17, down 7.6% from its September 30, 2016, net book value per common share of $22.91. The decrease in the Company's net book value per common share was due to the underperformance of agency MBS relative to interest rate hedges and the increase in interest rates experienced during the reported quarter. As of December 31, 2016, the Company's tangible net book value per common share was $19.50.

Constant Prepayment Rates

AGNC's investment portfolio had a weighted average CPR of 14.3% for Q4 2016, unchanged from the prior quarter. The weighted average projected CPR for the remaining life of the Company's agency securities held as of December 31, 2016 was 8.0%, a decrease from 10.6% as of September 30, 2016, due to higher interest rates.

The weighted average cost basis of the Company's investment portfolio was 104.7% of par value as of December 31, 2016. Net premium amortization cost on the Company's investment portfolio for Q4 2016 was $(6) million, or $(0.02) per common share. The net unamortized premium balance as of December 31, 2016, was $2.1 billion.

Asset Yield, Cost of Funds and Net Interest Rate Spread

For Q4 2016, AGNC's average asset yield on its investment portfolio, excluding the net TBA position, was 3.43%, which was an increase from 2.60% for the prior quarter. For the reported quarter, the Company's average cost of funds was 1.40%, an increase from 1.32% for the prior quarter.

AGNC's combined annualized net interest rate spread on its balance sheet and dollar roll funded assets for Q4 2016 was 2.02% compared to 1.42% for the prior quarter.

Leverage

AGNC stated that as of December 31, 2016, $37.7 billion of agency repo, $3.0 billion of FHLB advances, and $0.5 billion of other debt were used to fund the Company's investment portfolio. The remainder, or approximately $172 million, of its repurchase agreements was used to fund purchases of US Treasury securities. Inclusive of its net TBA position and net payable/ (receivable) for unsettled securities, the Company's tangible net book value "at risk" leverage ratio was 7.7x as of December 31, 2016, unchanged from September 30, 2016.

As of December 31, 2016, the Company's agency repurchase agreements had a weighted average interest rate of 0.98%, an increase from 0.83% as of September 30, 2016, and weighted average remaining days to maturity of 187 days, compared to 199 days as of September 30, 2016.

Hedging Activities

As of December 31, 2016, 91% of AGNC's outstanding balance of repurchase agreements, FHLB advances, other debt, and net TBA position was hedged with interest rate swaps, swaptions and net US Treasury positions, an increase from 75% as of September 30, 2016.

As of December 31, 2016, the Company's interest rate swap position totaled $37.2 billion in notional amount compared to $34.2 billion as of September 30, 2016. The Company's interest rate swap portfolio had an average fixed pay rate of 1.48%, an average receive rate of 0.92%, and an average maturity of 3.9 years as of December 31, 2016, compared to 1.52%, 0.78% and 3.5 years, respectively, as of September 30, 2016.

Equity Offering and Dividend

In a separate press release on February 01, 2017, AGNC announced that it has established an "at the market" equity offering program under which the Company may offer and sell, from time-to-time, up to $750,000,000 aggregate offering price of shares of its common stock through "at the market" transactions through Cantor Fitzgerald & Co. and Wells Fargo Securities, LLC, as sales agents.

On February 14, 2017, AGNC announced that its Board of Directors has declared a cash dividend of $0.18 per share of common stock for February 2017. The dividend is payable on March 08, 2017 to common stockholders of record as of February 28, 2017.

Stock Performance

At the close of trading session on Tuesday, February 14, 2017, AGNC Investment's stock price slightly declined 0.57% to end the day at $19.29. A total volume of 2.23 million shares were exchanged during the session. The Company's share price has gained 22.58% in the past twelve months and 7.41% on YTD basis. Shares of the Company are trading at a PE ratio of 10.59 and have a dividend yield of 11.20%. The stock currently has a market cap of $6.36 billion.

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SOURCE: Active Wall Street