Invesco Mortgage Capital (IVR 0.35%) reported core earnings of $56.9 million today, or $0.46 per common share. This first-quarter result was down slightly from the $0.47 in core earnings per common share reported in the fourth quarter of last year, and well below the $0.62 seen in the first quarter of 2013.
In total the company saw a net loss of $73 million, an improvement from the loss of $84 million seen in the fourth quarter. The loss at Invesco Mortgage Capital was the result of a significant unrealized loss resulting from the value of its derivative contracts, which it excludes in its core earnings.
Invesco Mortgage Capital reported its book value grew by 3.1% from the fourth quarter to the first quarter, to $18.53 per common share (diluted). The firm highlighted it is continuing its efforts to be less sensitive to interest rate changes as it repositions its investment portfolio. In addition Invesco Mortgage Capital also repurchased more than $21 million of its common stock, or roughly 1% of its outstanding shares.
"Our efforts to deploy capital into new initiatives to reduce the interest rate sensitivity of our portfolio and benefit from strong real estate fundamentals continued as our book value improved," noted the CEO of Invesco Mortgage Capital, Richard King, in the earnings release. "We have been able to maintain our dividend and keep core earnings steady, building shareholder value."
