AGNC Investment (NASDAQ:AGNC) named a new CEO and declared a monthly dividend for December on Thursday.
The mortgage real estate investment trust (mREIT) is promoting Peter Federico from chief operating officer to CEO effective July 1, 2021. Current chief executive Gary Kain will become executive chairman of AGNC's board of directors.
Christopher Kuehl, current executive vice president, will take over Kain's CIO duties. Prue Larocca, the current board chair, will become vice chair.
"Peter, Chris and I have worked together for virtually my entire tenure with AGNC, and I look forward to continuing our partnership over the coming years as I transition to my new role as executive chairman," said Kain, who has been CEO since March 2016 and CIO since January 2009. "I am confident that their vast knowledge of the industry, experience and strategic vision have prepared them to succeed in their new roles and to further AGNC's position as a market-leading residential mortgage REIT."
Federico has been AGNC's president and COO since March 2018. He's been with the company since 2011, serving in various roles including CFO and chief risk officer.
AGNC, a mortgage REIT that invests primarily in residential mortgage-backed securities, also declared a monthly dividend of $0.12 -- the same as last month. Further, AGNC announced that its estimated book value as of Nov. 30 is $16.30 per share. The stock was trading at $15.49 at Friday's market open, down 12% for the year.
The company lowered its dividend in April from $0.16 at the height of the lockdowns. Kain said on the second-quarter earnings call that the company probably didn't need to cut it based on solid net spread and dollar roll income performance since and an improved outlook gong forward. It looks like things have quickly stabilized. As for the leadership transition, it seems like it will be a gradual transition to a steady hand in Federico, who has worked alongside Kain for a decade.