Dynex Capital Delivers Strong Q1 Performance, Navigating Volatility with Flexibility

In its first quarter earnings conference call, Dynex Capital Incorporated showcased its ability to thrive in a rapidly changing global macroeconomic environment. The company's performance was marked by the delivery of differentiated top-tier results, driven by the intersection of two powerful demographic tailwinds: the need for income and the need for housing.

"We continue to build our company at the intersection of these two powerful forces," said Smriti Popenoe, Co-Chief Executive Officer and President. "Dynex continues to deliver differentiated top-tier performance, propelling value creation by delivering scale and resilience to our shareholders."

The company's focus on methodically building durability across investments, finance, technology, risk, and operations has enabled it to navigate the volatility of the quarter, using it as an opportunity to opportunistically raise and deploy capital. This strategy resulted in a 18% growth in the total capital base during the first quarter.

"In the first quarter, we managed the portfolio through a short burst of volatility," explained Smriti. "We grew the total capital base by 18%, deploying the funds during the quarter as MBS spreads widened."

The company's financial results for the quarter were strong, with book value ending at $12.60 per share and economic return at -2.5% for the quarter. Net interest income rose to 40 cents per share, primarily due to declining financing costs, which fell 33 basis points.

"Our liquidity position remained very strong," noted Michael Sartori, Chief Financial Officer. "We ended the quarter with $1.3 billion in cash and unencumbered securities, representing over 46% of total equity."

The company's outlook is optimistic, driven by its ability to navigate volatility and execute its plan. "Flexibility and openness in our team's mindset are now essential parts of navigating the investment landscape," said Smriti.

With a strong balance sheet and a deep understanding of the global macroeconomic environment, Dynex Capital is well-positioned for continued success. As it continues to deliver differentiated top-tier performance, investors can expect further long-term shareholder returns from this resilient company."