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Exhibit 99.1
CONTACT: |
Lindsey Crabbe |
FOR IMMEDIATE RELEASE |
|
(214) 874-2339 |
|
CAPSTEAD MORTGAGE CORPORATION
ANNOUNCES FOURTH QUARTER 2018 RESULTS
DALLAS – January 30, 2019 – Capstead Mortgage Corporation (“Capstead” or the “Company”) (NYSE:
CMO) today announced financial results for the quarter ended December 31, 2018.Fourth Quarter 2018 Summary
• |
Generated earnings of $9.0 million or $0.05 per diluted common share |
• |
Paid common dividend of $0.08 per common share |
• |
Repurchased 5.8 million shares of common stock for $43.3 million, generating book value accretion of $0.14 per share |
• |
Book value per common share declined 0.9% or $0.09 to $9.39 per common share, which together with the fourth quarter dividend generated an economic return of -0.1% |
• |
Agency-guaranteed residential adjustable-rate mortgage (ARM) portfolio and leverage ended the quarter at $11.97 billion and 9.49 times long-term investment capital, respectively |
About Capstead
Capstead is a self-managed real estate investment trust, or REIT, for federal income tax purposes. The Company earns income from investing in a leveraged portfolio of residential adjustable-rate mortgage pass-through securities, referred to as ARM securities, issued and guaranteed by government-sponsored enterprises, either Fannie Mae or Freddie Mac, or by an agency of the federal government, Ginnie Mae.
Fourth Quarter Earnings and Related Discussion
Capstead reported net income of $9.0 million or $0.05 per diluted common share for the quarter ended December 31, 2018. This compares to net income of $8.7 million or $0.04 per diluted common share for the quarter ended September 30, 2018. The Company paid a fourth quarter 2018 dividend of $0.08 per common share on January 18, 2019.
Portfolio yields averaged 2.34% during the fourth quarter of 2018, an increase of 26 basis points from the 2.08% reported for the third quarter. Cash yields (yields on the portfolio before investment premium amortization) increased 14 basis points to average 3.21% during the fourth quarter, benefiting from mortgage loans underlying the portfolio resetting to higher rates based on higher prevailing six- and 12-month interest rate indices and higher coupon interest rates on recent acquisitions. As of December 31, 2018, current-reset ARMs (52% of the Company’s ARM securities portfolio) will reset in rate on average in approximately six months, allowing the Company’s cash yields to continue benefiting from higher prevailing interest rates in future
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