Orchid Island Capital ( (ORC) ) has released its Q1 earnings. Here is a breakdown of the information Orchid Island Capital presented to its investors.
Orchid Island Capital, Inc. is a real estate investment trust (REIT) specializing in investing in Agency Residential Mortgage-Backed Securities (RMBS) on a leveraged basis, managed by Bimini Advisors, LLC. The company focuses on traditional pass-through Agency RMBS and structured Agency RMBS.
In the first quarter of 2025, Orchid Island Capital reported a net income of $17.1 million, translating to $0.18 per common share. The company declared and paid dividends of $0.36 per common share, while the book value per share decreased to $7.94. The company maintained a strong liquidity position with $446.5 million in cash and cash equivalents.
Key financial highlights include net interest income of $19.7 million and net realized and unrealized gains of $1.6 million on RMBS and derivative instruments. The company experienced a total return of 2.60% for the quarter, driven by dividends and a decrease in book value per share. Orchid Island Capital also reported a decrease in borrowing costs, contributing to a higher interest rate spread.
The company faced challenges towards the end of the quarter due to tariff announcements and market volatility reminiscent of early 2020. Despite these challenges, Orchid Island Capital managed to maintain leverage at acceptable levels and preserve liquidity. The company remains cautious about future market conditions and plans to maintain prudent leverage and ample liquidity.
Looking ahead, Orchid Island Capital aims to navigate potential market turbulence by maintaining a strong liquidity position and managing leverage prudently. The company’s management remains focused on optimizing returns in the Agency RMBS market while adapting to changing economic conditions.