Orchid Island Capital ( (ORC) ) has released its Q2 earnings. Here is a breakdown of the information Orchid Island Capital presented to its investors.
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Orchid Island Capital, Inc. is a real estate investment trust (REIT) specializing in investing on a leveraged basis in Agency Residential Mortgage-Backed Securities (RMBS), with a focus on both traditional pass-through and structured Agency RMBS. The company is managed by Bimini Advisors, LLC, a registered investment adviser.
In its second quarter of 2025, Orchid Island Capital reported a net loss of $33.6 million, or $0.29 per common share, reflecting the turbulent financial market conditions influenced by geopolitical events and domestic policy changes. Despite these challenges, the company declared and paid dividends of $0.36 per common share.
Key financial metrics for the quarter included net interest income of $23.2 million and total expenses of $5.0 million. The company faced net realized and unrealized losses of $51.7 million on RMBS and derivative instruments. Orchid Island Capital maintained strong liquidity with $492.5 million in cash and cash equivalents and borrowing capacity exceeding $6.7 billion.
Looking forward, Orchid Island Capital’s management remains optimistic about capturing attractive returns in the RMBS market, despite the current volatility. The company continues to maintain leverage at prudent levels and is well-positioned to benefit from potential market recoveries.
Overall, while the second quarter presented significant challenges, Orchid Island Capital is focused on strategic positioning to navigate market conditions and enhance shareholder value in the future.