Orchid Island Capital ( (ORC) ) has released its Q4 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 specialty finance company operating as a real estate investment trust (REIT) that primarily invests in Agency Residential Mortgage-Backed Securities (RMBS) on a leveraged basis. The company’s portfolio includes both traditional pass-through RMBS and structured Agency RMBS such as interest-only and inverse interest-only securities.
Orchid Island Capital recently released its financial results for the fourth quarter and full year of 2024. The company reported a net income of $5.6 million for the quarter, translating to $0.07 per common share. For the entire year, net income was $37.8 million, or $0.57 per common share. The company also declared and paid dividends amounting to $0.36 per share for the fourth quarter and $1.44 per share for the year.
Key financial metrics include a total return of 0.60% for the fourth quarter and 4.73% for the year, despite a decrease in book value per common share by $0.31 for the quarter and $1.01 for the year. Orchid’s liquidity remained robust, with $353.6 million in cash and equivalents and a borrowing capacity exceeding $5 billion. The adjusted leverage ratio stood at 7.5:1 by the end of 2024.
Orchid Island Capital’s management remains cautiously optimistic about the future, acknowledging that while economic conditions remain strong, inflation persists and fiscal deficits are expected to exert upward pressure on long-term rates. The company plans to maintain its strategic focus on a barbell strategy within its Agency RMBS portfolio to navigate the anticipated modest interest rate cuts by the Federal Reserve.
