Two Harbors Investment Corp. Reports Q1 2025 Results

Two Harbors Investment Corp. ( (TWO) ) has released its Q1 earnings. Here is a breakdown of the information Two Harbors Investment Corp. presented to its investors.

Two Harbors Investment Corp. (NYSE: TWO) is a real estate investment trust (REIT) specializing in mortgage servicing rights (MSR) and residential mortgage-backed securities, headquartered in St. Louis Park, MN.

In its first quarter of 2025 financial results, Two Harbors reported a book value of $14.66 per common share and declared a dividend of $0.45 per share, achieving a 4.4% economic return on book value. The company generated comprehensive income of $64.9 million, or $0.62 per share, and settled $174.9 million in unpaid principal balance of MSR through acquisitions, with commitments to purchase $1.7 billion in MSR post-quarter.

Key financial highlights include a comprehensive income of $64.9 million, a GAAP net loss of $92.2 million, and earnings available for distribution of $25.1 million. The MSR portfolio maintained a gross coupon rate of 3.46% with a slight increase in delinquency rates. The company funded $28.9 million in first lien loans and brokered $36.1 million in second lien loans, reflecting its strategic focus on maintaining low-risk exposures amidst a volatile market.

Two Harbors’ management remains optimistic about future opportunities, emphasizing the importance of maintaining high liquidity and low-risk exposures. The company aims to capitalize on the widened agency RMBS spreads to enhance levered returns, while its low weighted average coupon rate should continue to provide stable cash flows.

Looking ahead, Two Harbors is focused on navigating the uncertain macroeconomic environment by leveraging its strategic portfolio construction and maintaining a strong liquidity position to seize potential opportunities in the market.