Increased Investment Activity and Earnings
The company doubled its investment pace compared to the previous quarter, leading to recurring earnings consistent with a dividend of $0.20 per share. This was achieved by unlocking excess liquidity and investing in high-liquid Agency RMBS and short-duration credit assets in the residential BPL sector.
Improved Liquidity and Financial Position
Company excess liquidity increased by nearly 20% from the previous quarter, ending with $407 million of excess liquidity after adding $1.8 billion of investments.
Earnings Available for Distribution (EAD) Increase
EAD per share increased to $0.20 in Q1 2025 from $0.16 in the previous quarter, reflecting the strategic repositioning of the portfolio.
Net Unrealized Gains
Recognized net unrealized gains totaling $118.2 million, primarily due to higher valuations in the Agency RMBS portfolio and residential loan book.
Record Agency RMBS Purchases
The company purchased approximately $1.5 billion of Agency RMBS, almost four times more than the prior quarter.