fbpx

Orchid Island Capital Announces July 2018 Monthly Dividend and June 30, 2018 RMBS Portfolio Characteristics

  • July 2018 Monthly Dividend of $0.09 Per Share
  • Estimated Book Value Per Share at June 30, 2018 of $7.86
  • Estimated GAAP net income of $0.03 per share for the quarter ended June 30, 2018, including an estimated $0.33 per share of realized and unrealized losses on RMBS and derivative instruments
  • Estimated 0.5% total return on equity for the quarter, or 2.0% annualized
  • RMBS Portfolio Characteristics as of June 30, 2018

VERO BEACH, Fla., July 18, 2018 (GLOBE NEWSWIRE) —  Orchid Island Capital, Inc. (the “Company”) (NYSE:ORC) announced today that the Board of Directors (the “Board”) declared a monthly cash dividend for the month of July 2018. The dividend of $0.09 per share will be paid August 10, 2018 to holders of record on July 31, 2018, with an ex-dividend date of July 30, 2018.The Company plans on announcing its next dividend after the Board’s meeting on August 15, 2018.

The Company intends to make regular monthly cash distributions to its stockholders. In order to qualify as a real estate investment trust (“REIT”), the Company must distribute annually to its stockholders an amount at least equal to 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gain. The Company will be subject to income tax on taxable income that is not distributed and to an excise tax to the extent that a certain percentage of its taxable income is not distributed by specified dates. The Company has not established a minimum distribution payment level and is not assured of its ability to make distributions to stockholders in the future.

As of July 18, 2018, the Company had 52,034,596 shares outstanding. At March 31, 2018, the Company had 53,072,169 shares outstanding.

Estimated June 30, 2018 Book Value Per Share

The Company’s estimated book value per share as of June 30, 2018 was $7.86.  The Company computes book value per share by dividing total stockholders’ equity by the total number of outstanding shares of common stock. At June 30, 2018, the Company’s preliminary estimated total stockholders’ equity was approximately $409.2 million with 52,034,596 shares of common stock outstanding. These figures and the resulting estimated book value per share are preliminary, subject to change, and subject to review by the Company’s independent registered public accounting firm. 

Estimated Net Income Per Share and Realized and Unrealized Gains and Losses on RMBS and Derivative Instruments

The Company estimates it generated net income per share of $0.03, which includes $0.33 per share of net realized and unrealized gains and losses on RMBS and derivative instruments for the quarter ended June 30, 2018.  These amounts compare to total dividends declared during the quarter of $0.27 per share.  Net income per common share calculated under generally accepted accounting principles can, and does, differ from our REIT taxable income.  The Company views REIT taxable income as a better indication of income to be paid in the form of a dividend rather than net income. Many components of REIT taxable income can only be estimated at this time and our monthly dividends declared are based on both estimates of REIT taxable income to be earned over the course of the current quarter and calendar year and a longer-term estimate of the REIT taxable income of the Company. These figures are preliminary, subject to change, and subject to review by the Company’s independent registered public accounting firm. 

Estimated Return on Equity

The Company’s estimated total return on equity for the quarter ended June 30, 2018 was 0.5%, or 2.0% on an annualized basis. The Company calculates total return on equity as the sum of dividends declared and paid during the quarter plus changes in book value during the quarter, divided by the Company’s stockholders’ equity at the beginning of the quarter.  The total return was $0.04 per share, comprised of dividends per share of $0.27 and a decrease in book value per share of $0.23 from March 31, 2018.

RMBS Portfolio Characteristics

Details of the RMBS portfolio as of June 30, 2018 are presented below. These figures are preliminary and subject to change and, with respect to figures that will appear in the Company’s financial statements and associated footnotes as of and for the quarter ended June 30, 2018, are subject to review by the Company’s independent registered public accounting firm.

  • RMBS Valuation Characteristics
  • RMBS Assets by Agency
  • Investment Company Act of 1940 Whole Pool Test Results
  • Repurchase Agreement Exposure by Counterparty
  • RMBS Risk Measures

About Orchid Island Capital, Inc.

Orchid Island Capital, Inc. is a specialty finance company that invests in Agency RMBS that are either traditional pass-through Agency RMBS or structured Agency RMBS. Orchid Island Capital, Inc. has elected to be taxed as a REIT for federal income tax purposes.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements include, but are not limited to, statements about the Company’s distributions. These forward-looking statements are based upon Orchid Island Capital, Inc.’s present expectations, but these statements are not guaranteed to occur. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please refer to the “Risk Factors” section of the Company’s Form 10-K for the year ended December 31, 2017.

                         
RMBS Valuation Characteristics                        
($ in thousands)                        
                      Realized Realized
                      Jun 2018 Apr – Jun
                    Weighted CPR 2018 CPR
            Percentage     Weighted Average (1-Month) (3-Month)
    Current     Fair of   Current Average Maturity (Reported (Reported
Type   Face     Value Portfolio   Price Coupon (Months) in Jul) in Jul)
Hybrid/ARM                        
<3y reset $ 1,626   $ 1,718 0.05 %   $ 105.63 3.95 %  200 0.01 % 0.01%
3y-5y reset   16,607     16,550 0.45 %     99.66 2.69 %  292 1.55 % 23.56%
5y-7y reset   8,280     8,133 0.22 %     98.23 2.33 %  301 0.68 % 0.79%
Total Hybrid/ARM   26,513     26,401 0.72 %     99.58 2.66 %  289 1.18 % 15.00%
Fixed Rate RMBS                        
Fixed Rate CMO   522,654     542,656 14.71 %     103.83 4.39 %  310 4.83 % n/a
Fixed Rate CMO Total   522,654     542,656 14.71 %     103.83 4.39 %  310 4.83 % n/a
15yr 3.5   3,114     3,163 0.09 %     101.60 3.50 %  124 0.34 % 18.07%
15yr 4.0   710,781     734,206 19.90 %     103.30 4.00 %  178 5.22 % 5.87%
15yr Total   713,895     737,369 19.99 %     103.29 4.00 %  178 5.20 % 6.03%
20yr 4.0   188,557     194,211 5.26 %     103.00 4.00 %  233 7.07 % 6.18%
20yr 4.5   19,865     20,818 0.56 %     104.80 4.50 %  239 6.81 % n/a
20yr Total   208,422     215,029 5.82 %     103.17 4.05 %  234 7.05 % 6.18%
30yr 4.0   441,674     452,611 12.27 %     102.48 4.00 %  234 7.08 % 6.22%
30yr 4.5   1,322,318     1,387,623 37.61 %     104.94 4.50 %  348 10.58 % 10.53%
30yr 5.0   173,055     186,021 5.03 %     107.49 5.00 %  357 3.61 % 19.97%
30yr Total   1,937,047     2,026,255 54.91 %     104.61 4.43 %  348 9.16 % 9.53%
Total Fixed Rate RMBS   3,382,018     3,521,309 95.43 %     104.12 4.31 %  300 7.53 % 8.66%
Structured RMBS                        
Interest-Only Securities   754,928     116,181 3.15 %     15.39 3.83 %  280 12.72 % 12.24%
Inverse Interest-Only Securities   245,659     25,705 0.70 %     10.46 3.57 %  309 10.70 % 11.75%
Total Structured RMBS   1,000,587     141,886 3.85 %     14.18 3.79 %  285 12.22 % 12.12%
Total Mortgage Assets $ 4,409,118   $ 3,689,596 100.00 %       4.28 %  299 8.55 % 9.76%

           
RMBS Assets by Agency         Investment Company Act of 1940 Whole Pool Test
($ in thousands)         ($ in thousands)      
      Percentage         Percentage
    Fair of       Fair of
Asset Category   Value Portfolio   Asset Category   Value Portfolio
As of June 30, 2018         As of June 30, 2018      
Fannie Mae $ 2,164,714 58.7 %   Whole Pool Assets $ 2,494,736 67.6 %
Freddie Mac   1,519,420 41.2 %   Non-Whole Pool Assets   1,194,860 32.4 %
Ginnie Mae   5,462 0.1 %   Total Mortgage Assets $ 3,689,596 100.0 %
Total Mortgage Assets $ 3,689,596 100.0 %          

               
Borrowings By Counterparty              
($ in thousands)              
            Weighted  
        % of   Average  
    Total   Total   Maturity Longest
As of June 30, 2018   Borrowings   Debt   in Days Maturity
RBC Capital Markets, LLC $ 463,215   13.4 %   53 9/28/2018
Mirae Asset Securities (USA) Inc.   380,537   11.0 %  </t