New Year Brings Mortgage REIT Offerings Wednesday, January 5, 1:45 PM ET, by Market News Video Staff Just three trading days into the new year and mortgage REIT investors have already seen ...
By Market News Video Staff, Monday, March 21, 8:04 PM ET
After the bell on Monday, shareholders from Chimera Investment (NYSE:CIM), Annaly Capital (NYSE:NLY), American Capital Agency (NASDAQ:AGNC) and Invesco Mortgage Capital (NYSE:IVR) received mixed news. Both AGNC and IVR shareholders learned that the companies planned to raise capital through a public offering and NLY and CIM shareholders learned their first quarter dividend payments would be smaller than the previous quarter.
American Capital Agency announced a 28 million share offering just after the closing bell and was able to reveal the pricing of the offering just a few hours later. The company said gross proceeds totaled $780 million in the offering. Invesco shareholders will have to wait until later in the week for pricing of their offering, but do know the company plans to sell 19 million new shares with an additional 2.85 million available for over allotments. Based on fourth quarter book values, both deals should be accretive, but both stocks are trading lower by more than three percent after hours.
Annaly Capital announced its quarterly dividend of 62 cents per share, a two cent reduction from the prior quarter. And Chimera announced its quarterly dividend of 14 cents per share, a three cent reduction from the prior quarter. Investors will have to wait until first quarter earnings are released in April to find out more about the reductions. In after hours trading, NLY fell to $17.98 and CIM fell to $4.18.
For investors looking for a smoother ride through the sector, ETFs are an option. The iShares FTSE NAREIT Mortgage Plus Capped Index Fund (AMEX:REM) offers investors exposure to a number of names in the sector, including NLY, CIM, IVR and AGNC. For a full list of holdings, visit the REM Holdings page on ETF Channel.com
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