Orchid Island Capital posts Q3 loss as book value falls

Overview

• U.S. Agency RMBS REIT reported Q3 net loss and book value decline amid turbulent markets

• Company repurchased about 4.95 mln shares during Q3 as stock traded below book value

• Liquidity remained strong with $515.7 mln in cash and unpledged securities at quarter end

Outlook

• Company declares monthly dividend of $0.10 per share for November 2026

Result Drivers

• MARKET TURBULENCE - Co said significant global interest rate increases and volatility led to widespread deleveraging and forced selling in Agency RMBS market

• RMBS AND DERIVATIVE LOSSES - Co recorded net realized and unrealized losses of $231.7 mln on Agency RMBS assets and derivative instruments

• HEDGING STRATEGY - Co increased hedge coverage and extended hedge duration to counter leverage expansion as book value declined

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for Orchid Island Capital Inc is $7.50, about 54% above its October 21 closing price of $4.87

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads

• Oct 19 - AGNC Investment Q3 net loss widens on Agency MBS market weakness

• Oct 20 - Annaly Capital posts Q3 net loss amid challenging fixed-income markets

• Oct 21 - ARMOUR Residential REIT posts Q3 loss due to widening mortgage spreads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)