AGNC Posts 7% Book Value Drop in Q2

AGNC Investment Corp. (NASDAQ:AGNC), a real estate investment trust (REIT) focused on investing in Agency mortgage-backed securities (MBS), reported its second quarter results on July 21, 2025. The main story from the earnings release was a tangible net book value (TNBV) decline of 7.0% and net spread earnings that fell short of expectations. For the quarter, the company posted non-GAAP earnings per share of $0.38, below the $0.41 analyst estimate, and reported revenue of $830 million, which was less than the $862.75 million estimate. Compared to the same period last year, TNBV per share decreased from $8.40 to $7.81 and non-GAAP EPS dropped from $0.53 to $0.38. Although revenue was higher year-over-year, profitability and book value both declined, reflecting broader headwinds in the mortgage REIT market. The quarter’s results show stability in core operations but ongoing pressure on margins and capital, as well as an increasingly narrow buffer between earnings and dividend obligations. Source: Analyst estimates for the quarter provided by FactSet. AGNC Investment Corp. operates as a mortgage REIT, which means it invests mainly in securities backed by U.S. government agencies such as Fannie Mae, Freddie Mac, and Ginnie Mae. The company’s strategy centers on profiting from the difference, or spread, between the yield it earns on these mortgage-backed securities and the cost it pays to borrow funds ("leverage") to purchase them. To maintain its REIT tax status, AGNC must pay most of its taxable income as dividends to shareholders.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool