American Capital Agency Reports Strong Q2 Results With Reduced Leverage Risk

On Thursday, August 2, American Capital Agency Corp. (AGNC) reported earnings for the second quarter of 2012. The mortgage REIT reported comprehensive income of $480 million, or $1.58 per share, and a net loss of $261 million, or $0.88 per share. American Capital Agency also reported that its net book value per share totaled $29.41 at the end of the second quarter, an increase of $0.35 from the end of Q1.

At the start of 2012, AGNC lowered its dividend from $1.40 to $1.25 per share, after maintaining the prior payout for 10 quarters. Shortly after AGNC went ex-dividend during Q1, the company instituted a large secondary offering that it used to acquire more agency RMBSs. Since then, the value of most RMBS paper has appreciated and provided income, and AGNC shares have performed exceedingly well. Shares have appreciated by 24.79%, or $6.96, since the start of 2012, and provided an additional $2.50 in dividends.

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