Dynex reports 11.5% negative Q3 economic return

• Dynex Capital reported a negative 11.5% economic return for Q3 2026, equivalent to a loss of $1.48 per common share.
• Book value declined to $10.91 per share from $12.90 in Q2, while the company declared $0.51 in quarterly dividends and reported $1.3 billion in liquidity.
• Dynex expanded its mortgage investment portfolio to $28.3 billion and raised $384 million in capital, with management identifying potential investment opportunities following wider mortgage spreads.

Dynex Capital (NYSE:DX) reported a negative 11.5% economic return for Q3 2026, as book value declined to $10.91 per share.

Book value fell $1.99 from $12.90 in Q2, while comprehensive losses reached $1.49 per share and net losses totalled $1.34 per share.

Dynex declared $0.51 in quarterly dividends, maintained $1.3 billion in liquidity and increased leverage to 9 times equity from 8.1 times.

Management believes wider mortgage spreads present investment opportunities, although future returns remain uncertain.

The investment portfolio increased 3% to $28.3 billion, including $26.8 billion in agency residential mortgage securities and $1.4 billion in commercial mortgage securities.

Meanwhile, Dynex raised $384 million in quarterly capital, including $268 million through common shares and $116 million through preferred stock issuance.