Invesco Mortgage Capital Inc. April 2026 Dividend Announcement and March 31, 2026 Financial Update (Form 8-K)

Invesco Mortgage Capital Inc. April 2026 Dividend Announcement and March 31, 2026 Financial Update

Atlanta - April 15, 2026 -- Invesco Mortgage Capital Inc. (NYSE: IVR) (the "Company") today announced that the Company declared a cash dividend of $0.12 per share of common stock for the month of April 2026. The dividend will be paid on May 14, 2026 to stockholders of record at the close of business on April 27, 2026, with an ex-dividend date of April 27, 2026.

Financial Highlights as of March 31, 2026

•Total investment portfolio including TBAs of $7.3 billion

•Unrestricted cash and unencumbered investments of $493.1 million

•Total repurchase agreement borrowings of $5.3 billion

•Estimated book value per common share of $8.08(1)

•Debt-to-equity ratio of 6.1x and economic debt-to-equity ratio of 7.5x(2)

(1) Estimated book value per common share as of March 31, 2026 is calculated as total stockholders' equity less the liquidation preference of the Company's Series C Preferred Stock ($169.7 million), divided by total common shares outstanding of 87.5 million.

(2) Debt-to-equity ratio is calculated in accordance with U.S. GAAP as the ratio of total repurchase agreement borrowings to total stockholders' equity. Economic debt-to-equity ratio is a non-GAAP financial measure and is calculated as the ratio of total repurchase agreement borrowings and TBAs at implied cost basis ($1.2 billion as of March 31, 2026) to total stockholders' equity. Refer to the section titled "Economic Debt-to-Equity Ratio" below for additional information.

The Company is providing certain preliminary, unaudited month-end financial data as of March 31, 2026, including updates on the Company's book value, investment portfolio, leverage and liquidity. The information in this press release has been prepared by, and is the responsibility of, the Company's management. The Company's independent auditors have not audited, reviewed, examined, compiled nor applied agreed-upon procedures with respect to this information and, accordingly, they do not express an opinion or provide any form of assurance on the figures presented.

The preliminary metrics and estimates included in this press release are based on information that the Company believes to be reliable as of today's date and reflect management's judgment at this stage of the month-end closing process. This month-end update should not be viewed as a substitute for financial statements prepared in accordance with U.S. GAAP and is not necessarily indicative of results to be achieved in any future period. Additional items may be identified as part of the ongoing month-end and quarter-end closing processes, and such items could result in material revisions to the data presented in this press release. Accordingly, readers should not place undue reliance on the preliminary figures contained in this press release. The Company undertakes no obligation to update or revise the information contained herein, whether as a result of new information, subsequent events or otherwise.

			1

Portfolio Composition

The following table summarizes certain characteristics of the Company's investment portfolio including TBAs as of March 31, 2026.

						As of March 31, 2026
$ in thousands						Fair Value						Percentage						Period-end Weighted Average Yield
Agency RMBS:
30 year fixed-rate pass-through coupon:
4.5%						757,581						10.4		%				4.89		%
5.0%						1,434,765						19.8		%				5.20		%
5.5%						1,704,437						23.5		%				5.49		%
6.0%						1,198,042						16.5		%				5.93		%
Total 30 year fixed-rate pass-through						5,094,825						70.2		%				5.42		%
Agency CMO						67,113						1.0		%				8.89		%
Agency CMBS						864,270						11.9		%				4.61		%
Total MBS portfolio						6,026,208						83.1		%				5.34		%
TBAs, at implied market value(1)						1,226,450						16.9		%
Total investment portfolio including TBAs						7,252,658						100.0		%

(1) The presentation of TBAs in the table above represents management's view of the investment portfolio and does not reflect how the Company records TBAs on its balance sheet under U.S. GAAP. Under U.S. GAAP, the Company records TBAs that it does not intend to physically settle on the contractual settlement date as derivative financial instruments. The Company values TBAs on its balance sheet at net carrying value, which represents the difference between implied market value and implied cost basis of the TBAs.

The following table summarizes certain characteristics of the Company's borrowings as of March 31, 2026.

						As of March 31, 2026
$ in thousands						Amount Outstanding						Weighted Average Interest Rate						Weighted Average Remaining Maturity (days)
Repurchase agreements - Agency MBS						5,339,373						3.80		%				30

The following table summarizes certain characteristics of the Company's interest rate swaps whereby the Company pays fixed interest rates and receives floating interest rates based upon the secured overnight financing rate as of March 31, 2026.

$ in thousands						As of March 31, 2026
Maturities						Notional Amount						Weighted Average Fixed Pay Rate						Weighted Average Floating Receive Rate						Weighted Average Years to Maturity
Less than 3 years						1,675,000						0.86		%				3.68		%				1.7
3 to 5 years						950,000						0.54		%				3.68		%				4.3
5 to 7 years						545,000						3.66		%				3.68		%				6.8
7 to 10 years						495,000						3.99		%				3.68		%				9.3
Greater than 10 years						450,000						2.04		%				3.68		%				18.7
Total						4,115,000						1.66		%				3.68		%				5.8

The following table summarizes certain characteristics of the Company's U.S. Treasury futures contracts as of March 31, 2026.

						As of March 31, 2026
$ in thousands						Notional Amount - Short
10 year U.S. Treasury futures						310,000
Ultra 10 year U.S. Treasury futures						375,000
30 year U.S. Treasury futures						305,000
Total						990,000

			2

Economic Debt-to-Equity Ratio

The Company presents an economic debt-to-equity ratio, a non-GAAP financial measure of leverage that considers the impact of the off-balance sheet financing of its investments in TBAs that are accounted for as derivative instruments under U.S. GAAP. The Company includes these types of TBAs at implied cost basis in its measure of leverage because a forward contract to acquire Agency RMBS in the TBA market carries similar risks to Agency RMBS purchased in the cash market and funded with on-balance sheet liabilities. Similarly, a contract for the forward sale of Agency RMBS has substantially the same effect as selling the underlying Agency RMBS and reducing the Company's on-balance sheet funding commitments. The Company believes that presenting its economic debt-to-equity ratio, when considered together with its U.S. GAAP financial measure of debt-to-equity ratio, provides information that is useful to investors in understanding how management evaluates at-risk leverage and gives investors a comparable statistic to those of other mortgage real estate investment trusts who also invest in TBAs and present a similar non-GAAP measure of leverage.

About Invesco Mortgage Capital Inc.

The Company is a real estate investment trust that primarily focuses on investing in, financing and managing mortgage-backed securities and other mortgage-related assets. The Company is externally managed and advised by Invesco Advisers, Inc., a registered investment adviser and an indirect wholly-owned subsidiary of Invesco Ltd., an independent global investment management firm.

Cautionary Notice Regarding Forward-Looking Statements