Tag Archives: cim

mREIT Q2 earnings – environment remains positive

It’s time again to update mREIT earnings results. All of the mREITs that I track have now announced Q2 2011 earnings with MFA finishing up the announcements this morning. Instead of doing separate posts for each of the 7 mREITs on my list I decided to do a summary post for the group. For my previous posts on mREITs see here. First, lets summarize the earnings results for the group. The table below shows my mREIT economic model updated with Q2 2011 numbers. I’ve redone the table to group together the agency REITs and the non-agency REITs for easier comparison. … Continue reading

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Mortgage REIT Q2 2011 dividend announcements

I thought today would be a good day to discuss the recent Q2 2011 dividend announcements from the mortgage REIT (mREIT) companies that I track. Six out of the seven mREITs I follow have announced their Q2 dividends. For my previous posts on mREITs see here. Also, today the fed announced their latest policy decision which also has a potential impact on mREITs. Lets dive in. For Q2 2011 dividends for mREITs with non-agency exposure were reduced. Both CIM and IVR reduced their dividends for Q2. On the agency side dividends stayed the same with the exception of NLY. NLY … Continue reading

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Interest rate risk in mortgage REITs

In several previous posts on mortgage REITs (mREITs) I have discussed the basics of understanding them, that there could be a good investment opportunity in them, and I presented an economic model that breaks down their sources of earnings and dividends. Now, its time to address the very important topic of the risk in investing in mREITs and how an investor can gauge and monitor that risk. There are three main sources of risk in mREITs; credit risk, liquidity risk, and interest rate risk. Note, that I do not consider the market’s standard definition of risk, volatility, as a source … Continue reading

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Mortgage REIT economics remain compelling

As I mentioned in this earlier post I think there is an good investment opportunity in mortgage REITs (mREITs from now on). Its one of the the few remaining relatively undervalued sectors in the market and offers a compelling dividend yield of about 16%. In this post I’ll provide a basic economic framework to evaluate REITs and provide valuations for the big cap (>$1B) MLP names I’ll be covering. In my first post on mREITs I described how the companies in this sector make money. Basically, the companies leverage up their equity and invest the funds in mortgage backed securities. … Continue reading

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Increasing focus on mortgage REITs

I apologize for the hiatus in posting the last few days. We currently have the RV parked in the Gila National Forest in a pretty remote location with no power, no communications. It’s a 23 mile drive down the mountain to the nearest access. Good thing there is a good barbeque place on the way for extra incentive. Now, on to my post for today. It’s getting tougher these days to find under priced areas in the market. But even in the most extreme markets there are a few. One area that I’m finding good value in is the mortgage … Continue reading

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Christmas wish list, part 2

Today we woke up to a cool rainy Florida winter day, a perfect time for me to reflect on the next 5 stocks on my Christmas wish list (part I here) with a nice cup of hot cocoa by my side. I’m going to keep the list to the top 10 lest I revert back to my childhood ways of writing Christmas wish lists that could have been classified as short stories. Here ya go: 6. PM, Philip Morris International: until not too long ago, part of Altria. It is the international tobacco leader and exposed to more growth than … Continue reading

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