AGNC Investment recovers economic return to 6.7%
The real estate investment trust reported tangible net book value per common share of $8.58 as of June 30, 2026.
AGNC Investment (AGNC) reported a return to positive economic returns for the second quarter, reversing a loss from the previous period.
The mortgage real estate investment trust saw its economic return on tangible common equity reach 6.7% for the quarter. This followed a loss of 1.6% in the prior quarter.
Tangible net book value per common share increased 2.4% sequentially to $8.58 as of June 30, 2026, from $8.38 as of March 31, 2026. To support its capital position, the company issued 16.2 million shares of common equity through at-the-market offerings, generating net proceeds of $167 million during the quarter.
Net spread and dollar roll income per common share decreased to $0.40, down $0.02 from the $0.42 reported in the first quarter. This decline coincided with a compression in the annualized net interest spread, which fell to 2.00% from 2.06%.
Asset yields and funding costs both trended lower. Average asset yield, excluding catch-up premium amortization, declined to 4.89% from 4.93%. The combined weighted average cost of funds decreased to 2.89% from 2.92%.
Portfolio dynamics shifted as the weighted average projected portfolio life CPR decreased to 8.6% as of June 30, 2026, from 10.3% as of March 31, 2026. Actual portfolio CPR for the second quarter was 13.0%, compared with 13.2% in the prior quarter.
The weighted average coupon for fixed-rate Agency MBS and TBA securities increased to 5.04% as of June 30, 2026, from 4.95% as of March 31, 2026. Tangible net book value at risk leverage remained unchanged at 7.4x for both the period end and the quarterly average.