NEW YORK–(COMMERCIAL WIRE)–Two Port Investment Corporation. (NYSE: TWO), a mortgage real estate investment trust Agency + MSR, today announced preliminary estimated financial results(1) for the quarter ended September 30, 2022. The company continues to maintain a strong liquidity position as it navigates the challenging market environment.
Quarterly estimates
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Book value per common share was estimated to be between $4.09 and $4.13 per common share as of September 30, 2022, after deducting common and preferred dividends declared for the third quarter of 2022.
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Comprehensive loss was estimated to be between ($0.81) and ($0.85) per weighted average basic common share
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Earnings available for distribution were estimated to be between $0.15 and $0.17 per weighted average basic common share.(two)
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GAAP debt to equity was estimated at 5.5x and economic debt to equity was estimated at 7.5x as of September 30, 2022(3)
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The company’s liquidity position remains strong, with unrestricted cash estimated at approximately $730 million as of September 30, 2022.
These estimated preliminary financial results for the third quarter of 2022 are unaudited and are subject to change as the company’s quarter-end closing process is completed. Although the company believes that the estimates are based on reasonable assumptions, actual results may vary and such variations may be material. Factors that could cause actual results to differ from estimates include, among others: (i) adjustments in the calculation or application of accounting principles for the financial results for the quarter ended September 30, 2022; (ii) the discovery of new information that impacts the valuation methodologies underlying these results; (iii) errors in the evaluation of the value of the portfolio; and (iv) accounting changes required by GAAP. The Company undertakes no obligation to update or revise these estimates, and investors should not place undue reliance on these estimates because they may be materially inaccurate. Actual third quarter results remain subject to review by the company’s independent auditors.
As previously reported, the company will report full third quarter financial results on November 8, 2022 and hold a conference call on November 9, 2022 at 9:00 am ET. The conference call will be broadcast live and will be accessible on the Investors section of the Company’s website at www.twoharborsinvestment.com/investors. To join the teleconference, please call toll-free (877) 502-7185 approximately 10 minutes before the above start time. For those unable to attend, a telephone replay will be available beginning November 9, 2022 at 12:00 pm ET through November 23, 2022 at 12:00 pm ET. The replay can be accessed by calling (877) 660-6853 and providing Conference Code 13732431. The call will also be archived on the company’s website in the News and Events section.
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(1) |
The company previously announced a one-for-four reverse stock split of its outstanding common shares to take place on November 1, 2022 at 5:01 pm ET. The amounts per common share presented herein have not been adjusted to reflect the pending reverse stock split. |
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(two) |
Earnings available for distribution, or EAD, is a non-GAAP measure defined as comprehensive loss attributable to common stockholders, excluding realized and unrealized gains and losses on the aggregate portfolio, provision for (reversal of) credit losses, provision expense for representation and guarantee obligations on MSR, non-cash compensation expenses related to restricted common shares and other non-recurring expenses. As defined, EAD includes net interest income, interest accrual and settlement on derivatives, dollar roll income on TBA, US Treasury futures income, service income, net of estimated amortization on MSR and cash-related recurring operating expenses. EAD provides supplemental information to help investors analyze the company’s results of operations and helps facilitate comparisons with industry peers. EAD is one of several measures that the company’s board of directors considers in determining the amount of dividends to be declared on the company’s common stock and should not be considered an indication of taxable income or an indicator of the amount of dividends that the company will receive. company can declare. |
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(3) |
Economic debt to equity is defined as total borrowing to finance RMBS, MSR and Agency Derivatives, plus implicit debt on a TBA net cost basis, divided by total equity. |
Forward-looking statements
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and, accordingly, readers should not rely on these forward-looking statements as predictions of future events. Words like “expect”, “target”, “assume”, “estimate”, “project”, “budget”, “forecast”, “anticipate”, “intend”, “plan”, “may”, “will”, ” “could”, “should”, “believe”, “predict”, “potential”, “continue” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results.
Readers are cautioned not to place undue reliance on any forward-looking statement, which speaks only as of the date made. Two Harbors neither undertakes nor accepts any obligation to publish any update or revision of any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which such statement is based. Additional information about these and other risk factors can be found in the company’s most recent filings with the Securities and Exchange Commission. All subsequent written and oral forward-looking statements relating to the company or matters attributable to the company or any person.
Two Harbors Investment Corp.
Two Harbors Investment Corp., a Maryland corporation, is a real estate investment trust that invests in residential mortgage-backed securities, mortgage servicing rights and other financial assets. Two Harbors is headquartered in St. Louis Park, MN.
Additional Information
Two Harbors shareholders and other interested persons may find additional information about the company at www.twoharborsinvestment.com, on the Securities and Exchange Commission’s Internet site at www.sec.gov, or by directing requests to: Two Harbors Investment Corp ., 1601 Utica Avenue South, Suite 900, St. Louis Park, MN 55416, phone (612) 453-4100.
