The 15.4% book value decline and negative economic return signal significant spread widening pressure on the portfolio. Monitor the earnings call for management's outlook on spreads and whether the capital raised was deployed at attractive levels. The unchanged $0.51 dividend and EAD per share of $0.38 provide a coverage reference point.
Price Chart
Executive Summary
Dynex Capital reported Q3 2026 results showing a sharp decline in book value per common share to $10.91 from $12.90 in Q2, driven by wider Agency MBS spreads. The company posted a comprehensive loss of $1.49 per common share and a net loss of $1.34 per share, versus net income of $0.80 per share in Q2. Total economic return was negative 11.5% of beginning book value. The company raised $384 million in capital during the quarter, including $268 million of common equity via ATM and $116 million of preferred stock, and grew the investment portfolio 3% to $28.3 billion. Leverage increased to 9.0x equity from 8.1x.
Key Facts
- Book value per common share fell to $10.91 from $12.90 in Q2 2026, a decline of $1.99
- Total economic return of negative $1.48 per common share, or negative 11.5% of beginning book value
- Comprehensive loss of $1.49 per common share; net loss of $1.34 per common share
- Net loss to common shareholders of $338.3 million vs net income of $178.1 million in Q2
- Unrealized loss on MBS and other investments of $1.502 billion in Q3
- Net interest income rose to $101.6 million from $93.8 million in Q2
- Dividends declared of $0.51 per common share, unchanged from Q2
- Raised $384 million of capital: $268 million common equity via ATM and $116 million Series D preferred stock
- Total investment portfolio grew 3% to $28.3 billion; $3.2 billion of MBS purchased
- Leverage including TBAs increased to 9.0x shareholders' equity from 8.1x
- Liquidity of $1.3 billion cash and unpledged securities, 42% of total equity
Financial Impact
Book value declined by $1.99 per share (15.4% of Q2 book value). Net loss of $338.3 million to common shareholders vs net income of $178.1 million in Q2. Comprehensive loss of $374.8 million.
Risk Factors
- Further spread widening could continue to pressure book value and economic returns
- Leverage increased to 9.0x, amplifying sensitivity to spread moves
- ATM equity issuance diluted existing shareholders during a period of declining book value
- Accumulated deficit grew to $1.035 billion from $567 million at Q2 end
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000826675-26-000114 |
| Document: dx-20261019.htm | 0000826675-26-000114 |
| Document: 0000826675-26-000114-index-headers.html | 0000826675-26-000114 |
| Document: 0000826675-26-000114-index.html | 0000826675-26-000114 |
| Document: 0000826675-26-000114.txt | 0000826675-26-000114 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | Insider Cluster | $11.05 $10.92 | ▼ −1.18% | ▼ −0.65% | $10.89 (−1.45%) |
Oct 20, 2026 6d ago | Insider Cluster | $11.05 $11.05 | · 0.00% | ▲ +1.18% | $10.89 (−1.45%) |
Oct 19, 2026 8d ago | 8-K | $10.56 $10.96 | ▼ −3.79% | ▼ −3.45% | $10.89 (−3.13%) |
Sep 25, 2026 4w ago | 8-K | $11.33 $11.39 | ▲ +0.53% | ▲ +0.71% | $10.89 (−3.88%) |
Sep 23, 2026 4w ago | 424B5 | $11.34 $11.34 | · 0.00% | ▼ −0.54% | $10.89 (−3.97%) |
Sep 22, 2026 4w ago | 424B5 | $12.10 $11.73 | ▼ −3.06% | ▼ −2.34% | $10.89 (−10.00%) |
Aug 9, 2026 11w ago | Institutional Cluster | $12.78 $12.93 | ▲ +1.17% | ▲ +1.49% | $10.89 (−14.79%) |
Jul 20, 2026 14w ago | 8-K | $13.12 $13.02 | ▼ −0.76% | ▼ −1.60% | $10.89 (−17.00%) |
Jun 11, 2026 19w ago | Institutional Cluster | $12.90 $12.93 | ▲ +0.23% | ▼ −0.31% | $10.89 (−15.58%) |
May 22, 2026 22w ago | 8-K | $26.11 $26.00 | ▼ −0.40% | ▼ −0.42% | $10.89 (−58.28%) |
US Market Status
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