Market Overview

Orchid Island Capital Announces April 2018 Monthly Dividend and March 31, 2018 RMBS Portfolio Characteristics

Share:
  • April 2018 Monthly Dividend of $0.09 Per Share
  • Estimated Book Value Per Share at March 31, 2018 of $8.09
  • Estimated GAAP net loss of $0.31 per share for the quarter ended March 31, 2018, including an estimated $0.72 per share of realized and unrealized losses on RMBS and derivative instruments
  • Estimated (3.6)% total return on equity for the quarter, or (14.2)% annualized
  • RMBS Portfolio Characteristics as of March 31, 2018

VERO BEACH, Fla., April 12, 2018 (GLOBE NEWSWIRE) -- Orchid Island Capital, Inc. (the "Company") (NYSE:ORC) announced today that the Board of Directors declared a monthly cash dividend for the month of April 2018. The dividend of $0.09 per share will be paid May 10, 2018 to holders of record on April 30, 2018, with an ex-dividend date of April 27, 2018.

The Company intends to make regular monthly cash distributions to its stockholders. In order to qualify as a real estate investment trust ("REIT"), the Company must distribute annually to its stockholders an amount at least equal to 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gain. The Company will be subject to income tax on taxable income that is not distributed and to an excise tax to the extent that a certain percentage of its taxable income is not distributed by specified dates. The Company has not established a minimum distribution payment level and is not assured of its ability to make distributions to stockholders in the future.

As of April 12, 2018, the Company had 53,098,115 shares outstanding. At December 31, 2017, the Company had 53,061,904 shares outstanding.

Estimated March 31, 2018 Book Value Per Share

The Company's estimated book value per share as of March 31, 2018 was $8.09. The Company computes book value per share by dividing total stockholders' equity by the total number of outstanding shares of common stock. At March 31, 2018, the Company's preliminary estimated total stockholders' equity was approximately $429.5 million with 53,072,169 shares of common stock outstanding. These figures and the resulting estimated book value per share are preliminary, subject to change, and subject to review by the Company's independent registered public accounting firm. 

Estimated Net Income Per Share and Realized and Unrealized Gains and Losses on RMBS and Derivative Instruments

The Company estimates it generated a net loss per share of $0.31, which includes $0.72 per share of net realized and unrealized losses on RMBS and derivative instruments for the quarter ended March 31, 2018. These amounts compare to total dividends declared during the quarter of $0.31 per share. Net income per common share calculated under generally accepted accounting principles can, and does, differ from our REIT taxable income. The Company views REIT taxable income as a better indication of income to be paid in the form of a dividend rather than net income. Many components of REIT taxable income can only be estimated at this time and our monthly dividends declared are based on both estimates of REIT taxable income to be earned over the course of the current quarter and calendar year and a longer-term estimate of the REIT taxable income of the Company. These figures are preliminary, subject to change, and subject to review by the Company's independent registered public accounting firm.

Estimated Return on Equity

The Company's estimated total return on equity for the quarter ended March 31, 2018 was (3.6)%, or (14.2)% on an annualized basis. The Company calculates total return on equity as the sum of dividends declared and paid during the quarter plus changes in book value during the quarter, divided by the Company's stockholders' equity at the beginning of the quarter. The total return was $(0.31) per share, comprised of dividends per share of $0.31 and a decrease in book value per share of $0.62 from December 31, 2017.

RMBS Portfolio Characteristics

Details of the RMBS portfolio as of March 31, 2018 are presented below. These figures are preliminary and subject to change and, with respect to figures that will appear in the Company's financial statements and associated footnotes as of and for the quarter ended March 31, 2018, are subject to review by the Company's independent registered public accounting firm.

  • RMBS Valuation Characteristics
  • RMBS Assets by Agency
  • Investment Company Act of 1940 Whole Pool Test Results
  • Repurchase Agreement Exposure by Counterparty
  • RMBS Risk Measures

About Orchid Island Capital, Inc.

Orchid Island Capital, Inc. is a specialty finance company that invests in Agency RMBS that are either traditional pass-through Agency RMBS or structured Agency RMBS. Orchid Island Capital, Inc. has elected to be taxed as a REIT for federal income tax purposes.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements include, but are not limited to, statements about the Company's distributions and the expected funding of purchases assets and anticipated borrowings. These forward-looking statements are based upon Orchid Island Capital, Inc.'s present expectations, but these statements are not guaranteed to occur. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please refer to the "Risk Factors" section of the Company's Form 10-K for the year ended December 31, 2017.


RMBS Valuation Characteristics                  
($ in thousands)                  
              Percentage Weighted Realized
    Current   Fair   Current of Average Mar 2018 CPR
Asset Category   Face   Value(1)   Price Portfolio Coupon (Reported in Apr)
As of March 31, 2018                  
Adjustable Rate RMBS $ 1,643 $ 1,754 $ 106.72 0.05 % 3.94 % 0.02 %
10-1 Hybrid Rate RMBS   26,536   26,482   99.80 0.71 % 2.59 % 0.71 %
Hybrid Adjustable Rate RMBS   26,536   26,482   99.80 0.71 % 2.59 % 0.71 %
15 Year Fixed Rate RMBS   124,811   128,941   103.31 3.44 % 3.85 % 4.77 %
20 Year Fixed Rate RMBS   494,385   512,935   103.75 13.69 % 4.00 % 7.14 %
30 Year Fixed Rate RMBS   2,790,033   2,927,257   104.92 78.15 % 4.33 % 7.75 %
Total Fixed Rate RMBS   3,409,229   3,569,133   104.69 95.28 % 4.27 % 7.57 %
Total Pass-through RMBS   3,437,408   3,597,369   104.65 96.04 % 4.25 % 7.51 %
Interest-Only Securities   791,518   120,199   15.19 3.21 % 3.82 % 11.51 %
Inverse Interest-Only Securities   256,047   28,216   11.02 0.75 % 3.80 % 9.17 %
Structured RMBS   1,047,565   148,415   14.17 3.96 % 3.82 % 10.93 %
Total Mortgage Assets $ 4,484,973 $ 3,745,784     100.00 % 4.24 % 8.31 %


RMBS Assets by Agency         Investment Company Act of 1940 Whole Pool Test
($ in thousands)         ($ in thousands)      
      Percentage         Percentage
    Fair of       Fair of
Asset Category   Value(1) Portfolio   Asset Category   Value(1) Portfolio
As of March 31, 2018         As of March 31, 2018      
Fannie Mae $ 2,248,934 60.0 %   Whole Pool Assets $ 2,953,255 78.8 %
Freddie Mac   1,490,267 39.8 %  
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