Dynex Capital reports higher book value, positive economic return, and strong liquidity in second quarter.
Stock Earnings Results
July 20, 2026
Table of Contents
July 20, 2026
Dynex Capital, Inc. (NYSE: DX) reported second-quarter 2026 results with higher book value, positive total economic return, strong liquidity, and a larger Agency mortgage-backed securities portfolio.
Dynex Capital is an internally managed mortgage REIT that invests mainly in high-quality Agency mortgage-backed securities backed by U.S. residential and commercial real estate.
The company reported net income of $0.80 per common share and comprehensive income of $0.80 per common share. No analyst estimate data was provided in the supplied release.
Dynex reported total economic return of $0.81 per common share, or 6.4% of beginning book value.
Book value per common share increased to $12.90 as of June 30, 2026, up from $12.60 at the end of the first quarter.
The total economic return was made up of a $0.30 increase in book value and $0.51 of dividends declared per common share.
The company said the increase in book value was driven mainly by a net gain of $102 million on its investment portfolio, net of hedges.
Dynex’s total investment portfolio increased 11% to $27.6 billion.
The growth was driven by $2.8 billion of mortgage-backed securities purchases during the quarter.
Agency RMBS, including TBA securities, increased about 11% to $26.1 billion.
Agency CMBS increased about 11% to $1.4 billion.
The company said 99.99% of its portfolio was invested in highly liquid Agency securities, with Agency RMBS representing 95% of the portfolio and Agency CMBS representing 5%.
Dynex raised $391 million of common equity through its at-the-market program.
Management said the company used the proceeds to deploy capital into Agency MBS opportunities during an attractive return environment.
The company said its raise-and-deploy strategy supported portfolio growth while maintaining strong liquidity and lowering leverage.
Dynex ended the quarter with $1.6 billion of cash and unpledged securities.
That represented 51% of total equity.
Leverage, including TBA securities at cost, declined to 8.1 times shareholders’ equity from 8.6 times at the end of the first quarter.
Management said spread tightening late in the quarter helped Agency MBS valuations, while the hedging portfolio helped offset the impact of higher interest rates.
Dynex Capital delivered a stronger quarter for book value and portfolio growth.
The company generated a 6.4% total economic return, increased book value per share, raised fresh equity, expanded its Agency MBS portfolio, and maintained a large liquidity cushion.
The key question is whether Dynex can keep producing attractive returns while managing interest rate volatility, spread risk, and the trade-off between growth and share issuance.
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