Two Harbors Investment

Two Harbors Investment Corp. is a real estate investment trust, which invests in, finances, and manages agency residential mortgage-backed securities, mortgage servicing rights, and other financial assets. Its objective is to provide risk-adjusted returns to its stockholders over the long-term, primarily through dividends and secondarily through capital appreciation. The company was founded on May 21, 2009 and is headquartered in St. Louis Park, MN.

Earnings data Q1 2021

Earnings data Q2 2021

Earnings data Q3 2021

Earnings data Q4 2021

Earnings data Q1 2022

Earnings data Q2 2022

Earnings data Q3 2022

Earnings data Q4 2022

Earnings data Q1 2023

Earnings data Q2 2023

Earnings data Q3 2023

Earnings data Q4 2023

Earnings data Q1 2024

Earnings data Q2 2024

Earnings data Q3 2024

Earnings data Q4 2024

Two Harbors reports solid Q4 performance, eyes MSR strategy growth

Two Harbors demonstrated strong financial performance in Q4 2022 with robust returns and stable metrics.
The company is strategically positioned for 2023, focusing on RMBS and MSR strategies amidst market challenges.
Opportunities lie in potential MSR purchases, slower prepayment speeds, and managing liquidity effectively.
Addressing challenges like market volatility and loan recapture restrictions is crucial for sustained growth.

Two Harbors Investment navigates market challenges, eyes spread tightening

Two Harbors Investment's Q1 2023 earnings call highlighted a mixed performance with a focus on managing interest rate volatility and optimizing portfolio returns. The company faces challenges from market uncertainties and excess supply in mortgage-backed securities but sees opportunities in potential spread tightening and strategic dividend policy decisions.

Two Harbors reports resilient Q2 performance amidst market challenges

Two Harbors reported solid financial performance with a focus on generating positive returns in a challenging market environment. The company's strengths lie in its strategic investments in RMBS and MSR assets, as well as the progress of the RoundPoint acquisition. Challenges include managing tail risks and addressing investor concerns about spreads and leverage positioning. Opportunities for growth exist in subservicing and informative investor engagement through video content.

Two Harbors reports Q3 loss, acquires RoundPoint for growth

Two Harbors Investment Corp. faced challenges from market conditions but strategically acquired RoundPoint Mortgage Servicing for growth.
Effective hedging strategies and focus on capital allocation demonstrate proactive risk management and investment optimization.
Opportunities exist in leveraging the RoundPoint acquisition, exploring structured finance markets, and enhancing portfolio performance.

Two Harbors Investment Corp reports positive Q4 performance and growth opportunities

Two Harbors Investment Corp navigated market challenges with a focus on strategic acquisitions and revenue optimization.
Executives addressed key inquiries on performance drivers, recapture strategies, and portfolio management.
The company's proactive approach to market dynamics positions it for growth and stability in the upcoming quarters.

Two Harbors Investment (TWO) reports strong Q1 performance and MSR market activity

Two Harbors Investment (TWO) delivered a solid performance in Q1 2024, driven by positive economic returns and strong RMBS performance. Despite challenges from higher interest rates, the company's operations and portfolio management remained robust. Opportunities exist in the active MSR market and potential market volatility.

Two Harbors maintains stable performance amidst market volatility and transitions

Two Harbors' Q2 2024 performance remained stable with a focus on risk management and operational efficiency.
Despite market volatility, the company showcased resilience in its MSR portfolio and financial results.
Challenges include market uncertainty and leadership transition, while opportunities exist in growth strategies and optimizing returns.
Investors can consider Two Harbors for its consistent performance, strategic initiatives, and potential for returns in a dynamic market.

Two Harbors Investment rebrands to focus on MSR strategy

Two Harbors Investment (TWO) showcased a solid performance with a focus on MSR as a core investment strategy, aiming for attractive returns.
Despite challenges from market volatility and interest rate shifts, TWO's leadership team demonstrated a strong understanding of the company's strategy.
The company's acquisition of RoundPoint and emphasis on cost savings and improving MSR asset economics position TWO for future growth.
Analysts raised questions about key metrics, indicating areas for TWO to address for sustained performance and shareholder value.

Revenue

Cost of revenue

Gross profit

Operating expenses

SG&A

Other

Operating income

EBITDA

Net income

Earnings per share

Total assets

Current assets

Cash & equivalents

Receivables

Inventory

Non-current assets

Net PPE

Intangibles

Total liabilities

Current liabilities

Short term debt

Income tax payable

Non-current liabilities

Long-term debt

Total equity

Stockholders equity

Minority interest

Total liabilities & equity

Total debt

Net debt

Book value per share

Cash from operations

Funds from operations

Change in working capital

Cash from investing

Capital expenditure

Purchase/sale of investments

Purchase/sale of business

Other sources

Cash from financing

Change in stock

Change in debt

Cash dividends paid

Cash from other sources

Net change in cash

Free cash flow

Two Harbors Investment Corp. is a real estate investment trust, which invests in finances, and manages agency residential mortgage-backed securities, mortgage servicing rights, and other financial assets. Its objective is to provide risk-adjusted returns to its stockholders over the long term, primarily through dividends and secondarily through capital appreciation. The company was founded on May 21, 2009 and is headquartered in St. Louis Park, MN.

Ares Commercial Real Estate

AGNC Investment

Blackstone Mortgage Trust

Chimera Investment

Dynex Capital

Ellington Residential Mortgage REIT

FS KKR Capital Corp

Gladstone Investment

Granite Point Mortgage Trust

MFA Financial

Annaly Capital

New York Mortgage Trust

PennyMac Mortgage Investment

Ready Capital Corp

Rithm Capital Corp

Triplepoint Venture Growth BDC

Sixth Street Specialty Lending

Mortgage REITs and BDCs had varying performances in Q3 2023, with agency mortgage REITs performing the worst and BDCs performing the best. Originator/servicer mREITs and RC outperformed their peers in terms of book value changes. Investors should focus on BDCs and preferred shares for long-term positions, as they generally have fewer dividend cuts.

BDCs Vs. MREITs: High-Yield Rumble

Ellington Financial

AG Mortgage Investment Trust

Orchid Island Capital

Solar Capital

REITs experienced significant gains, outperforming other sectors. Investors are hesitant to own REITs during rising interest rates but don't want to miss out when rates fall. There's no time between rates falling and REITs rising. Lower interest rates can lead to higher profits and dividend growth for equity REITs, making them more attractive to income-seeking investors.

REITs To The Moon

Two Harbors Investment Corp. saw its dividend cut by 25% again this year as we predicted due to the volatile and challenging operating environment for mREITs. The company's acquisition of RoundPoint Mortgage Servicing LLC is expected to add $25-30 million to earnings in 2024, which is seen as a bullish. Despite the challenges, the dividend seems secure due to widening spreads, the performance of the MSR port, and the new acquisition.

Two Harbors Is Stabilizing

Two Harbors' book value dropped over $1 per share in the last three months, but investors were expecting worse than that. Management is trying to adapt to interest rate changes, but for now, the value in shares keeps falling.

Why Two Harbors Investment Jumped 15.5% Today

Two Harbors Investment Corp. (NYSE:TWO ) Q3 2023 Earnings Conference Call October 31, 2023 10:00 AM ET Company Participants Maggie Karr - Head of Investor Relations William Greenberg - President and Chief Executive Officer Mary Riskey - Vice President and Chief Financial Officer Nicholas Letica - Vice President and Chief Investment Officer Conference Call Participants Bose George - Keefe, Bruyette, & Woods, Inc. Trevor Cranston - JMP Securities LLC Arren Cyganovich - Citi Eric Hagen - BTIG Operator Greetings and welcome to the Two Harbors Investment Corp. Third Quarter 2023 Financial Results Conference Call. At this time, all participants are in a listen-only mode.

Two Harbors Investment Corp. (TWO) Q3 2023 Earnings Call Transcript

NEW YORK--(BUSINESS WIRE)--Two Harbors Investment Corp. Reports Third Quarter 2023 Financial Results.

Two Harbors Investment Corp. Reports Third Quarter 2023 Financial Results

ARMOUR Residential REIT

Cherry Hill Mortgage

Invesco Mortgage Capital

Main Street Capital

AGNC Investment preannounces results. In line with our expectations, but it sent prices plunging. All agency mortgage REITs that reported so far have included big losses to book value. Expect that trend to continue. We can demonstrate the damage to book value.

Disaster Strikes: Mortgage REITs Under Siege

NEW YORK--(BUSINESS WIRE)--Two Harbors Investment Corp. Announces Earnings Release and Conference Call for Third Quarter 2023 Financial Results.

Two Harbors Investment Corp. Announces Earnings Release and Conference Call for Third Quarter 2023 Financial Results

Capital Southwest

Mortgage REIT book values were slaughtered. BDC values were not. I'm including our Q3 2023 earnings and BV estimates for stocks chosen by readers. When interest rates rip higher, it is usually very bad for mortgage REITs.

The Devastation Of Book Value In Q3 2023

Volatility in Treasuries is causing issues for analysts as it affects share prices and fundamentals. The market forecast for inflation has not changed significantly in the last six months, indicating belief that inflation is under control. Mortgage REITs are experiencing declines in book values, particularly agency mortgage REITs, due to interest rate risk.

Mortgage REIT Chaos

NEW YORK--(BUSINESS WIRE)--Two Harbors Investment Corp. Announces Closing of RoundPoint Mortgage Servicing LLC.

Two Harbors Investment Corp. Announces Closing of Acquisition of RoundPoint Mortgage Servicing LLC

Arlington Asset Investment

MidCap Financial Investment Corp

Blue Owl Capital Corp

PennantPark Floating Rate Capital

Prospect Capital

TCP Capital

Rising interest rates pose challenges for many REITs by impacting debt rollovers and investor alternatives. Higher rates will add around $2 billion to the national debt over the next decade. Even more if they create a recession. Apartment construction is declining, affecting rental unit supply and potentially leading to increased rental rates. Pretty obvious when you think about it.

Big Dividend Yields Going Higher, Dumb Debt, And Snark

NEW YORK--(BUSINESS WIRE)--Two Harbors Investment Corp. Announces Third Quarter 2023 Common and Preferred Stock Dividends.

Two Harbors Investment Corp. Announces Third Quarter 2023 Common and Preferred Stock Dividends

Two Harbors Investment Corp. has experienced a decline in book value per share due to rising interest rates and mark-to-market adjustments. The future performance of Two Harbors will be heavily influenced by the trajectory of interest rates, but there are signs of inflation cooling which could reduce interest rate volatility. The new dividend level appears to be more sustainable and better covered by earnings.

Two Harbors Investment: Mark-To-Market Books Can Be Deceiving

Two Harbors has been hit by rising interest rates. Wait until the Fed is done hiking before considering mortgage REITs.

Here's How Two Harbors Can Afford Its 13% Dividend Yield

DigitalBridge Group

When I buy fixed income, I buy it to hold forever. Today, we look at investments that yield over 8%. No exceptions. Usually, our preferred security recommendations remain proprietary. Today, we're making an exception.

Seeking At Least 8% Dividend Yield

We're picking one share with a big discount to book value and a reasonable dividend payout ratio relative to book value. The market may be misreading this dividend payout as plenty of sites are reporting a different value. Seeking Alpha is accurate. On the other hand, one of the darlings in the sector is far less attractive.

1 Fat Yielder To Buy And 1 To Dump

Two Harbors Investment Corp. (NYSE:TWO ) Q2 2023 Earnings Conference Call August 1, 2023 9:00 AM ET Company Participants Maggie Karr - Head of Investor Relations William Greenberg - President and Chief Executive Officer Mary Riskey - Vice President and Chief Financial Officer Nicholas Letica - Vice President and Chief Investment Officer Conference Call Participants Douglas Harter - Credit Suisse AG Bose George - Keefe, Bruyette, & Woods, Inc. Trevor Cranston - JMP Securities LLC Kenneth Lee - RBC Capital Markets Richard Shane - JPMorgan Chase & Co. Eric Hagen - BTIG Operator Good morning. My name is Klement, and I will be your conference facilitator.

Two Harbors Investment Corp. (TWO) Q2 2023 Earnings Call Transcript

NEW YORK--(BUSINESS WIRE)--Two Harbors Investment Corp. Reports Second Quarter 2023 Financial Results.

Two Harbors Investment Corp. Reports Second Quarter 2023 Financial Results

NEW YORK--(BUSINESS WIRE)--Two Harbors Investment Corp. Announces Earnings Release and Conference Call for Second Quarter 2023 Financial Results.

Two Harbors Investment Corp. Announces Earnings Release and Conference Call for Second Quarter 2023 Financial Results

Two Harbors Investment Corp. is an agency mortgage REIT (mREIT), which also holds mortgage servicing rights. In terms of the common stock, I will discuss a pair trade - long TWO and short Armour Residential. I will show that TWO preferred stocks are the best agency mREIT preferreds with preferred “A” yielding almost 10% and all with by far the best future floating rates.

Excellent Investment Opportunities In Two Harbors Investment Corp.

Two Harbors Investment has been named as a Top 10 Real Estate Investment Trust, according to Dividend Channel, which published its most recent ''DividendRank'' report. The report noted that among REITs, TWO shares displayed both attractive valuation metrics and strong profitability metrics.

This Stock Has A 13.13% Yield And Sells For Less Than Book

Two Harbors Investment is a mortgage REIT that primarily invests in residential agency mortgage-backed securities and mortgage servicing rights. TWO's book value has held up better than other mortgage REITs due to its MSR investments, which tend to perform well in a rising rate environment, offsetting declines in its agency MBS portfolio. However, TWO has underperformed in net interest spread and had to reduce its quarterly dividend by 25%.

Two Harbors Investment: Net Spread Trails Peers

Two Harbors' 25% dividend cut and declining book value render its common shares a risky investment. The preferred shares offer better value with a 10% yield on cost for 81 cents on the dollar. A possible normalization of macroeconomic conditions could lead to a recovery of the commons.

Two Harbors: One Yield Gets Fatter, The Other Is Cut

Amid the decelerating macro-economic fundamentals, Two Harbors (TWO) slashes its dividend by 25% to likely focus on capital preservation.

News for Two Harbors Investment Stock (TWO)