Anworth Announces Company Updates
April 03 2020 - 6:01PM
Business Wire
Anworth Mortgage Asset Corporation (NYSE: ANH) (“Anworth”)
announced today the following updates with respect to its
operations through the close of business on April 3, 2020:
- The global COVID-19 outbreak has significantly impacted the
global economy, world financial markets, and the markets for both
Agency mortgage-backed securities (“Agency MBS”) and non-Agency
mortgage-backed securities (“Non-Agency MBS”). The Fed’s recent
actions to support the Agency MBS market have been succeeding in
lowering what had been an unprecedented level of volatility over
the past several weeks. Non-Agency MBS prices have moved
significantly lower recently, but have stabilized over this past
week. We have taken significant steps through this market turmoil
to improve liquidity and lower outstanding repurchase agreement
borrowings through sales of Non-Agency MBS and Agency MBS.
- We estimate that our book value per common share at March 31,
2020 is down approximately 40% in the current quarter, to
approximately $2.75 per share. Including our three series of
preferred shares, the book value of our combined common and
preferred stock has declined by approximately 32%.
- Anworth has reduced its Non-Agency repurchase agreement
borrowings to approximately $270 million at March 31, 2020 through
the sales of Non-Agency MBS, down from $428 million at December 31,
2019. Additional sales of Non-Agency MBS that we have made after
March 31, 2020 are expected to further reduce our Non-Agency
repurchase agreement borrowings to approximately $180 million.
Agency MBS sales and principal payments have enabled the reduction
of Agency MBS repurchase agreement borrowings to approximately $2.2
billion at March 31, 2020, enabling Anworth to build additional
liquidity as well as reducing our leverage during this period of
increased market volatility. Anworth has met all margin calls from
its lenders and counterparties as of April 3, 2020.
- At March 31, 2020, Anworth’s cash and unpledged Agency MBS
assets were in excess of $130 million.
- We expect to make an announcement this month regarding our
common stock dividend relative to the first quarter of 2020. We do
anticipate that the payment date for such a dividend will be later
than April 29, 2020, which would have been its routine payment
date.
About Anworth Mortgage Asset Corporation
We are an externally-managed mortgage real estate investment
trust (“REIT”). We invest primarily in mortgage-backed securities
that are either rated “investment grade” or are guaranteed by
federally sponsored enterprises, such as Fannie Mae or Freddie Mac.
We seek to generate income for distribution to our shareholders
primarily based on the difference between the yield on our mortgage
assets and the cost of our borrowings. We are managed by Anworth
Management LLC (our “Manager”), pursuant to a management agreement.
Our Manager is subject to the supervision and direction of our
Board and is responsible for (i) the selection, purchase, and sale
of our investment portfolio; (ii) our financing and hedging
activities; and (iii) providing us with portfolio management,
administrative, and other services and activities relating to our
assets and operations as may be appropriate. Our common stock is
traded on the New York Stock Exchange under the symbol “ANH.”
Anworth Mortgage Asset Corporation is a component of the Russell
2000® Index.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
This news release may contain forward-looking statements within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are based upon our current expectations and speak only
as of the date hereof. Forward-looking statements, which are based
on various assumptions (some of which are beyond our control) may
be identified by reference to a future period or periods or by the
use of forward-looking terminology, such as “may, ” “will, ”
“believe, ” “expect, ” “anticipate, ” “assume,” “estimate,”
“intend,” “continue, ” or other similar terms or variations on
those terms or the negative of those terms. Our actual results may
differ materially and adversely from those expressed in any
forward-looking statements as a result of various factors and
uncertainties, including but not limited to, changes in interest
rates; changes in the market value of our mortgage-backed
securities; changes in the yield curve; the availability of
mortgage-backed securities for purchase; increases in the
prepayment rates on the mortgage loans securing our mortgage-backed
securities; our ability to use borrowings to finance our assets
and, if available, the terms of any financing; risks associated
with investing in mortgage-related assets; changes in business
conditions and the general economy; implementation of or changes in
government regulations affecting our business; our ability to
maintain our qualification as a real estate investment trust for
federal income tax purposes; our ability to maintain an exemption
from the Investment Company Act of 1940, as amended; risks
associated with our home rental business; and our Manager’s ability
to manage our growth. Our Annual Report on Form 10-K and other SEC
filings discuss the most significant risk factors that may affect
our business, results of operations and financial condition. We
undertake no obligation to revise or update publicly any
forward-looking statements for any reason.
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version on businesswire.com: https://www.businesswire.com/news/home/20200403005546/en/
Anworth Mortgage Asset Corporation John T. Hillman, Director of
Investor Relations 1299 Ocean Avenue, 2nd Floor Santa Monica, CA
90401 (310) 255-4438 or (310) 255-4493 Email: jhillman@anworth.com
Web site: http://www.anworth.com
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