Two Harbors Investment Corp. Announces Company Update and Suspension of First Quarter 2020 Common and Preferred Stock Dividends
March 24 2020 - 6:53PM
Business Wire
Two Harbors Investment Corp. (NYSE: TWO) (the “Company”),
a leading hybrid mortgage real estate investment trust (REIT),
today announced that the Company has suspended both its first
quarter 2020 common stock and preferred stock dividends to preserve
liquidity and long-term stockholder value.
“The Board of Directors, together with management, has come to
the difficult decision to suspend our first quarter 2020 dividends,
as a result of the volatile market conditions related to the
COVID-19 pandemic,” stated Thomas Siering, Two Harbors’ President
and Chief Executive Officer. “We believe this is a prudent part of
managing our liquidity, which is the most important objective for
our business in these uncertain times. That being said, we have
satisfied our margin calls received to date under our financing
arrangements.”
The Board of Directors will evaluate the Company’s ability to
pay dividends in future quarters based upon customary
considerations, including market conditions. The Company will also
continue to monitor its taxable income and take measures, if
necessary, to ensure that it meets the minimum distribution
requirements to maintain its status as a REIT.
Unpaid dividends on the Company’s preferred stock shall accrue
without interest. No dividends may be paid on shares of the
Company’s common stock unless all accrued but unpaid dividends on
its preferred stock, and any current dividend then due, have been
or contemporaneously are paid in cash, or a cash sum sufficient for
such payment has been set apart for payment.
Company Update
- We have satisfied all of our margin calls under our financing
arrangements. While we anticipate market volatility will continue,
we have confidence in our ability to meet future margin calls in
the near term.
- We continue to focus on maintaining sufficient excess liquidity
in our portfolio.
- In response to the strong intervention by the Federal Reserve
this week, Agency RMBS retraced a large amount of the spread
widening that took place last week.
- This month, we have been de-levering our portfolio so that our
economic debt-to-equity is now in the low-to-mid 6’s.
Forward Looking Statements
This press release includes “forward-looking statements” within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. Actual results
may differ from expectations, estimates and projections and,
consequently, readers should not rely on these forward-looking
statements as predictions of future events. Words such as “expect,”
“target,” “assume,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,”
“believe,” “predicts,” “potential,” “continue,” and similar
expressions are intended to identify such forward-looking
statements. These forward looking statements involve significant
risks and uncertainties that could cause actual results to differ
materially from expected results.
Readers are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made.
Two Harbors does not undertake or accept any obligation to release
publicly any updates or revisions to any forward-looking statement
to reflect any change in its expectations or any change in events,
conditions or circumstances on which any such statement is based.
Additional information concerning these and other risk factors is
contained in Two Harbors’ most recent filings with the Securities
and Exchange Commission. All subsequent written and oral forward
looking statements concerning Two Harbors or matters attributable
to Two Harbors or any person.
Two Harbors Investment Corp.
Two Harbors Investment Corp., a Maryland corporation, is a real
estate investment trust that invests in residential mortgage-backed
securities, mortgage servicing rights and other financial assets.
Two Harbors is headquartered in New York, New York, and is
externally managed and advised by PRCM Advisers LLC, a wholly owned
subsidiary of Pine River Capital Management L.P. Additional
information is available at www.twoharborsinvestment.com.
Additional Information
Stockholders of Two Harbors and other interested persons may
find additional information regarding the company at the Securities
and Exchange Commission’s Internet site at www.sec.gov or by
directing requests to: Two Harbors Investment Corp., 575 Lexington
Avenue, Suite 2930, New York, NY 10022, telephone 612-629-2500.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200324005791/en/
Investors: Margaret F. Karr, Investor Relations, Two Harbors
Investment Corp., 212-364-3663,
margaret.karr@twoharborsinvestment.com
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