Dynex Capital Inc. Announces First Quarter 1999 Preferred Dividends.GLEN ALLEN Glen Allen is the name of several places in the United States of America:
See: New York Stock Exchange : DX) announced today its Series A and Series B preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. will pay a first quarter dividend of $0.585 per share and the Company's Series C preferred stock will pay $0.73 per share. The dividends will be paid to record holders as of March 31, 1999. The Series B and Series C preferred stock dividends will be paid on April 30, 1999. The Series A preferred stock dividend will be paid on April 15, 1999. As previously announced, the Company will not pay any dividend on its common stock for the first quarter. Thomas H. Potts, President, stated, "We certainly feel that the market has over-reacted to the recent downgrading downgrading A reduction in the quality rating of a security issue, generally a bond. A downgrading may occur for various reasons including a period of losses, or increased debt service required by restructuring a firm's capital to include more debt and less of both our senior debt and preferred stock ratings and more recently by issues related to our relationship with AutoBond Acceptance Corporation (Amex: ABD ABD n. A candidate for a doctorate who has completed all the requirements for the degree, such as courses and examinations, with the exception of the dissertation. [a(ll) b(ut) d(issertation).] ). As a result of the Company's conservative accounting policies and securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. structures, our cash flow from our portfolio after related interest expense is on average $35 - $40 million per quarter, and the related net interest margin is approximately 45% - 50% of such cash flow. As such, based upon our current capital forecast and existing market conditions, we plan to continue to pay the dividend on the preferred stocks. And, as we stated in our year-end earnings press release, resumption of payment of dividends on our common stock will be subject to the improvement in the Company's overall capital position." The Company announced that it plans to issue approximately $1.3 billion of bonds collateralized primarily by manufactured housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected loans and ARM securities previously issued by the Company, to close by the end of March. Mr. Potts continued, "As a result of this securitization, the Company's recourse borrowings are estimated to decline from $1 billion at December 31, 1998 to approximately $700 million by the end of the quarter. In addition, the securitization is expected to benefit the Company's overall capital position, as the result of the release of approximately $10 million of capital currently being used to warehouse the collateral." The Company also reported that prepayments in its investment portfolio thus far this quarter were approximately $290 million, and that February prepayments were at their lowest level in 16 months. This is relative to prepayments of $603 million for the fourth quarter of 1998. Mr. Potts stated "Given the recent increase in market interest rates and general seasoning of the portfolio, we would expect prepayment activity to continue to moderate." Dynex Capital, Inc. is a financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company that elects to be treated as a real estate investment trust. The Company's primary loan production operations include the origination of mortgage loans secured by multifamily and commercial real estate properties and the origination of loans secured by manufactured homes. The Company's strategy is to create investments for its portfolio from its production operations at a lower effective cost than if assets were purchased in the market, and as a result, steadily increase its net interest margin income and earnings per share over time. Note: This document contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " (within the meaning of the Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Act of 1995) that inherently involve risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of unforeseen external factors. As discussed in the Company's filings with the SEC, these factors may include, but are not limited to, changes in general economic conditions, disruptions in the capital markets, fluctuations in interest rates, increases in costs and other general competitive factors. |
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