Mortgage REITs: Earnings Recap
Updated: Sep 10, 2020
Mortgage REIT earnings season wrapped up this week. As with their Equity REIT peers, earnings reports were generally better-than-expected. We complied dividend and book value updates from all 42 mREITs.
After 31 of 42 mREITs cut or suspended dividends from March through June, we haven't seen any additional cuts since the start of July. One mREIT (Arbor Realty) raised distributions.
While a half-dozen mREITs had also initially suspended their preferred distribution, AG Mortgage and Xantas Capital are the only two mREITs that have yet to resume distributions on their preferreds.
Residential mREITs reported an average increase in reported tangible Book Value Per Share of 8.9% from Q1 to Q2 while commercial mREITs reported an average increase in BVPS of 0.2%.
Despite the dividend reductions, residential and commercial mREITs still pay a hearty dividend yield of 7.9% and 7.7%, respectively. Current payout levels appear sustainable if the economic recovery progresses.