You mean sell back the shares they just bought this quarter? The main things to watch are:
1) When continuing QE is forecast to end. (MBS may take a big tumble)
2) Current morgage interest rates. (will they continuously rise?)
They did save themselves 3.625 million on not having to pay a dividend on the 2.9 million shares they bought back. I have to admit I was a bit shocked at how much the BV dropped. Their mantra from the beginning has been to increase book value. Some suspect the mREITs may not fight the trend of dropping book values to make SPOs more accretive and to start accumulating newer holdings with higher percentage returns. Timing is everything. However, right now is still too soon.
If they truly hold the dividend at 1.25, a SPO will come sooner than later.