Two Harbors Investment Corp. (NYSE: TWO), a leading hybrid mortgage real estate investment trust, today has provided the following updates with respect to its business, through the close of business on March 19, 2020.
- We estimate that our book value is down approximately 16% in the first quarter, through March 17, 2020.
- We continue to focus on raising excess liquidity and reducing leverage in our portfolio.
- We are actively managing interest rate risk in our portfolio.
- The markets are extremely volatile and asset spreads in Agency RMBS and legacy non-Agency RMBS have experienced material widening.
- The repo markets are continuing to function, albeit at wider levels.
- We expect to make an announcement regarding common and preferred dividends the week of March 23, 2020.
"We are witnessing unprecedented market conditions stemming from the global COVID-19 pandemic. In light of this, the Board of Directors and management have determined that it is in the best interests of stockholders to delay any decision about our first quarter dividend declarations," stated Thomas Siering, Two Harbors’ President and Chief Executive Officer. "We believe this is a prudent step in managing the company through a challenging and dynamic economic environment and is consistent with our goal of ensuring that we take steps to preserve long-term stockholder value."
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.
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.
Investor Relations, Two Harbors Investment Corp.