Here are 1-3 brief analogies for Dynex Capital (DX):

1. It's like a specialized Simon Property Group, but instead of owning physical malls and collecting rent, it owns bundles of mortgage debt and collects interest.
2. It's like a highly focused bond fund from Vanguard or BlackRock, but exclusively investing in mortgage-backed securities (MBS).
3. It's like Ally Financial, but instead of auto loans, it specializes in investing in bundles of residential and commercial mortgages.

• Agency Mortgage-Backed Securities (MBS): These are investments in residential and commercial mortgage-backed securities that are guaranteed by a U.S. government agency or government-sponsored entity.
• Non-Agency Mortgage-Backed Securities (MBS): These are investments in residential and commercial mortgage-backed securities that do not carry a guaranty of principal payment from a U.S. government entity.
• Commercial Mortgage-Backed Securities (CMBS) Interest-Only Securities: These are investments specifically in the interest-only payment streams of commercial mortgage-backed securities.

Dynex Capital (DX) operates as a mortgage real estate investment trust (REIT). Its core business model involves investing in mortgage-backed securities (MBS) on a leveraged basis to generate income for its shareholders. The company acquires various types of MBS (agency and non-agency) and finances its investments primarily through repurchase agreements.

As an investment vehicle, Dynex Capital does not sell products or services to external "customers" in the traditional business-to-business (B2B) or business-to-consumer (B2C) sense. Therefore, it does not have major customers that purchase goods or services from it.

Instead, Dynex Capital's financial relationships primarily involve:

• Shareholders: Who invest in the company and receive distributions (dividends) from its taxable income.
• Financial Institutions: Who serve as counterparties for repurchase agreements (providing financing) or from whom Dynex Capital acquires MBS (sellers of assets). These entities are considered funding partners or asset suppliers, not customers.

The company's revenue is primarily derived from the net interest income generated by its portfolio of MBS assets.

Byron L. Boston Chairman of the Board and Co-Chief Executive Officer

Byron L. Boston serves as Chairman of the Board and Co-Chief Executive Officer, a role he was appointed to in December 2023. He joined the board in 2012 and has served as CEO or Co-CEO and Co-Chief Investment Officer since January 2014. Previously, he was President of the company from March 2012 to December 2020 and Chief Investment Officer since April 2008. Mr. Boston has an extensive background in U.S. real estate finance, asset management/investment banking, and fixed-income capital markets. His career includes building two successful public companies. He started in corporate banking with a focus on direct corporate loans and bond issuances, gaining experience with mortgage-backed securities and bond trading at Credit Suisse First Boston and Lehman Brothers. Recruited by Freddie Mac, he developed and led the initial investment plan to grow their retained portfolio. Following these successes, Mr. Boston launched Sunset Financial Resources, a mortgage Real Estate Investment Trust (REIT) specializing in high-quality residential and commercial loans and securities, and led its initial public offering in March 2004. Sunset Financial Resources was sold in 2006. He consulted with Redwood Trust Inc. before joining Dynex Capital in 2008.

Smriti L. Popenoe Co-Chief Executive Officer and President

Smriti L. Popenoe joined the Board in September 2023 and is the Co-CEO and President of Dynex Capital. She previously served as Chief Investment Officer from 2014 through 2024. Ms. Popenoe has almost three decades of career success in finance and capital markets, bringing expertise in risk management, investment leadership, and portfolio optimization. She is accountable for raising, deploying, and managing the Company's capital. Prior to joining Dynex Capital, she served as Chief Risk Officer at PHH Corporation, a leading provider of mortgage banking and fleet management outsourcing services.

Michael Sartori Chief Financial Officer

Michael Sartori was appointed Chief Financial Officer of Dynex Capital, Inc. in February 2026. He has served as Dynex Capital's Head of Capital Markets and Financial Planning and Analysis (FP&A) since 2019, and joined the Company in 2013 as Assistant Controller. Mr. Sartori has advised on the Company's capital strategy and has been a key contributor to Dynex's strategic direction. In his role, he has overseen the identification and monitoring of performance drivers, developed financial models for transaction analysis, reviewed capital structure alternatives, and overseen forecasting and analysis. Before joining Dynex Capital, Mr. Sartori spent several years at Genworth, where he held various accounting management roles with a focus on derivatives accounting. He began his early career at Deloitte and Grant Thornton LLP.

The addressable markets for Dynex Capital's main products and services, which include investments in mortgage-backed securities (MBS), are as follows:

• U.S. Mortgage-Backed Securities (MBS) Market: The U.S. MBS market, which encompasses residential and commercial MBS, had over $11 trillion in outstanding securities as of mid-2023. The market size is estimated to reach USD 15.55 trillion in 2025. This market primarily consists of agency and non-agency MBS, with the bulk of MBS being backed by residential mortgages.
• U.S. Commercial Mortgage-Backed Securities (CMBS) Market: The U.S. CMBS market had a market capitalization of approximately $1.8 trillion as of December 31, 2025.

Dynex Capital (DX) expects several key factors to drive its future revenue growth over the next two to three years:

1. Expansion of the Mortgage-Backed Securities (MBS) Portfolio: The company has been actively growing its portfolio of mortgage-backed securities. For instance, the portfolio of TBAs and mortgages expanded significantly through 2025 and into early 2026, with current holdings at approximately $22 billion. This continuous deployment of capital into MBS is expected to increase interest-earning assets and, consequently, revenue.
2. Optimized Leverage to Enhance Returns: Management is targeting leverage in the low-eights, anticipating mid-to-high teens return on equity (ROE). This strategic use of leverage aims to amplify returns from their investments, which can then be reinvested to further grow their asset base and revenue.
3. Strategic Positioning for a Tighter Spread Regime: Dynex Capital is positioning itself for a return to a tighter spread environment, similar to that seen before the financial crisis. Management believes this environment will enhance the risk-return profile of their assets and provide attractive opportunities for ongoing capital deployment, leading to more profitable investments.
4. Consistent Capital Raising: The company has a track record of raising substantial equity capital, with over $1.5 billion raised in the 13 months leading up to early 2026. This expanded capital base provides the necessary funding to increase the scale of its investment activities and grow its interest-earning assets.
5. Benefiting from GSE Balance Sheet Activity and Increased Bank Demand: Dynex Capital anticipates positive impacts from the active participation of Government-Sponsored Entities (GSEs) in the market, which is expected to limit spread widening and enhance the risk-return profile of assets. Additionally, they project significant bank demand for mortgage-backed securities in 2026, which should create a favorable environment for their investment strategy.

Share Repurchases

• Dynex Capital authorized a share repurchase program of up to $100 million on April 22, 2024, which is valid until April 30, 2026.

Share Issuance

• On June 5, 2024, Dynex Capital priced an underwritten public offering of 10,500,000 shares of common stock, expecting gross proceeds of approximately $126 million.
• The company amended its at-the-market (ATM) equity distribution agreement on January 27, 2026, increasing authorized common shares for potential sale by 60,000,000, with 67,354,187 shares remaining available for issuance under its current shelf registration.
• Net proceeds from common stock issuances during the year ended December 31, 2025, included approximately $1.2 billion from ATM issuances.

Inbound Investments

• EMG Holdings L.P. acquired a new stake in Dynex Capital, Inc. during the third quarter of a recent period (reported March 15, 2026), purchasing 695,711 shares valued at approximately $8,550,000.
• Vanguard Group Inc. increased its holdings in Dynex Capital by 21.3% during the third quarter (reported March 6, 2026), holding 7,513,849 shares worth approximately $92,345,000.
• In September 2025, Co-CEO and President Smriti Laxman Popenoe acquired 4,260 shares of Dynex Capital stock, and CFO and COO Robert Colligan purchased 4,200 shares.

Outbound Investments

• Dynex Capital's primary business involves investing in mortgage-backed securities (MBS), including agency and non-agency MBS.
• The company utilizes proceeds from share issuances to acquire additional investments, consistent with its investment policy.
• As of December 31, 2025, the fair value of Dynex Capital's portfolio was $19.4 billion.