It's like Realty Income (O), but instead of owning physical retail properties and collecting rent, it invests in mortgage-backed securities and collects interest.

Imagine Prologis (PLD), but instead of owning logistics warehouses, it invests in mortgage bonds.

• Agency Residential Mortgage-Backed Securities (RMBS): These are debt securities backed by pools of residential mortgages and guaranteed by U.S. government-sponsored enterprises, from which the company earns net interest income.
• Credit Risk Transfer (CRT) Securities: These are debt securities issued by U.S. government-sponsored enterprises that transfer a portion of the credit risk on their mortgage portfolios to private investors.

• Invesco Ltd. (Symbol: IVZ)
• KPMG LLP
• JPMorgan Chase & Co. (Symbol: JPM)
• The Goldman Sachs Group, Inc. (Symbol: GS)

John Anzalone, Chief Executive Officer

Mr. Anzalone has served as Chief Executive Officer since March 2017. Prior to becoming CEO, he was the Chief Investment Officer since Invesco Mortgage Capital's inception in June 2009. Mr. Anzalone joined Invesco's Fixed Income Division in 2002, where he is a Senior Portfolio Manager and Head of Structured Securities Management. His investment career began in 1992 at Union Trust, followed by six years as a Senior Trader at AgriBank, FCB, and a period as a Senior Trader at Advantus Capital Management, responsible for trading mortgage-backed, asset-backed, and commercial mortgage securities.

Mark Gregson, Chief Financial Officer

Mr. Gregson was appointed Chief Financial Officer effective December 19, 2024, after serving as Interim CFO since October 7, 2024. He has served as Global Controller for Invesco Ltd. since 2018. Mr. Gregson joined Invesco and the financial industry in 1995, holding various positions within Invesco's US Retail Corporate Accounting team and serving six years as the assistant controller for North America. He also acts as the Chief Financial Officer for Invesco's broker dealers.

Kevin M. Collins, President

Mr. Collins has served as President since October 2017. He joined Invesco in 2007 as a senior analyst on the structured securities team and was the Head of Commercial Mortgage Credit Investments from 2009 until 2025. Prior to joining Invesco, he structured various capital funding strategies, including bond securitizations and secured lending facilities, for banks and specialty finance companies at Credit Suisse First Boston. He began his career in structured finance advisory services at Ernst & Young.

Brian P. Norris, Chief Investment Officer

Mr. Norris has served as Chief Investment Officer since September 2018. He joined Invesco in 2001, serving as an account manager for five years, then a portfolio manager in 2006, and a senior portfolio manager in 2014. Mr. Norris began his investment career in 1999 as a securities trader with Todd Investment Advisors.

David Lyle, Chief Operating Officer

Mr. Lyle has served as Chief Operating Officer since October 2017. He joined Invesco in 2006. Before Invesco, he spent three years as a Vice President in the Investment Banking ABS group at Friedman Billings Ramsey, where he was involved in financing, transaction management, and analytics. He also worked for two years as an Analyst in the mortgage finance group at Wachovia Securities.

The key risks to Invesco Mortgage Capital (IVR) primarily stem from its nature as a mortgage real estate investment trust (mREIT), which heavily relies on financial market conditions.

1. Interest Rate Volatility, Net Interest Margin Compression, and Prepayment Risk: As a mortgage REIT, Invesco Mortgage Capital borrows funds at short-term interest rates and invests in long-term mortgage-backed securities (MBS). Fluctuations in interest rates, particularly rising rates or an inverted yield curve, can increase its borrowing costs, thereby compressing its net interest margin and reducing profitability. Conversely, a significant decline in interest rates can lead to increased prepayment risk, where mortgage holders refinance their loans earlier than anticipated. This forces IVR to reinvest the returned capital into new assets that may yield lower returns, negatively impacting future income.

2. Leverage Risk and Margin Calls: Invesco Mortgage Capital utilizes significant leverage (debt) to enhance its returns. While this strategy can amplify profits in favorable market conditions, it also magnifies losses during adverse market movements. A decrease in the value of its MBS portfolio, often triggered by interest rate volatility, can lead to margin calls from lenders. If the company cannot meet these margin calls, it may be forced to sell assets at unfavorable prices, incurring substantial losses and potentially facing liquidity issues. Its debt-to-equity ratio has been noted to be elevated, highlighting this risk.

3. Credit Risk and Mortgage Defaults: Although a substantial portion of Invesco Mortgage Capital's portfolio consists of Agency residential mortgage-backed securities (RMBS), which are guaranteed by U.S. government agencies or federally chartered corporations against credit defaults, the company still has exposure to credit risk. This risk is more pronounced in any non-agency or commercial mortgage-backed securities (CMBS) holdings. A struggling U.S. real estate market or a broader economic downturn leading to increased commercial and residential mortgage delinquencies could introduce forced refinancings and heighten valuation risk across its portfolio, ultimately impacting its asset base and funding certainty.

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Invesco Mortgage Capital (IVR) primarily invests in, finances, and manages residential and commercial mortgage-backed securities (MBS) and mortgage loans. Their core business focuses on agency-backed mortgage securities (Agency MBS), encompassing both residential and commercial assets.

Addressable Markets for Invesco Mortgage Capital's Main Products and Services (U.S. Region):

• Mortgage-Backed Securities (MBS): The U.S. mortgage-backed securities market, in terms of outstanding securities, was valued at over USD 11 trillion as of mid-2023. More specifically, the total outstanding agency single-family MBS in the United States was approximately $8.8 trillion at the end of 2023. Agency MBS also constitute a significant part of the broader $14 trillion U.S. securitized market.
• Residential Mortgage Loans/Debt: The total residential mortgage debt in the U.S. amounted to $11.92 trillion as of the fourth quarter of 2022. By the second quarter of 2025, Americans owed $12.94 trillion across 86.47 million mortgages. The U.S. home mortgage market size was approximately USD 180.91 billion in 2023 and is projected to reach around USD 501.67 billion by 2032, with a valuation anticipated to be USD 204,490.7 million in 2024.
• Commercial Mortgage Loans/Debt: Commercial real estate debt in the U.S. totaled $5.62 trillion in 2022.

Invesco Mortgage Capital (IVR) is expected to experience future revenue growth over the next 2-3 years, driven by several key factors:

1. Declining Interest Rate Volatility and Expected Federal Reserve Rate Cuts: The company is cautiously optimistic about the agency mortgage market, anticipating improved demand as interest rate volatility declines. Expectations of the Federal Reserve cutting rates 2-3 times in 2026 could lead to a steeper yield curve and reduced interest rate volatility, which is generally supportive of Agency Residential Mortgage-Backed Securities (RMBS) and can reduce interest expense on repurchase agreements.
2. Increased Investor Demand for Agency Mortgages and CMBS: Invesco Mortgage Capital anticipates improved demand for higher coupon mortgages. Furthermore, the company maintains a positive outlook on Agency Commercial Mortgage-Backed Securities (CMBS) due to limited issuance, strong fundamental performance, and a stable cash flow profile, which should provide favorable support for this sector.
3. Strategic Adjustments in Investment Portfolio Allocation: IVR has strategically adjusted its investment portfolio, including increasing its allocation to Agency CMBS to 15% of its portfolio. The company is also focusing on higher coupon Agency RMBS and believes that owning prepayment protection via specified pools remains a beneficial way to hold attractively priced mortgage exposure. The Agency RMBS portfolio saw a 13% increase quarter-over-quarter as proceeds from at-the-market (ATM) issuance were invested.
4. Improvements in Capital Structure and Reduced Cost of Capital: Invesco Mortgage Capital is actively working to improve its capital structure, targeting a return to a 20% preferred capital structure and focusing on reducing its cost of capital. This includes initiatives such as redeeming higher-cost preferred stock and replacing it with lower-cost repurchase agreements.
5. Utilization of At-The-Market (ATM) Issuance for Capital Deployment: The company has effectively utilized its ATM program to raise capital, such as the $36 million raised in Q3 2025 through common stock issuance. These proceeds are then invested, contributing to the growth of the Agency RMBS portfolio and overall revenue-generating assets.

Share Repurchases

• Invesco Mortgage Capital Inc. announced plans to redeem all 4,247,989 outstanding shares of its 7.75% Fixed-to-Floating Series B Cumulative Redeemable Preferred Stock on December 27, 2024, at a cash price of $25.00 per share, plus accrued and unpaid dividends, totaling approximately $106 million.
• During the three months ended June 30, 2024, the company repurchased and retired 44,661 shares of Series B Preferred Stock and 105,492 shares of Series C Preferred Stock for a total cost of $3.4 million.
• As of November 5, 2025, the company repurchased 89,223 Series C preferred shares.

Share Issuance

• As of November 5, 2025, Invesco Mortgage Capital Inc. sold 4,638,385 common shares, resulting in net proceeds of $36.145 million.
• During the second quarter of 2024, the company sold 1,761,155 shares of common stock for net proceeds of $16.1 million through its at-the-market program.
• In July 2024, an additional 4,173,536 shares of common stock were sold for net proceeds of $37.9 million through the at-the-market program, exhausting the shares available under that program.