Invesco Mortgage Capital Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Invesco Mortgage Capital Inc. has submitted its annual 10-K report for the fiscal year ended December 31, 2023.</b>

AI Summary

Invesco Mortgage Capital Inc. (IVR-PC) filed a Annual Report (10-K) with the SEC on February 22, 2024. Invesco Mortgage Capital Inc. (IVR) filed its 2023 Form 10-K on February 22, 2024. The filing covers the fiscal year ending December 31, 2023. The company is incorporated in Maryland. Its primary business address is in Atlanta, Georgia. The filing includes data for common stock and preferred stock series B and C.

Why It Matters

For investors and stakeholders tracking Invesco Mortgage Capital Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of IVR's financial performance, strategic decisions, and risk factors for the 2023 fiscal year, crucial for investors assessing the company's stability and future prospects. The detailed financial data within the report, including equity and debt structures, is essential for understanding IVR's capital management and its ability to navigate the real estate investment trust (REIT) market.

Risk Assessment

Risk Level: medium — Invesco Mortgage Capital Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine disclosure for public companies. However, the nature of mortgage REITs involves inherent market and financial risks that are detailed within the report.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Invesco Mortgage Capital Inc.'s exposure to interest rate fluctuations and real estate market conditions.

Key Numbers

• 2023-12-31 — Fiscal Year End (Fiscal Year End)
• 2024-02-22 — Filing Date (Filed as of Date)
• 10-K — Form Type (Form Type)
• 001-34385 — SEC File Number (SEC File Number)

Key Players & Entities

• Invesco Mortgage Capital Inc. (company) — Filer name
• 0001437071-24-000005 (other) — Accession Number
• 20231231 (date) — Conformed Period of Report
• 20240222 (date) — Filed as of Date
• 1331 SPRING ST. NW SUITE 2500 ATLANTA GA 30309 (address) — Business Address
• 404-892-0896 (phone) — Business Phone
• MD (state) — State of Incorporation
• 6798 (sic_code) — Standard Industrial Classification

FAQ

Industry Context

Invesco Mortgage Capital Inc. operates within the Real Estate Investment Trusts (REITs) sector, specifically focusing on mortgage-related assets. This sector is sensitive to interest rate changes and broader economic conditions.

Regulatory Implications

As a publicly traded company, Invesco Mortgage Capital Inc. is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the annual filing of Form 10-K.

What Investors Should Do

1. Review the full 10-K filing for detailed financial statements and management discussion.
2. Analyze the company's portfolio composition and its sensitivity to interest rate movements.
3. Assess the risk factors section for potential impacts on future performance.

Key Dates

• 2024-02-22: 10-K Filing — Annual report submission for fiscal year 2023.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year 2023, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $0.01 — ich Registered Common Stock, par value $0.01 per share IVR New York Stock Exchange

Filing Documents

• ivr-20231231.htm (10-K) — 2627KB
• ivr-20231231x10kxex44.htm (EX-4.4) — 233KB
• ivr-20231231x10kxex19.htm (EX-19) — 70KB
• ivr-20231231x10kxex211.htm (EX-21.1) — 6KB
• ivr-20231231x10kxex231.htm (EX-23.1) — 4KB
• ivr-20231231x10kxex311.htm (EX-31.1) — 10KB
• ivr-20231231x10kxex312.htm (EX-31.2) — 10KB
• ivr-20231231x10kxex321.htm (EX-32.1) — 5KB
• ivr-20231231x10kxex322.htm (EX-32.2) — 5KB
• ivr-20231231x10kxex97.htm (EX-97) — 25KB
• ivr-20231231_g1.jpg (GRAPHIC) — 45KB
• ivr-20231231_g2.jpg (GRAPHIC) — 114KB
• 0001437071-24-000005.txt (&nbsp;) — 12667KB
• ivr-20231231.xsd (EX-101.SCH) — 82KB
• ivr-20231231_cal.xml (EX-101.CAL) — 110KB
• ivr-20231231_def.xml (EX-101.DEF) — 360KB
• ivr-20231231_lab.xml (EX-101.LAB) — 876KB
• ivr-20231231_pre.xml (EX-101.PRE) — 573KB
• ivr-20231231_htm.xml (XML) — 2035KB

Risk Factors

Item 1A. Risk Factors 9

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 34

Cybersecurity

Item 1C. Cybersecurity 34

Properties

Item 2. Properties 35

Legal Proceedings

Item 3. Legal Proceedings 35

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 35 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 36

[Reserved]

Item 6. [Reserved] 38

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 38

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 61

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 64

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 64

Controls and Procedures

Item 9A. Controls and Procedures 64

Other Information

Item 9B. Other Information 65

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 65 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 66

Executive Compensation

Item 11. Executive Compensation 66

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 66

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 66

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 66 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 66

Form 10-K Summary

Item 16. Form 10-K Summary 66

SIGNATURES

SIGNATURES 102 Table of Contents

Forward-Looking Statements

Forward-Looking Statements We make forward-looking statements in this Report on Form 10-K ("Report") and other filings we make with the Securities and Exchange Commission ("SEC") within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond our control. These forward-looking statements include information about possible or assumed future results of our business, investment strategies, financial condition, our ability to continue performance trends, liquidity, results of operations, objectives, our views on domestic and global market conditions (including the Agency RMBS and residential and commercial real estate market) and the market for our target assets, financing sources, costs of funds, leverage and our intention and ability to pay dividends. When we use the words "believe," "expect," "anticipate," "estimate," "plan," "intend," "project," "forecast" or similar expressions and future or conditional verbs such as "will," "may," "could," "should," and "would," and any other statement that necessarily depends on future events, we intend to identify forward-looking statements, although not all forward-looking statements may contain such words. The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. You should not place undue reliance on these forward-looking statements. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us. We caution you not to rely unduly on any forward-looking statements and urge you to carefully consider the factors

Business

Item 1. Business. Our Company Invesco Mortgage Capital Inc. (the "Company" or "we") is a Maryland corporation primarily focused on investing in, financing and managing mortgage-backed securities ("MBS") and other mortgage-related assets. Our objective is to provide attractive risk-adjusted returns to our stockholders, primarily through dividends and secondarily through capital appreciation. As of December 31, 2023, we were invested in: residential mortgage-backed securities ("RMBS") that are guaranteed by a U.S. government agency such as the Government National Mortgage Association ("Ginnie Mae"), or a federally chartered corporation such as the Federal National Mortgage Association ("Fannie Mae") or the Federal Home Loan Mortgage Corporation ("Freddie Mac") (collectively "Agency RMBS"); commercial mortgage-backed securities ("CMBS") that are not guaranteed by a U.S. government agency or a federally chartered corporation ("non-Agency CMBS"); RMBS that are not guaranteed by a U.S. government agency or a federally chartered corporation ("non-Agency RMBS"); U.S. Treasury securities; and a real estate-related financing arrangement. During the periods presented in this Report, we also invested in: to-be-announced securities forward contracts ("TBAs") to purchase Agency RMBS; and a commercial mortgage loan. We continuously evaluate new investment opportunities to complement our current investment portfolio by expanding our target assets and portfolio diversification. We conduct our business through our wholly-owned subsidiary, IAS Operating Partnership L.P. (the "Operating Partnership"). We are externally managed and advised by Invesco Advisers, Inc. (our "Manager"), an indirect wholly-owned subsidiary of Invesco Ltd. ("Invesco"). We have elected to be taxed as a real estate investment trust ("REIT") for U.S. federal income tax purposes under the provisions of the Internal Revenue Code of 1986. To maintain our REIT qualification, we are generally required to

View Full Filing

View this 10-K filing on SEC EDGAR