Dynex Capital Inc
NYSE:DX
Dynex Capital Inc
Dynex Capital, Inc. is an internally managed mortgage real estate investment trust, which invests in residential and commercial mortgage-backed securities on a leveraged basis. The company is headquartered in Glen Allen, Virginia and currently employs 19 full-time employees. The firm's objective is to provide attractive risk-adjusted returns to its shareholders over the long term that are reflective of a leveraged, high quality fixed income portfolio with a focus on capital preservation. The firm seeks to provide returns to its shareholders primarily through the payment of regular dividends and through capital appreciation of its investments. The firm primarily invests in Agency MBS, including residential MBS (RMBS), commercial MBS (CMBS) and CMBS interest-only (IO) securities. The firm also have an investment in non-Agency MBS, which consist mainly of CMBS IO.
Dynex Capital, Inc. is an internally managed mortgage real estate investment trust, which invests in residential and commercial mortgage-backed securities on a leveraged basis. The company is headquartered in Glen Allen, Virginia and currently employs 19 full-time employees. The firm's objective is to provide attractive risk-adjusted returns to its shareholders over the long term that are reflective of a leveraged, high quality fixed income portfolio with a focus on capital preservation. The firm seeks to provide returns to its shareholders primarily through the payment of regular dividends and through capital appreciation of its investments. The firm primarily invests in Agency MBS, including residential MBS (RMBS), commercial MBS (CMBS) and CMBS interest-only (IO) securities. The firm also have an investment in non-Agency MBS, which consist mainly of CMBS IO.
Record Returns: Dynex delivered a 29.4% total shareholder return in 2025, with a 21.7% portfolio total economic return and a strong Q4 total economic return of 10.2%.
Book Value & Scale: Book value per share rose $0.75 in 2025, and equity market capitalization reached $3 billion, nearly tripling in just over a year.
Capital Raising: The company raised over $1.5 billion in 13 months, with $1 billion deployed in 2025 and an additional $350 million raised in early January 2026.
Dividend Performance: Declared $2 per common share in dividends for 2025, paid monthly, with 93% of the common dividend covered by taxable earnings.
Favorable Policy Tailwinds: Recent government policy, including the Trump administration’s move to let Fannie Mae and Freddie Mac expand retained portfolios by $200 billion, is seen as reducing downside risk and supporting MBS spreads.
Expense Ratio: General and administrative expenses as a percentage of equity decreased to 2.1% at year-end 2025 from 2.9% a year earlier.
Return Environment: Hedged ROEs are currently in the mid-to-high teens with leverage around 7–8x. Management sees a stable, lower-risk environment going forward, but fewer outsized opportunities as spreads normalize.
