Dynex Capital expands at-the-market stock offering

GLEN ALLEN, VA – Dynex Capital, Inc. (NYSE:DX), a $1.3 billion market cap REIT currently trading at $12.19 per share, announced today an expansion of its at-the-market stock offering program. The real estate investment trust, known for maintaining dividend payments for 18 consecutive years with a current yield of 16.55%, entered into Amendment No. 6 to its distribution agreement, increasing the number of shares available by 30 million. This amendment brings the total number of shares available under the program to 99,353,243, with 37,768,692 shares remaining for issuance. According to InvestingPro analysis, the company’s stock is currently trading near its Fair Value, with additional insights available in the comprehensive Pro Research Report.

The distribution agreement, originally dated June 29, 2018, has been amended on several occasions, with the most recent amendment prior to this being on October 29, 2024. Under the terms of the amended agreement, Dynex Capital can offer and sell its common stock through a consortium of sales agents, including BTIG, LLC, Citizens JMP Securities, LLC, Janney Montgomery Scott LLC, and others. The company’s overall financial health is rated as FAIR by InvestingPro, which notes that while the company maintains strong dividend payments, its short-term obligations currently exceed liquid assets.

The additional shares will be issued pursuant to the company’s Registration Statement on Form S-3 (File No. 333-281180) and a prospectus supplement dated May 1, 2025. This filing with the Securities and Exchange Commission allows the company to sell shares from time to time as part of the amended agreement.

The sales agents and their affiliates have previously provided, and may continue to provide, various financial services to Dynex Capital for customary fees and commissions. An opinion of legality concerning the common stock was provided by Mayer Brown LLP and filed along with the amendment.

Dynex Capital’s move to expand its at-the-market offering comes as part of its ongoing capital management strategy, particularly noteworthy as analysts anticipate a sales decline in the current year. The company has not disclosed specific uses for the proceeds from the sale of the additional shares, which will be made available to the market through the sales agents. For deeper insights into Dynex Capital’s financial metrics and growth potential, investors can access detailed analysis and more than 30 key financial metrics through InvestingPro’s comprehensive research tools.

This news is based on a press release statement and the full details of Amendment No. 6 can be found in the exhibit attached to the SEC filing.

In other recent news, Dynex Capital reported its first-quarter 2025 earnings, with earnings per share (EPS) of 33 cents, surpassing analysts’ expectations of 28 cents. However, the company’s revenue fell significantly short of projections, coming in at $17.13 million compared to the expected $31.04 million. Despite the positive EPS surprise, the revenue shortfall contributed to a negative market reaction. Dynex Capital raised $270 million in new capital during the quarter, bolstering its liquidity position. The company maintained a high liquidity target, focusing on Agency Residential Mortgage-Backed Securities (RMBS). Analysts have not provided any recent upgrades or downgrades for Dynex Capital. The company continues to focus on disciplined risk management amid potential changes in government-sponsored enterprise (GSE) policies. Dynex Capital’s strategic emphasis remains on navigating uncertain market conditions while safeguarding shareholder value.

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