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Focus of Article:

The focus of this article is to provide a detailed projection of AGNC Investment Corp.’s (AGNC) BV per common share as of 3/31/2020. Prior to results being provided to the public on 4/29/2020 (via the company’s quarterly press release), I would like to analyze AGNC’s BV as of 3/31/2020 and provide readers a general direction on how I believe this recent quarter has panned out. A previous three-part article I wrote laid the ground works for this BV projection. In that article, I projected/analyzed AGNC’s income statement (technically speaking, the company’s “consolidated statement of comprehensive income”) for the first quarter of 2020. The links to that three-part projection article are provided below:

AGNC Investment’s Q1 2020 Income Statement And Earnings Projection – Part 1 (Includes Current Recommendation)

AGNC Investment’s Q1 2020 Income Statement And Earnings Projection – Part 2 (Includes Dividend Sustainability Metric + Recommendation)

AGNC Investment’s Q1 2020 Income Statement And Earnings Preview – Part 3 (Includes Updated Price Target And Recommendation)

By understanding the trends that occurred within AGNC’s operations during the first quarter of 2020, one can apply this information to sector peers as well. As such, the discussion/analysis below is not solely applicable to AGNC but to the fixed-rate agency mortgage real estate investment trust (mREIT) sector as a whole. This includes, but is not limited to, the following fixed-rate agency mREIT peers: 1) Arlington Asset Investment Corp. (AI); 2) ARMOUR Residential REIT Inc. (ARR); 3) Cherry Hill Mortgage Investment Corp. (CHMI); 4) Dynex Capital Inc. (DX); 5) Annaly Capital Management Inc. (NLY);and 6) Orchid Island Capital Inc. (ORC).

In addition, the following hybrid/multipurpose mREIT companies that I currently cover had at least a modest portion of each company’s investment portfolio in fixed-rate agency MBS leading up to March 2020 (which typically have higher durations): 1) Anworth Mortgage Asset Corp. (ANH); 2) Chimera Investment Corp. (CIM); 3) Ellington Financial Inc. (EFC); 4) Invesco Mortgage Capital Inc. (IVR); 5) MFA Financial Inc. (MFA); 6) AG Mortgage Investment Trust Inc. (MITT); 7) Two Harbors Investment Corp. (TWO); 8) Western Asset Mortgage Capital Corp. (WMC); 9) New Residential Investment Corp. (NRZ); and 10) PennyMac Mortgage Investment Trust (PMT). As such, the analysis below is not solely applicable to one company but more so the fixed-rate agency/hybrid/multipurpose mREIT sector as a whole.

Overview of AGNC’s Projected BV as of 3/31/2020:

Due to the fact that several figures needed to project/calculate AGNC’s BV as of 3/31/2020 come directly from the company’s consolidated statements of comprehensive income, Table 1 is provided below. Table 1 shows AGNC’s consolidated statements of comprehensive income from a three-months ended timeframe. Using Table 1 below as a reference, one must add certain account figures from the first quarter of 2020 for purposes of projecting a suitable BV as of 3/31/2020.

Table 1 – AGNC Three-Months Ended Consolidated Statements of Comprehensive Income (Loss)

(Source: Table created by me, partially using data obtained from AGNC’s quarterly investor presentation slides)

Having provided Table 1 above, we can now begin to calculate AGNC’s projected BV as of 3/31/2020. This projection will be calculated in Table 2 below. AGNC, through the company’s quarterly investor presentation slides (see link above), only provides the public with a “Book Value Roll Forward” slide. This specific slide uses information based only on a quarterlytimeframe. I perform a more detailed quarterly BV calculation/analysis based on the entire calendar year. As such, there is not an identical sheet AGNC provides that matches the data within Table 2.

Table 2 – AGNC Three-Months Ended BV Projection (BV as of 3/31/2020)

(Source: Table created by me, including all calculated figures and projected valuations)

Using Table 2 above as a reference, unless otherwise noted, all figures are for the “three-months ended” timeframe. Let us take a look at the following figures in corresponding order to the “Ref.” column shown in Table 2 (next to the March 31, 2020 column): A) Operations; B) Other Comprehensive Income (Loss) (OCI/(OCL)); C) Stockholder Transactions; and D) Capital Share Transactions.

A) Operations:

  • Decrease in Net Common Equity From Operations Estimate of ($2.29) Billion; Range ($2.49) – ($2.09) Billion
  • Confidence Within Range = Moderate
  • See Red Reference “A” in Table 2 Above Next to the March 31, 2020 Column

This “net increase (decrease) in net common equity from operations” figure consists of the following amounts that come directly from AGNC’s consolidated statement of comprehensive income (see Tables 1 and 2 above): 1) net interest income; 2) total other income (loss); 3) total expenses; and 4) excise tax.

Due to the fact I discussed these amounts in my previous three-part AGNC consolidated statement of comprehensive income projection article (see links near the top), further discussion of this figure is redundant/unwarranted.

B) Other Comprehensive Income (Loss) (OCI/(OCL)):

  • Increase in Net Common Equity From Other Comprehensive Income (OCI) Estimate of $265 Million; Range $65 – $465 Million
  • Confidence Within Range = Moderate
  • See Red Reference “B” in Table 2 Above Next to the March 31, 2020 Column

This “net increase (decrease) in net common equity from OCI/(OCL)” figure consists of the following accounts that come directly from AGNC’s consolidated statement of comprehensive income (see Table 1 above): 1) unrealized gain (loss) on available-for-sale (“AFS”) securities, net; and 2) unrealized gain (loss) on derivative instruments, net (designated as cash flow hedges).

Due to the fact I also discussed these accounts in my previous three-part AGNC consolidated statement of comprehensive income article (see links near the top), further discussion of this figure is redundant/unwarranted as well.

C) Stockholder Transactions:

  • Decrease in Net Common Equity From Stockholder Transactions Estimate of ($277) Billion; Range ($327) – ($227) Million
  • Confidence Within Range = High
  • See Red Reference “C” in Table 2 Above Next to the March 31, 2020 Column

This “net increase (decrease) in net common equity from stockholder transactions” figure is AGNC’s dividend distributions for the first quarter of 2020. This figure includes activity in relation to the following types of outstanding shares of stock: 1) common; and 2) preferred.

1) Common Stock:

AGNC has the following four events/programs which could impact the number of outstanding shares of common stock the company has when monthly dividends are accounted/accrued for: 1) public offering of shares (“bulk” issuance); 2) at-the-market (“ATM”) offering program; 3) dividend reinvestment/direct stock purchase program; and 4) stock repurchase program.

AGNC did not have a “bulk” issuance of common stock during the first quarter of 2020. However, I am projecting AGNC did use the company’s ATM offering program during the quarter. I believe approximately 27 million shares of common stock were issued. Furthermore, I am assuming there was no notable activity within the company’s dividend reinvestment/direct stock purchase programs during the first quarter of 2020.

When it comes to AGNC’s repurchase program, the company intends to buyback outstanding shares of common stock only when the repurchase price is materially accretive to CURRENT tangible BV. This program was created in October 2012 and was amended in October 2016 to allow AGNC to repurchase up to $1 billion of the company’s outstanding shares of common stock through 12/31/2017. This share repurchase plan previously expired and was not “reactivated” until the third quarter of 2019. Even though I have projected AGNC’s stock price traded at an excessively notable discount to CURRENT BV during parts of March 2020, at the time I believe the company’s “priority” was to build up/increase the company’s cash reserves. Repurchasing shares would have been contrary to this projected strategy.

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The monthly dividends accrued for/declared on AGNC’s common stock for the first quarter of 2020 totaled $0.48 per share. When calculated, I am projecting AGNC had dividend distributions to common shareholders of ($255) million for the first quarter of 2020 and for the three-months ended 3/31/2020. Beginning in April 2020, AGNC decreased the company’s monthly common stock dividend from $0.16 to $0.12 per share. Now let us project the preferred stock dividend distributions.

2) Preferred Stock:

The dividend accrued for/declared on AGNC’s “Series C Preferred Stock” (AGNCN), “Series D Preferred Stock” (AGNCM), “Series E Preferred Stock” (AGNCO), and “Series F Preferred Stock (AGNCP) for the first quarter of 2020 was $0.43750, $0.429688, $0.406250, and $0.27222 (issued in February) per depository share, respectively. When calculated, I am projecting AGNC had total dividend distributions to AGNCN, AGNCM, AGNCO, and AGNCP shareholders of ($22) million for the first quarter of 2020 and for the three-months ended 3/31/2020.

After combining the common and preferred stock dividend distributions for the first quarter of 2020, I am projecting AGNC’s total decrease in net common equity from stockholder transactions was ($277) million for the three-months ended 3/31/2020 (see red reference “C” in Table 2 above).

D) Capital Share Transactions:

  • Increase in Net Common Equity From Capital Share Transactions Estimate of $487 Million; Range $387 – $587 Million
  • Confidence Within Range = High
  • See Red Reference “D” in Table 2 Above Next to the March 31, 2020 Column

As stated earlier, AGNC did not have a bulk issuance of common stock during the first quarter of 2020. However, I am projecting AGNC used the company’s ATM offering program during the quarter. I believe a total of approximately 27 million shares of common stock were issued for net proceeds of approximately $505 million.

Since AGNC officially internalized the company’s management structure through its acquisition of American Capital Mortgage Management (“ACMM”) in 2016, management may be partially compensated through the issuance of common stock subject to certain vesting options. As such, AGNC may have some minor amount of equity issuance/capital proceeds through the following accounts: 1) issuance of restricted stock; and/or 2) issuance of common stock under stock-based compensation program. I have projected a very minor amount of equity was generated from these two sources during the first quarter of 2020. This activity should only have, at most, a very minor impact to AGNC’s BV as of 3/31/2020.

In addition, AGNC experienced some very minor dilution in relation to the company’s recently completed AGNCP preferred stock offering. When all of the above figures are combined, I am projecting the company had a “net common equity from capital share transactions” figure of $487 million for the three-months ended 3/31/2020 (see red reference “D” in Table 2 above).

NLY’s Projected BV as of 3/31/2020:

Beginning several years ago, NLY diversified the company’s investment portfolio by allocating more capital into commercial debt/real estate, preferred equity, corporate debt, residential whole loans, mortgage servicing rights (“MSR”), and middle market (“MM”) lending. NLY’s added diversification should result in reduced volatility during certain interest rate cycles (reduction in duration). In addition, NLY acquired a variable-rate agency mREIT, Hatteras Financial Corp. (HTS) in 2016 and acquired a hybrid mREIT, MTGE Investment Corp. (MTGE) in September 2018. Generally speaking, most of these asset classes, when compared to most fixed-rate agency MBS coupons, experienced less favorable price fluctuations during the first quarter of 2020. However, it should also be noted a vast majority of NLY’s investment portfolio still remained in agency MBS when based on FMV (89% as of 12/31/2019).

When looking at each peer’s derivatives portfolio, AGNC and NLY had a hedging coverage ratio as of 12/31/2019 of 102% and 74%, respectively. As such, AGNC had more hedges in place when based on notional value which, if all other factors were held constant, would equate to AGNC having a higher probability for more severe valuation decreases within this specific portfolio. However, I would point out partially offsetting AGNC’s higher hedging coverage ratio (since derivatives lost value during the first quarter of 2020) is more of NLY’s hedges were towards the longer-end of the yield curve. So, when it comes to derivative valuation fluctuations, there were offsetting factors at play this quarter.

As such, I believe AGNC and NLY had a fairly similar type of BV decrease during the first quarter of 2020. As discussed throughout various mREIT articles over the past several months, this is due to the notably more negative relationship that existed between MBS/asset pricing and derivative instrument valuations during the first quarter of 2020 when compared to the prior quarter (sharp spike in spread/basis risk).

When taking all quarterly activities into consideration (including additional data not discussed within this specific article), I previously projected NLY would report the following BV per common share as of 3/31/2020:

NLY’s Projected BV as of 3/31/2020 = $7.50 Per Common Share (Range $7.15 – $7.85 Per Common Share)

Conclusions Drawn:

To sum up all the information discussed above, I am projecting AGNC will report the following BV per common share as of 3/31/2020:

AGNC’s Projected Non-Tangible BV as of 3/31/2020 = $14.55 Per Common Share (Range $14.15 – $14.95 Per Common Share)

This projection is a ($4.08) per common share decrease from AGNC’s BV as of 12/31/2019. This decrease can be attributed to two factors. The first factor is in relation to the activity within AGNC’s consolidated statement of comprehensive income. I am projecting AGNC will report a net loss of ($2.29) billion for the first quarter of 2020 while reporting OCI of $265 million. When both figures are combined, I am projecting AGNC will report a comprehensive loss of ($2.05) billion for the first quarter of 2020.

The second factor is in relation to the activity within AGNC’s equity section of the balance sheet. AGNC accrued for/declared dividend distributions totaling ($0.48) per common share during the first quarter of 2020. In addition, AGNC accrued for/declared dividend distributions in regards to holders of the company’s outstanding shares of preferred stock. Furthermore, AGNC had some BV accretion in relation to the company’s common stock ATM program which was partially offset by some very minor BV dilution in regards to AGNCP.

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When combined, these two factors account for a projected quarterly BV net decrease of ($4.08) per common share. When calculated, I am projecting AGNC’s non-tangible BV per common share had a decrease of (21.9%) during the first quarter of 2020. I am also projecting AGNC generated an “economic loss” (dividends accrued for/declared and net change in BV) of (19.3%) for the first quarter of 2020.I am projecting AGNC will report the following tangible BV per common share as of 3/31/2020:

AGNC’s Projected Tangible BV as of 3/31/2020 = $13.60 Per Common Share (Range $13.20 – $14.00 Per Common Share)

I believe all mREIT peers will report a notable decrease in quarterly BV. Through a detailed analysis that will be omitted from this particular article, I am projecting AGNC’s BV as of 4/24/2020 has fluctuated ($0.25)-$0.25 per common share when compared to the company’s BV as of 3/31/2020. This projection excludes AGNC’s April 2020 monthly dividend of $0.12 per common share (ex-dividend is 4/29/2020).

My BUY, SELL, or HOLD Recommendation:

From the analysis provided above, including additional catalysts/factors not discussed within this particular article, I currently rate AGNC as a SELL when I believe the company’s stock price is trading at or greater than my projected non-tangible CURRENT BV (BV as of 4/24/2020; $14.55 per share), a HOLD when trading at less than my projected non-tangible CURRENT BV through less than a (10%) discount to my projected non-tangible CURRENT BV, and a BUY when trading at or greater than a (10%) discount to my projected non-tangible CURRENT BV. These ranges are unchanged when compared to my last AGNC article (PART 3 of my income statement projection analysis).

Therefore, I currently rate AGNC as a BUY.

As such, I currently believe AGNC is undervalued from a stock price perspective. My current price target for AGNC is approximately $14.55 per share. This is currently the price where my recommendation would change to a SELL. The current price where my recommendation would change to a HOLD is approximately $13.10 per share.

Along with the data presented within this article, this recommendation considers the following mREIT catalysts/factors: 1) projected future MBS/investment price movements; 2) projected future derivative valuations;and 3) projected near-term dividend per share rates. This recommendation also considers the four Fed Funds Rate increases by the Federal Open Market Committee (“FOMC”) during 2018 (this was a more hawkish tone/rhetoric when compared to most of 2017), the three Fed Funds Rate decreases during 2019 due to the recent dovish tone/rhetoric regarding overall monetary policy as a result of recent macroeconomic trends/events, and the recent Fed Funds Rate decrease to near zero. This also considers the previous wind-down/decrease of the Fed’s balance sheet through gradual runoff/partial non-reinvestment (which began in October 2017 which increased spread/basis risk) and the recent “easing” of this wind-down starting in May 2019 regarding U.S. Treasuries and August 2019 regarding agency MBS (which should partially reduce spread/basis risk when volatility remains subdued; as I correctly projected markets would experience during the fourth quarter of 2019). This also considers the very recent announcement of the start of another round of “quantitative easing” that includes the Fed specifically purchasing agency MBS which should bolster prices while keeping long-term rates low.

I believe the key factors to analyze within the broader mREIT sector this quarter are the following: 1) each company’s proportion of 15-year fixed-rate agency MBS holdings versus 30-year fixed-rate agency MBS holdings; 2) each company’s hedging coverage ratio; 3) each company’s proportion of long-term derivative instruments versus short-term derivative instruments; 4) each company’s “at-risk” leverage ratio; 5) each company’s proportion of specified pools (for instance HARP and LLB securities); 6) each company’s managerial expertise; 7) each company’s proportional share of non-restricted cash and unencumbered assets leading up to March 2020; 8) each company’s underlying asset composition regarding agency versus non-agency/credit investments; and 9) amount of voluntarily de-leveraging and percentage of investments/instruments that experienced margin calls. Dependent upon these factors, I believe results will vary significantly across the broader mREIT sector for the first quarter of 2020.

Finally, I believe my/our historical “track record”/accuracy regarding projected CURRENT BVs has surpassed most (if not all) professional analysts within the mREIT sector on a consistent basis. I believe this should “count for something” when it comes to overall reliability and value.

Each investor’s BUY, SELL, or HOLD decision is based on one’s risk tolerance, time horizon, and dividend income goals. My personal recommendation will not fit each reader’s current investing strategy. The factual information provided within this article is intended to help assist readers when it comes to investing strategies/decisions.

Current/Recent mREIT Sector Stock Disclosures:

On 3/18/2020, I once again initiated a position in AGNC at a weighted average purchase price of $7.115 per share. This weighted average per share price excludes all dividends received/reinvested.

On 1/31/2017, I initiated a position in NRZ at a weighted average purchase price of $15.10 per share. On 6/29/2017, 7/7/2017, and 12/21/2018, I increased my position in NRZ at a weighted average purchase price of $15.775, $15.18, and $14.475 per share, respectively. When combined, my NRZ position had a weighted average purchase price of $14.912 per share. This weighted average per share price excluded all dividends received/reinvested. On 2/6/2020, I sold my entire NRZ position at a weighted average sales price of $17.555 per share as my price target, at the time, of $17.50 per share was surpassed. This calculates to a weighted average realized gain and total return of 17.7% and 41.2%, respectively. I held this position, on a weighted average basis, for approximately 20 months.

On 6/29/2017, I initiated a position in CHMI at a weighted average purchase price of $18.425 per share. On 10/6/2017, 10/26/2017, 11/6/2017, 1/29/2018, 10/12/2018, 6/6/2019, 7/23/2019, 9/5/2019, 3/16/2020, and 4/6/2020 I increased my position in CHMI at a weighted average purchase price of $18.015, $18.245, $17.71, $17.145, $17.235, $16.315, $15.325, $12.435, $8.55, and $3.645 per share, respectively. When combined, my CHMI position has a weighted average purchase price of $7.735 per share (yes, my last 3 purchases were proportionately large). This weighted average per share price excludes all dividends received/reinvested.

On 8/31/2017, I initiated a position in CHMI’s Series A preferred stock, (CHMI.PA). On 9/12/2017 and 4/6/2020, I increased my position in CHMI-A at a weighted average purchase price of $25.145 and $10.945 per share, respectively. When combined, my CHMI-A position has a weighted average purchase price of $18.071 per share. This weighted average per share price excludes all dividends received/reinvested.

On 1/29/2018, I initiated a position in TWO at a weighted average purchase price of $15.155 per share. On 4/17/2019, I increased my position in TWO at a weighted average purchase price of $13.165 per share. When combined, my TWO position had a weighted average purchase price of $13.825 per share. This weighted average per share price excluded all dividends received/reinvested. On 2/3/2020, I sold my entire TWO position at a weighted average sales price of $15.355 per share as my price target, at the time, of $15.25 per share was surpassed. This calculates to a weighted average realized gain and total return of 11.0% and 25.2%, respectively. I held this position, on a weighted average basis, for approximately 13 months.

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On 3/8/2018, I initiated a position in New York Mortgage Trust, Inc.’s (NYMT) Series D preferred stock, (NYMTN). On 4/6/2018, 4/27/2018, 10/12/2018, 12/7/2018, 12/18/2018, and 12/21/2018 I increased my position in NYMTN. When combined, my NYMTN position has a weighted average purchase price of $22.379 per share. This weighted average per share price excludes all dividends received/reinvested.

On 10/12/2018, I initiated a position in Granite Point Mortgage Trust, Inc. (GPMT) at a weighted average purchase price of $18.155 per share. This weighted average per share price excludes all dividends received/reinvested.

On 10/12/2018, I initiated a position in MITT at a weighted average purchase price of $17.105 per share. On 4/17/2019 and 6/3/2019, I increased my position in MITT at a weighted average purchase price of $16.22 and $15.52 per share, respectively. When combined, my MITT position has a weighted average purchase price of $15.946 per share. This weighted average per share price excludes all dividends received/reinvested.

On 6/3/2019, I initiated a position in ARR at a weighted average purchase price of $17.545 per share. On 9/10/2019, I increased my position in ARR at a weighted average purchase price of $16.785 per share. When combined, my ARR position had a weighted average purchase price of $16.975 per share. This weighted average per share price excluded all dividends received/reinvested. On 2/20/2020, I sold my entire ARR position at a weighted average sales price of $21.045 per share as my price target, at the time, of $20.90 per share was surpassed. This calculates to a weighted average non-annualized realized gain and total return of 24.0% and 31.0%, respectively. I held this position, on a weighted average basis, for approximately 6 months.

On 6/3/2019, I initiated a position in IVR at a weighted average purchase price of $15.49 per share. This weighted average per share price excludes all dividends received/reinvested. On 2/14/2020, I sold my entire IVR position at a weighted average sales price of $17.965 per share as my price target, at the time, of $17.95 per share was surpassed. This calculates to a weighted average non-annualized realized gain and total return of 16.0% and 25.0%, respectively. I held this position for approximately 8 months.

On 11/22/2019, I initiated a position in ANH at a weighted average purchase price of $3.475 per share. This weighted average per share price excludes all dividends received/reinvested.

On 11/22/2019, I initiated a position in AI’s Senior Notes Due 2023 (AIW) at a weighted average purchase price of $24.13 per share ($25 being par). On 3/10/2020, 3/13/2020, and 3/19/2020, I increased by position in AIW at a weighted average purchase price of $23.50, $19.75, and $9.31 per share, respectively. When combined, my AIW has a weighted average purchase price of $14.804 per share. This weighted average per share price excludes all interest received/compounded.

On 12/31/2019, I initiated a position in AI’s Senior Notes Due 2025 (AIC) at a weighted average purchase price of $24.00 per share ($25 being par). On 3/10/2020 and 3/19/2020, I increased by position in AIC at a weighted average purchase price of $23.72 and $8.71 per share, respectively. When combined, my AIC has a weighted average purchase price of $16.182 per share. This weighted average per share price excludes all interest received/compounded.

On 1/2/2020, I initiated a position in AI at a weighted average purchase price of $5.57 per share. On 1/9/2019 and 3/16/2020, I increased my position in AI at a weighted average purchase price of $5.59 and $3.25 per share, respectively. When combined, my AI position has a weighted average purchase price of $4.027 per share. This weighted average per share price excludes all dividends received/reinvested.

On 3/18/2020, I initiated a position in NLY at a weighted average purchase price of $5.05 per share. This weighted average per share price excludes all dividends received/reinvested.

On 4/6/2020, I initiated a position in CHMI’s Series B preferred stock, (CHMI.PB) at a weighted average purchase price of $10.65 per share. This weighted average per share price excludes all dividends received/reinvested.

Final Note: All trades/investments I have performed over the past several years have been disclosed to readers in “real time” (that day at the latest) via either the StockTalks feature of Seeking Alpha or, more recently, the “live chat” feature of the Marketplace Service the REIT Forum (which cannot be changed/altered). Through these resources, readers can look up all my prior disclosures (buys/sells) regarding all companies I cover here at Seeking Alpha (see my profile page for a list of all stocks covered). Through StockTalk disclosures and/or the live chat feature of the REIT Forum, at the end of March 2020 I had an unrealized/realized gain “success rate” of 74.5% and a total return (includes dividends received) success rate of 78.4% out of 51 total past and present positions (updated monthly; multiple purchases/sales in one stock count as one overall position until fully closed out). I have yet to realize a “total loss” in any of my past/sold positions. Both percentages experienced a minor decrease, when compared to February 2020, as a direct result of the recent notable market sell-off due to fears/panic surrounding COVID-19.I encourage other Seeking Alpha contributors to provide real time buy and sell updates for their readers which would ultimately lead to greater transparency/credibility. Recently, I have transitioned all my real-time purchase and sale disclosures solely to members of the REIT Forum. All applicable public articles will still have my sector purchase and sale disclosures (just not in real time).

I am currently “teaming up” with Colorado Wealth Management to provide intra-quarter CURRENT BV and NAV per share projections on all 21 mREIT and 15 BDC stocks I currently cover. These very informative (and “premium”) projections are provided through Colorado’s S.A. Marketplace service. In addition, this includes additional data/analytics, continuous sector recommendations (including ranges), and exclusive “rapid fire” mREIT and BDC articles after earnings.  For a full list of benefits I provide to the REIT Forum subscribers, please see my profile page.

Disclosure: I am/we are long AGNC, AI, AIC, AIW, ANH, CHMI, CHMI.PA, CHMI.PB, GPMT, MITT, NLY, NYMTN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I currently have no position in ARR, CIM, DX, EFC, IVR, MFA, MORT, NRZ, NYMT, ORC, PMT, REM, REML, TWO, or WMC.

Colorado Wealth Management currently has a position in AGNCO, AIC, ANH, ANH-C, CIM, CMO, CMO-E, IVR-C, MFO, NLY-F, NLY-I, NRZ, NYMTM, NYMTN, MFA-C, TWO-A, and TWO-B.

Editor’s Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.