Supreme Uncertainty Hits REITs
U.S. equity markets finished broadly lower on another volatile week, pressured by "supreme uncertainty" amid a contentious U.S. election season and lingering coronavirus concerns as we enter the colder months.Declining for the fourth-straight week following a six-week winning streak, the S&P 500 dipped another 0.6% this week and is now roughly 8% below its all-time highs set last month.This "supreme uncertainty" weighed on real estate equities and other economically-sensitive sectors this week. Equity REITs finished lower by 3.1% this week with 17 of 18 property sectors in negative territory.New Home Sales topped estimates, surging 43% in August from last year to the highest annual rate since 2006, another sign that the housing industry continues to lead the economic recovery.While the housing industry rebound has shown continued resilience, there are signs that the rebound in labor markets may be losing some steam ahead of a critical week of employment data - the final jobs report before Election Day.
Seekingalpha · 1d ago
Powell warns of mortgage defaults, evictions if no more fiscal aid
Mortgage defaults and evictions could rise if the government doesn't provide fresh fiscal aid to mitigate the economic effects of the COVID-19 pandemic, Fed Chair Jerome Powell said during testimony
Seekingalpha · 3d ago
Supreme Court Selloff Drives Mortgage REIT Bargains
Discounts to book value (or NAV) are the start of your mortgage REIT analysis, but not the end.In this series, we’re providing readers with the discounts to trailing book values throughout the sector and a few notes on the current environment.When we provide an index card for an individual mortgage REIT, it includes our most recent estimate on book values.We’re giving buy ratings on PMT and CHMI since they each trade at substantial discounts to book value. The magnitude of the discounts isn’t warranted.Today's selloff on the excitement about the Supreme Court doesn't reflect a significant change in fundamentals for residential mortgage REITs.
Seekingalpha · 6d ago
Two Harbors Investment declares $0.14 dividend
Two Harbors Investment (TWO) declares $0.14/share quarterly dividend, in line with previous.Forward yield 10.95%Payable Oct. 29; for shareholders of record Oct. 1; ex-div Sept. 30.See TWO Dividend Scorecard, Yield Chart,
Seekingalpha · 6d ago
Two Harbors Investment Corp. Announces Third Quarter 2020 Common and Preferred Stock Dividends
Two Harbors Investment Corp. (NYSE: TWO), a leading mortgage real estate investment trust, today declared a dividend of $0.14 per share of common stock for the third quarter of 2020. This dividend is payable on October 29, 2020 to common stockholders of record at the close of business on October 1, 2020
Business Wire · 6d ago
Annaly Capital's BV, Dividend, And Valuation Versus 20 mREIT Peers - Part 1 (Post Q2 2020 Earnings - Continued Attractive Valuation)
Part 1 of this article compares NLY’s recent investment composition, leverage, hedging coverage ratio, quarterly BV, economic return, and current valuation to twenty mREIT peers. Providing sector-wide metrics allows readers to better understand which mREIT companies will likely outperform (or underperform) peers during specific types of interest rate environments. Part 1 also performs a detailed analysis of NLY’s MBS and derivatives portfolios as of 6/30/2020. This includes NLY’s projected performance during the third quarter of 2020 (through 9/11/2020). My buy, sell, or hold recommendation, current BV projection (BV as of 9/11/2020), and updated price target for NLY is in the “Conclusions Drawn” section of the article. I also provide a list of the mREIT stocks I currently believe are undervalued (a buy recommendation), overvalued (a sell recommendation), or appropriately valued (a hold recommendation).
Seekingalpha · 6d ago
49 U.S. Real Estate Investment Trusts Yield Over 6% In Late September
Retail Value Inc. again showed top broker estimated net gains of 149.61%, while Two Harbors Investment showed top 18.57% yield (@$5.33 price) out of 350 U.S. REITs per YCharts data 9/17/20.Top 10 net gainers GOOD, STWD, BXMT, GNL, TWO, OPI, BFS, LADR, CIO, and RVI ranged 20.3%-149.61% 9/17/20. By yield 49 REITs (@+$5) represented 8 of 9 industries.Top US 49 $5+ priced REITs by yield ranged 6.15%-18.57%. Top 10, BXMT, LADR, BPYU, STWD, ACRE, CIM, ARI, RVI, KLPEF, and TWO averaged 13.66% yield.32 Top US REITs by broker estimated one-year upsides ranged 1.71% to 129.07%. Top 10, AFIN, BRT, RLJ, RC, LADR, SPG, SVC, ORC, GEO, and RVI, averaged 51.20% upside.$5k invested in the lowest-priced five late September top yield US Real Estate Investment Trusts showed 27.39% LESS net gain than that from $5k invested in all 10.  Bigger, higher-priced REITs topped the pack September 17.
Seekingalpha · 6d ago
Dividend Hikes Lift REITs
On another choppy week, U.S. equity markets finished mostly lower despite a solid slate of economic data and assurances from the Federal Reserve that it would keep interest rates near-zero indefinitely.Declining for the third-straight week following a six-week winning streak, the S&P 500 dipped another 1.0% this week and is now roughly 7% below its recent all-time highs.An encouraging slate of dividend news and rent collection updates buoyed real estate equities this week, particularly the more beaten-down property sectors, including malls, hotels, student housing, and mortgage REITs.After the Equity REIT sector was slammed by a wave of 64 dividend cuts in March through June, since then, we've seen far more dividend increases than dividend cuts in the REIT sector, including five more boosts from equity REITs and three from mortgage REITs this week.Housing Heats-Up: Homebuilder Sentiment jumped to the strongest levels on record in September, driven by a surge in Home Buyer Traffic, which far exceeded previous record levels as inventory levels remain historically tight.
Seekingalpha · 09/19 13:00
A Preferred Market Update: Most Issues Are Now Fully Valued
Most preferreds are fully valued with the average preferred priced well above par.High-rated preferred IPOs are being issued at all-time low yields.mREIT preferreds are one of the last remaining pockets of value in the preferreds market.Non-agency mREIT preferreds are a great way to play the divergence between the strong housing market and weak mortgage prices.Quick update on NGHCN. Monitor GAINL for a buy entry.
Seekingalpha · 09/18 11:00
Mortgage rates hover near all-time low
30-year fixed-rate mortgage averages 2.87% for the week ending Sept. 17, 2020, a tick up from 2.86% in the previous week and down from 3.73% a year ago, according to
Seekingalpha · 09/17 14:26
What Goes Up Must Come Down
The "tech-wreck" dragged on as U.S. equity markets declined for the second-straight week after Congress failed to reach a compromise on a renewed stimulus package and after a potential vaccine setback.The seemingly unstoppable rally from the "stay-at-home winners" has come to a screeching halt over the last two weeks. The Nasdaq 100 dipped into "correction territory" with declines of nearly 5%.It was an especially choppy week in the real estate sector as the relatively mundane 2.2% decline from the broad-based Equity REIT ETF masked a sharp dip from retail REITs.It shaped up to be a very busy week of REIT-related news flow, headlined by a flurry of rent collection updates, several dividend increases, and some notable M&A news in the mall and self-storage REIT sectors.Homebuilders were a bright spot this week as housing data continues to impress. Mortgage applications to purchase a single-family home are now higher by a stunning 40% from last year.
Seekingalpha · 09/12 13:00
Two Harbors Investment Corp. to Participate in the 2020 Virtual Barclays Global Financial Services Conference
Two Harbors Investment Corp. to Participate in the 2020 Virtual Barclays Global Financial Services Conference
Business Wire · 09/08 21:39
Mortgage rates stay low, not likely to fall much more in coming weeks: Freddie
30-year fixed-rate mortgage averages 2.93% for the week ending Sept. 3, 2020, up from 2.91% in the previous week, according to the Freddie Mac Primary Mortgage Market Survey.Compares with 3.49%
Seekingalpha · 09/03 14:21
Quick And Dirty Discounts To Book Value For September 1st, 2020
Discounts to book value are the start of your analysis, but not the end.In this series, we’re providing readers with the discounts to trailing book values throughout the sector and a few notes on the current environment.When we provide an index card for an individual mortgage REIT, it includes our most recent estimate on book values.PMT is just barely in the bullish range. NLY and ANH are deeper in that range.
Seekingalpha · 09/02 11:33
Lower Forever? Fed Shift Reinforces Rally
U.S. equity markets continued their relentless rally this week amid a bullish convergence of positive economic and housing data, encouraging coronavirus trends and a dovish tack from the Federal Reserve.Lower forever? A strategy shift that we view as fundamentally positive for the interest-rate-sensitive real estate sector, the Fed is abandoning the approach of utilizing "preemptive strikes" on inflation.Gaining for the eighth week out of the past nine and closing at all-time record highs on all five trading days this week, the S&P 500 jumped another 3.3% this week."Shutdown-sensitive" sectors rebounded following the emergency-use approval of the potentially "game-changing" five-minute coronavirus test. Equity REITs gained 2.2% with 17 of 18 property sectors finishing in the green.Housing data stayed red-hot as well. New Home Sales surged to the strongest sales rate since 2007 while Pending Home Sales and Mortgage Applications data suggested that housing will continue to lead the post-pandemic recovery.
Seekingalpha · 08/29 13:00
With new mortgage fees seeing flak, even small relief could mark upside for servicers - KBW
Seeking Alpha - Article · 08/21 22:47
U.S. mortgage rates creep up, but stay below 3%
30-year fixed-rate mortgage averages 2.99% for the week ending Aug. 20, up from 2.96% in the previous week and down from 3.55% a year ago, according to the Freddie Mac
Seekingalpha · 08/20 14:17
Mortgage REIT Common Shares Are For Trading
One topic that seems to come up regularly is investors wondering about using a buy-and-hold strategy for years on common shares. Use buy-and-hold on equity REITs instead.We’ve advocated keeping a careful eye on all mortgage REIT positions because the inefficiency in the market creates opportunities to buy and to sell.Investors who believe the market is absolutely efficient can skip to the comments, ignore all the evidence, and let the spittle fly.Understanding book values is critical to understanding mortgage REITs. If you can’t see the correlation in the chart, you need an optometrist, not an analyst.Looking at all trades we’ve closed since January 1st, 2019, our realized gains (including dividends) came in at $3.30 for every $1.00 in losses. During that time, the ETF delivered negative 23.54%.
Seekingalpha · 08/18 00:42
Two Harbors Investment Corp. Announces Completion of Transition to Self-Management
Two Harbors Investment Corp. Announces Completion of Transition to Self-Management
Business Wire · 08/17 21:15
Two Harbors completes shift to self-management
Two Harbors Investment (TWO) completes its transition to a self-managed firm after the termination of its management agreement with PRCM Advisers LLC on Aug. 14.No termination fee was payable to
Seekingalpha · 08/17 20:36
Webull provides a variety of real-time TWO stock news. You can receive the latest news about Two Harbors through multiple platforms. This information may help you make smarter investment decisions.
About TWO
Two Harbors Investment Corp. is a real estate investment trust (REIT). The Company is focused on investing, financing and managing residential mortgage-backed securities (RMBS) and related investments. Its objective is to provide attractive risk-adjusted total return to its stockholders over the long term, primarily through dividends and secondarily through capital appreciation. It is focused on acquiring and managing investment portfolio of target assets, which is constructed to generate attractive returns through market cycles. Its targeted assets includes Agency RMBS, whose principal and interest payments are guaranteed by the Government National Mortgage Association (Ginnie Mae), the Federal National Mortgage Association (Fannie Mae), or the Federal Home Loan Mortgage Corporation (Freddie Mac); Non-Agency securities; Mortgage servicing rights; and other financial assets. The Company is managed and advised by PRCM Advisers LLC (PRCM Advisers).