Invesco Mortgage Capital Inc., often abbreviated as IVR, is a real estate investment trust specializing in financing and managing residential and commercial mortgage-backed securities and mortgage loans. Headquartered in Atlanta, Georgia, IVR is a part of the larger Invesco Ltd., a recognized international investment management company.
IVR’s business model focuses on investing in mortgage-backed securities that are either guaranteed by a U.S. government agency (Agency RMBS), or not government-guaranteed (non-Agency RMBS). They also invest in commercial mortgage-backed securities (CMBS), residential and commercial mortgage loans.
These investments are financed through short-term borrowings structured as repurchase agreements. By doing so, IVR creates a vision to preserve capital and mitigate risk while providing an attractive risk-adjusted return to their shareholders. It does this via regular dividends, which are declared quarterly and paid by the company.
Relying on the wider expertise that exists within Invesco family, particularly in risk management, compliance and governance, IVR takes advantage of the parent company’s prowess to manage its portfolios and maintain financial integrity.
Invesco Mortgage Capital Inc. functions as a real estate investment trust (REIT). As part of a REIT, by law, IVR is required to distribute at least 90% of its taxable income to shareholders. This structure allows IVR to avoid corporate taxation, given they meet certain conditions, which provides benefits to its investors through higher returns.
IVR has seen periods of both growth and challenge, like any mortgage real estate investment trust. It has endured events like the 2008 financial crisis, continued to provide returns to investors during the ensuring economic recession and more recently navigated through the economic fallout of the global COVID-19 pandemic.
In terms of governance, IVR is managed by a Board of Directors responsible for supervising the management and handling all affairs of the company. The Board is composed of experienced professionals with expertise across the financial sector and who hold extensive backgrounds in mortgage securities and related investments.
In conclusion, Invesco Mortgage Capital Inc. is a REIT with an investment focus in both residential and commercial mortgage-backed securities. IVR aims to provide regular dividends to its shareholders while protecting and enhancing its capital through prudent asset selection and risk management. It does so by leveraging the expertise of the wider Invesco Ltd. team and has everything that an investor expects of a mature and stable REIT.