Shares declined modestly by 0.9% following Q1 results as investors weighed a near 8% book value decline and a cautious outlook amid volatile market conditions, despite stable earnings and portfolio positioning.

• Book value per share dropped 7.9% to $8.08, driven by increased interest rate volatility, higher risk premiums on Agency RMBS, and swap spread tightening.
• Economic return for the quarter was negative 3.2%, factoring in dividends of $0.12 per month.
• Earnings available for distribution remained relatively stable at $0.55, down slightly from $0.56 in Q4 2025.
• Leverage increased modestly to 7.5x economic debt-to-equity, reflecting lower book value and selective portfolio adjustments.
• Portfolio totaled $7.3 billion, with Agency RMBS dominating; hedging covered 96% of borrowing costs using interest rate swaps and U.S. Treasury futures.