Orchid Island Capital Q4 net income rises

Overview

• REIT's Q4 net income was $103.4 mln, driven by RMBS gains

• Book value per share increased by $0.21 in Q4

• Company maintained strong liquidity with $791.8 mln in cash and equivalents

Outlook

• Orchid Island Capital anticipates stable interest rates and potential Fed rate cuts in 2026

• Company expects GSEs' increased RMBS purchases to tighten spreads further

Result Drivers

• FAVORABLE MARKET CONDITIONS - Stable interest rates and low volatility in Q4 2025 supported strong performance in the Agency RMBS sector, benefiting Orchid Island Capital

• FED RATE CUTS - Two interest rate cuts by the Federal Reserve in Q4 2025 reduced funding costs for leveraged Agency RMBS investors like Orchid

• PORTFOLIO GROWTH - Orchid increased its Agency RMBS portfolio in Q4 2025, boosting interest income by $23.8 mln from Q3 2025

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for Orchid Island Capital Inc is $7.50, about 9.9% below its January 28 closing price of $8.32

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX4FYBYl

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)