Dynex Capital, Inc. (NYSE: DX) expanded its investment portfolio and equity base during the fourth quarter of 2025, as the mortgage real estate investment trust increased purchases of agency mortgage-backed securities and raised capital through common stock issuance.
The company said it ended the quarter with book value of $13.45 per common share, compared with $12.67 at the end of September, supported by portfolio gains and balance sheet growth over the three-month period.
Capital Deployment and Earnings
During the fourth quarter, Dynex Capital reported net income of $1.17 per common share and comprehensive income of $1.22 per share. Total economic return reached $1.29 per share, equivalent to 10.2% of beginning book value, according to company disclosures.
Dividend payments declared for the quarter totaled $0.51 per common share, reflecting continued monthly distributions.
Investment activity increased sharply. Dynex Capital purchased approximately $3.0 billion of agency residential mortgage-backed securities and $284 million of agency commercial mortgage-backed securities during the quarter. To fund balance sheet expansion, the company raised $393 million in equity capital through at-the-market common stock programs.
Dynex Capital reports results as a single operating segment and does not provide revenue breakdowns across business divisions.
Funding and Balance Sheet Position
The company reported $1.4 billion in liquidity at December 31, 2025, providing funding flexibility across repurchase agreements and hedging activity. Average interest-earning assets increased 58% year over year, reflecting sustained portfolio growth through 2025.
Economic leverage, including to-be-announced securities measured at cost, stood at 7.3 times shareholders’ equity at the end of the year.
Full-Year Financial Context
For the full year ended December 31, 2025, Dynex Capital generated net income of $2.49 per common share and comprehensive income of $2.85 per share. Total economic return for the year was $2.75 per share, representing 21.6% of beginning book value.
Total dividends declared for 2025 amounted to $2.00 per common share. Book value increased from $12.70 at the end of 2024 to $13.45 at year-end 2025.
Operational Developments
Dynex Capital operates as a U.S. mortgage REIT focused primarily on agency mortgage-backed securities financed through repurchase agreements. The company said portfolio growth during 2025 was driven by capital market access and reinvestment of cash flows.
During the fourth quarter, Dynex Capital also implemented internal leadership changes, separating the chief financial officer and chief operating officer roles and appointing a new chief operating officer.
Market Focus
Dynex Capital did not provide forward-looking earnings guidance. Market participants are expected to monitor interest rate movements, mortgage spread conditions, leverage levels, and reinvestment activity as key operating variables.
Closing Summary
Dynex Capital concluded 2025 with an expanded portfolio, higher book value, and increased economic return. Equity issuance supported asset growth, dividends continued through the year, and liquidity remained elevated entering 2026.