Holders of our Series B Preferred Stock are entitled to receive dividends at an annual rate of 7.75% of the liquidation preference of $25.00 per share or $1.9375 per share per annum until December 27, 2024. After December 27, 2024, holders are entitled to receive dividends at a floating rate equal to three-month LIBOR plus a spread of 5.18% of the $25.00 liquidation preference per annum. Dividends are cumulative and payable quarterly in arrears.

Holders of our Series C Preferred Stock are entitled to receive dividends at an annual rate of 7.50% of the liquidation preference of $25.00 per share or $1.875 per share per annum until September 27, 2027. After September 27, 2027, holders are entitled to receive dividends at a floating rate equal to three-month LIBOR plus a spread of 5.289% of the $25.00 liquidation preference per annum. Dividends are cumulative and payable quarterly in arrears, commencing with the first dividend payment date on December 27, 2017.

As of July 27, 2017, we have the option to redeem shares of our Series A Preferred Stock for $25.00 per share, plus any accumulated and unpaid dividends through the date of redemption. We have the option to redeem shares of our Series B Preferred Stock after December 27, 2024 and shares of our Series C Preferred Stock after September 27, 2027 for $25.00 per share, plus any accumulated and unpaid dividends through the date of the redemption. Shares of Series B and Series C Preferred Stock are not redeemable, convertible into or exchangeable for any other property or any other securities of the Company prior to those times, except under circumstances intended to preserve our qualification as a REIT or upon the occurrence of a change in control.

In March 2019, we entered into an equity distribution agreement with a placement agent under which we may sell up to 7,000,000 shares of our preferred stock from time to time in at-the-market or privately negotiated transactions. These shares are registered with the SEC under our shelf registration statement (as amended and/or supplemented). As of December 31, 2019, we have not sold any shares of preferred stock under the equity distribution agreement.

In March 2019, we amended our equity distribution agreement, dated December 18, 2017, with a placement agent under which we may sell up to 17,000,000 shares of our common stock from time to time in at-the-market or privately negotiated transactions. These shares are registered with the SEC under our shelf registration statement (as amended and/or supplemented). During the year ended December 31, 2019, we issued 2,540,260 shares of common stock under the equity distribution agreement for proceeds of $40.1 million, net of approximately $846,000 in commissions and fees.

On November 30, 2018, we redeemed the OP Units held by a wholly-owned Invesco subsidiary for $21.8 million. We also repurchased 75,100 shares of common stock owned by Invesco for $1.1 million. The redemption price for the OP Units and common stock was equal to the market value of an equivalent number of shares of our registered common stock.

During the year ended December 31, 2019, we did not repurchase any shares of our common stock. During the year ended December 31, 2018, we repurchased 75,100 shares of our common stock at a repurchase price of $15.23 per share for a net cost of $1.1 million as discussed above. As of December 31, 2019, we had authority to purchase 18,163,982 shares of our common stock through our share repurchase program.

We recognized compensation expense of approximately $450,000 (2018: $424,000; 2017: $453,000) related to awards to our independent directors for the year ended December 31, 2019. During the year ended December 31, 2019, we issued 27,665 shares (2018: 27,697 shares; 2017: 25,006 shares) of common stock under the Incentive Plan to our independent directors. The awards vested immediately.

We recognized compensation expense of approximately $72,000 (2018: $129,000; 2017: $138,000) for the year ended December 31, 2019 related to restricted stock units awarded to employees of our Manager and its affiliates under our Incentive Plan. At December 31, 2019, there was approximately $131,000 of total unrecognized compensation cost related to restricted stock unit awards that is expected to be recognized over a period of up to 39 months, with a weighted-average remaining vesting period of 15 months.



	Year Ended December 31,
	2019
	Restricted Stock Units		Weighted Average Grant Date Fair Value
Unvested at the beginning of the year	11,051		$	14.55
Shares granted during the year	6,189		15.92
Shares vested during the year	(4,720	)	14.48
Unvested at the end of the year	12,520		$	15.25

The following tables present the components of total other comprehensive income (loss), net and accumulated other comprehensive income (“AOCI”) at December 31, 2019 and December 31, 2018, respectively. The tables exclude gains and losses on MBS and GSE CRTs that are accounted for under the fair value option.



	December 31, 2019
$ in thousands	Equity method investments		Available-for-sale securities	Derivatives and hedging		Total
Total other comprehensive income (loss), net:
Unrealized gain (loss) on mortgage-backed and credit risk transfer securities, net	—		83,965	—		83,965
Reclassification of unrealized (gain) loss on sale of mortgage-backed and credit risk transfer securities to gain (loss) on investments, net	—		9,072	—		9,072
Reclassification of amortization of net deferred (gain) loss on de-designated interest rate swaps to repurchase agreements interest expense	—		—	(23,729	)	(23,729	)
Currency translation adjustments on investment in unconsolidated venture	(1,158	)	—	—		(1,158	)
Total other comprehensive income (loss), net	(1,158	)	93,037	(23,729	)	68,150

AOCI balance at beginning of period	513		120,664	99,636		220,813
Total other comprehensive income/(loss), net	(1,158	)	93,037	(23,729	)	68,150
AOCI balance at end of period	(645	)	213,701	75,907		288,963



	December 31, 2018
$ in thousands	Equity method investments		Available-for-sale securities		Derivatives and hedging		Total
Total other comprehensive income (loss), net:
Unrealized gain (loss) on mortgage-backed and credit risk transfer securities, net	—		(210,424	)	—		(210,424	)
Reclassification of unrealized (gain) loss on sale of mortgage-backed and credit risk transfer securities to gain (loss) on investments, net	—		193,162		—		193,162
Reclassification of amortization of net deferred (gain) loss on de-designated interest rate swaps to repurchase agreements interest expense	—		—		(25,839	)	(25,839	)
Currency translation adjustments on investment in unconsolidated venture	(447	)	—		—		(447	)
Total other comprehensive income (loss), net	(447	)	(17,262	)	(25,839	)	(43,548	)

AOCI balance at beginning of period	947		136,188		123,894		261,029
Total other comprehensive income/(loss), net	(447	)	(17,262	)	(25,839	)	(43,548	)
Other comprehensive income/(loss) attributable to non-controlling interest	6		927		300		1,233
Rebalancing of ownership percentage of non-controlling interest	—		(1	)	—		(1	)
Purchase of OP units from non-controlling interest	7		812		1,281		2,100
AOCI balance at end of period	513		120,664		99,636		220,813

Amounts recorded in AOCI before we discontinued cash flow hedge accounting for our interest rate swaps are reclassified to interest expense on repurchase agreements on the consolidated statements of operations as interest is accrued and paid on the related repurchase agreements over the remaining original life of the interest rate swap agreements.



$ in thousands, except per share amounts	Dividends Declared
Series A Preferred Stock	Per Share	In Aggregate	Date of Payment
2019
December 16, 2019	0.4844	2,712	January 27, 2020
September 16, 2019	0.4844	2,713	October 25, 2019
June 17, 2019	0.4844	2,712	July 25, 2019
March 18, 2019	0.4844	2,713	April 25, 2019
2018
December 14, 2018	0.4844	2,713	January 25, 2019
September 14, 2018	0.4844	2,713	October 25, 2018
June 15, 2018	0.4844	2,712	July 25, 2018
March 15, 2018	0.4844	2,713	April 25, 2018



$ in thousands, except per share amounts	Dividends Declared
Series B Preferred Stock	Per Share	In Aggregate	Date of Payment
2019
November 5, 2019	0.4844	3,003	December 27, 2019
August 1, 2019	0.4844	3,003	September 27, 2019
May 3, 2019	0.4844	3,004	June 27, 2019
February 14, 2019	0.4844	3,003	March 27, 2019
2018
November 6, 2018	0.4844	3,003	December 27, 2018
August 2, 2018	0.4844	3,003	September 27, 2018
May 2, 2018	0.4844	3,004	June 27, 2018
February 15, 2018	0.4844	3,003	March 27, 2018



	Dividends Declared
Series C Preferred Stock	Per Share	In Aggregate	Date of Payment
2019
November 5, 2019	0.46875	5,391	December 27, 2019
August 1, 2019	0.46875	5,391	September 27, 2019
May 3, 2019	0.46875	5,390	June 27, 2019
February 14, 2019	0.46875	5,391	March 27, 2019
2018
November 6, 2018	0.46875	5,391	December 27, 2018
August 2, 2018	0.46875	5,391	September 27, 2018
May 2, 2018	0.46875	5,390	June 27, 2018
February 15, 2018	0.46875	5,391	March 27, 2018



Common Stock	Dividends Declared
	Per Share	In Aggregate	Date of Payment
2019
December 16, 2019	0.50	72,132	January 28, 2020
September 16, 2019	0.45	64,261	October 28, 2019
June 17, 2019	0.45	57,958	July 26, 2019
March 18, 2019	0.45	57,720	April 26, 2019
2018
December 14, 2018	0.42	46,866	January 28, 2019
September 14, 2018	0.42	46,895	October 26, 2018
June 15, 2018	0.42	46,890	July 26, 2018
March 15, 2018	0.42	46,887	April 26, 2018



		Tax Characterization of Dividends
Fiscal Tax Year	Dividends Declared	Ordinary Dividends	Return of Capital	Capital Gain Distribution	Carry Forward
Series A Preferred Stock Dividends
Fiscal tax year 2019 ⁽¹⁾	1.937600	—	1.937600	—	—
Fiscal tax year 2018 ⁽²⁾	1.937600	1.937600	—	—	—

Series B Preferred Stock Dividends
Fiscal tax year 2019	1.937600	—	1.937600	—	—
Fiscal tax year 2018	1.937600	1.937600	—	—	—

Series C Preferred Stock Dividends
Fiscal tax year 2019	1.875000	—	1.875000	—	—
Fiscal tax year 2018	1.875000	1.875000	—	—	—

Common Stock Dividends
Fiscal tax year 2019 ⁽³⁾	1.850000	—	1.350000	—	0.500000
Fiscal tax year 2018 ⁽⁴⁾	1.680000	1.378178	—	—	0.301822