EX-99.1 2 d68877exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
     (GRAPHICS)
NYSE            Capstead Mortgage Corporation, formed            in 1985 and            Nt capital based in Dallas, Texas, is a self-managed real estate investment trust for federal income tax purposes. $1,017 Our core investment strategy is managing a leveraged portfolio of $860 U^ residential mortgage pass-through securities consisting almost I II exclusively of adjustable-rate mortgage, or ARM, securities. • Over 99% of our investments are issued and guaranteed by government-sponsored entities, either Fannie Mae or Freddie Mac, or by an agency of the federal government, Ginnie Mae. • Agency-guaranteed residential mortgage securities carry an implied AAA credit rating with limited, if any, credit risk. 08 09* • Coupon resets on mortgages underlying our ARM securities allow ngs, net us to eventually recover financing spreads diminished during            n Stock periods of rising short-term rates. • During periods of falling interest rates, reductions to interest rates            OSITION 9) on our borrowings allow us to capture larger financing spreads. • We employ leverage prudently, allowing for sufficient reserves for \ price movements and principal payments. As of June 30, 2009 our \ leverage was 6.63x our long-term investment capital. / We have the EXPERIENCE. • Oldest mortgage REIT (1985) er-to-Reset ARMs • Top 4 executives with the company since 1994 (67 years of com- S bined experience at Capstead) We have STABILITY. • Short-duration portfolio conservatively leveraged and appropriately hedged (net duration gap of 5 months at June 30) • Positions with 17 lending counterparties at June 30 Our STRATEGY. • Avoid residential credit risk while minimizing, but not eliminating, interest rate risk 08 09*

 

 

     (GRAPHICS)
IMEHHH            NYSE > 2ND QUARTER 2009 HIGHLIGHTS • Earnings increased to $42.5 million TOTAL FINANCING SPREAD (basis points) • Diluted earnings per common share stable at $0.58 231 Total financing spreads increased 15 basis points to an average of 2.31% 216 Book value per common share increased $1.14 to $11.48 (end of quarter, or EOQ) 193 Portfolio of agency-guaranteed residential ARM securities maintained at $7.6 billion (EOQ) 163 164 • Portfolio leverage reduced to 6.63 times long-term investment capital (EOQ) 117 > QUARTERLY RESULTS            June 30, Mar. 31, Dec. 31, Sept. 30, June 30, (In thousands, except per share amounts) 2009 2009 2008 2008 2008 nterest income: Mortgage securities and similar investments $ 81,062 $87,884 $95,397 $99,205 $97,332 Overnight investments and swap receivables 133 217 272 346 782 81,195 88,101 95,669 99,551 98,114 q1 q2 Q3 Q4 q1 Q2 Interest expense: 08 08 08 08 09 09 Repurchase arrangements and            similar borrowings (31,626) (39,957) (65,349) (60,032) (55,019) Unsecured borrowings (2,187) (2,187) (2,187) (2,186) (2,187) > COMMON STOCK INFORMATION (33,813) (42,144) (67,536) (62,218) (57,206) NYSE Ticker: Net interest margins 47,382 45,957 28,133 37,333 40,908 CMO            Net income 42,507 42,076 24,302 34,746 36,728 Price as of 08/06/09: ncome available to common stockholders 37,446 37,015 19,240 29,684 31,665 $13.49 Diluted earnings per share 0.58 0.57 0.32 0.52 0.58 52 wk. High/L ow: Common dividends per share 0.58 0.56 0.36 0.55 0.59 $13 74/$7 73 Common equity raises 5,760 2,677 46,992 25,237 77,143 Common shares outstanding (EOQ) 63,874 63,395 63,135 58,226 56,071 2Q Dividend: $0.58 Dividend Yield: (based on annualized 2Q dividend) > TOP COMMON STOCKHOLDERS* > ANALYSTS 17.2% Holder % O/S Firm Rating* 2Q Avg. Daily Vol.: 819K shares Wells Capital Management Inc. 9.32 BGB Securities, Inc. Buy            Barclays Global Investors, N.A. 4.56 Deutsche Bank Buy            Wellington Management Company, LLP 3.65 FBR Capital Markets Outperform > SERIES A/SERIES B PREFERRED STOCK INFO Thompson, Siegel & Walmsley LLC 3.46 Fox-Pitt Kelton Outperform NYSE Ticker: Vanguard Group, Inc. 2.84 JMP Securities LLC Outperform Cmopra/CMOPRB            Robeco Investment Management, Inc. 2.83 Keefe, Bruyette & Woods            Market Perform Price as of 08/06/09: Highland Capital Management, L.P 2.55 RBC Capital Markets Outperform $21.70/$13.88 State Street Global Advisors 2.27 Sterne Agee Neutral Call Price: $16.40/$12.50 Loomis, Sayles & Company, L.P. 1.96 Stifel Nicolaus Buy            Liquidation Value: American Century Investment Management 1.87 *As of August 6, 2009 $16.40/$11.38 *% based on available data and shares outstanding as of August 6, 2009 Conversion Ratio: 1.5773/0.6082 Capstead Mortgage Corporation > 8401 North Central Expressway, Suite 800, Dallas, TX 75225 Annual Dividend: PH 800.358.2323 / E invrel@capstead.com / www.capstead.com $1.60/$1.26