EX-99.2 3 d67788exv99w2.htm EX-99.2 exv99w2
Exhibit 99.2
1Q 2009 INVESTOR FACT SHEET
(CAPSTEAD LOGO)
(GRAPH)
Capstead Mortgage Corporation, formed in 1985 and based in Dallas, Texas, is a self-managed real estate investment trust for federal income tax purposes.
Our core investment strategy is managing a leveraged portfolio of residential mortgage pass-through securities consisting almost exclusively of adjustable-rate mortgage, or ARM, securities.
•   Over 99% of our securities 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.
 
•   Coupon resets allow us to eventually recover financing spreads diminished during periods of rising short-term rates.
 
•   During periods of falling interest rates, reductions to interest rates on our borrowings allow us to capture larger financing spreads.
 
•   Prudently leveraged to provide sufficient reserves for price movements and principal payments (traditionally 8.0x to 12.0x our long-term investment capital). As of March 31, 2009 our leverage was 7.3x.
We have the EXPERIENCE.
•   Oldest mortgage REIT (1985)
 
•   Top 4 executives with the company since 1994 (67 years of combined experience at Capstead)
We have STABILITY.
•   Short-duration portfolio conservatively leveraged and appropriately hedged (net duration gap at 4 months at March 31)
 
•   Positions with 16 lending counterparties
Our STRATEGY.
•   Avoid residential credit risk while minimizing, but not eliminating, interest rate risk

 

1Q 2009 INVESTOR FACT SHEET
(GRAPHICS)
> 1ST QUARTER 2009 HIGHLIGHTS
•   Earnings totaled $42.1 million or $0.58 per diluted common share
 
•   Financing spreads averaged 2.16%
 
•   Declared and paid dividend of $0.56 per common share
 
•   Book value per common share at $10.34 (end of quarter, or EOQ)
 
•   Portfolio of agency-guaranteed residential ARM securities at $7.64 billion (EOQ)
 
•   Portfolio leverage at 7.30 times long-term investment capital (EOQ)
> QUARTERLY RESULTS
                                         
    Mar. 31,     Dec. 31,     Sept. 30,     June 30,     Mar. 31,  
(In thousands, except per share amounts)   2009     2008     2008     2008     2008  
 
Interest income:
                                        
Mortgage securities and similar investments
   $ 87,884     $ 95,397     $ 99,205     $ 97,332     $ 106,351  
Overnight investments and swap receivables
     217       272       346       782       804  
 
 
     88,101       95,669       99,551       98,114       107,155  
 
Interest expense:
                                        
Repurchase arrangements and similar borrowings
     (39,957 )     (65,349 )     (60,032 )     (55,109 )     (69,306 )
Unsecured borrowings
     (2,187 )     (2,187 )     (2,186 )     (2,187 )     (2,187 )
 
 
     (42,144 )     (67,536 )     (62,218 )     (57,206 )     (71,493 )
 
Net interest margins
     45,957       28,133       37,333       40,908       35,662  
Net income
     42,076       24,302       34,746       36,728       30,147  
Income available to common stockholders
     37,015       19,240       29,684       31,665       25,083  
Diluted earnings per share
     0.58       0.32       0.52       0.58       0.53  
Common dividends per share
     0.56       0.36       0.55       0.59       0.52  
Common equity raises
     2,677       46,992       25,237       77,143       131,344  
Common shares outstanding (EOQ)
     63,395       63,135       58,226       56,071       49,918  
 
> TOP COMMON STOCKHOLDERS*
         
Holder   % O/S
 
Wells Capital Management Inc.
     9.55  
Barclays Global Investors, N.A.
     4.67  
Wellington Management Company, LLP
     3.98  
Thompson, Siegel & Walmsley LLC
     3.17  
Vanguard Group, Inc.
     2.91  
Robeco Investment Management, Inc.
     2.90  
Highland Capital Management, L.P.
     2.62  
Loomis, Sayles & Company, L.P.
     2.00  
American Century Investment Management
     1.92  
GW Capital, Inc.
     1.85  
 
*   % based on shares outstanding as of May 8, 2009
> ANALYSTS
     
Firm   Rating
 
BGB Securities Inc.
  Buy
Deutsche Bank
  Buy
FBR Capital Markets
  Outperform
Fox-Pitt Kelton
  Outperform
JMP Securities LLC
  Outperform
Keefe, Bruyette & Woods
  Outperform
RBC Capital Markets
  Outperform
Sterne Agee
  Buy
Stifel Nicolaus
  Buy
Capstead Mortgage Corporation > 8401 North Central Expressway, Suite 800, Dallas, TX 75225 PH 800.358.2323 / E invrel@capstead.com / www.capstead.com
(GRAPHICS)
TOTAL FINANCING SPREAD (basis points) 216 193 163 164 117 Q1 Q2 Q3 Q4 Q1 08 08 08 08 09 > COMMON STOCK INFORMATION NYSE Ticker: CMO Price as of 05/14/09: $11.82 52-wk. High/Low: $13.83/$7.52 1Q Dividend: $0.56 Dividend Yield: (based on annualized 1Q dividend) 19.0% 1Q Avg. Daily Vol.: 701K shares > SERIES A/SERIES B PREFERRED STOCK INFO NYSE Ticker: CMOPRA/CMOPRB Price as of 05/14/09: $19.01/$13.17 Call Price: $16.40/$12.50 Liquidation Value: $16.40/$11.38 Conversion Ratio: 1.5773/0.6082 Annual Dividend: $1.60/$1.26