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very good for investors. Now all we need is the Fed Reserve to back off quickly on more QE, since it is rapidly throwing us into recession and depression, for that matter. Prices are high enough without making the dollar worthless. With the expected federal sales tax on homes that I've heard about, plus cutting deductions (yeah right, they're only want to do it to the "rich"), and the harder line on loans (who has 20% of a house in their bank accounts these days???) Only commercial property mREITs have chance of profiting, if they can keep businesses from going out of business, that is.
should be good for investors
I dumped my shares. I agree this stock might go to $9-this sector appears very negative after a nice 2 yr run. I'm buying CY went it hits $8 and I think that sector is hurting.
hope you got the shares cheap enough. Though the Prez talk yesterday put forth rumor more QE, which will hurt the mREITs again.
CYS Investments, Inc. Announces $250M Stock Repurchase Program
NEW YORK--(BUSINESS WIRE)--Nov. 15, 2012-- CYS Investments, Inc. (NYSE: CYS) (the "Company") today announced that its Board of Directors has authorized the repurchase of shares of the Company’s common stock having an aggregate value of up to $250 million.
As part of the stock repurchase program, shares may be purchased in open market transactions, including through block purchases, through privately negotiated transactions, or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Open market repurchases will be made in accordance with Exchange Act Rule 10b-18, which sets certain restrictions on the method, timing, price and volume of open market stock repurchases. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The authorization does not obligate the Company to acquire any particular amount of common stock and the program may be suspended or discontinued at the Company’s discretion without prior notice.
About CYS Investments, Inc.
CYS Investments, Inc. is a specialty finance company that invests on a leveraged basis in residential mortgage pass-through certificates for which the principal and interest payments are guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. The Company refers to these securities as Agency RMBS. CYS Investments, Inc. has elected to be taxed as a real estate investment trust for federal income tax purposes.
Forward-Looking Statements Disclaimer
This press release contains “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including those relating to the planned stock repurchase program. Forward-looking statements typically are identified by use of the terms such as “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may” or similar expressions. Forward-looking statements are based on the Company's beliefs, assumptions and expectations of the Company's future performance, taking into account all information currently available to the Company. The Company cannot assure you that actual results will not vary from the expectations contained in the forward-looking statements. All of the forward-looking statements are subject to numerous possible events, factors and conditions, many of which are beyond the control of the Company and not all of which are known to the Company, including, without limitation, market conditions and those described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, which have been filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the date on which they are made. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect us. Except as required by law, the Company is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Source: CYS Investments, Inc.
CYS Investments, Inc.
Richard E. Cleary, 617-639-0440
Chief Operating Officer
The American Dream ended last night in Ohio. The second term of Barack Obama will be the final nail in the coffin for the legacy of the white Christian males who discovered, explored, pioneered, settled and developed the greatest Republic in the history of mankind. A coalition of Blacks, Latinos, Feminists, Gays, Government Workers, Union Members, Environmental Extremists, The Media, Hollywood, uninformed young people, the "forever needy," the chronically unemployed, illegal aliens and other "fellow travelers" has ended Norman Rockwell's America. The Cocker Spaniel is off the front porch...the Pit Bull is in the back yard!!!!! The American Constitution has been replaced with Saul Alinsky's "Rules for Radicals" and Chicago shyster, David Axelrod, along with international Socialist George Soros will be pulling the strings on their black puppet to bring us into the New World Order!!!!!
Our side ran two candidates who couldn't even win their own Home States, and Circus fat Chris Christie helped Obama over the top with a glowing "post Sandy" tribute that elevated the "Commander-in Chief" to Mother Teresa status. People like me are completely politically irrelevant, and I will never again comment on or concern myself with the aforementioned coalition which has surrendered our culture, our heritage and our traditions without a shot being fired!! You will never again outvote these people. It will take individual acts of defiance and massive displays of civil disobedience to get back the rights we have allowed them to take away. It will take Zealots..not moderates--not reach-across-the-aisle RINOs to right this ship and restore our beloved country to its former status. Those who come after us will have to risk their lives, their fortunes and their Sacred Honor to bring back the Republic that this generation has timidly frittered away due to "white guilt" and political correctness.....
Now that we have the same guy in for Pres. I'm loading up on this baby. I think 11.50 will be the low if the market takes a huge hit but 12.00 should be the low till dividend day.
going to climb higher, the MM downgrades were scare tactic to drop prices. Now they have them, time to pump them again: 8:25 AM Upgrades in the mortgage REIT sector are starting to fly as fast as the downgrades were 6 weeks ago. Today it's Capstead Mortgage (CMO) moved to Buy from Neutral at Compass Point. The stock trades at $12.48 vs. Compass' conservative ending Q3 book value estimate of $13.35. Expect Capstead, says Compass, to follow Annaly's lead with a share repurchase plan
8K filed after hours, not good, expect down tomorrow: 4:04 PM CYS Investments (CYS): Q3 EPS of $0.25 misses by $0.16.
up 9 cents already....
seems like our SP should be up a little higher
10:03 AM Liquidation in mortgage REITs picks up where it left off on Friday, with nearly the entire sector lit up bright red. Leading today's decline is CYS Investments (CYS -4.6%) after being cut to hold at Wunderlich. No details are available, but presumably the analysts there read the papers: interest margins are declining and mortgage refinance activity (prepays) is on the rise
new mention: 1:04 PM The mortgage REIT sector as a whole gains following the QE3 announcement of $40B/month in MBS purchases (though some remain red for the session). Agency REITs are in a tricky spot as the resulting higher MBS prices will help book values, but lower rates should heighten prepayment risk.
4:07 PM CYS Investments (CYS) declares $0.45/share quarterly dividend, 10% decrease from prior dividend of $0.50. Forward yield 12.35%. For shareholders of record Sep 26. Payable Oct 17. Ex-div date Sep 24. Shares -0.6% AH
since it is going under a separate stock symbol, hopefully no effect, though I'm sure it'll be redeemable for common stock.
not sure what to make of that
CYS Investments, Inc. Announces Public Offering of Series A Cumulative Redeemable Preferred Stock
Today : Thursday 26 July 2012
CYS Investments, Inc. (NYSE: CYS) (the "Company") today announced that it plans to make a public offering of shares of its Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”). The Company intends to apply to list the Series A Preferred Stock on the New York Stock Exchange under the symbol “CYS PrA.”
Morgan Stanley & Co. LLC, Citigroup Global Markets Inc. and UBS Securities LLC are acting as joint book-running managers for the offering. RBC Capital Markets, LLC, Stifel, Nicolaus & Company, Incorporated, Barclays Capital Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are acting as co-managers.
The Company intends to use the net proceeds of the offering to invest in Agency RMBS and for general corporate purposes.
The offering will be made pursuant to the Company's existing shelf registration statement previously filed with the Securities and Exchange Commission that became effective upon filing. This press release is neither an offer to sell nor a solicitation of an offer to buy shares of Series A Preferred Stock. The offering of these securities will be made only by means of a prospectus and a related prospectus supplement, a copy of which may be obtained by contacting:
Morgan Stanley & Co. LLC
Attention: Prospectus Department
1585 Broadway
New York, NY 10036-6775
Email: prospectus@morganstanley.com
Telephone: (866) 718-1649
Citigroup Global Markets Inc.
Attention: Prospectus Department
Brooklyn Army Terminal
140 East 58th Street, 8th Floor
Brooklyn, NY 11220
Email: BATProspectusdept@citi.com
Telephone: (877) 858-5407
UBS Securities LLC
Attention: Prospectus Department
299 Park Avenue
New York, NY 10171
Telephone: (877) 827-6444, ext. 561-3884
The prospectus supplement and the accompanying prospectus shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
About CYS Investments, Inc.
CYS Investments, Inc. is a specialty finance company that invests on a leveraged basis in residential mortgage pass-through securities for which the principal and interest payments are guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. CYS Investments has elected to be taxed as a real estate investment trust for federal income tax purposes.
$13.70 per share offering, many thanks on behalf of common investor who cannot buy, and letting the shorters have a dream.
well imo
that was bound to drop the sp
Meat of the 8-K filed today:
In connection with CYS Investments, Inc.'s (the "Company") plans to make a public offering of its common stock, the Company today announced preliminary estimates of select financial data for the second quarter ending and as of June 30, 2012.
The Company estimates that, when finally determined, for the quarter ended June 30, 2012 GAAP net income will be in the range of $0.85 to $0.90 per share.
The Company estimates that, when finally determined, net asset value as of June 30, 2012 will be in the range of $13.50 to $13.54 per share. The Company estimates that as of June 30, 2012, the fair value of its portfolio was approximately $14.2 billion, and that its leverage ratio (calculated by dividing (i) its repurchase agreements balance plus its payable for securities purchased minus our receivable for securities sold by (ii) net assets) at June 30, 2012 was in the range of 7.5 – 7.7 to 1.0.
On June 8, 2012, the Company's board of directors authorized the distribution of a dividend to its stockholders of $0.50 per share for the second quarter of 2012 that will be paid on July 18, 2012 to its stockholders of record as of June 25, 2012. Purchasers in the planned public offering of common stock will not be eligible to receive that distribution.
On July 1, 2012, the Company issued an aggregate of 8,934 shares of restricted common stock to our non-employee directors.
For the period from April 1, 2012 to July 6, 2012, the Company issued (i) an aggregate of 2,915,204 shares of common stock under its equity placement program for net proceeds of approximately $39.9 million and (ii) an aggregate of 1,533,607 shares of common stock under its dividend reinvestment and direct stock purchase plan for net proceeds of approximately $21.2 million. As of July 6, 2012 the Company had 120,603,668 shares of common stock outstanding.
In addition, the Company currently expects its interest rate spread net of hedge on new investments for the third quarter of 2012 to be between 1.50% and 1.70%.
5:04 PM CYS Investments (CYS) announces a secondary offering of 30M shares, granting an option to the underwriters to purchase an additional 4.5M shares. The company also announces Q2 earnings estimates, expecting June 30 book value to be $13.50-13.54/share (today's close $14.14). Shares -2.4% AH. SEEKING ALPHA
Maxim Starts CMO, ANH, ARR, HTS, CYS, AGNC at BuyPrint.9:53 AM 6/22/2012 - StreetInsider
Maxim Group'sMichael Diana initiated coverage on a number of stocks in the Mortgage REIT sector Friday morning, each with a Buy rating:
Capstead (NYSE: CMO) with a $14.75 price target
Anworth (NYSE: ANH) with a $7.25 price target
ARMOUR Residential (NYSE: ARR) with a $7.15 price target
Hatteras (NYSE: HTS) with a $30.50 price target
CYS Investments (NYSE: CYS) with a $14 price target
American Capital Agency Corp. (Nasdaq: AGNC) with a $33.50 price target
Nice!
need to own about 25000 shares and up of this one
and then the ride is wheeeeeeeeeeeeeee!
CYS Investments declared a quarterly dividend of $0.50 per share, or $2 annualized. The dividend will be payable on July 18, 2012, to stockholders of record on June 25, 2012, with an ex-dividend date of June 21, 2012. The annual yield on the dividend is 14.2 percent.
I still have several thousand shares. No biggie. Chump change, LOL.
I agree
can't blame you for selling some when it popped like it did
nice to still have some though
I had sold some a while back because I couldn't resist the profits, and I had a lot anyway, really reduced my overall average. Pleased as punch. Anytime now they'll announce the next divie payout date and we'll start heading north as ex-div date approaches.
1:16 PM Among the stocks making new 52-week highs today are two mortgage REITs, the sector proving itself on both risk-on and risk-off days as short rates look to be remained anchored near zero for pretty much forever. American Capital Agency (AGNC) is up 17% YTD while yielding 15.2%, and CYS Investments is up 6.9% YTD while yielding 14.2% SEEKING ALPHA
A Form 8-K regarding CYS Investments, Inc. has been filed with the United States Securities and Exchange Commission.
please copy and paste the URL below into a web browser
http://www.cysinv.com/phoenix.zhtml?c=211651&p=irol-sec
10Q has been filed, looking good, net asset value per share $13.14, up from $13.02 2010.
http://www.cysinv.com/phoenix.zhtml?c=211651&p=irol-sec
5:25 PM CYS Investments (CYS): Q1 EPS of $0.39 may not be comparable to consensus of $0.47. (PR)
CYS Investments, Inc. Announces First Quarter 2012 Financial Results
Cys Investments Common Stock (NYSE:CYS)
Today : Wednesday 18 April 2012
CYS Investments, Inc. (NYSE: CYS) (“CYS” or the “Company”) today announced financial results for the quarter ended March 31, 2012.
First Quarter 2012 Highlights
•GAAP net income of $69.1 million, or $0.66 per diluted share.
•Core Earnings of $41.9 million, or $0.39 per diluted share.
•A component of the Company’s net income for the quarter was $15.4 million, or $0.15 per diluted share, of appreciation on forward settling purchases (also referred to as “drop income”) that was accounted for as net gain from investments on our statement of operations and therefore excluded from our Core Earnings.
•Operating expenses of 1.46% of average net assets.
•March 31, 2012 net asset value of $13.14 per share after declaring a $0.50 dividend per share on March 8, 2012.
•Interest rate spread net of hedge of 1.88%.
•Weighted average amortized cost of Agency RMBS of $103.24.
Public Offering
On February 1, 2012, the Company completed an underwritten public offering of 28,750,000 shares of common stock at a public offering price of $13.28 per share, raising approximately $377.3 million of net proceeds. The Company has invested all of the net proceeds of this offering.
First Quarter 2012 Results
The Company had net income of $69.1 million during the first quarter of 2012, or $0.66 per diluted share, compared to net income of $44.1 million, or $0.53 per diluted share, in the fourth quarter of 2011. During the first quarter of 2012, the Company had Core Earnings of $41.9 million, or $0.39 per diluted share, compared to $37.8 million, or $0.46 per diluted share, in the fourth quarter of 2011. Core Earnings represents a non-GAAP financial measure and is defined as net income (loss) excluding (i) net realized gain (loss) on investments and termination of swap contracts and (ii) net unrealized appreciation (depreciation) on investments and swap and cap contracts. The quarter-over-quarter increase in Core Earnings was generally the result of the larger asset base due to the February 1, 2012 public offering. The quarter-over-quarter decrease in Core Earnings per diluted share was generally the result of a higher share count due to the February 1, 2012 public offering.
Drop income is a component of our net income accounted for as net gain from investments on our statement of operations and therefore excluded from our Core Earnings. During the first quarter of 2012, the Company generated drop income of approximately $15.4 million, or $0.15 per diluted share, compared to approximately $4.2 million, or $0.05 per diluted share, during the fourth quarter of 2011. During the first quarter of 2012, the Company made forward purchases of approximately $4.4 billion of Agency RMBS with a weighted average drop of approximately $0.21 per $100.00 par value per month compared to approximately $0.8 billion of Agency RMBS with a weighted average drop of approximately $0.21 per $100.00 par value per month during the fourth quarter of 2011.
The Company utilizes forward settling transactions for the majority of its purchases. The benefit of purchasing assets in forward settling transactions is that the Company can purchase assets with specified stipulations such as average loan size and percentage of loans in a particular state. This customization allows the Company to better manage prepayments. In addition, forward settling purchases allow the Company to obtain an asset at a discount (also referred to as “drop”) to its current market value; however, the Company does not receive any interest income on the asset until the forward transaction settles. Obtaining the asset at a discount to market value reduces the impact of prepayments and is accretive to net asset value.
The Company’s net asset value per share on March 31, 2012 was $13.14 after declaring a $0.50 dividend per share on March 8, 2012, compared with $13.02 at December 31, 2011. The increase was primarily the result of Agency RMBS outperforming swaps.
The Company’s operating expenses were $5.1 million, or 1.46% of average net assets, for the first quarter of 2012, compared to $4.1 million, or 1.53% of average net assets, for the fourth quarter of 2011. The increase in operating expenses was primarily the result of an increase in compensation and benefits. However, expenses as a percentage of net assets decreased as a result of the larger asset base.
(dollars in thousands) Three Months Ended
Key Portfolio Statistics* March 31, 2012 December 31, 2011
Average Agency RMBS (1) $9,238,905 $8,624,497
Average repurchase agreements (2) 8,194,067 7,787,405
Average net assets (3) 1,406,049 1,066,036
Average yield on Agency RMBS (4) 2.78% 2.81%
Average cost of funds and hedge (5) 0.90% 1.01%
Interest rate spread net of hedge (6) 1.88% 1.80%
Operating expense ratio (7) 1.46% 1.53%
Leverage ratio (at period end) (8) 7.7:1 7.7:1
(1) The Company’s average Agency RMBS for the period was calculated by averaging the month end cost basis of settled Agency RMBS during the period.
(2) The Company’s average repurchase agreements for the period were calculated by averaging the month end repurchase agreements balance during the period.
(3) The Company’s average net assets for the period were calculated by averaging the month end net assets during the period.
(4) The Company’s average yield on Agency RMBS for the period was calculated by dividing interest income from Agency RMBS by average Agency RMBS.
(5) The Company’s average cost of funds and hedge for the period was calculated by dividing total interest expense, including net swap and cap interest income (expense), by average repurchase agreements.
(6) The Company’s interest rate spread net of hedge for the period was calculated by subtracting average cost of funds and hedge from average yield on Agency RMBS.
(7) The Company’s operating expense ratio is calculated by dividing operating expenses by average net assets.
(8) The Company’s leverage ratio was calculated by dividing (i) the Company’s repurchase agreements balance plus payable for securities purchased minus receivable for securities sold by (ii) net assets.
* All percentages are annualized.
Prepayments
The portfolio recorded $543.2 million in scheduled and unscheduled principal repayments and prepayments, which equated to a constant prepayment rate (“CPR”) of approximately 17.2% and net amortization of premium of $16.9 million for the first quarter of 2012. This compared to $577.1 million in scheduled and unscheduled principal repayments and prepayments, which equated to a CPR of approximately 19.6% and net amortization of premium of $16.6 million for the fourth quarter of 2011. The decrease in prepayments and repayments occurred despite a further decrease in mortgage interest rates during the quarter ended March 31, 2012.
Dividend
The Company declared a common dividend of $0.50 per share with respect to the first quarter of 2012, the same as for the fourth quarter of 2011. Using the closing share price of $13.09 on March 30, 2012, the first quarter dividend equates to an annualized dividend yield of 15.3%.
Portfolio
At March 31, 2012, the Company’s $13.3 billion portfolio of Agency RMBS was backed by fixed-rate mortgages and hybrid adjustable-rate mortgages (“Hybrid ARMs”) with 0 to 84 months to reset. The Agency RMBS portfolio is made up of 1.7% 2007 production; 4.9% 2009 production; 16.9% 2010 production; 49.8% 2011 production; and 26.7% 2012 production. Additional information about our Agency RMBS portfolio at March 31, 2012 is summarized below:
Par Value Fair Value Weighted Average
Asset Type
(in thousands)
Cost/Par
Fair
Value/Par
MTR(1)
Coupon
CPR(2)
10 Year Fixed Rate $ 256,373 $ 269,227 $ 103.88 $ 105.01 N/A 3.50 % 13.8 %
15 Year Fixed Rate 7,306,193 7,666,261 103.05 104.93 N/A 3.54 % 14.8 %
20 Year Fixed Rate 460,938 489,662 102.36 106.23 N/A 4.16 % 21.8 %
30 Year Fixed Rate 1,132,244 1,225,193 106.90 108.21 N/A 5.09 % 26.5 %
Hybrid ARMs 3,493,632 3,657,100 102.54 104.68 65.9 3.19 % 20.1 %
Total/Weighted Average $ 12,649,380 $ 13,307,443 $ 103.24 $ 105.20 65.9(3)
3.61 % 17.3 %
(1) MTR, or “Months to Reset” is the number of months remaining before the fixed rate on a hybrid ARM becomes a variable rate. At the end of the fixed period, the variable rate will be determined by the margin and the pre-specified caps of the ARM. After the fixed period, 100% of the hybrid ARMS in the portfolio reset annually.
(2) CPR is a method of expressing the prepayment rate for a mortgage pool that assumes that a constant fraction of the remaining principal is prepaid each month or year. Specifically, the constant prepayment rate is an annualized version of the prior three month prepayment rate for those bonds held at March 31, 2012. Securities with no prepayment history are excluded from this calculation.
(3) Weighted average months to reset of our hybrid ARM portfolio.
Financing, Leverage & Liquidity
At March 31, 2012, the Company had financed its portfolio with approximately $8.2 billion of borrowings under repurchase agreements with a weighted average interest rate of 0.34% and a weighted average maturity of approximately 37.2 days. In addition, the Company had payable for securities purchased of $3.6 billion. The Company’s leverage ratio at March 31, 2012 was 7.7 to 1. At March 31, 2012, the Company’s liquidity position was approximately $1,044.2 million, consisting of unpledged Agency RMBS, U.S. treasury bills and cash and cash equivalents. Below is a list of outstanding repurchase agreements at March 31, 2012 (dollars in thousands):
Counterparty Total
Outstanding
Borrowings
% of
Total
Amount
At Risk (1)
Weighted
Average
Maturity in
Days
Bank of America Securities LLC $ 409,774 5.0 % $ 22,897 23
Bank of Nova Scotia 475,356 5.8 16,355 68
Barclays Capital, Inc. 418,760 5.1 22,182 51
BNP Paribas Securities Corp 281,426 3.4 15,273 44
Cantor Fitzgerald & Co. 339,358 4.1 18,836 18
Citigroup Global Markets, Inc. 325,948 4.0 18,300 23
Credit Suisse Securities (USA) LLC 346,421 4.2 16,916 16
Daiwa Securities America, Inc. 256,072 3.1 14,658 52
Deutsche Bank Securities, Inc. 521,035 6.3 30,001 10
Goldman Sachs & Co. 510,083 6.2 31,208 45
Guggenheim Liquidity Services, LLC 142,280 1.7 7,820 53
Industrial and Commercial Bank of China Financial Services LLC 396,459 4.8 21,111 59
ING Financial Markets LLC 376,629 4.6 21,667 68
Jefferies & Company, Inc. 95,215 1.2 5,116 46
LBBW Securities LLC 199,000 2.4 11,446 51
Mitsubishi UFJ Securities (USA), Inc. 496,061 6.0 27,207 33
Mizuho Securities USA, Inc. 272,747 3.3 15,537 24
Morgan Stanley & Co. Inc. 313,475 3.8 17,935 56
Nomura Securities International, Inc. 260,097 3.2 16,655 51
RBC Capital Markets, LLC 259,284 3.2 15,439 52
South Street Securities LLC 314,533 3.8 16,958 19
The Royal Bank of Scotland PLC 132,496 1.6 7,932 9
UBS Securities LLC 611,930 7.4 34,954 34
Wells Fargo Securities, LLC 480,230 5.8 16,677 9
$ 8,234,669 100.0 % $ 443,080
______
(1) Equal to the fair value of pledged securities plus accrued interest income, minus the sum of repurchase agreement liabilities and accrued interest expense.
Hedging
The Company utilizes interest rate swap and cap contracts to hedge the interest rate risk associated with the financed portion of its Agency RMBS portfolio. As of March 31, 2012, the Company had entered into 15 interest rate swap contracts with an aggregate notional amount of $4.7 billion, a weighted average fixed rate of 1.478% and a weighted average expiration of 2.3 years. At March 31, 2012, the Company had entered into three interest rate cap contracts with a notional amount of $0.7 billion, a weighted average cap rate of 1.593% and a weighted average expiration of 3.3 years. These interest rate swap and cap contracts are described below (dollars in thousands):
Interest Rate Swaps
Expiration Fixed Floating Notional Fair
Counterparty
Date
Pay Rate
Receive Rate(1)
Amount
Value
The Royal Bank of Scotland plc 5/26/2013 1.600% 0.491% $
100,000
$ (1,263)
The Royal Bank of Scotland plc 6/30/2013 1.378% 0.470% 300,000 (3,238)
The Royal Bank of Scotland plc 7/15/2013 1.365% 0.567% 300,000 (3,281)
Goldman Sachs 12/15/2013 1.309% 0.474% 400,000 (5,182)
The Royal Bank of Scotland plc 12/16/2013 1.281% 0.474% 500,000 (6,235)
Goldman Sachs 12/16/2013 1.264% 0.474% 400,000 (4,876)
Deutsche Bank Group 12/17/2013 1.323% 0.474% 400,000 (5,285)
The Royal Bank of Scotland plc 7/1/2014 1.720% 0.468% 100,000 (2,468)
Nomura Global Financial Products, Inc. 7/16/2014 1.733% 0.567% 250,000 (6,340)
Deutsche Bank Group 8/16/2014 1.353% 0.498% 200,000 (3,396)
Goldman Sachs 9/23/2014 1.312% 0.474% 500,000 (8,086)
Deutsche Bank Group 10/6/2014 1.173% 0.583% 240,000 (3,069)
Goldman Sachs 2/14/2015 2.145% 0.506% 500,000 (20,194)
Nomura Global Financial Products, Inc. 6/2/2016 1.940% 0.484% 300,000 (11,021)
Morgan Stanley Capital Services, Inc.(2) 12/19/2016 1.426% 0.517% 250,000 (1,007)
Total $
4,740,000
$ (84,941)
Interest Rate Caps
Expiration Notional Fair
Counterparty
Date
Cap Rate
Amount
Value
The Royal Bank of Scotland plc 12/30/2014 2.073% $
200,000
$ 401
The Royal Bank of Scotland plc 10/15/2015 1.428% 300,000 2,376
The Royal Bank of Scotland plc 11/8/2015 1.360% 200,000 1,771
Total $
700,000
$ 4,548
_______________
(1) Resets quarterly to 3-Month LIBOR
(2) The interest rate swap effective date is December 19, 2012 and does not accrue any income or expense until that date.
Conference Call
The Company will host a conference call at 9:00 AM Eastern Time on Thursday, April 19, 2012, to discuss its financial results for the quarter ended March 31, 2012. To participate in the event by telephone, please dial 866.713.8567 at least 10 minutes prior to the start time and reference the conference passcode 57592550. International callers should dial 617.597.5326 and reference the same passcode. The conference call will also be webcast live over the Internet and can be accessed at the Company’s web site at http://www.cysinv.com. To listen to the live webcast, please visit http://www.cysinv.com at least 15 minutes prior to the start of the call to register, download, and install necessary audio software. A dial-in replay will be available on Thursday, April 19, 2012, at approximately 12:00 PM Eastern Time through Thursday, May 3, 2012, at approximately 11:00 AM Eastern Time. To access this replay, please dial 888.286.8010 and enter the conference ID number 54966272. International callers should dial 617.801.6888 and enter the same conference ID number. A replay of the conference call will also be archived on the Company’s website at http://www.cysinv.com.
About CYS Investments, Inc.
CYS Investments, Inc. is a specialty finance company that invests on a leveraged basis in residential mortgage pass-through certificates for which the principal and interest payments are guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. The Company refers to these securities as Agency RMBS. CYS Investments, Inc. has elected to be taxed as a real estate investment trust for federal income tax purposes.
CYS INVESTMENTS, INC.
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
(In thousands, except per share numbers) March 31, 2012 December 31, 2011*
ASSETS:
Investments in securities, at fair value (including pledged assets of $8,806,898 and $8,412,295, respectively)
$ 13,388,839 $ 9,466,128
Interest rate cap contracts, at fair value 4,548 5,966
Cash and cash equivalents 10,643 11,508
Receivable for securities sold and principal repayments 116,918 5,550
Interest receivable 34,152 27,815
Other assets 805 1,090
Total assets 13,555,905 9,518,057
LIABILITIES:
Repurchase agreements 8,234,669 7,880,814
Interest rate swap contracts, at fair value 84,941 79,476
Payable for securities purchased 3,634,983 463,302
Distribution payable 58,069 -
Accrued interest payable (including accrued interest on repurchase agreements of $2,425 and $3,747, respectively)
15,564 15,617
Accrued expenses and other liabilities 1,887 1,390
Total liabilities 12,030,113 8,440,599
NET ASSETS $ 1,525,792 $ 1,077,458
Net assets consist of:
Common Stock, $0.01 par value, 500,000 shares authorized (116,139 and 82,753 shares issued and outstanding, respectively)
$ 1,161 $ 828
Additional paid in capital 1,434,836 997,884
Retained earnings 89,795 78,746
NET ASSETS $ 1,525,792 $ 1,077,458
NET ASSET VALUE PER SHARE $ 13.14 $ 13.02
________
* Derived from audited financial statements.
CYS INVESTMENTS, INC.
STATEMENTS OF OPERATIONS (UNAUDITED)
Three months ended
(In thousands, except per share numbers) March 31, 2012 December 31, 2011
INVESTMENT INCOME - Interest income $ 65,369 $ 61,631
EXPENSES:
Interest 6,853 6,437
Compensation and benefits 3,164 2,365
General, administrative and other 1,955 1,708
Total expenses 11,972 10,510
Net investment income 53,397 51,121
GAINS AND (LOSSES) FROM INVESTMENTS:
Net realized gain (loss) on investments 5,173 7,143
Net unrealized appreciation (depreciation) on investments 27,977 (15,730)
Net gain (loss) from investments 33,150 (8,587)
GAINS AND (LOSSES) FROM SWAP AND CAP CONTRACTS:
Net swap and cap interest income (expense) (11,506) (13,285)
Net gain (loss) on termination of swap contracts - (1,411)
Net unrealized appreciation (depreciation) on swap and cap contracts (5,923) 16,255
Net gain (loss) from swap and cap contracts (17,429) 1,559
NET INCOME $ 69,118 $ 44,093
NET INCOME PER COMMON SHARE - DILUTED $ 0.66 $ 0.53
Core Earnings:
Core Earnings represents a non-GAAP financial measure and is defined as net income (loss) excluding net gain (loss) from investments, net gain (loss) on termination of swap contracts and net unrealized appreciation (depreciation) on swap and cap contracts. In order to evaluate the effective yield of the portfolio, management uses Core Earnings to reflect the net investment income of our portfolio as adjusted to include the net swap and cap interest income (expense). Core Earnings allows management to isolate the interest income (expense) associated with our swaps and caps in order to monitor and project our borrowing costs and interest rate spread. In addition, management utilizes Core Earnings as a key metric in conjunction with other portfolio and market factors to determine the appropriate leverage and hedging ratios, as well as the overall structure of the portfolio.
The Company adopted Accounting Standards Codification (“ASC”) 946, Clarification of the Scope of Audit and Accounting Guide Investment Companies (“ASC 946”), prior to its deferral in February 2008, while most, if not all, other public companies that invest only in Agency RMBS have not adopted ASC 946. Under ASC 946, the Company uses financial reporting specified for investment companies, and accordingly, its investments are carried at fair value with changes in fair value included in earnings. Most other public companies that invest only in Agency RMBS include most changes in the fair value of their investments within shareholders’ equity, not in earnings. As a result, investors are not able to readily compare the Company’s results of operations to those of most of its competitors. The Company believes that the presentation of its Core Earnings is useful to investors because it provides a means of comparing its Core Earnings to those of its competitors. In addition, because Core Earnings isolates the net swap and cap interest income (expense) it provides investors with an additional metric to identify trends in the Company’s portfolio as they relate to the interest rate environment.
The primary limitation associated with Core Earnings as a measure of the Company’s financial performance over any period is that it excludes the effects of net realized gain (loss) from investments. In addition, the Company’s presentation of Core Earnings may not be comparable to similarly-titled measures of other companies, who may use different calculations. As a result, Core Earnings should not be considered as a substitute for the Company’s GAAP net income (loss) as a measure of our financial performance or any measure of our liquidity under GAAP.
Three months ended
(In thousands) March 31, 2012 December 31, 2011
NET INCOME $ 69,118 $ 44,093
Net (gain) loss from investments (33,150) 8,587
Net (gain) loss on termination of swap contracts - 1,411
Net unrealized (appreciation) depreciation on swap and cap contracts 5,923 (16,255)
Core Earnings $ 41,891 $ 37,836
CYS Investments, Inc. has added a news release to its Investor Relations website.
Title: CYS Investments, Inc. Announces First Quarter 2012 Financial Results
Date(s): 18-Apr-2012 4:06 PM
http://www.cysinv.com/phoenix.zhtml?c=211651&p=irol-news&nyo=0
first quarter financials/conference call-
http://www.cysinv.com/phoenix.zhtml?c=211651&p=irol-news&nyo=0
Dividends From CYS Investments and MFA Financial Looking Strong
14.7% divie ($2/pps at close yesterday), as long as it is not lowered again.
so what % does that make the dividend?
now am wishing I'd bought some earlier on
but at least I managed to eke out 17% return since then
CYS Investments, Inc. Board of Directors Declares First Quarter 2012 Dividend of $0.50 Per Share
Cys Investments Common Stock (NYSE:CYS)
Today : Thursday 8 March 2012
The Board of Directors of CYS Investments, Inc. (NYSE: CYS) (the "Company") today declared a quarterly dividend of $0.50 per share of common stock for the first quarter of 2012. The dividend will be paid on April 18, 2012 to stockholders of record on March 23, 2012.
About CYS Investments, Inc.
CYS Investments, Inc. is a specialty finance company that invests on a leveraged basis in residential mortgage pass-through certificates for which the principal and interest payments are guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. The Company refers to these securities as Agency RMBS. The Company has elected to be taxed as a real estate investment trust for federal income tax purposes.
Forward Looking Statements Disclaimer
This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. These forward-looking statements relate to the payment of the dividend. Forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. These beliefs, assumptions and expectations are subject to risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to us, including those described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011, which has been filed with the Securities and Exchange Commission. If a change occurs, these forward-looking statements may vary materially from those expressed in this release. All forward-looking statements speak only as of the date on which they are made. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Please visit the Company's website at http://www.cysinv.com.
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CYS is a specialty finance company that was created with the objective of achieving consistent risk-adjusted investment income. We seek to achieve this objective by investing on a leveraged basis in residential mortgage pass-through securities for which the principal and interest payments are guaranteed by the Federal National Mortgage Association, or Fannie Mae, the Federal Home Loan Mortgage Corporation, or Freddie Mac, or the Government National Mortgage Association, or Ginnie Mae, and collateralized by single-family residential mortgage loans. We refer to these securities as Agency RMBS. We have elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. Our Chief Executive Officer and President, Kevin E. Grant, was a senior portfolio manager and member of the Aggregate Bond Team at Fidelity Investments, where he managed fixed income assets including the Mortgage Securities Fund, the Investment Grade Bond Fund, the Total Bond Fund, the fixed income portion of the Fidelity Puritan Fund and the Strategic Income Fund. Our investment team averages over 20 years' experience in the fields of MBS, structured finance, and corporate finance. Our portfolio managers have experience managing assets through the various interest rate and credit cycles since the early 1980s, and have the proven ability to generate risk-adjusted investment income in these environments. The Company was founded in January 2006, and is managed by Cypress Sharpridge Advisors LLC, a joint venture between Cypress CSI Advisors LLC, a sponsor of private equity funds and leveraged buyouts of U.S. companies, and Sharpridge Capital Management, L.P., a specialist fixed income asset management company founded by Kevin E. Grant, our Chief Executive Officer. Dividend History: http://ir.cypresssharpridge.com/phoenix.zhtml?c=211651&p=irol-dividends Recent Yield Data: http://www.dividendinvestor.com/?chk=572151307223246&symbol=cys&submit=GO NOTE: The Company has changed its name from "Cypress Sharpridge Investments, Inc." to "CYS Investments, Inc." and began trading under this name on September 1, 2011. The Company's ticker symbol on the New York Stock Exchange remains "CYS."
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