DYNEX CAPITAL INC 8-K

What Happened
Dynex Capital, Inc. (DX) filed an 8‑K on January 26, 2026 announcing its Q4 and full‑year 2025 financial results and the appointment of Meakin Bennett as Chief Operating Officer effective January 26, 2026. The company reported a total economic return of $1.29 per common share (10.2% of beginning book value) for Q4 2025 and $2.75 per share (21.6%) for the full year. Book value per share was $13.45 as of December 31, 2025. Dividends declared were $0.51 per share for Q4 and $2.00 for the full year. The press release is filed as Exhibit 99.1 and is on the company website.

Key Details

• Total economic return: $1.29/share in Q4 2025; $2.75/share for full‑year 2025.
• Net/comprehensive income: Q4 net income $1.17/share and comprehensive income $1.22/share; full year net income $2.49/share and comprehensive income $2.85/share.
• Capital deployment and funding: Raised $393 million in Q4 via ATM issuances, $1.2 billion raised net in 2025; purchased $3.0 billion Agency RMBS and $284 million Agency CMBS in Q4 (2025 totals: $8.2B RMBS and $1.2B CMBS).
• Other metrics: REIT taxable income for 2025 estimated at $229 million (includes ~$100M amortization of deferred tax hedge gains); liquidity $1.4 billion as of 12/31/25; leverage (including TBA at cost) 7.3x shareholders’ equity; common shares outstanding 199,585,507 as of Jan 22, 2026.
• Leadership change: Meakin Bennett hired as COO effective Jan 26, 2026; Robert S. Colligan will no longer be COO but remains Chief Financial Officer with added management duties; Smriti L. Popenoe (Co‑CEO & President) remains principal operating officer.

Why It Matters
These results show meaningful growth in book value and strong per‑share returns for Q4 and the full year, supported by heavy deployment into Agency RMBS/CMBS and substantial equity raises. For investors, key considerations include the declared dividend level, the company’s increased leverage and liquidity position, the large 2025 capital raises (which increased shares outstanding), and the management change with a new COO joining while the CFO and Co‑CEO retain central roles in operations.