Exhibit 99.1
Long-Term
Investment Capital
(in millions)
Investment Capital
(in millions)
Portfolio Composition
(as of June 30, 2008)
(as of June 30, 2008)
Total Assets
(in millions)
(in millions)
4 | Capstead Mortgage Corporation, formed in 1985 and based in Dallas, Texas, is a self-managed real estate investment trust for federal income tax purposes. Capstead’s core strategy is managing a leveraged portfolio of residential mortgage pass-through securities consisting almost exclusively of adjustable-rate mortgage pass-through securities 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 pass-through securities carry an implied AAA credit rating with limited, if any, credit risk. Capstead may also augment its core portfolio with investments in credit-sensitive commercial real estate-related assets. |
EXPERIENCE | STABILITY | STRATEGY | ||
• Oldest mortgage REIT | • Positions with 18 lending | • Avoid residential credit risk | ||
counterparties | while minimizing, but not | |||
• Top 4 executives with | eliminating, interest rate risk | |||
the company since 1994 | • Short-duration portfolio | |||
conservatively leveraged | ||||
and appropriately hedged | ||||
(net duration gap under 4 | ||||
months at June 30) |
HISTORICAL DEBT/LONG-TERM INVESTMENT CAPITAL
• | Debt to long-term investment capital has historically ranged from 8.0x to 12.0x through various interest rate cycles and can be quickly adjusted to respond to market conditions. |
• | We currently anticipate maintaining our leverage at the lower end of our targeted range in the coming quarters. |
Quarterly Spread
COMMON STOCK
INFORMATION
INFORMATION
NYSE Ticker:
CMO
CMO
Price as of 8/26/08:
$11.44
$11.44
52-wk. High/Low:
$18.62/$8.69
$18.62/$8.69
2Q Dividend:
$0.59
$0.59
Dividend Yield:
(based on annualized 2Q dividend)
20.6%
(based on annualized 2Q dividend)
20.6%
2Q Avg. Daily Vol.:
1.0m shares
1.0m shares
SERIES A/SERIES B
PREFERRED STOCK INFO
PREFERRED STOCK INFO
NYSE Ticker:
CMOPRA/CMOPRB
CMOPRA/CMOPRB
Price as of 8/26/08:
$18.10/$12.70
$18.10/$12.70
Call Price:
$16.40/$12.50
$16.40/$12.50
Liquidation Value:
$16.40/$11.38
$16.40/$11.38
Conversion Ratio:
1.5629/0.6025
1.5629/0.6025
Annual Dividend:
$1.60/$1.26
$1.60/$1.26
4 | 2ND QUARTER 2008 HIGHLIGHTS |
• | Earnings totaled $36.7 million or $0.58 per diluted common share | ||
• | Financing spreads increased 33 basis points to 2.05% | ||
• | Book value per common share increased $1.02 to $10.42 | ||
• | Declared and paid dividend of $0.59 per common share | ||
• | Raised $77 million in new common equity capital | ||
• | Increased portfolio of agency-guaranteed residential ARM securities by $464 million to $7.9 billion | ||
• | Reduced portfolio leverage to 8.14 times long-term investment capital |
4 | QUARTERLY RESULTS |
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
(In thousands, except per share amounts) | 2008 | 2008 | 2007 | 2007 | 2007 | |||||||||||||||
Net interest margin: | ||||||||||||||||||||
Residential mortgage investments | $ | 41,456 | $ | 36,247 | $ | 17,505 | $ | 8,257 | $ | 8,560 | ||||||||||
Commercial mortgage investments | 857 | 798 | 813 | 396 | 638 | |||||||||||||||
Net interest margin | 42,313 | 37,045 | 18,318 | 8,653 | 9,198 | |||||||||||||||
Net income | 36,728 | 30,147 | 15,860 | (3,148 | ) | 5,774 | ||||||||||||||
Income available to common stockholders | 31,665 | 25,083 | 10,796 | (8,212 | ) | 710 | ||||||||||||||
Diluted earnings per share | 0.58 | 0.53 | 0.31 | (0.43 | ) | 0.04 | ||||||||||||||
Common dividends per share | 0.59 | 0.52 | 0.24 | 0.04 | 0.04 | |||||||||||||||
Common equity raises | 77,143 | 131,344 | 205,997 | — | 1,381 | |||||||||||||||
Common shares outstanding (EOQ) | 56,071 | 49,918 | 42,819 | 19,393 | 19,392 | |||||||||||||||
TOP COMMON STOCKHOLDERS*
Holder | % O/S | |||
Wells Capital Management | 10.48 | |||
Wellington Management Company | 5.30 | |||
Highland Capital Management | 5.04 | |||
Transamerica Investment Management | 3.54 | |||
DePrince Race & Zollo | 3.49 | |||
Barclays Global Investors, N.A. | 3.42 | |||
Robeco Investment Management | 3.37 | |||
Thompson, Siegel & Walmsley | 3.30 | |||
Millennium Management | 2.81 | |||
Vanguard Group, Inc. | 2.16 | |||
* | As of August 21, 2008 |
ANALYSTS*
Firm | Rating | |||
Deutsche Bank | Buy | |||
FBR Capital Markets | Outperform | |||
Fox-Pitt Kelton | Outperform | |||
JMP Securities LLC | Outperform | |||
Keefe, Bruyette & Woods | Outperform | |||
RBC Capital Markets | Outperform | |||
Stifel Nicolaus | Buy | |||
* | As of August 21, 2008 |
Capstead Mortgage Corporation / 8401 North Central Expressway, Suite 800, Dallas, TX 75225
PH 800.358.2323 / E invrel@capstead.com /www.capstead.com
PH 800.358.2323 / E invrel@capstead.com /www.capstead.com