AGNC Investment: A Robust Financial Performance and Strategic Outlook

AGNC Investment Corp. delivered strong 2025 results with a 23% economic return and a 35% shareholder return. The mREIT plans capital deployment and maintains its dividend.

AGNC Investment Corp. has reported a strong operational performance for the 2025 fiscal year, reinforcing its standing in the market. The mortgage real estate investment trust (mREIT) delivered an economic return of nearly 23%, prompting investor interest in whether the environment for agency mortgage-backed securities will remain favorable.

Shareholder Returns and Market Performance

The company's solid results translated into significant gains for its investors. Shareholders realized a total return approaching 35% over the course of the year. This strength is reflected in the equity's price movement; the stock, currently trading around €9.60, has recovered substantially from its 52-week low of €7.24 and now sits approximately 10% above its 200-day moving average.

A key metric for mREITs, the tangible net book value per common share, showed consistent improvement. By year-end 2025, it reached $8.88, marking a clear increase from the prior quarter's level.

Operational and Financial Highlights

AGNC’s recently published annual report details the drivers behind this performance. The company generated interest income of approximately $3.5 billion in 2025. This led to net income of $1.5 billion available to common shareholders.

The firm’s investment portfolio remained substantial, with a value of $94.8 billion at the turn of the year. Looking ahead, management plans to deploy new capital with a targeted return range of 13% to 15%.

Dividend Policy and Capital Allocation

A central component of AGNC's value proposition is its return of capital to shareholders. The total dividend declared for the 2025 fiscal year amounted to $1.44 per share. The company is maintaining this distribution policy, having already announced a monthly dividend of $0.12 per share for February 2026, payable on March 10.

Beyond dividends, AGNC has an authorized share repurchase program in place. As of the end of 2026, roughly $1 billion remains available under this authorization. The combination of consistent payouts and potential buybacks forms the foundation for shareholder returns in the current cycle. The record date for the next dividend payment is February 27, 2026.

Strategic Expectations for 2026

Management anticipates a constructive investment climate for agency residential mortgage-backed securities (RMBS) in the current year. This outlook is supported by a balanced supply-and-demand dynamic within the sector. Furthermore, the company expects lower funding costs, aided by recent interest rate adjustments and a strategic repositioning of its hedge portfolio.

The picture is not without potential headwinds. The expiration of certain older interest rate swap agreements may lead to a near-term increase in hedging costs. Despite this, the overall strategic view for the year remains positive.