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Item 1. Financial Statements

2026-05-06 compared with 2025-11-05 · 177 added, 356 removed, 424 unchanged (56% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

$ in thousands, except share amounts September 30, 2025 December 31, 2024

$ in thousands, except share amounts March 31, 2026 December 31, 2025

Mortgage-backed securities, at fair value (including pledged securities of $ 5,585,665 and $ 5,879,318 , respectively)

net of allowance for credit losses of $ 0 and $ 654 , respectively)

6,026,208 6,276,609

27 unchanged sentences

Additional paid in capital 4,343,365 4,209,977

Accumulated other comprehensive income — 173

Retained earnings (distributions in excess of earnings) ( 3,632,077 ) ( 3,578,907 )

4 unchanged sentences

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended September 30, Nine Months Ended September 30,

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended March 31,

$ in thousands, except share data 2026 2025

4 unchanged sentences

Gain (loss) on investments, net ( 54,940 ) 82,158

(Increase) decrease in provision for credit losses — 80 — ( 222 )

Equity in earnings (losses) of unconsolidated ventures — — — ( 193 )

Gain (loss) on derivative instruments, net 12,879 ( 76,679 )

7 unchanged sentences

Net income (loss) attributable to common stockholders ( 23,121 ) 16,289

Earnings (loss) per share:

Net income (loss) attributable to common stockholders

Basic 0.74 0.63 0.61 0.78

Diluted 0.74 0.63 0.61 0.78

The accompanying notes are an integral part of these condensed consolidated financial statements.

INVESCO MORTGAGE CAPITAL INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended September 30, Nine Months Ended September 30,

$ in thousands 2025 2024 2025 2024

Net income (loss) 53,471 40,720 49,785 56,376

Other comprehensive income (loss)

1 unchanged sentence

Reclassification of unrealized (gain) loss on sale of mortgage-backed securities to gain (loss) on investments, net — 116

Reclassification of unrealized loss on available-for-sale securities to (increase) decrease in provision for credit losses — — — 302

Total other comprehensive income (loss) — 616

Comprehensive income (loss) 53,471 40,433 49,612 56,039

Dividends to preferred stockholders ( 3,261 ) ( 5,474 ) ( 9,899 ) ( 16,567 )

Gain (loss) on repurchase and retirement of preferred stock ( 2 ) 25 44 426

Comprehensive income (loss) attributable to common stockholders ( 23,121 ) 16,905

Earnings (loss) per share

Net income (loss) attributable to common stockholders

Basic ( 0.28 ) 0.26

Diluted ( 0.28 ) 0.26

The accompanying notes are an integral part of these condensed consolidated financial statements.

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

For the three months ended March 31, 2025;

June 30, 2025 and September 30, 2025

Capital Accumulated

9 unchanged sentences

Net income (loss) — — — — — — ( 19,904 ) ( 19,904 )

Other comprehensive income (loss) — — — — — 616 — 616

Proceeds from issuance of common stock, net of offering costs — — 15,694,589 157 133,231 — — 133,388

5 unchanged sentences

Balance as of March 31, 2026 6,789,443 164,191 87,485,972 875 4,343,365 — ( 3,632,077 ) 876,354

Net income (loss) — — — — — — ( 23,327 ) ( 23,327 )

Other comprehensive income (loss) — — — — — ( 789 ) — ( 789 )

Proceeds from issuance of common stock, net of offering costs — — 282,750 3 2,276 — — 2,279

Stock awards — — 82,134 1 — — — 1

Repurchase and retirement of preferred stock ( 96,803 ) ( 2,341 ) — — — — 57 ( 2,284 )

Common stock dividends — — — — — — ( 22,545 ) ( 22,545 )

Preferred stock dividends — — — — — — ( 3,297 ) ( 3,297 )

Amortization of equity-based compensation — — — — 172 — — 172

Balance as of June 30, 2025 7,019,710 169,760 66,307,379 663 4,166,345 — ( 3,627,392 ) 709,376

Net income (loss) — — — — — — 53,471 53,471

Proceeds from issuance of common stock, net of offering costs — — 4,638,385 46 36,060 — — 36,106

Stock awards — — ( 193 ) — — — — —

Repurchase and retirement of preferred stock ( 89,223 ) ( 2,158 ) — — — — ( 2 ) ( 2,160 )

Common stock dividends — — — — — — ( 24,121 ) ( 24,121 )

Preferred stock dividends — — — — — — ( 3,261 ) ( 3,261 )

Amortization of equity-based compensation — — — — 170 — — 170

Balance as of September 30, 2025 6,930,487 167,602 70,945,571 709 4,202,575 — ( 3,601,305 ) 769,581

The accompanying notes are an integral part of these condensed consolidated financial statements.

INVESCO MORTGAGE CAPITAL INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

For the three months ended March 31, 2024;

June 30, 2024 and September 30, 2024

Capital Accumulated

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Stockholders’

Preferred Stock Series C

Preferred Stock

$ in thousands, except share amounts Common Stock

Shares Amount Shares Amount Shares Amount

Shares Amount Shares Amount

Balance as of December 31, 2024 7,206,659 174,281 61,729,693 617 4,127,807 173 ( 3,572,149 ) 730,729

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Balance as of March 31, 2025 7,116,513 172,101 65,942,495 659 4,163,897 789 ( 3,578,280 ) 759,166

Net income (loss) — — — — — — — — ( 13,466 ) ( 13,466 )

Other comprehensive income (loss) — — — — — — — 113 — 113

Proceeds from issuance of common stock, net of offering costs — — — — 1,761,155 18 16,034 — — 16,052

Stock awards — — — — 50,855 — — — — —

Repurchase and retirement of preferred stock ( 44,661 ) ( 1,080 ) ( 105,492 ) ( 2,551 ) — — — — 208 ( 3,423 )

Common stock dividends — — — — — — — — ( 20,255 ) ( 20,255 )

Preferred stock dividends — — — — — — — — ( 5,508 ) ( 5,508 )

Amortization of equity-based compensation — — — — — — 131 — — 131

Balance as of June 30, 2024 4,247,989 102,678 7,344,030 177,603 50,637,604 506 4,030,745 648 ( 3,552,964 ) 759,216

Net income (loss) — — — — — — — — 40,720 40,720

Other comprehensive income (loss) — — — — — — — ( 287 ) — ( 287 )

Proceeds from issuance of common stock, net of offering costs — — — — 10,084,138 101 88,445 — — 88,546

Repurchase and retirement of preferred stock — — ( 66,507 ) ( 1,608 ) — — — — 25 ( 1,583 )

Stock awards — — — — 8,545 — — — — —

Common stock dividends — — — — — — — — ( 24,292 ) ( 24,292 )

Preferred stock dividends — — — — — — — — ( 5,474 ) ( 5,474 )

Amortization of equity-based compensation — — — — — — 157 — — 157

Balance as of September 30, 2024 4,247,989 102,678 7,277,523 175,995 60,730,287 607 4,119,347 361 ( 3,541,985 ) 857,003

The accompanying notes are an integral part of these condensed consolidated financial statements.

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30,

Three Months Ended March 31,

$ in thousands 2026 2025

5 unchanged sentences

(Gain) loss on investments, net 54,940 ( 82,158 )

Increase (decrease) in provision for credit losses — 222

(Gain) loss from investments in unconsolidated ventures in excess of distributions received — 193

Other amortization 157 176

5 unchanged sentences

Purchase of mortgage-backed securities ( 228,897 ) ( 884,448 )

Distributions from investments in unconsolidated ventures, net — 307

Principal payments from mortgage-backed securities 214,004 95,314

Proceeds from sale of mortgage-backed securities 211,544 373,626

Proceeds from sale of U.S.

Treasury securities — 10,755

Settlement (termination) of swaps, TBAs and futures, net 23,324 ( 101,516 )

7 unchanged sentences

Net change in due from counterparties and collateral held payable on repurchase agreements ( 766 ) 1,330

Payments of deferred costs ( 47 ) ( 108 )

Payments of dividends ( 48,594 ) ( 28,033 )

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(the “Company” or “we”) is a Maryland corporation primarily focused on investing in, financing and managing mortgage-backed securities (“MBS”) and other mortgage-related assets.

As of September 30, 2025, we were invested in:

As of March 31, 2026, we were invested in:

• residential mortgage-backed securities (“RMBS”) that are guaranteed by a U.S.

government agency such as the Government National Mortgage Association (“Ginnie Mae”), or a federally chartered corporation such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”) (collectively “Agency RMBS”);

• commercial mortgage-backed securities (“CMBS”) that are guaranteed by a U.S.

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During the periods presented in these condensed consolidated financial statements, we also invested in CMBS and RMBS that are not guaranteed by a U.S.

government agency or a federally chartered corporation (“non-Agency CMBS” and “non-Agency RMBS”, respectively), U.S.

Treasury securities and a real estate-related financing arrangement in the form of an unconsolidated venture.

government agency or a federally chartered corporation (“non-Agency CMBS” and “non-Agency RMBS”, respectively).

We conduct our business through IAS Operating Partnership L.P.

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(our “Manager”), a registered investment adviser and an indirect, wholly-owned subsidiary of Invesco Ltd.

(“Invesco”), a leading independent global investment management firm.

(“Invesco”), an independent global investment management firm.

We elected to be taxed as a real estate investment trust (“REIT”) for U.S.

federal income tax purposes under the provisions of the Internal Revenue Code of 1986.

To maintain our REIT qualification, we are generally required to distribute at least 90 % of our REIT taxable income to our stockholders annually.

To maintain our REIT qualification, we are required to distribute at least 90 % of our REIT taxable income to our stockholders annually, and we will generally not be subject to U.S.

federal or state corporate income tax to the extent that we distribute all of our annual taxable income to our stockholders on a timely basis.

It is our intention to distribute 100 % of our taxable income within the time limits prescribed by the Internal Revenue Code.

We operate our business in a manner that permits our exclusion from the “Investment Company” definition under the Investment Company Act of 1940, as amended (the “1940 Act”).

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All significant intercompany transactions, balances, revenues and expenses are eliminated upon consolidation.

Certain reclassifications have been made to prior period amounts to conform to the current period presentation.

Beginning with the first quarter of 2026, we are presenting a single continuous statement of comprehensive income (loss).

Prior periods have been adjusted to reflect this presentation.

In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for a fair statement of our financial condition and results of operations for the periods presented.

7 unchanged sentences

Note 3 – Mortgage-Backed Securities

The following tables summarize our MBS portfolio by asset type as of September 30, 2025 and December 31, 2024.

As of September 30, 2025

The following tables summarize our MBS portfolio by asset type as of March 31, 2026 and December 31, 2025.

As of March 31, 2026

$ in thousands Principal/ Notional

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(Loss), net Fair

Value Period-

Value Period-end

30 year fixed-rate pass-through 5,064,803 ( 36,495 ) 5,028,308 66,517 5,094,825 5.42 %

3 unchanged sentences

Total 6,406,062 ( 458,412 ) 5,947,650 78,558 6,026,208 5.34 %

(1) Period-end weighted average yield is based on amortized cost as of September 30, 2025 and incorporates future prepayment and loss assumptions when appropriate.

Total represents period-end weighted average yield of all mortgage-backed securities.

(2) All Agency collateralized mortgage obligations (“Agency-CMO”) are interest-only securities (“Agency IO”).

As of December 31, 2025

2 unchanged sentences

(Discount) Amortized

Cost Allowance for Credit Losses Unrealized

Cost Unrealized

(Loss), net Fair

Value Period-

Value Period-end

30 year fixed-rate pass-through 5,223,764 ( 33,396 ) 5,190,368 118,792 5,309,160 5.46 %

2 unchanged sentences

Agency CMBS 898,047 ( 6,317 ) 891,730 6,399 898,129 4.62 %

Non-Agency CMBS 11,000 — 11,000 ( 654 ) ( 510 ) 9,836 8.91 %

Non-Agency RMBS (3)(4)(5)

248,957 ( 242,334 ) 6,623 — 601 7,224 11.13 %

Total 6,606,785 ( 464,118 ) 6,142,667 133,942 6,276,609 5.37 %

(1) Period-end weighted average yield is based on amortized cost as of December 31, 2024 and incorporates future prepayment and loss assumptions when appropriate.

(1) Period-end weighted average yield is based on amortized cost as of March 31, 2026 and December 31, 2025 and incorporates future prepayment assumptions when appropriate.

Total represents period-end weighted average yield of all mortgage-backed securities.

(2) All Agency-CMO are Agency IO.

(3) Non-Agency RMBS is 66.4 % fixed rate, 33.0 % variable rate and 0.6 % floating rate based on fair value.

Coupon payments on variable rate investments are based upon changes in the underlying hybrid adjustable-rate mortgage loan coupons, while coupon payments on floating rate investments are based upon a spread to a reference index.

(4) Of the total discount in non-Agency RMBS, $ 2.1 million is non-accretable calculated using the principal/notional balance and based on estimated future cash flows of the securities.

(5) Non-Agency RMBS includes interest-only securities (“non-Agency IO”), which represent 96.7 % of principal/notional balance, 34.2 % of amortized cost and 31.0 % of fair value.

We have elected the fair value option for all of our MBS held as of September 30, 2025.

(2) All Agency collateralized mortgage obligations (“Agency CMO”) are interest-only securities.

We have elected the fair value option for all of our MBS held as of March 31, 2026 and December 31, 2025.

We believe the fair value option election more appropriately reflects the results of our operations because MBS fair value changes are accounted for in the same manner as fair value changes in economic hedging instruments.

The following table presents the fair value of our available-for-sale securities and securities accounted for under the fair value option by asset type as of December 31, 2024.

December 31, 2024

$ in thousands Available-for-sale Securities Securities under Fair Value Option Total

30 year fixed-rate pass-through — 4,541,525 4,541,525

Agency-CMO — 70,776 70,776

Agency CMBS — 816,147 816,147

Non-Agency CMBS 9,836 — 9,836

Non-Agency RMBS 5,114 2,110 7,224

Total 14,950 5,430,558 5,445,508

The components of the carrying value of our MBS portfolio as of September 30, 2025 and December 31, 2024 are presented below.

Accrued interest receivable on our MBS portfolio, which is recorded within investment related receivable on our condensed consolidated balance sheets, was $ 25.6 million as of September 30, 2025 (December 31, 2024:

$ 24.9 million).

September 30, 2025 December 31, 2024

The components of the carrying value of our MBS portfolio as of March 31, 2026 and December 31, 2025 are presented below.

Accrued interest receivable on our MBS portfolio is recorded within investment related receivable on our condensed consolidated balance sheets.

March 31, 2026 December 31, 2025

$ in thousands MBS Interest-Only Securities Total MBS Interest-Only Securities Total

2 unchanged sentences

Unamortized discount ( 76,512 ) ( 416,330 ) ( 492,842 ) ( 79,603 ) ( 424,405 ) ( 504,008 )

Allowance for credit losses — — — ( 654 ) — ( 654 )

Gross unrealized gains 87,317 8,393 95,710 130,576 8,794 139,370

108,796 8,929 117,725 22,443 5,817 28,260

Gross unrealized losses ( 17,090 ) ( 62 ) ( 17,152 ) ( 5,385 ) ( 43 ) ( 5,428 )

( 6,390 ) ( 306 ) ( 6,696 ) ( 43,376 ) ( 2,531 ) ( 45,907 )

Fair value 5,959,095 67,113 6,026,208 6,207,289 69,320 6,276,609

(1) Gross unrealized gains and losses includes gains (losses) recognized in net income for securities accounted for under the fair value option as well as, solely with respect to December 31, 2024 , gains (losses) for available-for-sale securities which were recognized as adjustments to other comprehensive income.

Realization occurs upon sale or settlement of such securities.

Further detail on the components of our total gains (losses) on investments, net for the three and nine months ended September 30, 2025 and 2024 is provided below in this Note 3.

The following table summarizes our MBS portfolio according to estimated weighted average life classifications as of September 30, 2025 and December 31, 2024 .

$ in thousands September 30, 2025 December 31, 2024

The following table summarizes our MBS portfolio according to estimated weighted average life classifications as of March 31, 2026 and December 31, 2025 .

$ in thousands March 31, 2026 December 31, 2025

Greater than one year and less than five years 1,268,720 2,031,058

1 unchanged sentence

Total 6,026,208 6,276,609

The following tables present the estimated fair value and gross unrealized losses of our MBS by length of time that such securities have been in a continuous unrealized loss position as of September 30, 2025 and December 31, 2024.

As of September 30, 2025

Less than 12 Months 12 Months or More Total

$ in thousands Fair

Value Unrealized

Losses Number

Securities Fair

Value Unrealized

Losses Number

Securities Fair

Value Unrealized

Losses Number

30 year fixed-rate pass-through 493,550 ( 1,829 ) 6 — — — 493,550 ( 1,829 ) 6

Agency-CMO 3,989 ( 29 ) 1 1,491 ( 278 ) 1 5,480 ( 307 ) 2

Agency CMBS 194,316 ( 2,294 ) 9 136,544 ( 2,266 ) 6 330,860 ( 4,560 ) 15

691,855 ( 4,152 ) 16 138,035 ( 2,544 ) 7 829,890 ( 6,696 ) 23

(1) Fair value option has been elected for all securities in an unrealized loss position.

As of December 31, 2024

Less than 12 Months 12 Months or More Total

$ in thousands Fair

Value Unrealized

Losses Number

Securities Fair

Value Unrealized

Losses Number

Securities Fair

Value Unrealized

Losses Number

30 year fixed-rate pass-through (1)

2,251,552 ( 18,897 ) 29 — — — 2,251,552 ( 18,897 ) 29

Agency-CMO (1)

— — — 18,909 ( 2,300 ) 5 18,909 ( 2,300 ) 5

Agency CMBS (1)

792,031 ( 23,949 ) 49 — — — 792,031 ( 23,949 ) 49

Non-Agency CMBS (2)

9,836 ( 510 ) 1 — — — 9,836 ( 510 ) 1

Non-Agency RMBS (3)

— — — 1,322 ( 251 ) 9 1,322 ( 251 ) 9

Total 3,053,419 ( 43,356 ) 79 20,231 ( 2,551 ) 14 3,073,650 ( 45,907 ) 93

(1) Fair value option has been elected for all Agency securities in an unrealized loss position.

(2) Unrealized losses on non-Agency CMBS were included in accumulated other comprehensive income.

These losses were not reflected in an allowance for credit losses based on a comparison of discounted expected cash flows to current amortized cost basis.

(3) Includes non-Agency IO with a fair value of $ 1.1 million for which the fair value option has been elected.

Such securities have unrealized losses of $ 231,000 .

We were required to evaluate our available-for-sale MBS for credit losses.

During the nine months ended September 30, 2025, we sold our remaining available-for-sale MBS for cash proceeds of $ 15.1 million and recognized net gains upon sale of $ 402,000 .

There were no sales of available-for-sale MBS during the three months ended September 30, 2025 or during the three and nine months ended September 30, 2024.

During the three months ended March 31, 2025, we sold our remaining non-Agency CMBS investment for cash proceeds of $ 10.2 million and recognized a loss upon sale of $ 116,000 .

This was the only security for which we had recorded an allowance for credit losses.

We did not hold any available-for-sale MBS during the three months ended March 31, 2026.

The following table presents a roll-forward of our allowance for credit losses.

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

$ in thousands 2026 2025

Beginning allowance for credit losses — ( 654 )

Additional (increases) decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period — 80 — ( 222 )

Reductions for securities sold — 654

Ending allowance for credit losses — —

The following table summarizes the components of our total gain (loss) on investments, net for the three and nine months ended September 30, 2025 and 2024.

Three Months Ended September 30, Nine Months Ended September 30,

The following table summarizes the components of our total gain (loss) on investments, net for the three months ended March 31, 2026 and 2025.

Three Months Ended March 31,

$ in thousands 2026 2025

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Net unrealized gains (losses) on MBS accounted for under the fair value option ( 55,383 ) 87,624

Net unrealized gains (losses) on U.S.

Treasury securities — — — ( 372 )

Net realized gains (losses) on U.S.

Treasury securities — — — ( 86 )

Total gain (loss) on investments, net ( 54,940 ) 82,158

The following tables present components of interest income recognized for the three and nine months ended September 30, 2025 and 2024.

For the three months ended September 30, 2025

$ in thousands Coupon

Interest Net (Premium

Amortization)/Discount

Accretion Interest

Agency RMBS 62,769 ( 386 ) 62,383

Agency CMBS 10,251 117 10,368

Other (inclusive of interest earned on cash balances) 165 — 165

Total interest income 73,185 ( 269 ) 72,916

For the three months ended September 30, 2024

$ in thousands Coupon

Interest Net (Premium

Amortization)/Discount

Accretion Interest

Agency RMBS 66,337 1,298 67,635

Agency CMBS 5,286 168 5,454

Non-Agency CMBS 125 114 239

Non-Agency RMBS 264 ( 103 ) 161

Other (inclusive of interest earned on cash balances) 336 — 336

Total interest income 72,348 1,477 73,825

For the nine months ended September 30, 2025

$ in thousands Coupon

Interest Net (Premium

Amortization)/Discount

Accretion Interest

The following tables present components of interest income recognized for the three months ended March 31, 2026 and 2025.

For the three months ended March 31, 2026

$ in thousands Coupon Interest Net (Premium Amortization)/ Discount Accretion Interest Income

Agency RMBS 70,374 ( 1,327 ) 69,047

Agency CMBS 9,794 730 10,524

Non-Agency CMBS 77 — 77

Non-Agency RMBS 296 ( 12 ) 284

Other (inclusive of interest earned on cash balances) 70 — 70

Total interest income 217,799 ( 413 ) 217,386

For the nine months ended September 30, 2024

$ in thousands Coupon

Interest Net (Premium

Amortization)/Discount

Accretion Interest

Total 80,238 ( 597 ) 79,641

For the three months ended March 31, 2025

$ in thousands Coupon Interest Net (Premium Amortization)/ Discount Accretion Interest Income

Agency RMBS 63,267 179 63,446

2 unchanged sentences

Non-Agency RMBS 250 ( 64 ) 186

Treasury Securities 22 ( 1 ) 21

Other (inclusive of interest earned on cash balances) 165 — 165

Total interest income 206,037 4,399 210,436

Total 73,636 210 73,846

Note 4 – Borrowings

3 unchanged sentences

Our repurchase agreements are subject to certain financial covenants.

We were in compliance with all of these covenants as of September 30, 2025.

The following tables summarize certain characteristics of our borrowings as of September 30, 2025 and December 31, 2024.

We were in compliance with all of these covenants as of March 31, 2026 and December 31, 2025.

The following table summarizes certain characteristics of our borrowings as of March 31, 2026 and December 31, 2025.

Refer to Note 5 - “Collateral Positions” for collateral pledged and held under our repurchase agreements.

$ in thousands September 30, 2025 December 31, 2024

Amount Outstanding Weighted Average Interest Rate Weighted Average Remaining Maturity

(days) Amount Outstanding Weighted Average Interest Rate Weighted Average Remaining Maturity

$ in thousands March 31, 2026 December 31, 2025

Outstanding Weighted

Rate Weighted

(days) Amount

Outstanding Weighted

Rate Weighted

Repurchase agreements - Agency RMBS 4,510,019 3.80 % 31 4,758,568 4.04 % 24

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Note 5 - Collateral Positions

The following table summarizes the fair value of collateral that we pledged and held under our repurchase agreements and derivative instruments as of September 30, 2025 and December 31, 2024.

The following table summarizes the fair value of collateral that we pledged and held under our repurchase agreements and derivative instruments as of March 31, 2026 and December 31, 2025.

Refer to Note 2 - “Summary of Significant Accounting Policies - Fair Value Measurements” of our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 for a description of how we determine fair value.

Agency RMBS and Agency CMBS collateral pledged is included in mortgage-backed securities on our condensed consolidated balance sheets.

Cash collateral pledged on centrally cleared interest rate swaps and futures contracts is classified as restricted cash on our condensed consolidated balance sheets.

Cash collateral pledged on to-be-announced securities forward contracts (“TBAs”) accounted for as derivatives is classified as due from counterparties on our condensed consolidated balance sheets.

Cash collateral pledged on centrally cleared interest rate swaps and U.S.

Treasury futures contracts is classified as restricted cash on our condensed consolidated balance sheets.

Cash collateral pledged on repurchase agreements and to-be-announced securities forward contracts (“TBAs”) accounted for as derivatives is classified as due from counterparties on our condensed consolidated balance sheets.

Cash collateral held that is not restricted for use is included in cash and cash equivalents on our condensed consolidated balance sheets and the liability to return the collateral is included in collateral held payable.

Non-cash collateral held is only recognized if the counterparty defaults or if we sell the pledged collateral.

As of September 30, 2025 and December 31, 2024, we did not recognize any non-cash collateral held on our condensed consolidated balance sheets.

As of March 31, 2026 and December 31, 2025, we did not hold any non-cash collateral.

$ in thousands As of

Collateral Pledged September 30, 2025 December 31, 2024

Collateral pledged March 31, 2026 December 31, 2025

Repurchase agreements:

3 unchanged sentences

Derivative instruments:

Cash 24,969 —

Restricted cash 138,323 110,391

2 unchanged sentences

Mortgage-backed securities 5,585,665 5,879,318

Cash 25,749 —

Restricted cash 138,323 110,391

Total collateral pledged 5,749,737 5,989,709

Collateral Held September 30, 2025 December 31, 2024

Collateral held March 31, 2026 December 31, 2025

Repurchase agreements:

Non-cash collateral 2,213 —

Total repurchase agreements collateral held 3,010 —

Total collateral held 14 —

Repurchase Agreements

4 unchanged sentences

We intend to maintain a level of liquidity that will enable us to meet any reasonably anticipated margin calls.

The ratio of our total repurchase agreements collateral pledged to our total repurchase agreements outstanding was 105 % as of September 30, 2025 (December 31, 2024:

The ratio of our total repurchase agreements collateral pledged to our total repurchase agreements outstanding was 105 % as of March 31, 2026 (December 31, 2025:

105 %) based on the fair value of the securities as reported in our condensed consolidated balance sheets.

Interest Rate Swaps

As of September 30, 2025 and December 31, 2024, all of our interest rate swaps were centrally cleared by the Chicago Mercantile Exchange (“CME”), a registered clearing organization, through a Futures Commission Merchant (“FCM”).

required to pledge initial margin and daily variation margin for our centrally cleared interest rate swaps that is based on the fair value of our contracts as determined by our FCM.

As of March 31, 2026 and December 31, 2025, all of our interest rate swaps were centrally cleared by the Chicago Mercantile Exchange (“CME”), a registered clearing organization, through a Futures Commission Merchant (“FCM”).

We are required to pledge initial margin and daily variation margin for our centrally cleared interest rate swaps that is based on the fair value of our contracts as determined by our FCM.

Collateral pledged with our FCM is segregated in our books and records and can be in the form of cash or securities.

Daily variation margin for centrally cleared interest rate swaps is characterized as settlement of the derivative itself rather than collateral and is recorded as gain (loss) on derivative instruments, net in our condensed consolidated statements of operations.

Certain of our FCM agreements include cross default provisions.

Futures Contracts

We are required to pledge initial margin and daily variation margin for our futures contracts that is based on the fair value of our contracts as determined by our FCM.

The daily variation margin payment for our futures contracts is characterized as settlement of the futures contract itself rather than collateral and is recorded as gain (loss) on derivative instruments, net in our condensed consolidated statement of operations.

Treasury Futures Contracts

We are required to pledge initial margin and daily variation margin for our U.S.

Treasury futures contracts that is based on the fair value of our contracts as determined by our FCM.

The daily variation margin payment for our U.S.

Treasury futures contracts is characterized as settlement of the U.S.

Treasury futures contract itself rather than collateral and is recorded as gain (loss) on derivative instruments, net in our condensed consolidated statements of comprehensive income (loss).

Our TBAs provide for bilateral collateral pledging based on market value as determined by our counterparties.

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$ in thousands Notional Amount as of December 31, 2025 Additions Settlement,

or Exercise Notional Amount as of September 30, 2025

or Exercise Notional Amount as of March 31, 2026

Interest rate swaps 3,820,000 1,025,000 ( 730,000 ) 4,115,000

Futures Contracts 1,402,000 4,167,000 ( 4,569,000 ) 1,000,000

Treasury futures contracts 1,090,000 1,290,000 ( 1,390,000 ) 990,000

TBA purchase contracts — 6,825,000 ( 5,375,000 ) 1,450,000

TBA sale contracts — ( 5,575,000 ) 5,375,000 ( 200,000 )

Total 4,667,000 4,912,000 ( 5,199,000 ) 4,380,000

Refer to Note 5 - “Collateral Positions” for further information regarding our collateral pledged to and received from our derivative counterparties.

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At each settlement date, we typically refinance each repurchase agreement at the market interest rate at that time.

Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposures to interest rate movements.

To accomplish these objectives, we primarily use interest rate swaps, as well as futures contracts, as part of our interest rate risk management strategy.

Our objectives in using interest rate derivatives are to manage our exposures to interest rate movements and to add stability to our borrowing costs.

To accomplish these objectives, we primarily use interest rate swaps and U.S.

Treasury futures contracts as part of our interest rate risk management strategy.

Under the terms of our interest rate swap contracts, we make fixed-rate payments to a counterparty in exchange for the receipt of floating-rate amounts over the life of the agreements without exchange of the underlying notional amount.

As of September 30, 2025 and December 31, 2024, we had interest rate swaps whereby we pay fixed interest rates and receive floating interest rates based on the secured overnight financing rate (“SOFR”) with the following maturities outstand ing .

$ in thousands As of September 30, 2025

As of March 31, 2026 and December 31, 2025, we had interest rate swaps whereby we pay fixed interest rates and receive floating interest rates based on the secured overnight financing rate (“SOFR”) with the following maturities outstand ing .

$ in thousands As of March 31, 2026

Maturities Notional

14 unchanged sentences

Total 3,820,000 1.34 % 3.87 % 4.6

Futures Contracts

We use futures contracts to help mitigate the potential impact of changes in interest rates on our performance.

The table below presents certain details of our futures contracts as of September 30, 2025 and December 31, 2024.

September 30, 2025 December 31, 2024

Treasury Futures Contracts

Treasury futures contracts to help mitigate the potential impact of changes in interest rates on our performance.

The table below presents certain details of our U.S.

Treasury futures contracts as of March 31, 2026 and December 31, 2025.

March 31, 2026 December 31, 2025

$ in thousands Notional Amount - Short Notional Amount - Short

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TBAs are forward contracts for the purchase or sale of Agency RMBS that specify the price, issuer, term and coupon of the securities to be delivered, but the actual securities are not identified until shortly before the TBA settlement date.

Our primary use of TBAs that we do not intend to physically settle has been in long positions as an alternative means of investing in and financing Agency RMBS.

During the second quarter of 2025, we used short positions in TBAs to manage risk and economically hedge a portion of our exposure to changes in Agency RMBS valuations.

The table below presents certain characteristics of our TBAs accounted for as derivatives as of December 31, 2024.

We did not have any TBAs outstanding as of September 30, 2025.

$ in thousands As of December 31, 2024

We do not intend to take or make delivery of the underlying Agency RMBS on the contractual settlement date of our TBAs accounted for as derivatives.

Our primary use of TBAs has been in long positions as an alternative means of investing in and financing Agency RMBS.

Additionally, we have used and may in the future use short positions in TBAs to manage risk and economically hedge a portion of our exposure to changes in Agency RMBS valuations.

The table below presents certain characteristics of our TBAs accounted for as derivatives as of March 31, 2026.

We did not have any TBAs outstanding as of December 31, 2025.

$ in thousands As of March 31, 2026

Notional Amount Implied Cost Basis Implied Market Value Net Carrying Value - Asset (Liability) (1)

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Net TBA derivatives 1,250,000 1,247,065 1,226,450 ( 20,615 )

(1) Derivative assets and derivative liabilities related to TBAs are presented gross on the condensed consolidated balance sheets.

(1) Derivative assets and derivative liabilities related to TBAs are presented on a gross basis on the condensed consolidated balance sheets.

Tabular Disclosure of the Effect of Derivative Instruments on the Balance Sheets

The table below presents the fair value of our derivative financial instruments, as well as their classification on the condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024.

The table below presents the fair value of our derivative financial instruments, as well as their classification on our condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025.

$ in thousands

Derivative Assets Derivative Liabilities

September 30,

2026 December 31,

2024 September 30,

2025 March 31,

2026 December 31,

Balance Sheets Fair Value Fair Value Balance Sheets Fair Value Fair Value

Balance Sheet Fair Value Fair Value Balance Sheet Fair Value Fair Value

Interest rate swaps asset — 2,235 Interest rate swaps liability 4,013 —

Futures Contracts 738 3,463 Futures Contracts — —

Treasury futures contracts — 2,177 U.S.

Treasury futures contracts 2,983 —

TBAs 1,119 — TBAs 21,734 —

Total derivative assets 1,119 4,412 Total derivative liabilities 28,730 —

The following tables summarize the effect of interest rate swaps, futures contracts and TBAs reported in gain (loss) on derivative instruments, net on the condensed consolidated statements of operations for the three and nine months ended September 30, 2025 and 2024.

$ in thousands

Three Months Ended September 30, 2025

not designated as

hedging instrument Realized gain (loss) on derivative instruments, net Contractual net interest income (expense) Unrealized gain (loss), net Gain (loss) on derivative instruments, net

Interest Rate Swaps ( 35,447 ) 29,138 5,714 ( 595 )

Futures Contracts ( 13,742 ) — 5,119 ( 8,623 )

Total ( 49,189 ) 29,138 10,833 ( 9,218 )

$ in thousands

Three Months Ended September 30, 2024

not designated as

hedging instrument Realized gain (loss) on derivative instruments, net Contractual net interest income (expense) Unrealized gain (loss), net Gain (loss) on derivative instruments, net

Interest Rate Swaps ( 160,472 ) 40,883 517 ( 119,072 )

Futures Contracts ( 12,419 ) — 2,527 ( 9,892 )

TBAs 94 — 1,525 1,619

Total ( 172,797 ) 40,883 4,569 ( 127,345 )

Tabular Disclosure of the Effect of Derivative Instruments on the Income Statement

The following tables summarize the effect of interest rate swaps, U.S.

Treasury futures contracts and TBAs reported in gain (loss) on derivative instruments, net on the condensed consolidated statements of comprehensive income (loss) for the three months ended March 31, 2026 and 2025.

$ in thousands

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

Not Designated as

hedging instrument Realized gain (loss) on derivative instruments, net Contractual net interest income (expense) Unrealized gain (loss), net Gain (loss) on derivative instruments, net

Hedging Instruments Realized Gain (Loss) on Derivative Instruments, Net Contractual net Interest Income (Expense) Unrealized Gain (Loss), Net Gain (Loss) on Derivative Instruments, Net

Interest rate swaps 2,211 21,578 ( 6,248 ) 17,541

Futures Contracts ( 52,258 ) — ( 2,725 ) ( 54,983 )

Treasury futures contracts 9,481 — ( 5,160 ) 4,321

TBAs 11,632 — ( 20,615 ) ( 8,983 )

1 unchanged sentence

$ in thousands

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Not Designated as

hedging instrument Realized gain (loss) on derivative instruments, net Contractual net interest income (expense) Unrealized gain (loss), net Gain (loss) on derivative instruments, net

Hedging Instruments Realized Gain (Loss) on Derivative Instruments, Net Contractual net Interest Income (Expense) Unrealized Gain (Loss), Net Gain (Loss) on Derivative Instruments, Net

Interest rate swaps ( 76,259 ) 28,079 542 ( 47,638 )

Futures Contracts ( 12,419 ) — 2,527 ( 9,892 )

Treasury futures contracts ( 28,682 ) — ( 4,172 ) ( 32,854 )

TBAs 3,425 — 388 3,813

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Assets and liabilities subject to such arrangements are presented on a gross basis on the condensed consolidated balance sheets.

The following tables present information about the assets and liabilities that are subject to master netting arrangements (or similar agreements) and can potentially be offset on our condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024.

The daily variation margin payments for centrally cleared interest rate swaps and futures contracts are characterized as settlement of the derivative itself rather than collateral.

Our derivative liability of $ 680,000 related to centrally cleared interest rate swaps and derivative asset of $ 738,000 related to futures contracts as of September 30, 2025 (December 31, 2024:

assets of $ 1.5 million and $ 3.5 million related to centrally cleared interest rate swaps and futures contracts, respectively) are not included in the table below as a result of this characterization of daily variation margin.

As of September 30, 2025

The daily variation margin payments for centrally cleared interest rate swaps and U.S.

Treasury futures contracts are characterized as settlement of the derivative itself rather than collateral.

Our derivative liabilities of $ 4.0 million related to centrally cleared interest rate swaps and $ 3.0 million related to U.S.

Treasury futures contracts as of March 31, 2026 (December 31, 2025:

assets of $ 2.2 million related to centrally cleared interest rate swaps and $ 2.2 million related to U.S.

Treasury futures contracts) are not included in the table below as a result of this characterization of daily variation margin.

As of March 31, 2026

Gross Amounts Not Offset with Financial Assets (Liabilities) in the Balance Sheets

$ in thousands

$ in thousands Gross

Assets (Liabilities) Gross

Offset in the

Sheets Net Amounts of Assets (Liabilities) Presented in the

Sheets Net Amounts

of Assets (Liabilities)

Balance Sheets Financial

Cash Collateral

(Received) Pledged Net

Instruments Cash Collateral

(Received) Pledged Net Amount

Derivatives (1) (2)

1,119 — 1,119 ( 1,119 ) — —

Total assets 1,119 — 1,119 ( 1,119 ) — —

Derivatives (1) (2)

( 21,734 ) — ( 21,734 ) 1,119 20,615 —

Repurchase agreements (3)

3 unchanged sentences

Gross Amounts Not Offset with Financial Assets (Liabilities) in the Balance Sheets

$ in thousands

$ in thousands Gross

Assets (Liabilities) Gross

Offset in the

Sheets Net Amounts of Assets (Liabilities) Presented in the

Sheets Net Amounts

of Assets (Liabilities)

Balance Sheets Financial

Instruments Cash Collateral

(Received) Pledged Net

Derivatives (2) (3)

21 — 21 — — 21

Total Assets 21 — 21 — — 21

Derivatives (2) (3)

( 627 ) — ( 627 ) — 580 ( 47 )

(Received) Pledged Net Amount

Repurchase agreements (3)

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Total liabilities ( 5,619,255 ) — ( 5,619,255 ) 5,619,255 — —

(1) The fair value of securities pledged against our borrowings under repurchase agreements was $ 5.4 billion as of September 30, 2025 (December 31, 2024:

$ 5.1 billion).

We held $ 797,000 of cash collateral under repurchase agreements as of September 30, 2025 (December 31, 2024:

Gross amounts not offset are limited to the net amount of repurchase agreement liabilities presented sufficient to reduce the net amount to zero for each counterparty.

Accordingly, cash collateral held under repurchase agreements is not shown in the table above, but the obligation to return the cash collateral is separately reported within collateral held payable on the condensed consolidated balance sheets.

(1) Amounts represent derivative assets and derivative liabilities which could potentially be offset against other derivative assets, derivative liabilities and cash collateral pledged or received.

(3) Cash collateral pledged by us on our derivatives was $ 122.2 million as of September 30, 2025 (December 31, 2024:

$ 138.1 million) of which $ 122.2 million relates to initial margin pledged on centrally cleared interest rate swaps and futures contracts (December 31, 2024:

(2) Cash collateral pledged by us on our derivatives was $ 163.3 million as of March 31, 2026 (December 31, 2025:

$ 110.4 million) of which $ 138.3 million relates to initial margin pledged on centrally cleared interest rate swaps and U.S.

Treasury futures contracts (December 31, 2025:

$ 110.4 million).

Centrally cleared interest rate swaps and futures contracts are excluded from the tables above.

We held no cash collateral on our derivatives as of September 30, 2025 or December 31, 2024.

Centrally cleared interest rate swaps and U.S.

Treasury futures contracts are excluded from the tables above.

We held no cash collateral on our derivatives as of March 31, 2026 or December 31, 2025.

(3) The fair value of securities pledged against our borrowings under repurchase agreements was $ 5.6 billion as of March 31, 2026 (December 31, 2025:

$ 5.9 billion).

We pledged $ 780,000 of cash collateral under repurchase agreements as of March 31, 2026 (December 31, 2025:

We held $ 14,000 of cash collateral under repurchase agreements as of March 31, 2026 (December 31, 2025:

Gross amounts not offset are limited to the net amount of repurchase agreement liabilities presented sufficient to reduce the net amount to zero for each counterparty.

Accordingly, cash collateral pledged and held under repurchase agreements are not shown in the table above, but the right to receive and the obligation to return the cash collateral are separately reported within due from counterparties and collateral held payable, respectively, on the condensed consolidated balance sheets.

Note 8 – Fair Value of Financial Instruments

8 unchanged sentences

The following tables present our assets and liabilities measured at fair value on a recurring basis.

As of September 30, 2025

As of March 31, 2026

Fair Value Measurements Using:

3 unchanged sentences

Derivative assets (2)

— 1,119 — 1,119

Total assets — 6,027,327 — 6,027,327

Derivative liabilities (2)

2,983 25,747 — 28,730

Total liabilities 2,983 25,747 — 28,730

7 unchanged sentences

Total assets 2,177 6,278,844 — 6,281,021

Derivative liabilities (2)

Total liabilities — 627 — 627

(1) For more detail about the fair value of our MBS, refer to Note 3 - “Mortgage-Backed Securities”.

(2) Derivative assets and derivative liabilities include futures contracts as Level 1 measurements and interest rate swaps and TBAs as Level 2 measurements.

The following table presents the carrying value and estimated fair value of our financial instruments that are not carried at fair value on the condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024.

September 30, 2025 December 31, 2024

(2) Derivative assets and derivative liabilities include U.S.

Treasury futures contracts as Level 1 measurements and interest rate swaps and TBAs as Level 2 measurements.

March 31, 2026 December 31, 2025

$ in thousands Carrying

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Our Manager is not obligated to dedicate any of its employees exclusively to us, nor is our Manager obligated to dedicate any specific portion of time to our business.

The costs of support personnel provided by our Manager for the three and nine months ended September 30, 2025 reimbursed or reimbursable by us were $ 309,000 and $ 860,000 , respectively (three and nine months ended September 30, 2024:

$ 494,000 and $ 1.1 million, respectively).

The costs of support personnel provided by our Manager reimbursed or reimbursable by us for the three months ended March 31, 2026 were $ 347,000 (three months ended March 31, 2025:

When cash collateral is received from counterparties under repurchase agreement borrowings, it is generally invested in a money market fund for which our Manager serves as the investment adviser.

5 unchanged sentences

GAAP and certain non-cash items upon approval by a majority of our independent directors.

During the periods presented in these condensed consolidated financial statements, we did not pay any management fees on our investment in an unconsolidated venture that was managed by an affiliate of our Manager.

Expense Reimbursement

1 unchanged sentence

Our reimbursement obligation is not subject to any dollar limitation.

The following table summarizes the costs incurred on our behalf by our Manager during the three and nine months ended September 30, 2025 and 2024.

Three Months Ended September 30, Nine Months Ended September 30,

The following table summarizes the costs incurred on our behalf by our Manager for the three months ended March 31, 2026 and 2025.

Three Months Ended March 31,

$ in thousands 2026 2025

4 unchanged sentences

Preferred Stock

In May 2022, our board of directors approved a share repurchase program for our Series B and Series C Preferred Stock.

During the three and nine months ended September 30, 2025, we repurchased and retired 89,223 and 276,172 shares of Series C Preferred Stock, respectively.

During the three and nine months ended September 30, 2024, we repurchased and retired no shares and 138,008 shares of Series B Preferred Stock, respectively, and 66,507 and 267,916 shares of Series C Preferred Stock, respectively.

We redeemed all outstanding shares of our Series B Preferred Stock in December 2024.

As of September 30, 2025, we had authority to repurchase 430,487 additional shares of our Series C Preferred Stock under the current preferred stock share repurchase program.

In May 2022, our board of directors approved a share repurchase program for our Series C Preferred Stock.

During the three months ended March 31, 2026, we repurchased and retired 64,688 shares of Series C Preferred Stock (three months ended March 31, 2025:

90,146 shares).

As of March 31, 2026, we had authority to repurchase 289,443 additional shares of our Series C Preferred Stock under the current preferred stock share repurchase program.

Holders of our Series C Preferred Stock are entitled to receive dividends at an annual rate of 7.50 % of the liquidation preference of $ 25.00 per share or $ 1.875 per share per annum until September 27, 2027.

After September 27, 2027, holders are entitled to receive dividends at a floating rate equal to three-month CME Term SOFR and the applicable credit spread adjustment ( 0.26161 %) plus a spread of 5.289 % of the $ 25.00 liquidation preference per annum.

Dividends are cumulative and payable quarterly in arrears.

We have the option to redeem shares of our Series C Preferred Stock on or after September 27, 2027 for $ 25.00 per share, plus any accumulated and unpaid dividends through the date of the redemption.

Shares of Series C Preferred Stock are not redeemable, convertible into or exchangeable for any other property or any other securities of the Company before this time, except under circumstances intended to preserve our qualification as a REIT or upon the occurrence of a change in control.

As of September 30, 2025, we had 20,388,007 shares of our common stock remaining available for sale from time to time in at-the-market or privately negotiated transactions under our equity distribution agreement with placement agents.

Shares of Series C Preferred Stock are not redeemable, convertible into or exchangeable for any other property or any other securities of the Company before that time, except under circumstances intended to preserve our qualification as a REIT or upon the occurrence of a change in control.

As of March 31, 2026, we had 36,840,411 shares of our common stock remaining available for sale from time to time in at-the-market or privately negotiated transactions under our equity distribution agreement with placement agents.

These shares are registered with the SEC under our shelf registration statement (as amended and/or supplemented).

The table below shows sales of our common stock under equity distribution agreements during the three and nine months ended September 30, 2025 and 2024.

Three Months Ended September 30, Nine Months Ended September 30,

The table below shows issuances of our common stock under equity distribution agreements during the three months ended March 31, 2026 and 2025.

Three Months Ended March 31,

Shares in ones, $ in thousands 2026 2025

2 unchanged sentences

Cash proceeds, net of fees paid to placement agents 133,633 36,068

During the three and nine months ended September 30, 2025 and 2024, we did not repurchase any shares of our common stock.

As of September 30, 2025, we had authority to repurchase 1,816,359 shares of our common stock through our common stock share repurchase program.

During the three months ended March 31, 2026 and 2025, we did not repurchase any shares of our common stock.

As of March 31, 2026, we had authority to repurchase 1,816,359 shares of our common stock through our common stock share repurchase program.

Accumulated Other Comprehensive Income

Our accumulated other comprehensive income and other comprehensive income (loss) related to gains and losses on MBS that were not accounted for under the fair value option.

Gains and losses on MBS that are accounted for under the fair value option are recorded on our condensed consolidated statements of operations within “Gain (loss) on investments, net”.

The table below summarizes the dividends we declared during the nine months ended September 30, 2025 and 2024.

$ in thousands, except per share amounts Dividends Declared

Series B Preferred Stock Per Share In Aggregate Date of Payment

August 7, 2024 0.4844 2,058 September 27, 2024

May 7, 2024 0.4844 2,058 June 27, 2024

February 21, 2024 0.4844 2,086 March 27, 2024

Our other comprehensive income (loss) during the three months ended March 31, 2025 related to gains and losses on MBS that were not accounted for under the fair value option.

Gains and losses on MBS that are accounted for under the fair value option are recorded on our condensed consolidated statements of comprehensive income (loss) within “Gain (loss) on investments, net”.

The tables below summarize the dividends we declared during the three months ended March 31, 2026 and 2025.

$ in thousands, except per share amounts Dividends Declared

Series C Preferred Stock Per Share In Aggregate Date of Payment

August 7, 2025 0.46875 3,261 September 29, 2025

May 6, 2025 0.46875 3,297 June 27, 2025

February 19, 2025 0.46875 3,341 March 27, 2025

August 7, 2024 0.46875 3,416 September 27, 2024

May 7, 2024 0.46875 3,450 June 27, 2024

February 21, 2024 0.46875 3,499 March 27, 2024

Series C Preferred Stock Per Share In Aggregate

Three months ended March 31, 2026 0.46875 3,190

Three months ended March 31, 2025 0.46875 3,341

$ in thousands, except per share amounts Dividends Declared

Common Stock Per Share In Aggregate Date of Payment

September 24, 2025 0.34 24,121 October 24, 2025

June 24, 2025 0.34 22,545 July 25, 2025

March 25, 2025 0.34 22,420 April 25, 2025

September 24, 2024 0.40 24,292 October 25, 2024

June 24, 2024 0.40 20,255 July 26, 2024

March 26, 2024 0.40 19,530 April 26, 2024

Common Stock Per Share In Aggregate

Three months ended March 31, 2026 0.36 30,049

Three months ended March 31, 2025 0.34 22,420

Note 11 – Earnings (Loss) per Common Share

Earnings (loss) per share for the three and nine months ended September 30, 2025 and 2024 is computed as shown in the table below.

Three Months Ended September 30, Nine Months Ended September 30,

Earnings (loss) per share for the three months ended March 31, 2026 and 2025 is calculated as follows.

Three Months Ended March 31,

In thousands, except per share amounts 2026 2025

Numerator (income)

Basic Earnings:

Net income (loss) available to common stockholders ( 23,121 ) 16,289

Denominator (weighted average shares)

Basic Earnings:

Shares available to common stockholders 67,582 56,232 65,495 51,394

Weighted average number of common shares outstanding - Basic 81,871 62,844

Effect of dilutive securities:

Restricted stock awards — 1

Dilutive Shares 67,583 56,233 65,496 51,395

Weighted average number of common shares outstanding - Diluted 81,871 62,845

Earnings (loss) per share

2 unchanged sentences

Diluted ( 0.28 ) 0.26

There were no antidilutive shares that were excluded from the calculation of diluted earnings per share during the three and nine months ended September 30, 2025 and 2024.

There were no antidilutive shares that were excluded from the calculation of diluted earnings per share during the three months ended March 31, 2026 and 2025.

Note 12 – Commitments and Contingencies

Commitments and contingencies may arise in the ordinary course of business.

As of September 30, 2025, we were not aware of any reported or unreported contingencies.

As of March 31, 2026, we were not aware of any reported or unreported contingencies.

Note 13 – Subsequent Events

On November 4, 2025, we declared a Series C Preferred Stock dividend of $ 0.46875 per share payable on December 29, 2025 to our stockholders of record as of December 5, 2025.

Common Stock Issuances

Between April 1, 2026 and May 6, 2026, we issued 6,653,459 shares of common stock under our equity distribution agreement with placement agents for cash proceeds, net of fees paid to placement agents, of $ 54.0 million.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements