Pasadena, California – (work wire) – Western Asset Mortgage Capital Corporation (the “Company”) (NYSE: WMC) announced today that its Board of Directors has declared a cash dividend of $0.06 per share for the fourth quarter of 2021. The dividend is payable today January 26, 2022 for ordinary shareholders of record as of December 31, 2021, with an ex-dividend date of December 30, 2021.
Additionally, the company estimates GAAP book value, as of November 30, 2021, to be approximately $3.31. The estimated GAAP carrying amount as of November 30, 2021 is unaudited, has not been verified or reviewed by our external auditors and is subject to regular quarterly reconciliation and other procedures. Furthermore, the estimated book value is as of November 30, 2021 and does not include the dividend announced today. GAAP book value will fluctuate with market conditions, results of company operations, and other factors. GAAP’s current book value could be materially different from the estimated November 30, 2021 GAAP book value.
The company offers the following business updates.
The Company, in consultation with its director, Western Asset Management Company, LLC (the “Director”), announces that it intends to focus on investments relating to residential property, including but not limited to non-qualified, non-agency mortgage loans, RMBS and other related investments. . The company believes that this focus will allow it to address attractive market opportunities while maintaining alignment with the manager’s core competencies. Portfolio transformation is expected in the next 12-18 months. The Company plans to move away from commercial investments in its portfolio, although from time to time it may make commercial investments on an opportunity basis.
The Director will voluntarily waive 25% of his management fee only for the period of 2022 in order to support the company’s potential earnings and its transition to a housing-focused investment portfolio.
The company has also expanded its share buyback program as authorized by its Board of Directors. Under the Extended Program, the Company is allowed to buy back up to 3,000,000 shares of its common stock through December 31, 2023. The prior authorization is set to expire December 31, 2021. Any purchases made under the Program will be made on the open market, in transactions that These are negotiated privately, or according to any trading plan that may be approved pursuant to rules 10b5-1 and 10b-18 of the SEC. The Authorization does not obligate the Company to acquire any particular amount of common stock, or any shares whatsoever, and the Program may be suspended or discontinued at the Company’s discretion without prior notice.
The overall objectives of management include increasing the company’s equity base to help reduce the company’s expense ratio and expand capital for investment, but from time to time when shares are trading at a significant discount, share buybacks can generate value for our shareholders. The timing, method, price and amount of any future buybacks will be determined by the Company at its discretion and will be subject to economic conditions, market, stock price, applicable legal requirements and other factors.
Additionally, during the fourth quarter, the company:
It repurchased $8.0 million in the total principal amount of the 2022 bond at a roughly 1% premium to face value, plus accrued interest.
It repurchased 479,808 shares of its common stock at an average price of $2.25.
About Al Gharbia Real Estate Capital Company
Western Asset Mortgage Capital Corporation is a real estate investment trust that invests in, acquires and manages a variety of assets comprising of full-fledged housing loans, business loans, non-agency CMBS, non-agency RMBS, GSE Risk Transfer Securities and to a lesser company. The extent of RMBS Agency, CMBS Agency and ABS. The company’s investment strategy may change, and for example change now as described above, in accordance with the company’s stated investment guidelines, and is based on its director’s perspective, Western Asset Management Company, LLC on the portfolio asset mix that it believes provides the company with the best risk and reward opportunities At what time. The Company is managed and advised externally by Western Asset Management Company, LLC, an investment advisory firm registered with the Securities and Exchange Commission and a wholly owned subsidiary of Franklin Resources, Inc. Please visit the Company’s website at www.westernassetmcc.com.
This press release contains statements that may constitute “forward-looking statements”. For such statements, the Company requires safe harbor protection of the forward-looking statements contained in these sections. Forward-looking statements are subject to significant risks and uncertainties, many of which are difficult to predict and are generally outside the Company’s control. In particular, it is difficult to fully assess the impact of COVID-19 at this time due to, among other factors, uncertainty about the severity and duration of the outbreak both locally and internationally and the effectiveness of efforts by federal, state and local governments to contain the spread of COVID-19 and respond to its direct impact and indirect on the US economy and economic activity. Other factors are described in the Risk Factors section of the Company’s annual report on Form 10-K for the period ended December 31, 2020 filed with the Securities and Exchange Commission (“SEC”). The Company undertakes no obligation to update this data for revisions or changes after the date of this release, except as required by law.