CreXus Investment Corp. (NYSE: CXS), today reported GAAP net income for the quarter ended March 31, 2012 of $16.1 million or $0.21 per average share, as compared to $4.6 million or $0.23 per average share for the quarter ended March 31, 2011 and $41.8 million or $0.55 per average share for the quarter ended December 31, 2011.
Common dividends declared for the quarters ended March 31, 2012, March 31, 2011 and December 31, 2011, were $0.27, $0.23 and $0.35 per common share, respectively. The Company distributes dividends based on its current estimate of taxable earnings per common share, not GAAP earnings. Taxable and GAAP earnings will typically differ due to items such as differences in premium amortization and discount accretion, non-taxable unrealized and realized gains and losses, credit loss recognition, and non-deductible general and administrative expenses. The annualized dividend yield on the Company’s common stock for the quarter ended March 31, 2012, based on the March 31, 2012 closing price of $10.34, was 10.44%.
On a GAAP basis the Company provided a return on average equity of 6.97%, 6.80% and 18.14%, for the quarters ended March 31, 2012 and 2011, and December 31, 2011, respectively.
Kevin Riordan, Chief Executive Officer and President of CreXus, commented on the quarter’s results. “The commercial real estate finance market continues to evolve, and CreXus remains well-positioned to capitalize. We have seen a rising level of transaction volumes and a competitive lending landscape, particularly as the conduit business picks up and life companies remain committed to the market. In our portfolio, we made over $115 million in new debt and equity investments during the quarter and are in the late stages of consummating further new investments. We look forward to continuing to deliver strong risk-adjusted returns to our shareholders.”
The weighted average yield on interest earning assets was 11.11%, 6.47% and 29.86% at March 31, 2012, March 31, 2011 and December 31, 2011, respectively.