CreXus Investment Corp. (NYSE: CXS), today reported GAAP net income for the quarter ended June 30, 2012 of $14.4 million or $0.19 per average share, as compared to $22.1 million or $0.29 per average share for the quarter ended June 30, 2011 and $16.1 million or $0.21 per average share for the quarter ended March 31, 2012.
Common dividends declared for the quarters ended June 30, 2012, June 30, 2011 and March 31, 2012, were $0.27, $0.25 and $0.27 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 June 30, 2012, based on the June 30, 2012 closing price of $10.17, was 10.62%.
On a GAAP basis the Company provided a return on average equity of 6.24%, 10.03% and 6.97%, for the quarters ended June 30, 2012 and June 30, 2011, and March 31, 2012, respectively.
Kevin Riordan, Chief Executive Officer and President of CreXus, commented on the quarter’s results. “Our markets remain competitive, with a range of opportunities for new investments and portfolio improvement. In the second quarter CreXus closed $150 million of new subordinate debt investments; completed the sale of a $50 million senior ‘A’ note and sold two hotels realizing approximately $11 million and a pre-tax gain of $1.8 million. In the process, we increased our portfolio yield and extended our maturities. Our transaction pipeline is active, and I believe CreXus is well positioned to continue to execute on opportunities as they arise.”
The weighted average yield on interest earning debt assets was 11.27%, 4.72% and 11.11% at June 30, 2012, June 30, 2011 and March 31, 2012, respectively. The yield on the Company’s real estate portfolio, which includes real estate held for sale, as of the quarter ended June 30, 2012, and March 31, 2012 was 7.78% and 8.10%, respectively. The Company held no real estate properties at June 30, 2011.