CreXus Investment Corp. (NYSE: CXS), today reported GAAP net income for the quarter ended September 30, 2012 of $22.6 million or $0.30 per average share, as compared to $39.9 million or $0.52 per average share for the quarter ended September 30, 2011 and $14.4 million or $0.19 per average share for the quarter ended June 30, 2012.
Common dividends declared for the quarters ended September 30, 2012, September 30, 2011, and June 30, 2012, were $0.32, $0.30 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 September 30, 2012, based on the September 30, 2012 closing price of $10.81, was 11.84%.
On a GAAP basis the Company provided a return on average equity of 9.83%, 17.61% and 6.24%, for the quarters ended September 30, 2012, September 30, 2011, and June 30, 2012, respectively.
Kevin Riordan, Chief Executive Officer and President of CreXus, commented on the quarter’s results. “With $125 million of capital committed this quarter, we continue the process of increasing our portfolio yield and maturity while maintaining a consistent risk profile, and building a book of business that is designed to perform for the long-term. The weight of Fed involvement in the fixed income markets is being felt in our markets and credit spreads are tightening, but we believe this will result in an increase in new loan originations and securities issuance. Our pipeline and platform remain active, and we will continue to capitalize on opportunities as they arise.”