American Capital Earns $1.40 Per Share in 4Q 2012

American Capital Mortgage Investment Corp., Bethesda, Md., ended its first year as a public company with fourth-quarter 2012 earnings of $50.4 million in net income and earnings of $1.40 per share.

The real estate investment trust’s stock Monday had risen to $26.45 per share as of just before 12:30 p.m. It had closed at $25.45 per share on Friday.

President/chief investment officer Gary Kain said in a press release that executives at the REIT “feel good about…2012 results” as well as the economic return in 4Q 2012 “despite the weakness in agency MBS” during the period. The REIT invests primarily in agency MBS, but also in nonagency bonds.

The 4Q 2012 earnings are down from the third quarter’s $246.2 million in net earnings and earnings of $4.03 per share. But this was in part due to a relatively long period of “well-behaved” prepayments during 3Q 2012, followed by the Federal Reserve’s third round of quantitative easing.

QE3 presented “challenges and opportunities” to the mortgage-backed securities REIT, it had warned in its 3Q 2012 earnings. But in the 4Q 2012 earnings executives said they found an appropriate way to address the contingency.

“We prepared for the possibility of QE3 and positioned the portfolio appropriately, allocating more capital to assets less affected by QE3, with more upside to potential housing recovery,” said chairman and chief executive Malon Wilkus.