Capstead Reports '06 Loss

Capstead Mortgage Corp., Dallas, has reported a net loss attributable to common stockholders of $16.4 million ($0.87 per share) for 2006, compared with net income available to common stockholders of $36.9 million ($1.96 per share) in 2005.Capstead attributed the loss to payment of preferred-share dividends totaling $20.3 million. For the fourth quarter, the company reported a net loss attributable to common stockholders of $2.7 million ($0.14 per share), compared with net income available to common stockholders of $33.9 million ($1.80 per share) a year earlier. The company said its financing spreads have declined significantly over the recent two-year period of rising short-term interest rates and are "only now" beginning to improve. "Although our operating results have been disappointing in the wake of this prolonged period of Federal Reserve interest rate tightening, we have remained focused on our core investment strategy of investing in a large portfolio of residential [adjustable-rate mortgage] securities," said Andrew F. Jacobs, Capstead's president and chief executive officer. Capstead can be found on the Web at http://www.capstead.com.