GLEN ALLEN, Va. - Dynex Capital, Inc. (NYSE:DX), a real estate investment trust (REIT), has initiated an underwritten public offering of 10.5 million shares of its common stock, the company disclosed Monday. The offering includes an option for underwriters to purchase up to an additional 1.575 million shares within a 30-day period.
The completion and terms of the offering are subject to market conditions and cannot be guaranteed. BTIG, LLC is serving as the sole book-running manager for the transaction.
The offering is being conducted in accordance with a shelf registration statement previously approved by the Securities and Exchange Commission (SEC). Prospective investors are advised to read the preliminary prospectus supplement and the accompanying prospectus available on the SEC's EDGAR website or directly from BTIG.
Dynex Capital intends to allocate the net proceeds from this offering towards acquiring additional investments in line with its investment policy and for general corporate purposes.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor will there be any sale of these securities in any jurisdiction where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of such jurisdiction.
Dynex Capital focuses on the diversified financing of real estate assets in the United States, aiming to generate dividend income and long-term total returns for its stakeholders. The company operates as a REIT and prides itself on ethical stewardship and comprehensive risk management.
The press release includes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual outcomes to differ materially from those anticipated, including general economic and market conditions. Dynex Capital warns against placing undue reliance on these forward-looking statements, which are valid only as of their date.
The information provided is based on a press release statement from Dynex Capital.
In other recent news, Dynex Capital, a real estate investment trust, has been active with significant developments. Marie Chandoha, a seasoned asset management professional, has been appointed to the company's Board of Directors, expanding the board to seven members. The company also declared a monthly cash dividend of $0.13 per common share for May 2024, underscoring its commitment to delivering dividend income to shareholders.
In a different sector, Dayforce, a provider of human resource and payroll services, has raised its revenue expectations for 2024 due to increased demand for its payroll offerings. The updated revenue forecast now stands between $1.73 billion and $1.74 billion.
Returning to Dynex Capital, the company's stock had its price target lowered by Keefe, Bruyette & Woods from $13.50 to $12.25, while maintaining an Outperform rating. This adjustment follows a reported miss in the company's first-quarter earnings.
Still, despite a decrease in book value per share, Dynex Capital reported a solid economic return of 2.1% for the first quarter of 2024. The company also raised $87 million of new capital and renewed its stock buyback program, indicating confidence in its future growth.
InvestingPro Insights
Dynex Capital, Inc. (NYSE:DX) recently announced a significant underwritten public offering, which has drawn the attention of investors and analysts alike. As the market assesses Dynex's financial health and future prospects, certain metrics and InvestingPro Tips provide a deeper understanding of the company's current position.
The company's market capitalization stands at a robust $800.09 million, reflecting investor confidence in its market value. Moreover, Dynex Capital boasts a noteworthy dividend yield of 12.65%, a clear sign of its commitment to returning value to shareholders. This is further supported by the company's track record of maintaining dividend payments for 17 consecutive years, highlighting its reliability in providing shareholder income.
Still, analysts have raised concerns about Dynex's near-term growth, anticipating a decline in sales in the current year. This is an important consideration for investors looking at the potential for revenue generation and growth. Moreover, it is worth noting that short-term obligations exceed liquid assets, which could pose liquidity challenges for the company.
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