Western Asset Mortgage (NYSE:WMC) has just reported its third quarter. I have to say the dividend king has shown it is not "immortal". While mREITs as a whole struggled in the third quarter, I wasn't just surprised - I was shocked - when I saw the numbers out of WMC. The company saw GAAP net income of just $26.1 million, or $0.63 per basic and diluted share. This compares to net income of $67.6 million, or $1.68 per basic and diluted share for the second quarter. That is an unbelievable decline. I really am in disbelief. Further disappointing was that WMC generated core earnings plus drop income of only $27.8 million, or $0.67 per basic and diluted share, failing to cover the $0.70 dividend. This compares to core earnings plus drop income of $40.0 million, or $1.00 per basic and diluted share for the second quarter. What about the key metrics of the company?
I'll be up front. The spread sucked. It got.....READ MORE
is WMC GOING TO CUT DIVIDEND?
ReplyDelete