ORC · Orchid Island Capital, Inc.

Orchid Island Capital reported preliminary Q1 2026 results showing an estimated GAAP net loss of $0.11 per share, driven primarily by $0.37 per share in net realized and unrealized losses on its RMBS portfolio and derivative instruments. This contributed to an estimated total return on equity of (1.3)%, calculated as $0.36 in dividends declared minus a $0.46 decline in book value per share from $7.54 at December 31, 2025, to $7.08 at quarter-end. The RMBS portfolio, focused on leveraged Agency RMBS including pass-throughs and structured products, had a fair value of $11.6 billion, comprising 99.89% pass-through RMBS with a weighted average coupon of 5.57% and 97.75% in 30-year fixed-rate securities. Hedging included short positions in SOFR futures, Treasury futures, and swaps with notional of $7.9 billion. Borrowings totaled $10.9 billion at a weighted average rate of 3.79% across multiple counterparties, supporting the leveraged strategy. Despite the net loss, the Board declared a $0.10 per share monthly dividend for April 2026, consistent with REIT requirements to distribute at least 90% of taxable income. Shares outstanding rose to 196.7 million by March 31 from 182.0 million year-end, reflecting ongoing equity issuance. All figures are preliminary and subject to auditor review, with REIT taxable income noted as a better dividend indicator than GAAP net loss.