Orchid Island Capital: Strong Book Value Growth and Stable Dividends in Q4 2024

Orchid Island Capital, Inc. (NYSE: ORC) has announced its estimated fourth quarter 2024 results, highlighting a significant increase in book value per share and a stable dividend payout. The company's strong performance is driven by a combination of factors, including growth in total stockholders' equity, net income, and a consistent dividend policy.



Book Value Per Share Growth

Orchid Island Capital's estimated book value per share as of December 31, 2024, was $8.09, representing a notable increase from the previous quarter's book value of $7.78 per share. This growth can be attributed to several factors:

1. Increase in total stockholders' equity: The company's total stockholders' equity increased from approximately $645.2 million as of September 30, 2024, to $668.5 million as of December 31, 2024. This increase in equity contributed to the rise in book value per share.
2. Growth in net income: The company generated net income per share of $0.07 for the quarter ended December 31, 2024, which includes an estimated $0.02 per share of net realized and unrealized gains on RMBS and derivative instruments. This net income contributed to the increase in book value per share.
3. Decrease in outstanding shares: Although the number of outstanding shares increased from 82,622,464 as of December 31, 2023, to 84,613,638 as of January 8, 2025, the increase in total stockholders' equity and net income outweighed the effect of the additional shares, leading to an increase in book value per share.



Stable Dividend Payout

Orchid Island Capital declared a monthly cash dividend of $0.12 per share for January 2025, consistent with the previous quarter's dividend. The company's commitment to regular monthly cash distributions to its holders of common stock is a key aspect of its REIT status, as it must distribute annually at least 90% of its REIT taxable income to qualify.

Total Return on Equity

The company's estimated total return on equity for the quarter ended December 31, 2024, was 0.6%. This was calculated as the sum of dividends declared and paid during the quarter plus changes in book value during the quarter, divided by the Company’s stockholders’ equity at the beginning of the quarter. The total return was $0.05 per share, comprised of dividends per share of $0.36 and a decrease in book value per share of $0.31 from September 30, 2024.

This indicates that the company's total return on equity was primarily driven by the dividends declared, which accounted for $0.36 per share, while the decrease in book value per share had a negative impact of $0.31 per share. The overall impact resulted in a total return on equity of 0.6% for the quarter.



In conclusion, Orchid Island Capital's strong performance in the fourth quarter of 2024, characterized by an increase in book value per share and a stable dividend payout, demonstrates the company's commitment to growth and shareholder value. As the company continues to execute its investment strategy and manage its RMBS portfolio, investors can expect a consistent and attractive return on their investment.