On this page of StockholderLetter.com we present the latest annual shareholder letter from DYNEX CAPITAL INC — ticker symbol DX. Reading current and past DX letters to shareholders can bring important insights into the investment thesis.
2025 ANNUAL REPORT
WHO WE ARE Dynex Capital manages a highly liquid portfolio of mortgage-backed securities, executing a strategy to deliver durable yield and lasting value to shareholders. Our approach is grounded in deep expertise across market cycles, disciplined risk management, and an unwavering commitment to ethical stewardship of the capital entrusted to us. We operate as a real estate investment trust (REIT) and we measure our success not just in returns, but in the trust we earn along the way. At Dynex, we rely on our Core Values to sustain our high-performance culture and to consistently generate attractive, long-term returns. WE DELIVER VALUE We are unwavering in our commitment to deliver lasting value. Our focus on longterm performance underpins every decision, driving results for our stakeholders. WE ARE CURIOUS We continuously challenge the status quo and explore the unknown, embracing the idea of preparing, not predicting. Our comfort with uncertainty spurs openmindedness, which strengthens our team. By embracing feedback and remaining adaptable, we position ourselves to thrive in a dynamic financial landscape. WE BUILD TRUST We earn trust by acting with integrity, fostering a stewardship mindset and demonstrating transparency. We extend it by empowering each other to succeed. We trust in our team s capabilities and principles, knowing that trustworthiness is both our strength and responsibility. WE ARE KIND We have genuine regard for others wellbeing, expressed through empathy, patience, and respect. By honoring the inherent worth of all, we build a culture rooted in mutual regard and shared purpose. We embrace kindness even in challenging situations to create a culture where collaboration and excellence can thrive.
DYNEX CAPITAL, INC. 2025 ANNUAL SHAREHOLDER LETTER Reflections, Leadership Updates, and Vision for 2026 DEAR FELLOW SHAREHOLDERS, As we close the chapter on 2025, we are proud to share another year of meaningful progress and disciplined execution at Dynex Capital, Inc. In a dynamic and volatile market, our team s deep experience and commitment to shareholder value have set us apart. 2025 HIGHLIGHTS FINANCIAL PERFORMANCE AND SHAREHOLDER RETURNS 2025 was an outstanding year for Dynex shareholders, who earned a 29.4% total return for the year driven by a 21.6% total economic return (TER) and strong share price appreciation. These results reflect the power of our disciplined strategy and the consistency of our execution in a market defined by volatility and uncertainty. Throughout the year, we delivered dividends at an annualized rate of $2.00 per common share, distributed through monthly payments, with these distributions consistently supported by robust portfolio earnings and prudent capital deployment. Our book value increased by $0.75 per share, further reinforcing the durability of our raiseand-deploy capital strategy and disciplined investment approach. Together, these achievements represent our highest annual TER for the decade and demonstrate our team s ability to navigate changing market conditions while generating durable income and long-term value for our shareholders. CAPITAL BASE GROWTH AND PORTFOLIO EXPANSION Our proactive approach to capital raising in 2025 was instrumental in fortifying our balance sheet and expanding our portfolio of high-quality agency residential mortgage-backed securities DYNEX CAPITAL INC. 2025 ANNUAL REPORT (RMBS). By raising $1.2 billion of capital at accretive levels and expanding our investment portfolio to approximately $19.4 billion by year-end (and over $22 billion as of January 24, 2026), we significantly enhanced our scale and financial flexibility. We maintained a strong liquidity position of $1.4 billion, representing more than 55% of total equity, which provided the foundation for our strategic initiatives. Through disciplined execution and strategic capital deployment, we improved our price-to-book ratio and significantly reduced our expense ratio, delivering operating scale and improving liquidity of our common stock. These achievements reflect our steadfast commitment to sustainable growth, ethical stewardship of our shareholders capital, and the creation of enduring value. LEADERSHIP AND ORGANIZATIONAL UPDATES Our organization s strength continues to be anchored in the depth, experience, and continuity of our leadership team. In early 2025, we appointed T.J. Connelly as Chief Investment Officer, a move that has already enhanced our investment process and reinforced our disciplined approach to portfolio construction. We hired Michael Angelo as Chief Legal 1
Officer and Corporate Secretary. His addition further strengthens our leadership team and contributes to our ongoing commitment to robust governance and ethical stewardship of shareholder interests. The ongoing leadership of Byron Boston and Smriti Popenoe as Co-Chief Executive Officers provides strategic stability and a clear long-term vision as we navigate an evolving market environment. dynamics. While agency RMBS spreads have moved to a tighter range in 2026, the asset class has continued to offer attractive carry and return potential, particularly when combined with Dynex s disciplined leverage and active risk management. Our ability to raise capital at accretive levels, deploy it into liquid agency assets, and grow within a disciplined risk framework strengthens our earnings power. As we look ahead to 2026, we further strengthened our executive team with the addition of Meakin Bennett as Chief Operating Officer and the appointment of Mike Sartori as Chief Financial Officer. These leadership additions expand our operational and financial capabilities and reflect our continued investment in organizational excellence. In 2025, we also established our presence in New York City with the opening of a dedicated office an important step in supporting our continued growth and deepening our connectivity across the broader mortgage and capital markets ecosystem. Together, this leadership team is focused on driving performance, enhancing scalability, and fostering a culture of accountability in support of long-term shareholder value creation. Importantly, Dynex s growing scale supported by accretive capital raising and increasing operating leverage enhances our strategic flexibility and our ability to convert a supportive market environment into long-term shareholder value. We also want to express our gratitude for the valuable contributions made by Joy Palmer, who is retiring from the Board and will not be standing for re-election at this year s Annual Meeting. CLOSING THOUGHTS The entire Dynex team from the Boardroom to every part of our operations remains united by a shared commitment to generating value for shareholders and ensuring that our company remains a best-in-class mortgage investor. We enter 2026 with confidence in our business, clarity in our strategic direction, and deep appreciation for your ongoing trust and partnership. On behalf of the Board of Directors and the entire Dynex team, thank you for your continued support as we embark on the next phase of our journey. With gratitude, OUTLOOK FOR 2026 Looking ahead to 2026, we see a supportive environment for agency MBS driven by both near-term and longer-term structural factors. In the near term, market stability and liquidity are reinforced by potential GSE purchases of MBS in the secondary markets. Over time, we expect that a more flexible regulatory posture for banks has the potential to encourage greater balance sheet participation and healthier market BYRON L. BOSTON Chairman & Co-Chief Executive Officer SMRITI L. POPENOE Co-Chief Executive Officer & President March 2026 All forward-looking information in this letter should be read with, and is qualified in its entirety by, the cautionary language regarding forward-looking statements contained in Item 1 and the risk factors contained in Item 1A of our Form 10-K for the year ended December 31, 2025, included elsewhere in this report. 2 DYNEX CAPITAL INC. 2025 ANNUAL REPORT
 • shareholder letter icon 4/7/2026 Letter Continued (Full PDF)
 • stockholder letter icon 4/5/2023 DX Stockholder Letter
 • stockholder letter icon 3/28/2024 DX Stockholder Letter
 • stockholder letter icon 4/8/2025 DX Stockholder Letter
 • stockholder letter icon More "REITs" Category Stockholder Letters
 • Benford's Law Stocks icon DX Benford's Law Stock Score = 79


DX Shareholder/Stockholder Letter Transcript:

2025
ANNUAL
REPORT

WHO
WE ARE
Dynex Capital manages a
highly liquid portfolio of
mortgage-backed securities,
executing a strategy to
deliver durable yield and
lasting value to shareholders.
Our approach is grounded in deep
expertise across market cycles,
disciplined risk management, and
an unwavering commitment to
ethical stewardship of the capital
entrusted to us.
We operate as a real estate
investment trust (REIT)     and we
measure our success not just in
returns, but in the trust we earn
along the way.
At Dynex, we rely on our Core Values
to sustain our high-performance culture
and to consistently generate attractive,
long-term returns.
WE DELIVER VALUE
We are unwavering in our commitment to
deliver lasting value. Our focus on longterm performance underpins every decision,
driving results for our stakeholders.
WE ARE CURIOUS
We continuously challenge the status quo
and explore the unknown, embracing the
idea of preparing, not predicting. Our
comfort with uncertainty spurs openmindedness, which strengthens our team.
By embracing feedback and remaining
adaptable, we position ourselves to thrive
in a dynamic financial landscape.
WE BUILD TRUST
We earn trust by acting with integrity,
fostering a stewardship mindset and
demonstrating transparency. We extend
it by empowering each other to succeed.
We trust in our team   s capabilities and
principles, knowing that trustworthiness is
both our strength and responsibility.
WE ARE KIND
We have genuine regard for others    wellbeing, expressed through empathy, patience,
and respect. By honoring the inherent worth
of all, we build a culture rooted in mutual
regard and shared purpose. We embrace
kindness even in challenging situations to
create a culture where collaboration and
excellence can thrive.

DYNEX CAPITAL, INC.
2025 ANNUAL SHAREHOLDER LETTER
Reflections, Leadership Updates, and Vision for 2026
DEAR FELLOW SHAREHOLDERS,
As we close the chapter on 2025, we are proud
to share another year of meaningful progress and
disciplined execution at Dynex Capital, Inc. In a
dynamic and volatile market, our team   s deep
experience and commitment to shareholder value
have set us apart.
2025 HIGHLIGHTS
FINANCIAL PERFORMANCE AND
SHAREHOLDER RETURNS
2025 was an outstanding year for Dynex
shareholders, who earned a 29.4% total return
for the year   driven by a 21.6% total economic
return (TER) and strong share price appreciation.
These results reflect the power of our disciplined
strategy and the consistency of our execution in
a market defined by volatility and uncertainty.
Throughout the year, we delivered dividends at
an annualized rate of $2.00 per common share,
distributed through monthly payments, with these
distributions consistently supported by robust
portfolio earnings and prudent capital deployment.
Our book value increased by $0.75 per share,
further reinforcing the durability of our raiseand-deploy capital strategy and disciplined
investment approach. Together, these
achievements represent our highest annual TER
for the decade and demonstrate our team   s ability
to navigate changing market conditions while
generating durable income and long-term value
for our shareholders.
CAPITAL BASE GROWTH AND PORTFOLIO
EXPANSION
Our proactive approach to capital raising in 2025
was instrumental in fortifying our balance sheet
and expanding our portfolio of high-quality
agency residential mortgage-backed securities
DYNEX CAPITAL INC. 2025 ANNUAL REPORT
(RMBS). By raising $1.2 billion of capital at
accretive levels and expanding our investment
portfolio to approximately $19.4 billion by
year-end (and over $22 billion as of January
24, 2026), we significantly enhanced our scale
and financial flexibility. We maintained a strong
liquidity position of $1.4 billion, representing more
than 55% of total equity, which provided the
foundation for our strategic initiatives. Through
disciplined execution and strategic capital
deployment, we improved our price-to-book
ratio and significantly reduced our expense ratio,
delivering operating scale and improving liquidity
of our common stock. These achievements reflect
our steadfast commitment to sustainable growth,
ethical stewardship of our shareholders    capital,
and the creation of enduring value.
LEADERSHIP AND ORGANIZATIONAL UPDATES
Our organization   s strength continues to
be anchored in the depth, experience, and
continuity of our leadership team. In early 2025,
we appointed T.J. Connelly as Chief Investment
Officer, a move that has already enhanced
our investment process and reinforced our
disciplined approach to portfolio construction.
We hired Michael Angelo as Chief Legal
1

Officer and Corporate Secretary. His addition
further strengthens our leadership team and
contributes to our ongoing commitment to
robust governance and ethical stewardship of
shareholder interests. The ongoing leadership of
Byron Boston and Smriti Popenoe as Co-Chief
Executive Officers provides strategic stability
and a clear long-term vision as we navigate an
evolving market environment.
dynamics. While agency RMBS spreads have
moved to a tighter range in 2026, the asset
class has continued to offer attractive carry and
return potential, particularly when combined
with Dynex   s disciplined leverage and active
risk management. Our ability to raise capital
at accretive levels, deploy it into liquid agency
assets, and grow within a disciplined risk
framework strengthens our earnings power.
As we look ahead to 2026, we further
strengthened our executive team with the
addition of Meakin Bennett as Chief Operating
Officer and the appointment of Mike Sartori
as Chief Financial Officer. These leadership
additions expand our operational and financial
capabilities and reflect our continued investment
in organizational excellence. In 2025, we also
established our presence in New York City with
the opening of a dedicated office   an important
step in supporting our continued growth and
deepening our connectivity across the broader
mortgage and capital markets ecosystem.
Together, this leadership team is focused on
driving performance, enhancing scalability, and
fostering a culture of accountability in support of
long-term shareholder value creation.
Importantly, Dynex   s growing scale   supported by
accretive capital raising and increasing operating
leverage   enhances our strategic flexibility
and our ability to convert a supportive market
environment into long-term shareholder value.
We also want to express our gratitude for the
valuable contributions made by Joy Palmer, who
is retiring from the Board and will not be standing
for re-election at this year   s Annual Meeting.
CLOSING THOUGHTS
The entire Dynex team   from the Boardroom
to every part of our operations   remains
united by a shared commitment to generating
value for shareholders and ensuring that our
company remains a best-in-class mortgage
investor. We enter 2026 with confidence in our
business, clarity in our strategic direction, and
deep appreciation for your ongoing trust and
partnership.
On behalf of the Board of Directors and the entire
Dynex team, thank you for your continued support
as we embark on the next phase of our journey.
With gratitude,
OUTLOOK FOR 2026
Looking ahead to 2026, we see a supportive
environment for agency MBS driven by both
near-term and longer-term structural factors.
In the near term, market stability and liquidity
are reinforced by potential GSE purchases of
MBS in the secondary markets. Over time, we
expect that a more flexible regulatory posture
for banks has the potential to encourage greater
balance sheet participation and healthier market
BYRON L. BOSTON
Chairman & Co-Chief Executive Officer
SMRITI L. POPENOE
Co-Chief Executive Officer & President
March 2026
All forward-looking information in this letter should be read with, and is qualified in its entirety by, the cautionary language
regarding forward-looking statements contained in Item 1 and the risk factors contained in Item 1A of our Form 10-K for the
year ended December 31, 2025, included elsewhere in this report.
2
DYNEX CAPITAL INC. 2025 ANNUAL REPORT


shareholder letter icon 4/7/2026 Letter Continued (Full PDF)
 

DX Stockholder/Shareholder Letter (DYNEX CAPITAL INC) | www.StockholderLetter.com
Copyright © 2023 - 2026, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.