Technical Research on INVESCO and Nationstar: Mortgage REITs Score New 52 Weeks High
LONDON, February 14, 2013 /PRNewswire/ --
Mortgage rates are declining and while it bodes well for the housing sector and spurs home buying activities,it is not such a good news for REITs investing in mortgage loan assets. Low mortgage interests generally translate into narrower interest spreads for REITs,putting a strain on their margins. However,Mortgage REITs are diversifying their holdings to neutralize the impact. Despite these challenges,Mortgage REITs are offering good returns as INVESCO Mortgage Capital Inc. (NYSE: IVR) recently made a new 52 weeks high and delivered good quarterly results. Nationstar Mortgage Holdings Inc. (NYSE: NSM) is also on an upward trajectory. The REIT looks to grow through acquisitions and recently finalized the purchase of Equifax Settlement business. The acquisition is expected to be accretive. StockCall has posted free technical research reports on INVESCO Mortgage Capital Inc. and Nationstar Mortgage Holdings Inc.,and these can be accessed by signing up at
Invesco Mortgage Posts Q4 Results
Invesco Mortgage Capital invests in mortgage loan assets. Like its peers, the REIT is also struggling to cope with low interest rate mortgage environment. The company is currently working to reduce its agency MBS holdings, though it still makes up a large part of its portfolio. Invesco Mortgage reported its fourth quarter earnings at 77 cents per share, surpassing estimates of 65 cents per share in income. It also offered 65 cents per unit in quarterly dividend, further improving its investors' returns. Download the free report on INVESCO Mortgage Capital Inc. upon registration at
Invesco Mortgage remains a good buy. However, there are some pitfalls to avoid. The company may face the negative impact of economic sequestration which is likely to take place in March. The REIT is well diversified between commercial and residential mortgages and thus has better cushion. It is also working to curtail its general and administrative expenses. Invesco Mortgage hold about two third of its assets in residential agency MBS and about three quarter of its RMBS portfolio consists of 30-year fixed rate MBS. Invesco Mortgage is looking to make a shift towards more lucrative commercial MBS.
Invesco Mortgage is a good investment, given its well diversified portfolio and efficient management. The stock is in a bullish phase as it recently hit its new 52-week high. The momentum is likely to continue. The REIT has better multiples than most of its peers and offers a good investment avenue.
Nationstar Mortgage Acquires Equifax Settlement Unit
Nationstar Mortgage is trading on its 52-week high level and still has upside potential. The REIT recently acquired settlement business from Equifax. The acquisition is expected to be accretive and will help Nationstar Mortgage in building a more wholesome and efficient business organization. It will also help the vertical integration process as the REIT would not require engaging third party services to carry out title search and appraisal work. It will also provide a new revenue stream for Nationstar Mortgage. Nationstar Mortgage Holdings Inc. technical report can be accessed for free by signing up at
Nationstar Mortgage is looking to drive up its returns and margins. Its stock offered 32 percent appreciation on a YTD basis to its investors. It is expected to move up as Nationstar Mortgage draws synergistic returns from its new acquisition of Equifax settlement business. It also recently inked a new deal with KB Home. Under this deal, Nationstar Mortgage will provide mortgage services to prospective home buyers. It is expected that the deal with help the REIT is driving up its revenue.
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