On this page of StockholderLetter.com we present the latest annual shareholder letter from AGNC Investment Corp. — ticker symbol AGNC. Reading current and past AGNC letters to shareholders can bring important insights into the investment thesis.

 •  3/6/2026 Letter Continued (Full PDF)
 •  3/10/2023 AGNC Stockholder Letter
 •  3/8/2024 AGNC Stockholder Letter
 •  3/7/2025 AGNC Stockholder Letter
 •  More "REITs" Category Stockholder Letters
 •  AGNC Benford's Law Stock Score = 41

AGNC Shareholder/Stockholder Letter Transcript:

2025
ANNUAL REPORT
INVESTING IN AMERICA   S GREATEST ASSET

$11.9B
May 2008
$94.8B
559%
54
99%
MARKET
CAPITALIZATION1
INITIAL PUBLIC
OFFERING
INVESTMENT
PORTFOLIO1
TOTAL STOCK
RETURN SINCE IPO2
EMPLOYEES1
AGENCY MBS1
13.4%
1.19%
391,000
DIVIDEND
YIELD1
THE OPPORTUNITY
Agency-guaranteed residential
MBS investments paired with
highly attractive funding
OPERATING EXPENSE
STRUCTURE3
THE OBJECTIVE
Favorable long-term stockholder
returns with a substantial
dividend yield component
HOMES
FINANCED4
THE IMPACT
Permanent capital supporting
American homeownership
across generations

DEAR FELLOW STOCKHOLDERS:
AGNC delivered exceptional results for stockholders in 2025, driven by strong Agency MBS performance and
our specialized portfolio management strategies. For the year, AGNC generated an economic return of 22.7%,
comprised of $1.44 of dividends per share and a $0.47 increase in tangible net book value per share. This
performance represents AGNC   s best annual economic return since 2012 and the highest economic return among
our Agency REIT Peer Group for the second consecutive year.5 Even more noteworthy, AGNC   s total stock return
in 2025 was 34.8% with dividends reinvested, nearly doubling the S&P 500 Index and significantly outperforming
major yield-oriented equity sectors.2
In 2025, AGNC generated the second
best annual total stock return in
the Company   s history, driven by
an attractive dividend yield. Since
inception, AGNC has delivered an
annualized total stock return of
11.3%, outperforming each of its
Agency-focused REIT peers over
this period.2
2025 Total Stock Returns2
40%
34.8%
30%
17.9%
20%
10%
16.0%
15.0%
3.1%
0%
(10%)
16.0%
AGNC
S&P 500 Utilities Mortgage
Mortgage Financials Real
REITs
REITs
Estate
(3.5%)
BDCs
In late 2023, we expressed our belief that
AGNC was at the forefront of a durable
AGNC Total Stock Returns2
and attractive investment environment as
(Measured over the trailing periods shown, each ended
the Fed   s unprecedented tightening cycle
December 31, 2025)
reached its conclusion. At that time, Agency
40%
34.8%
MBS spreads to benchmark interest rates had
begun to stabilize at historically wide levels,
30%
providing generationally attractive return
opportunities for Agency MBS investors. That
17.3%
20%
outlook proved to be correct. Despite several
episodes of extreme market turbulence,
11.3%
10%
including the U.S. presidential election in 2024
5.9%
and the    Liberation Day    tariff announcements
in 2025, AGNC stockholders experienced an
0%
annualized total stock return of 23% from
1 Year
3 Year
5 Year
Since Inception
(Annualized)
(Annualized)
(Annualized)
the end of the third quarter of 2023 through
2
the end of 2025. On the heels of one of the
best years in AGNC   s history from both a
total stock and economic return perspective, many of the favorable fundamental and technical factors that drove
AGNC   s 2025 performance remain intact and supportive of our positive outlook as we enter 2026.
AGNC Investment Corp.
2025 Annual Report     1

A FAVORABLE MACROECONOMIC BACKDROP
In 2025, Agency MBS benefited from a favorable macroeconomic climate, and investor sentiment continued to
improve across the fixed income spectrum. From a monetary policy standpoint, the Fed continued on its gradual
path to a neutral rate, delivering three interest rate cuts and reducing the federal funds rate by 75 basis points over
the course of the year. As expected, the Fed also pivoted its balance sheet activity from quantitative tightening
to reserve management as bank reserves reached an    ample    level. Following the unprecedented 2022-2023
tightening cycle that combined aggressive interest rate hikes with significant balance sheet runoff, the Fed has now
reduced the federal funds rate by 175 basis points since September 2024. This shift toward lower short-term rates
and greater accommodation, along with greater fiscal policy clarity, a stable supply outlook for Treasury securities,
and a greater anticipated share of short-term Treasury issuance, drove declines in interest rate volatility and a
further steepening of the yield curve over the course of the year.
Interest Rate Volatility (MOVE Index)6
U.S. Treasury Yield Curve7
250
5.5%
200
Great
Financial
Crisis
5.0%
Covid
Taper
Tantrum
150
D e c ' 22
4.5%
100
D e c ' 24
4.0%
50
Dec-25
Dec-24
Dec-23
Dec-22
Dec-21
Dec-20
Dec-19
Dec-18
Dec-17
Dec-16
Dec-15
Dec-14
Dec-13
Dec-12
Dec-11
Dec-10
Dec-09
3.5%
Dec-08
0
D e c ' 23
3.0%
D e c '2 5
33 Month
Month
22 Year
55 Year
Year
10 Year
20 Year
Year
20
AGENCY MBS: STRONG 2025 PERFORMANCE
While this constructive monetary and
fiscal policy backdrop supported strong
returns across fixed income assets,
the performance of Agency MBS was
particularly notable. The Bloomberg Agency
MBS Index produced an unlevered total
return of 8.6% in 2025, its best annual return
since 2002, and outperformed virtually all
domestic fixed income sectors. Further, the
Agency MBS Index significantly outpaced
the U.S. Treasury Index, despite both asset
classes possessing a similar credit profile.8
AGNC Investment Corp.
2025 Annual Report     2
2025 Fixed Income Total Returns8
10%
8%
8.6%
8.6%
7.8%
7.3%
6%
6.3%
4%
4.2%
2%
0%
High
High
Yield
Yield
Agency
MBS
Corporate Aggregate
Municipal
U.S.
Bond
Bond
Treasuries
Bond
Credit Risk Relative to Agency MBS
Higher
Higher
Higher
Similar
Higher

In addition to the supportive fixed income backdrop, several developments contributed to the meaningful
outperformance of Agency MBS.
Macro Theme
Development
Greater Clarity in
Approach to GSE
Reform
The uncertainty and potential risks related to the path of GSE reform that created an
overhang on the Agency MBS market early in the year gradually diminished as the
Administration signaled an approach focused on reducing Agency MBS spreads,
maintaining mortgage market stability, and improving housing affordability.
Balanced Supply and
Demand
The net new supply of Agency MBS was manageable, and total supply, inclusive of
Fed runoff, was in-line with prior years. The Agency MBS investor base diversified
further as private investor demand expanded, bank demand slowly returned, and the
GSEs grew their retained portfolios in the later months of 2025.
Improved Funding
Market Dynamics
The end of the Fed   s quantitative tightening cycle and renewed growth in the size of
its balance sheet, coupled with improved functionality of its Standing Repo Program
(SRP), eased short-term funding market pressures.
Attractive Agency
MBS Spreads
Despite tightening from historically wide levels over the course of 2025, Agency MBS
spreads to benchmark rates and, in turn, projected investment returns remained
attractive on both an absolute basis and relative to other yield-oriented fixed income
products that have credit risk, such as investment grade (IG) corporate bonds.
Agency MBS Spreads9
(Basis points)
250
Great
Financial
Crisis
200
Covid
   Liberation
Day   
Spread to Swaps
150
100
Spread to Treasuries
Dec-25
Dec-24
Dec-23
Dec-22
Dec-21
Dec-20
Dec-19
Dec-18
Dec-17
Dec-16
Dec-15
Dec-14
Dec-13
Dec-12
Dec-11
Dec-10
Material spread
widening and
volatility
Dec-09
0
Dec-08
50
AGNC Investment Corp.
2025 Annual Report     3

3/6/2026 Letter Continued (Full PDF)

 

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