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.
INVESTING IN AMERICA S GREATEST ASSET 2024 ANNUAL REPORT
$8.3B May 2008 $73.3B 389% 53 97% MARKET CAPITALIZATION1 INITIAL PUBLIC OFFERING INVESTMENT PORTFOLIO1 TOTAL STOCK RETURN SINCE IPO2 EMPLOYEES1 FIXED RATE AGENCY MBS1 15.6% 1.24% 350,000 DIVIDEND YIELD1 OPERATING EXPENSE STRUCTURE3 HOMES FINANCED4
DEAR FELLOW STOCKHOLDERS: The favorable Agency MBS investment environment that we had anticipated definitively arrived in 2024. Following an unprecedented dual-track approach to monetary policy tightening that began in March 2022, the Federal Reserve (the Fed ) finally took the initial steps in its pivot from a highly restrictive monetary policy stance to a more accommodative posture. Importantly, interest rate volatility eased, the yield curve steepened, and Agency MBS spreads to benchmark rates stabilized in a relatively narrow and advantageous trading range. Against this improved macroeconomic backdrop, AGNC delivered a 13.2% economic return for the year, powered by our compelling monthly dividend. AGNC s economic return was the highest among our Agency REIT Peer Group and significantly above the peer average of 5.6%.5 Driven by an attractive dividend yield component, AGNC generated an economic return of 13.2% in 2024, and, notably, we have delivered an annualized total stock return of 10.0% since inception in 2008.2,5 OUTPERFORMANCE OF OUR AGENCY-FOCUSED REIT PEERS5 (Economic return outperformance in percentage points) +7.6 pp +169 pp ONE YEAR SINCE INCEPTION Our strong 2024 annual results illustrate our ability to generate compelling risk-adjusted returns during periods of moderate interest rate volatility and wide and stable Agency MBS spreads. Entering 2025, we maintain our very positive outlook for Agency MBS, a fundamental building block of a well-diversified portfolio. AGNC provides our stockholders access to this asset class through a platform that has generated best-in-class returns since our IPO, highlighting the benefits of our active portfolio management strategies, industry-leading operating efficiency, and accretive capital management approach. THE OPPORTUNITY Agency-guaranteed residential MBS investments paired with highly attractive funding THE OBJECTIVE Favorable long-term stockholder returns with a substantial dividend yield component THE IMPACT Permanent capital supporting American homeownership across generations AGNC Investment Corp. 2024 Annual Report 1
MONETARY POLICY: A GRADUAL PATH TO NEUTRAL Throughout 2022 and 2023, the Fed raised the federal funds rate by 525 basis points while simultaneously reducing its balance sheet by $1.3 trillion. As a result of this multi-year hiking cycle, the federal funds rate remained at its 22-year peak of 5.50%6 for over a year. This aggressive monetary policy campaign, along with a persistently turbulent macroeconomic climate, led to sharply higher interest rates, a dramatic widening of Agency MBS spreads, and prolonged volatility across both of these measures. These adverse dynamics ultimately reduced Agency MBS valuations significantly and created an extremely challenging environment for managing a levered Agency MBS portfolio. In September 2024, the Fed finally began to recalibrate monetary policy by delivering its first rate cut in over four years, ultimately reducing the federal funds rate by 100 basis points by the end of the year. With this shift to a more accommodative monetary policy stance, supported by declining inflationary pressures and a stabilizing labor market, interest rate volatility eased, and the yield curve steepened after being inverted for the second longest episode on record. Interest Rate Volatility (MOVE Index)7 U.S. Treasury Yield Curve8 250 200 GFC Covid Taper Tantrum 150 100 5.5% Dec '24 4.5% Jun '24 Dec '22 4.0% 50 Dec '23 Dec-24 Dec-22 Dec-20 Dec-18 Dec-16 Dec-14 Dec-12 Dec-10 3.5% Dec-08 0 5.0% 3.0% 3 Month 2 Year Sep '24 5 Year 10 Year 20 Year While bouts of financial market volatility are inevitable, a more accommodative monetary policy outlook provides a constructive backdrop for investing in fixed income securities, including Agency MBS. AGNC Investment Corp. 2024 Annual Report 2
AGENCY MBS: A COMPELLING PORTFOLIO BUILDING BLOCK AGNC s book value and earnings power and by extension, stock price are driven by our portfolio of Agency MBS. As such, through an investment in AGNC common stock, a stockholder gains exposure to Agency MBS on a levered and hedged basis and the diversification advantages this asset class offers. These assets benefit from compelling fundamentals and favorable attributes that we believe make them an important building block of any investment portfolio. BENEFITS OF INVESTING IN AGENCY MBS DIFFERENTIATED ASSET Fundamental fixed income asset class that supports the U.S. mortgage market with minimal correlation to equities GOVERNMENT SUPPORT Agency-backed guarantee from Fannie Mae, Freddie Mac, or Ginnie Mae substantially eliminates credit risk for investors SUBSTANTIAL YIELD OPPORTUNITY Compelling current income with an ability to employ leverage through highly attractive funding that enhances return potential HIGHLY LIQUID MARKET Massive fixed income asset class with substantial trading liquidity, second only to the U.S. Treasury market The current outlook for Agency MBS is enhanced by an attractive technical backdrop, as a confluence of factors has created a highly compelling entry point for new investments in this asset class. Most importantly, Agency MBS spreads to benchmark rates have generally stabilized in an advantageous trading range, and interest rate volatility has eased. Further, this newly established range is meaningfully wider than historical averages and disproportionately wide when compared to other fixed income asset classes. These technical factors present attractive projected returns for levered investors and enhance the relative value of Agency MBS investment opportunities within the broader fixed income universe. Agency MBS Spreads9 (Basis points) Spread to Swaps Dec-24 Dec-23 Dec-20 Dec-19 Dec-18 Dec-17 Dec-16 Dec-13 Dec-12 Dec-11 Dec-10 Dec-09 Dec-08 50 0 Material spread widening and volatility Spread to Treasuries Dec-22 100 Dec-21 150 Dec-15 200 Covid GFC Dec-14 250 AGNC Investment Corp. 2024 Annual Report 3
 • shareholder letter icon 3/7/2025 Letter Continued (Full PDF)
 • stockholder letter icon 3/10/2023 AGNC Stockholder Letter
 • stockholder letter icon 3/8/2024 AGNC Stockholder Letter
 • stockholder letter icon More "REITs" Category Stockholder Letters
 • Benford's Law Stocks icon AGNC Benford's Law Stock Score = 63


AGNC Shareholder/Stockholder Letter Transcript:

INVESTING IN
AMERICA   S
GREATEST ASSET
2024 ANNUAL REPORT

$8.3B
May 2008
$73.3B
389%
53
97%
MARKET
CAPITALIZATION1
INITIAL PUBLIC
OFFERING
INVESTMENT
PORTFOLIO1
TOTAL STOCK
RETURN SINCE IPO2
EMPLOYEES1
FIXED RATE
AGENCY MBS1
15.6%
1.24%
350,000
DIVIDEND
YIELD1
OPERATING EXPENSE
STRUCTURE3
HOMES
FINANCED4

DEAR FELLOW STOCKHOLDERS:
The favorable Agency MBS investment environment that we had anticipated definitively arrived in 2024. Following
an unprecedented dual-track approach to monetary policy tightening that began in March 2022, the Federal
Reserve (the    Fed   ) finally took the initial steps in its pivot from a highly restrictive monetary policy stance to a more
accommodative posture. Importantly, interest rate volatility eased, the yield curve steepened, and Agency MBS
spreads to benchmark rates stabilized in a relatively narrow and advantageous trading range. Against this improved
macroeconomic backdrop, AGNC delivered a 13.2% economic return for the year, powered by our compelling
monthly dividend. AGNC   s economic return was the highest among our Agency REIT Peer Group and significantly
above the peer average of 5.6%.5
Driven by an attractive
dividend yield component,
AGNC generated an economic
return of 13.2% in 2024, and,
notably, we have delivered an
annualized total stock return of
10.0% since inception in 2008.2,5
OUTPERFORMANCE OF OUR
AGENCY-FOCUSED REIT PEERS5
(Economic return outperformance in percentage points)
+7.6 pp
+169 pp
ONE YEAR
SINCE INCEPTION
Our strong 2024 annual results illustrate our ability to generate compelling risk-adjusted returns during periods
of moderate interest rate volatility and wide and stable Agency MBS spreads. Entering 2025, we maintain our very
positive outlook for Agency MBS, a fundamental building block of a well-diversified portfolio. AGNC provides our
stockholders access to this asset class through a platform that has generated best-in-class returns since our IPO,
highlighting the benefits of our active portfolio management strategies, industry-leading operating efficiency, and
accretive capital management approach.
THE OPPORTUNITY
Agency-guaranteed residential
MBS investments paired with
highly attractive funding
THE OBJECTIVE
Favorable long-term stockholder
returns with a substantial
dividend yield component
THE IMPACT
Permanent capital supporting
American homeownership
across generations
AGNC Investment Corp.
2024 Annual Report     1

MONETARY POLICY: A GRADUAL PATH TO NEUTRAL
Throughout 2022 and 2023, the Fed raised the federal funds rate by 525 basis points while simultaneously
reducing its balance sheet by $1.3 trillion. As a result of this multi-year hiking cycle, the federal funds rate remained
at its 22-year peak of 5.50%6 for over a year. This aggressive monetary policy campaign, along with a persistently
turbulent macroeconomic climate, led to sharply higher interest rates, a dramatic widening of Agency MBS
spreads, and prolonged volatility across both of these measures. These adverse dynamics ultimately reduced
Agency MBS valuations significantly and created an extremely challenging environment for managing a levered
Agency MBS portfolio.
In September 2024, the Fed finally began to recalibrate monetary policy by delivering its first rate cut in over four
years, ultimately reducing the federal funds rate by 100 basis points by the end of the year. With this shift to a more
accommodative monetary policy stance, supported by declining inflationary pressures and a stabilizing labor
market, interest rate volatility eased, and the yield curve steepened after being inverted for the second longest
episode on record.
Interest Rate Volatility (MOVE Index)7
U.S. Treasury Yield Curve8
250
200
GFC
Covid
Taper
Tantrum
150
100
5.5%
Dec '24
4.5%
Jun '24
Dec '22
4.0%
50
Dec '23
Dec-24
Dec-22
Dec-20
Dec-18
Dec-16
Dec-14
Dec-12
Dec-10
3.5%
Dec-08
0
5.0%
3.0%
3 Month
2 Year
Sep '24
5 Year
10 Year 20 Year
While bouts of financial market volatility are inevitable,
a more accommodative monetary policy outlook provides a
constructive backdrop for investing in fixed income securities,
including Agency MBS.
AGNC Investment Corp.
2024 Annual Report     2

AGENCY MBS: A COMPELLING PORTFOLIO BUILDING BLOCK
AGNC   s book value and earnings power     and by extension, stock price     are driven by our portfolio of Agency
MBS. As such, through an investment in AGNC common stock, a stockholder gains exposure to Agency MBS     on
a levered and hedged basis     and the diversification advantages this asset class offers. These assets benefit from
compelling fundamentals and favorable attributes that we believe make them an important building block of any
investment portfolio.
BENEFITS OF INVESTING IN AGENCY MBS
DIFFERENTIATED ASSET
Fundamental fixed income asset class that
supports the U.S. mortgage market with
minimal correlation to equities
GOVERNMENT SUPPORT
Agency-backed guarantee from Fannie Mae,
Freddie Mac, or Ginnie Mae substantially
eliminates credit risk for investors
SUBSTANTIAL YIELD OPPORTUNITY
Compelling current income with an ability to
employ leverage through highly attractive
funding that enhances return potential
HIGHLY LIQUID MARKET
Massive fixed income asset class with
substantial trading liquidity, second only to the
U.S. Treasury market
The current outlook for Agency MBS is enhanced by an attractive technical backdrop, as a confluence of factors
has created a highly compelling entry point for new investments in this asset class. Most importantly, Agency
MBS spreads to benchmark rates have generally stabilized in an advantageous trading range, and interest rate
volatility has eased. Further, this newly established range is meaningfully wider than historical averages and
disproportionately wide when compared to other fixed income asset classes. These technical factors present
attractive projected returns for levered investors and enhance the relative value of Agency MBS investment
opportunities within the broader fixed income universe.
Agency MBS Spreads9
(Basis points)
Spread to Swaps
Dec-24
Dec-23
Dec-20
Dec-19
Dec-18
Dec-17
Dec-16
Dec-13
Dec-12
Dec-11
Dec-10
Dec-09
Dec-08
50
0
Material
spread
widening and
volatility
Spread to Treasuries
Dec-22
100
Dec-21
150
Dec-15
200
Covid
GFC
Dec-14
250
AGNC Investment Corp.
2024 Annual Report     3



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