Dynex Capital, Inc.

Please stand by. Your conference is about to begin. Good day and welcome to the Dynex Capital, Inc. Third Quarter Earnings Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Kaitlyn Mauritz, Head of Capital Markets and Investor Relations. Please go ahead.

Thank you, Operator, and thank you to everyone joining us today for Dynex's Third Quarter 2026 Earnings Conference Call. Joining me on today's conference call are Smriti Popenoe, Co-Chief Executive Officer and President, Byron Boston, Chairman and Co-Chief Executive Officer, Michael Sartori, Chief Financial Officer, and TJ Connelly, Chief Investment Officer. Before we begin, I'd like to remind you that today's discussion may include forward-looking statements. These statements are based on current expectations, forecasts, and assumptions, and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially. For additional information regarding these risks and factors, please refer to our filings with the SEC available in the investor section of our website as well as on the SEC's website. Dynex undertakes no obligation to update or revise any forward-looking statements. Our earnings press release was issued and filed with the SEC earlier today and is available on the investor section of our website at dynexcapital.com as well as on the SEC's website. We may also reference our earnings presentation today, which is also available on our investor page. And with that, I'll turn the call over to Smriti for opening remarks.

Smriti Laxman Thank you, Kate. Good morning, everyone, and thank you for joining us today. This was a pivotal quarter in the markets, and Dynex was prepared for this moment. We had a strong liquidity position, our experienced team maintained our position in our highest conviction trade, and we have retained the capacity to invest as spreads have moved wider. In the third quarter, book value declined 15.4% to $10.91 per share for a total economic return of negative 11.4%. Our portfolio operated as designed. The liquidity position absorbed the book value movement, our financing remained deep and reliable, and our hedging limited our downside as 10-year treasury yields rose above 5%. During the quarter, we took another step in the evolution of our capital structure with the issuance of our Series D preferred stock, our first preferred equity offering in more than six years. The transaction added an accretive source of permanent capital and further diversified our capital base. The quarter's results reflect higher volatility and higher yields in the overall bond markets and wider spreads in the agency and BS markets. These moves were driven by fundamental shifts in the macroeconomic system. The U.S. economy is in the midst of a significant positive investment cycle driven by AI and the infrastructure required to support it. During the third quarter, we experienced a simultaneous and significant risk and price re-rating of several crucial factors related to AI investment. The significant demand for capital in this sector, the price of that capital, the impacts of that capital investment on the price of commodities, and the follow-on impacts of all of this on inflation are all higher, pushing yields up. At the same time, due to political uncertainty and rising government borrowing needs both in the U.S. and globally have reinforced upward pressure on yields. Against this backdrop, Agency MBS have actually been a sideshow, not the main act. And while flows were choppy and illiquid at times, the sector has not been the origin of market stress. In fact, the fundamentals and technicals behind Agency MBS are highly constructive. After the significant and rapid repricing, we find ourselves once again facing a highly attractive investment opportunity. Absolute real yields are compelling. At current levels, mortgage spreads are still historically wide and provide significant compensation at a time when the value of the borrower's prepayment option is substantially lower. Refinancing incentive is extremely limited, and much of the mortgage universe has already extended substantially. As a result, the duration and expected cash flows of these assets are more stable, and most importantly, The convexity profile of the mortgage market has improved dramatically. As a result, and as long-term investors in agency MBS, we are being paid a widespread while assuming considerably less cash flow uncertainty than is typically associated with mortgages. This combination underpins our confidence around strong forward returns. Yes, the cost of capital has temporarily adjusted higher. and prospective returns have adjusted materially higher. This is an important moment for Dynex and our shareholders. We've been building a more scaled and resilient Dynex with the liquidity and flexibility to navigate market and operating shocks. As we grow, our investment platform becomes increasingly durable with greater capacity to deploy capital and opportunistically capture attractive returns. I'd now like to turn the call over to Mike and TJ to discuss our financial results and portfolio positioning in greater detail.