Dynex Capital, Inc. (NYSE: DX) announced today that its Board of Directors has declared a dividend on its common stock of $0.27 per share for the second quarter of 2011. The common stock dividend will be payable on July 29, 2011 to shareholders of record as of June 30, 2011.
The Company recently implemented a Dividend Reinvestment and Share Purchase Plan, which is in effect for the upcoming dividend. The plan allows registered shareholders to automatically reinvest some or all of their quarterly dividends in shares of the Company's stock and provides an opportunity for investors to purchase shares of the Company's stock, potentially at a discount to the prevailing market price. The Dividend Reinvestment Discount for second quarter dividends reinvested through the plan will be 3% of the market purchase price as determined in accordance with the plan. Registered shareholders and interested investors may enroll in the plan by contacting The Bank of New York Mellon by accessing its website at www.bnymellon.com/shareowner/equityaccess or by calling 1-866-280-0407.
As previously reported by the Company, in the litigation styled Teamsters Local 445 Freight Division Pension Fund versus Dynex Capital, Inc. et al. (the Defendants), on March 7, 2011, the United States District Court for the Southern District of New York certified a class consisting of purchasers between February 7, 2000 and May 13, 2004 of certain bonds collateralized by manufactured housing loans issued in 1999 by MERIT Securities Corporation, a wholly-owned subsidiary of the Company. During the class period Teamsters purchased approximately $400,000 of the bonds issued by MERIT. On March 18, 2011, the Defendants filed a petition for immediate appeal with the United States Court of Appeals for the Second Circuit, seeking to reverse the class certification by the District Court. On June 3, 2011, the Court of Appeals denied the petition for an immediate appeal. The class certification decision would be reviewable on appeal by the Court of Appeals at such time there is a final judgment, if any, against the Defendants in the litigation. The Company has evaluated the allegations that are the subject of the litigation and continues to believe them to be without merit and is defending itself vigorously in this matter. The Company believes that the resolution of this litigation will not have a material adverse effect on its consolidated financial position but could have a material impact on the Company's reported earnings, results of operations and cash flows in a given quarter.
Dynex Capital, Inc. is an internally managed real estate investment trust, or REIT, which invests in mortgage assets on a leveraged basis. The Company invests in Agency, and non-Agency RMBS and CMBS. The Company also has investments in securitized single-family residential and commercial mortgage loans originated by the Company from 1992 to 1998. Additional information about Dynex Capital, Inc. is available at www.dynexcapital.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding the business of Dynex Capital, Inc. that are not historical facts such as the outcome of this litigation are "forward-looking statements" that involve risks and uncertainties. For a discussion of these risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission.
Dynex Capital, Inc.
Alison Griffin, 804-217-5897