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<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="margin-top:4pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES AND EXCHANGE COMMISSION </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Washington, D.C. 20549 </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>FORM <FONT
STYLE="white-space:nowrap">8-K</FONT> </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>CURRENT
REPORT </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Pursuant to Section&nbsp;13 OR 15(d) </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>of The Securities Exchange Act of 1934 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Date of Report (Date of earliest event reported):&nbsp;February 4, 2019 </B></P>
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 </P> <P STYLE="margin-top:4pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Exact name of registrant as specified in its charter) </B></P>
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<TD VALIGN="top" ALIGN="center"><B>Maryland</B></TD>
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<TD VALIGN="top" ALIGN="center"><B><FONT STYLE="white-space:nowrap">001-34385</FONT></B></TD>
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<TD VALIGN="top" ALIGN="center"><B><FONT STYLE="white-space:nowrap">26-2749336</FONT></B></TD></TR>
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<TD VALIGN="top" ALIGN="center"><B>(State&nbsp;or&nbsp;other&nbsp;jurisdiction<BR>of&nbsp;incorporation)</B></TD>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Commission</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>File&nbsp;Number)</B></P></TD>
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<TD VALIGN="top" ALIGN="center"><B>(IRS&nbsp;Employer<BR>Identification&nbsp;No.)</B></TD></TR>
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<TD VALIGN="top" NOWRAP ALIGN="center"><B>1555 Peachtree Street, NE, Atlanta, Georgia</B></TD>
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<TD VALIGN="top" ALIGN="center"><B>30309</B></TD></TR>
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<TD VALIGN="top" ALIGN="center"><B>(Address&nbsp;of&nbsp;principal&nbsp;executive&nbsp;offices)</B></TD>
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<TD VALIGN="top" ALIGN="center"><B>(Zip&nbsp;Code)</B></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Registrant&#146;s telephone number, including area code:
<FONT STYLE="white-space:nowrap">(404)&nbsp;892-0896</FONT> </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>n/a </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Former name or former address, if changed since last report.) </B></P>
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<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Check the appropriate box below if the Form <FONT STYLE="white-space:nowrap">8-K</FONT> filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions (<U>see</U> General Instruction A.2. below): </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top">Written&nbsp;communications&nbsp;pursuant&nbsp;to&nbsp;Rule&nbsp;425&nbsp;under&nbsp;the&nbsp;Securities&nbsp;Act&nbsp;(17&nbsp;CFR&nbsp;230.425)</TD></TR>
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<TD VALIGN="top">Soliciting&nbsp;material pursuant to Rule <FONT STYLE="white-space:nowrap">14a-12</FONT> under the Exchange Act (17 CFR <FONT STYLE="white-space:nowrap">240.14a-12)</FONT></TD></TR>
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<TD VALIGN="top"><FONT STYLE="white-space:nowrap">Pre-commencement&nbsp;communications</FONT> pursuant to Rule <FONT STYLE="white-space:nowrap">14d-2(b)</FONT> under the Exchange Act (17 CFR
<FONT STYLE="white-space:nowrap">240.14d-2(b))</FONT></TD></TR>
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<FONT STYLE="white-space:nowrap">240.13e-4(c))</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of
1933 (&#167;230.405 of this chapter) or Rule <FONT STYLE="white-space:nowrap">12b-2</FONT> of the Securities Exchange Act of 1934 <FONT STYLE="white-space:nowrap">(&#167;240.12b-2</FONT> of this chapter). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Emerging growth company&nbsp;&nbsp;&#9744; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">If an emerging
growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section&nbsp;13(a) of the Exchange
Act.&nbsp;&nbsp;&#9744; </P> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
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<TD WIDTH="10%" VALIGN="top" ALIGN="left"><B>Item&nbsp;2.02</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B>Results of Operations and Financial Condition. </B></P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Invesco Mortgage Capital, Inc. (the &#147;Company&#148;) is disclosing certain preliminary results of operations for the quarter ended </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December&nbsp;31, 2018 and for the period of January&nbsp;1, 2019 through January&nbsp;31, 2019. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Preliminary Results: </B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><B><I>Net loss per common share (basic) </I></B>is estimated to be in the range of ($1.53) to ($1.55) for the
quarter ended December&nbsp;31, 2018. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><B><I>Core earnings per common share</I></B>*<B><I> </I></B>is estimated to be in the range of $0.45 to $0.47 for
the quarter ended December&nbsp;31, 2018. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><B><I>Book value per diluted common share</I></B>**<B><I> </I></B>is estimated to be in the range of $15.24 to
$15.29 at December&nbsp;31, 2018. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><B><I>Book value per diluted common share</I></B>*** is estimated to be in the range of $15.90 to $16.10 at
January&nbsp;31, 2019 </P></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Additionally, the Company is providing estimates of operating results for the quarter and year
ended December&nbsp;31, 2018, as set forth below: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">The Company continued to reposition its portfolio during the fourth quarter by rotating out of seasoned Agency
residential mortgage-backed securities (&#147;RMBS&#148;) and into newly issued <FONT STYLE="white-space:nowrap">30-year</FONT> Agency RMBS and Agency commercial mortgaged-backed securities to capitalize on accretive opportunities in these sectors.
</P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">The Company purchased approximately $794&nbsp;million of securities during the fourth quarter with proceeds from
sales and paydowns of securities. The Company estimates its average earning assets were $18.1&nbsp;billion in the fourth quarter. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">As of December&nbsp;31, 2018, the Company&#146;s estimated <FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap">debt-to-equity</FONT></FONT> ratio was 6.7x. </P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The above information is preliminary and subject to completion,
including the completion of customary financial statement closing and review procedures for the quarter ended December&nbsp;31, 2018 and the quarter ended March&nbsp;31, 2019. As a result, the preliminary results set forth above reflect the
Company&#146;s preliminary estimate with respect to such information, based on information currently available to management, and may vary from the Company&#146;s actual financial results as of and for the quarter ended December&nbsp;31, 2018 and
the month ended January&nbsp;31, 2019. Further, these preliminary estimates are not a comprehensive statement or estimate of the Company&#146;s financial results or financial condition as of and for the quarter ended December&nbsp;31, 2018 and the
month ended January&nbsp;31, 2019. These preliminary estimates should not be viewed as a substitute for financial statements prepared in accordance with U.S. GAAP and they are not necessarily indicative of the results to be achieved in any future
period. Accordingly, you should not place undue reliance on these preliminary estimates. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">These preliminary estimates, which are the responsibility of the
Company&#146;s management, were prepared by the Company&#146;s management and are based upon a number of assumptions. Additional items that may require adjustments to these preliminary estimates may be identified and could result in material changes
to these preliminary estimates. Preliminary estimates of results are inherently uncertain and the Company undertakes no obligation to update this information. PricewaterhouseCoopers LLP (&#147;PwC&#148;), the Company&#146;s independent registered
public accounting firm, has not audited, reviewed, compiled or performed any procedures with respect to this preliminary financial information. Accordingly, PwC does not express an opinion or provide any form of assurance with respect thereto. </P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">*</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Core earnings (and by calculation, core earnings per common share) are
<FONT STYLE="white-space:nowrap">non-Generally</FONT> Accepted Accounting Principles (&#147;GAAP&#148;) financial measures. Refer to the section entitled <FONT STYLE="white-space:nowrap">&#147;Non-GAAP</FONT> Financial Measures&#148; for important
disclosures and a reconciliation to the most comparable U.S. GAAP measures. </P></TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">**</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Book value per diluted common share is calculated as total equity less the liquidation preference of Series A
Preferred Stock ($140.0 million), Series B Preferred Stock ($155.0 million) and Series C Preferred Stock ($287.5 million); divided by total common shares outstanding of 111,584,996 as of December&nbsp;31, 2018. </P></TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">***</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Book value per diluted common share is adjusted to exclude a pro rata portion of the current quarter&#146;s
common stock dividend (which for purposes of this calculation is assumed to be the same as the previous quarter) and is calculated as total equity less the liquidation preference of Series A Preferred Stock ($140.0 million), Series B Preferred Stock
($155.0 million) and Series C Preferred Stock ($287.5 million); divided by total common shares outstanding of 111,584,996 as of January&nbsp;31, 2019. </P></TD></TR></TABLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><FONT STYLE="white-space:nowrap">Non-GAAP</FONT> Financial Measures </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In the &#147;Preliminary Results&#148; section above, the Company presents a preliminary estimate of its core earnings per common share for the quarter ended
December&nbsp;31, 2018. The Company cautions that core earnings per common share not be utilized in isolation, nor should it be considered as an alternative to net loss attributable to common stockholders computed in accordance with U.S. GAAP, or
other measurements of results of operations computed in accordance with U.S. GAAP. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company uses the <FONT STYLE="white-space:nowrap">non-GAAP</FONT>
measure core earnings (and by calculation, core earnings per common share), to analyze the Company&#146;s operating results and believes this financial measure is useful to investors in assessing our performance as further discussed below. The most
directly comparable U.S. GAAP measure is net income (loss) attributable to common stockholders (and by calculation, net (loss) per common share (basic)). The table below presents a reconciliation of the estimated U.S. GAAP net loss per common share
(basic) to core earnings per share attributable to common stockholders for the quarter ended December&nbsp;31, 2018. Further information about this <FONT STYLE="white-space:nowrap">non-U.S.</FONT> GAAP financial measure, and how management uses it,
is set forth below this table. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="84%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="81%"></TD>
<TD VALIGN="bottom" WIDTH="7%"></TD>
<TD></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Three&nbsp;Months&nbsp;Ended</B><br><B>December&nbsp;31,&nbsp;2018</B></TD></TR>


<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Estimated Net (Loss) Per Common Share (Basic)</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center"><B>($1.53)&nbsp;to&nbsp;($1.55)</B></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><I>Estimated <FONT STYLE="white-space:nowrap">Non-U.S.</FONT> GAAP Core earnings
adjustments:</I></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">(Gain) loss on investments, net</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$(0.69)</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Realized (gain) loss on derivative instruments, net</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$2.26</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Unrealized (gain) loss on derivative instruments, net</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$0.36</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Realized and unrealized (gain) loss on GSE CRT embedded derivatives, net</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$0.13</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Amortization of net deferred (gain) loss on <FONT STYLE="white-space:nowrap">de-designated</FONT>
interest rate swaps</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$(0.05)</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:3.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Cumulative adjustments attributable to <FONT STYLE="white-space:nowrap">non-controlling</FONT>
interest</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center">$(0.01)</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman"><B>Estimated Core earnings per share attributable to common stockholders</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center"><B>$0.45&nbsp;to&nbsp;$0.47</B></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company calculates core earnings as U.S. GAAP net income (loss) attributable to common stockholders adjusted for (gain)
loss on investments, net; realized (gain) loss on derivative instruments, net; unrealized (gain) loss on derivative instruments, net; realized and unrealized (gain) loss on government sponsored enterprise credit risk transfer securities (&#147;GSE
CRT&#148;) embedded derivatives, net; (gain) loss on foreign currency transactions, net; amortization of net deferred (gain) loss on <FONT STYLE="white-space:nowrap">de-designated</FONT> interest rate swaps; net loss on extinguishment of debt; and
cumulative adjustments attributable to <FONT STYLE="white-space:nowrap">non-controlling</FONT> interest. Core earnings per share attributable to common stockholders is equal to core earnings divided by the basic weighted average number of common
shares outstanding. The Company may add and has added additional reconciling items to its core earnings calculation as appropriate. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company believes
the presentation of core earnings provides a consistent measure of operating performance by excluding the impact of gains and losses described above from operating results. The Company excludes the impact of gains and losses because gains and losses
are not accounted for consistently under U.S. GAAP. Under U.S. GAAP, certain gains and losses are reflected in net income whereas other gains and losses are reflected in other comprehensive income. For example, a portion of the Company&#146;s
mortgage-backed securities are classified as <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">available-for-sale</FONT></FONT> securities, and changes in the valuation of these </P>
</DIV></Center>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
securities are recorded in other comprehensive income on its consolidated balance sheet. The Company elected the fair value option for its mortgage-backed securities purchased on or after
September&nbsp;1, 2016, and changes in the valuation of these securities are recorded in other income (loss) in the consolidated statement of operations. In addition, certain gains and losses represent
<FONT STYLE="white-space:nowrap">one-time</FONT> events. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company believes that providing transparency into core earnings enables its investors to
consistently measure, evaluate and compare its operating performance to that of its peers over multiple reporting periods. However, the Company cautions that core earnings should not be considered as an alternative to net income (determined in
accordance with U.S. GAAP), or as an indication of the Company&#146;s cash flow from operating activities (determined in accordance with U.S. GAAP), a measure of the Company&#146;s liquidity, or an indication of amounts available to fund its cash
needs, including its ability to make cash distributions. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The information contained in Item 2.02 is furnished to and not filed with the Securities and
Exchange Commission, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly
set forth by specific reference in such filing. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Forward-Looking Statements </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">This Current Report on Form <FONT STYLE="white-space:nowrap">8-K</FONT> contains forward-looking statements within the meaning of the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as &#147;anticipate,&#148; &#147;estimate,&#148; &#147;will,&#148; &#147;should,&#148; &#147;expect,&#148; &#147;believe,&#148;
&#147;intend,&#148; &#147;seek,&#148; &#147;plan,&#148; and similar expressions or their negative forms, or by references to strategy, plans, or intentions, and include statements in this Current Report on Form
<FONT STYLE="white-space:nowrap">8-K</FONT> regarding the Company&#146;s preliminary financial results for the quarter ended December&nbsp;31, 2018 and for the period from January&nbsp;1, 2019 through January&nbsp;31, 2019. The Company cautions
investors not to place undue reliance on the forward-looking statements contained in this Current Report on Form <FONT STYLE="white-space:nowrap">8-K.</FONT> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. There can be no assurance that actual results will not
differ materially from our expectations. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks identified under the captions &#147;Risk Factors,&#148; &#147;Forward-Looking
Statements&#148; and &#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations&#148; in our annual report on Form <FONT STYLE="white-space:nowrap">10-K</FONT> and quarterly reports on Form <FONT
STYLE="white-space:nowrap">10-Q,</FONT> which are available on the Securities and Exchange Commission&#146;s website at www.sec.gov. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">All written or oral
forward-looking statements that we make, or that are attributable to us, are expressly qualified by this cautionary notice. We expressly disclaim any obligation to update the information in any public disclosure if any forward-looking statement
later turns out to be inaccurate. </P> <P STYLE="font-size:18pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="10%" VALIGN="top" ALIGN="left"><B>Item&nbsp;8.01</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B>Other Events. </B></P></TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">On November&nbsp;30, 2018, the Company redeemed the units in its operating partnership held by a wholly-owned Invesco Ltd.
(&#147;Invesco&#148;) subsidiary for $21.8&nbsp;million. The Company also repurchased 75,100 shares of common stock owned by a wholly-owned Invesco subsidiary for $1.1&nbsp;million. The redemption price for the units, and price paid for the common
stock, was equal to the market value of an equivalent number of shares of the Company&#146;s registered common stock, calculated in accordance with the terms of the operating partnership&#146;s limited partnership agreement. </P>
</DIV></Center>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SIGNATURES </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>
<TD WIDTH="47%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="4%"></TD>
<TD VALIGN="bottom"></TD>
<TD WIDTH="47%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"><B>Invesco&nbsp;Mortgage&nbsp;Capital&nbsp;Inc.</B></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"><B>Date: February&nbsp;4, 2019</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Robert H. Rigsby</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">Name: Robert H. Rigsby <BR>Title: Vice President and Secretary</TD></TR>
</TABLE>
</DIV></Center>

</BODY></HTML>
[{"type": "8-K", "sequence": "1", "filename": "d665156d8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 37454}]
{"company-data": {"conformed-name": "Invesco Mortgage Capital Inc.", "cik": "0001437071", "assigned-sic": "6798", "irs-number": "262749336", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-34385", "film-number": "19564164"}, "business-address": {"street1": "TWO PEACHTREE POINTE", "street2": "1555 PEACHTREE STREET, NE", "city": "ATLANTA", "state": "GA", "zip": "30309", "phone": "404-892-0896"}, "mail-address": {"street1": "TWO PEACHTREE POINTE", "street2": "1555 PEACHTREE STREET, NE", "city": "ATLANTA", "state": "GA", "zip": "30309"}, "former-company": {"former-conformed-name": "Invesco Agency Securities Inc.", "date-changed": "20080606"}}
Form 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 4, 2019
(Exact name of registrant as specified in its charter)
Maryland
001-34385
26-2749336
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
1555 Peachtree Street, NE, Atlanta, Georgia
30309
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code:
(404) 892-0896
n/a
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form
8-K
filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions (
see
General Instruction A.2. below):
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule
14a-12
under the Exchange Act (17 CFR
240.14a-12)
☐
Pre-commencement communications
pursuant to Rule
14d-2(b)
under the Exchange Act (17 CFR
240.14d-2(b))
☐
Pre-commencement communications
pursuant to Rule
13e-4(c)
under the Exchange Act (17 CFR
240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of
1933 (§230.405 of this chapter) or Rule
12b-2
of the Securities Exchange Act of 1934
(§240.12b-2
of this chapter).
Emerging growth company  ☐
If an emerging
growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange
Act.  ☐
Item 2.02
Results of Operations and Financial Condition.
Invesco Mortgage Capital, Inc. (the "Company") is disclosing certain preliminary results of operations for the quarter ended
December 31, 2018 and for the period of January 1, 2019 through January 31, 2019.
Preliminary Results:
•
Net loss per common share (basic)
is estimated to be in the range of ($1.53) to ($1.55) for the
quarter ended December 31, 2018.
•
Core earnings per common share
*
is estimated to be in the range of $0.45 to $0.47 for
the quarter ended December 31, 2018.
•
Book value per diluted common share
**
is estimated to be in the range of $15.24 to
$15.29 at December 31, 2018.
•
Book value per diluted common share
*** is estimated to be in the range of $15.90 to $16.10 at
January 31, 2019
Additionally, the Company is providing estimates of operating results for the quarter and year
ended December 31, 2018, as set forth below:
•
The Company continued to reposition its portfolio during the fourth quarter by rotating out of seasoned Agency
residential mortgage-backed securities ("RMBS") and into newly issued
30-year
Agency RMBS and Agency commercial mortgaged-backed securities to capitalize on accretive opportunities in these sectors.
•
The Company purchased approximately $794 million of securities during the fourth quarter with proceeds from
sales and paydowns of securities. The Company estimates its average earning assets were $18.1 billion in the fourth quarter.
•
As of December 31, 2018, the Company's estimated
debt-to-equity
ratio was 6.7x.
The above information is preliminary and subject to completion,
including the completion of customary financial statement closing and review procedures for the quarter ended December 31, 2018 and the quarter ended March 31, 2019. As a result, the preliminary results set forth above reflect the
Company's preliminary estimate with respect to such information, based on information currently available to management, and may vary from the Company's actual financial results as of and for the quarter ended December 31, 2018 and
the month ended January 31, 2019. Further, these preliminary estimates are not a comprehensive statement or estimate of the Company's financial results or financial condition as of and for the quarter ended December 31, 2018 and the
month ended January 31, 2019. These preliminary estimates should not be viewed as a substitute for financial statements prepared in accordance with U.S. GAAP and they are not necessarily indicative of the results to be achieved in any future
period. Accordingly, you should not place undue reliance on these preliminary estimates.
These preliminary estimates, which are the responsibility of the
Company's management, were prepared by the Company's management and are based upon a number of assumptions. Additional items that may require adjustments to these preliminary estimates may be identified and could result in material changes
to these preliminary estimates. Preliminary estimates of results are inherently uncertain and the Company undertakes no obligation to update this information. PricewaterhouseCoopers LLP ("PwC"), the Company's independent registered
public accounting firm, has not audited, reviewed, compiled or performed any procedures with respect to this preliminary financial information. Accordingly, PwC does not express an opinion or provide any form of assurance with respect thereto.
*
Core earnings (and by calculation, core earnings per common share) are
non-Generally
Accepted Accounting Principles ("GAAP") financial measures. Refer to the section entitled
"Non-GAAP
Financial Measures" for important
disclosures and a reconciliation to the most comparable U.S. GAAP measures.
**
Book value per diluted common share is calculated as total equity less the liquidation preference of Series A
Preferred Stock ($140.0 million), Series B Preferred Stock ($155.0 million) and Series C Preferred Stock ($287.5 million); divided by total common shares outstanding of 111,584,996 as of December 31, 2018.
***
Book value per diluted common share is adjusted to exclude a pro rata portion of the current quarter's
common stock dividend (which for purposes of this calculation is assumed to be the same as the previous quarter) and is calculated as total equity less the liquidation preference of Series A Preferred Stock ($140.0 million), Series B Preferred Stock
($155.0 million) and Series C Preferred Stock ($287.5 million); divided by total common shares outstanding of 111,584,996 as of January 31, 2019.
Non-GAAP
Financial Measures
In the "Preliminary Results" section above, the Company presents a preliminary estimate of its core earnings per common share for the quarter ended
December 31, 2018. The Company cautions that core earnings per common share not be utilized in isolation, nor should it be considered as an alternative to net loss attributable to common stockholders computed in accordance with U.S. GAAP, or
other measurements of results of operations computed in accordance with U.S. GAAP.
The Company uses the
non-GAAP
measure core earnings (and by calculation, core earnings per common share), to analyze the Company's operating results and believes this financial measure is useful to investors in assessing our performance as further discussed below. The most
directly comparable U.S. GAAP measure is net income (loss) attributable to common stockholders (and by calculation, net (loss) per common share (basic)). The table below presents a reconciliation of the estimated U.S. GAAP net loss per common share
(basic) to core earnings per share attributable to common stockholders for the quarter ended December 31, 2018. Further information about this
non-U.S.
GAAP financial measure, and how management uses it,
is set forth below this table.
Three Months Ended
December 31, 2018
Estimated Net (Loss) Per Common Share (Basic)
($1.53) to ($1.55)
Estimated
Non-U.S.
GAAP Core earnings
adjustments:
(Gain) loss on investments, net
$(0.69)
Realized (gain) loss on derivative instruments, net
$2.26
Unrealized (gain) loss on derivative instruments, net
$0.36
Realized and unrealized (gain) loss on GSE CRT embedded derivatives, net
$0.13
Amortization of net deferred (gain) loss on
de-designated
interest rate swaps
$(0.05)
Cumulative adjustments attributable to
non-controlling
interest
$(0.01)
Estimated Core earnings per share attributable to common stockholders
$0.45 to $0.47
The Company calculates core earnings as U.S. GAAP net income (loss) attributable to common stockholders adjusted for (gain)
loss on investments, net; realized (gain) loss on derivative instruments, net; unrealized (gain) loss on derivative instruments, net; realized and unrealized (gain) loss on government sponsored enterprise credit risk transfer securities ("GSE
CRT") embedded derivatives, net; (gain) loss on foreign currency transactions, net; amortization of net deferred (gain) loss on
de-designated
interest rate swaps; net loss on extinguishment of debt; and
cumulative adjustments attributable to
non-controlling
interest. Core earnings per share attributable to common stockholders is equal to core earnings divided by the basic weighted average number of common
shares outstanding. The Company may add and has added additional reconciling items to its core earnings calculation as appropriate.
The Company believes
the presentation of core earnings provides a consistent measure of operating performance by excluding the impact of gains and losses described above from operating results. The Company excludes the impact of gains and losses because gains and losses
are not accounted for consistently under U.S. GAAP. Under U.S. GAAP, certain gains and losses are reflected in net income whereas other gains and losses are reflected in other comprehensive income. For example, a portion of the Company's
mortgage-backed securities are classified as
available-for-sale
securities, and changes in the valuation of these
securities are recorded in other comprehensive income on its consolidated balance sheet. The Company elected the fair value option for its mortgage-backed securities purchased on or after
September 1, 2016, and changes in the valuation of these securities are recorded in other income (loss) in the consolidated statement of operations. In addition, certain gains and losses represent
one-time
events.
The Company believes that providing transparency into core earnings enables its investors to
consistently measure, evaluate and compare its operating performance to that of its peers over multiple reporting periods. However, the Company cautions that core earnings should not be considered as an alternative to net income (determined in
accordance with U.S. GAAP), or as an indication of the Company's cash flow from operating activities (determined in accordance with U.S. GAAP), a measure of the Company's liquidity, or an indication of amounts available to fund its cash
needs, including its ability to make cash distributions.
The information contained in Item 2.02 is furnished to and not filed with the Securities and
Exchange Commission, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly
set forth by specific reference in such filing.
Forward-Looking Statements
This Current Report on Form
8-K
contains forward-looking statements within the meaning of the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "anticipate," "estimate," "will," "should," "expect," "believe,"
"intend," "seek," "plan," and similar expressions or their negative forms, or by references to strategy, plans, or intentions, and include statements in this Current Report on Form
8-K
regarding the Company's preliminary financial results for the quarter ended December 31, 2018 and for the period from January 1, 2019 through January 31, 2019. The Company cautions
investors not to place undue reliance on the forward-looking statements contained in this Current Report on Form
8-K.
Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. There can be no assurance that actual results will not
differ materially from our expectations. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks identified under the captions "Risk Factors," "Forward-Looking
Statements" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our annual report on Form
10-K
and quarterly reports on Form
10-Q,
which are available on the Securities and Exchange Commission's website at www.sec.gov.
All written or oral
forward-looking statements that we make, or that are attributable to us, are expressly qualified by this cautionary notice. We expressly disclaim any obligation to update the information in any public disclosure if any forward-looking statement
later turns out to be inaccurate.
Item 8.01
Other Events.
On November 30, 2018, the Company redeemed the units in its operating partnership held by a wholly-owned Invesco Ltd.
("Invesco") subsidiary for $21.8 million. The Company also repurchased 75,100 shares of common stock owned by a wholly-owned Invesco subsidiary for $1.1 million. The redemption price for the units, and price paid for the common
stock, was equal to the market value of an equivalent number of shares of the Company's registered common stock, calculated in accordance with the terms of the operating partnership's limited partnership agreement.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
Invesco Mortgage Capital Inc.
Date: February 4, 2019
By:
/s/ Robert H. Rigsby
Name: Robert H. Rigsby
Title: Vice President and Secretary