Mortgage real estate investment trust (mREIT) that invests in residential mortgage-backed securities (RMBS), primarily those issued by government-sponsored enterprises.
Orchid Island Capital, Inc., headquartered in Vero Beach, Florida, is a specialized finance company that focuses on investing in residential mortgage-backed securities (RMBS) within the United States. The company's RMBS portfolio primarily consists of single-family residential mortgage loans, specifically Agency RMBS. These investments are secured by mortgages guaranteed by government-sponsored enterprises like Fannie Mae, Freddie Mac, and Ginnie Mae.
The portfolio of Orchid Island Capital includes a variety of Agency RMBS, including traditional pass-through securities such as mortgage pass-through certificates and collateralized mortgage obligations (CMOs). Additionally, the company invests in structured Agency RMBS, which encompass securities like interest-only, inverse interest-only, and principal-only securities. This diversified approach allows Orchid Island to optimize its investment strategy across different segments of the residential mortgage market.
As a real estate investment trust (REIT) for federal income tax purposes, Orchid Island Capital is structured to distribute at least 90% of its taxable income to shareholders in the form of dividends. This tax-efficient structure enables the company to focus on maximizing returns for its investors while adhering to regulatory requirements.
Founded in 2010, Orchid Island Capital has established itself as a key player in the RMBS market, leveraging its expertise and strategic approach to navigate market fluctuations and optimize portfolio performance. The company continues to uphold its commitment to delivering value through prudent investment decisions and maintaining a robust portfolio of residential mortgage-backed securities.