Two Harbors Investment Corp.: An Overlooked mREIT Investment
By Bear Fight:Two Harbors Investment Corp. (TWO) is a hybrid real estate investment trust (REIT) that invests in residential mortgage-backed securities (RMBS), residential mortgage loans, residential real properties and other financial assets. As a hybrid REIT, TWO management has the opportunity and flexibility to evaluate opportunities across the Agency and non-Agency RMBS.As a REIT the company has elected to be taxed as a REIT for U.S. federal income tax purposes. This tax status requires that TWO distribute at least 90 percent of REIT income to stockholders on an annual basis.TWO is externally managed and advised by PRCM Advisers LLC, a wholly-owned subsidiary of Pine River Capital Management L.P. TWO management generates a 17.3% dividend yield and has generated a total return of 33.6% since October 2009.
What Makes TWO Interesting?
As opposed to peers such as Annaly Capital and American Capital Agency, TWO management has the flexibility to invest inComplete Story »