Arlington Asset Investment Corp. (NYSE:AAIC) Q3 2022 Earnings Conference Call November 15, 2022 10:00 AM ET

Company Representatives

Rock Tonkel - President, Chief Executive Officer

Rich Konzmann - Chief Financial Officer

John Murray - Portfolio Manager

Conference Call Participants

Doug Harter - Credit Suisse

Matthew Erdner - JonesTrading

Christopher Nolan - Ladenburg Thalmann

Operator

Good morning! I'd like to welcome everyone to the Arlington Asset, Third Quarter 2022 Earnings Conference Call. Please be aware that each of your lines is in a listen-only mode. [Operator Instructions].

I’d now like to now turn the conference over to Mr. Richard Konzmann. Mr. Konzmann, you may begin.

Richard Konzmann

Good morning. This is Rich Konzmann, Chief Financial Officer of Arlington Asset. Before we begin this morning's call, I would like to remind everyone that statements concerning future financial or business performance, market conditions, business strategies or expectations, and any other guidance on present or future periods constitute forward-looking statements that are subject to a number of factors, risks and uncertainties that might cause actual results to differ materially from stated expectations or current circumstances.

These forward-looking statements are based on management's beliefs, assumptions and expectations, which are subject to change, risk, uncertainty as a result of possible events or factors. These and other material risks are described in the company's Annual Report on Form 10-K and other documents filed by the company with the SEC from time-to-time, which are available from the company and from the SEC, and you should read and understand these risks when evaluating any forward-looking statements.

I would now like to turn the call over to Rock Tonkel for his remarks.

Rock Tonkel

Thank you, Rich. Good morning, and welcome to the third quarter of 2022 earnings call for Arlington Asset. Also joining us on the call today is John Murray, our Portfolio Manager.

Through yet another quarter of challenging financial markets, Arlington’s primary focus of preserving capital in the current market environment once again proved to be beneficial for shareholders during the third quarter, generating a 2.4% economic return, its fifth consecutive quarter of a positive economic return.

Going forward, Arlington’s low leverage and diversified investment strategy continues to be well suited for various market conditions and positioned to generate strong returns for shareholders over time. Overall, we are pleased with the results achieved during the quarter and year-to-date; an economic return of 2.4% during the quarter and economic return of 8% over the last 12 months. We completed the initial sale of a portion of the company's SFR portfolio for net cash proceeds of $42 million in the third quarter, harvesting a $14 million gain.