TWO (Two Harbors Investment Corp, NYSE: TWO), an MSR-focused REIT, today declared a dividend of $0.39 per share of common stock for the second quarter of 2025. The second quarter dividend is payable on July 29, 2025 to common stockholders of record at the close of business on July 3, 2025. The common stock dividend is a function of several factors, including sustainability, earnings and return potential of the portfolio, taxable income, impact to book value and the market environment.

“The 13% reduction in the dividend this quarter is consistent with the reduction in our book value resulting from the contingency accrual of $198.9 million that we have deemed probable and estimable in connection with the ongoing litigation related to our internalization in 2020. The reduced dividend reflects our projected static returns in future quarters as we adjust our portfolio in light of this accrual,” stated Bill Greenberg, TWO’s President and Chief Executive Officer. “While this litigation remains ongoing and involves claims unrelated to the accrual that are not yet probable or estimable, we think lowering the dividend on a pro rata basis at this time is a prudent action and positions us to take advantage of future market opportunities. Most importantly, this dividend reduction does not reflect our positive momentum, and we remain tremendously excited about the opportunities available for mortgage companies like TWO, and our paired strategy of MSR and MBS specifically.”

TWO also declared today the following preferred stock dividends for the second quarter of 2025:

(1) The Series C Cumulative Redeemable Preferred Stock accrue dividends at a floating rate, as determined on each dividend determination date, equal to the Three-Month CME Term SOFR plus 0.26161% plus 5.011%.

The Series A, Series B and Series C preferred dividends are payable on July 28, 2025 to the applicable preferred stockholders of record at the close of business on July 11, 2025.

About TWO

TWO (Two Harbors Investment Corp., NYSE: TWO), a Maryland corporation, is a real estate investment trust that invests in mortgage servicing rights, residential mortgage-backed securities and other financial assets. TWO is headquartered in St. Louis Park, MN.

Additional Information

Stockholders of TWO and other interested persons may find additional information regarding the company at www.twoinv.com, at the Securities and Exchange Commission’s internet site at www.sec.gov or by directing requests to: TWO, 1601 Utica Avenue South, Suite 900, St. Louis Park, MN 55416, (612) 453-4100.

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"We remain tremendously excited about the opportunities available for mortgage companies like TWO, and our paired strategy of MSR and MBS specifically."