Invesco Mortgage Capital Inc. (IVR) reported net income of $84.1 million, or 72 cents a share, beating analysts' average estimates as the mortgage firm benefited from Federal Reserve purchases of mortgage-backed securities.

"[W]e used the appreciation in our investment portfolio to both increase earning assets and strengthen our balance sheet," said Richard King, president and CEO. "We believe our hybrid strategy puts us in the best position to invest in this environment.”

Earnings for the mortgage real estate investment trust were up from (), or () cents a share, in the year-ago period. Analysts polled by Thomson Financial Network.

For the nine months ended Sept. 30, Invesco reported a $245.1 million in net income, up from $206.3 million for first nine months of 2011.

The company's book value grew to () a share, up from () a share as of June 30. Interest income was up slightly to $140.5 million, up from $139 million in the year-ago quarter

Invesco's portfolio of mortgage-backed securities was () at Sept. 30, an increase of () from (). Of that, only about $4.3 billion consisted on nonagency residential mortgage-backed securities and commercial mortgage-backed securities.

Invesco Mortgage Capital is a real estate investment trust that focuses on financing and managing residential and commercial mortgage-backed securities and mortgage loans.