Annaly Capital

Annaly Capital Management, Inc. engages in the investment and financing of residential and commercial assets. It operates through the following investment groups: Agency, Residential Credit, Commercial Credit and Middle Market Lending. The Agency group invests in agency mortgage-backed securities. The Residential Credit group involves non-agency residential mortgage assets within securitized products and whole loan markets. The Commercial Real Estate group includes commercial mortgage, loans, securities, and other commercial real estate debt and equity investments. The Middle Market Lending group provides financing to private equity backed middle market businesses across the capital structures. The company was founded by Michael A. J. Farrell and Wellington Jamie Denahan-Norris on February 18, 1997 and is headquartered in New York, NY.

Earnings data Q1 2021

Earnings data Q2 2021

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Annaly Capital Management reports solid Q4 performance amidst market shifts

Annaly Capital Management delivered a strong performance in Q4 2022, adapting its portfolio and dividend strategy to navigate market conditions. While facing challenges in the housing market and dividend adjustments, the company remains optimistic about future opportunities and prepared for potential disruptions.

Annaly Capital reports resilient performance amidst market challenges and opportunities

Annaly Capital navigated a challenging quarter with cautious optimism, showcasing financial resilience and strategic portfolio positioning. Despite facing challenges from declining demand and market uncertainties, the company is capitalizing on opportunities in the agency MBS sector and credit risk transfer investments. With a focus on stability and control, Annaly Capital remains well-positioned for potential growth.

Annaly Capital reports resilient performance and eyes growth opportunities

Annaly Capital's Q2 2023 earnings call showcased a resilient performance amidst market volatility, with positive financial highlights and strategic portfolio updates. While challenges such as market volatility and potential balance sheet normalization exist, the company remains focused on maintaining returns and seizing opportunities for growth in residential credit and MSR assets. Overall, Annaly Capital maintains a cautious yet optimistic outlook for future market conditions.

Annaly Capital reports Q3 challenges, focuses on growth opportunities

Annaly Capital faced challenges with negative economic returns and declining book value per share in Q3 2023, driven by underperformance in Agency MBS and rising interest rates.
Despite these challenges, the company demonstrated strengths in portfolio management, MSR portfolio growth, and maintaining a healthy liquidity profile.
Opportunities lie in strategic growth initiatives, disciplined risk management, and capitalizing on market opportunities for improved performance and shareholder value.

Annaly Capital reports robust Q4 performance amidst Fed policy concerns

Annaly Capital delivered strong financial performance in Q4 2023, surpassing dividends and emphasizing strategic risk management.
The company faces challenges from potential Fed policy normalization but remains optimistic about shareholder returns and market preparedness.
Opportunities exist in portfolio enhancement through duration addition, credit growth, and sourcing MSR in a favorable environment.

Annaly Capital delivers robust Q1 performance amidst interest rate dynamics

Annaly Capital's Q1 2024 showcased strong performance in its residential credit and MSR businesses, underpinned by a disciplined approach to risk management. While challenges exist in managing interest rate risk and cost of funds, opportunities lie in optimizing capital efficiency and improving profitability through increased net interest margin.

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Annaly Capital Management, Inc. engages in the investment and financing of residential and commercial assets. It operates through the following investment groups: Agency, Residential Credit, and Mortgage Servicing Rights. The Agency group invests in agency mortgage-backed securities. The Residential Credit group involves non-agency residential mortgage assets within securitized products and whole loan markets. The Mortgage Servicing Rights group provides the right to service residential mortgage loans in exchange for a portion of the interest payments made on the loans. The company was founded by Michael A. J. Farrell and Wellington Jamie Denahan-Norris on November 25, 1996 and is headquartered in New York, NY.

Annaly Capital Management has experienced significant book value declines due to aggressive interest rate hikes and inflation. Recent indications from central bank officials suggest that interest rate hikes may be coming to an end, improving the risk/reward for Annaly Capital Management. Easing inflation could provide relief for the mortgage trust sector, potentially leading to a reversal in interest rate policy and increased profitability for Annaly Capital Management.

Annaly Capital Management: Risk/Reward Is Improving (Upgrade)

NEW YORK--(BUSINESS WIRE)--The Board of Directors of Annaly Capital Management, Inc. (NYSE: NLY) (“Annaly” or the “Company”) declared the third quarter 2023 common stock cash dividend of $0.65 per common share. This dividend is payable October 31, 2023, to common shareholders of record on September 29, 2023. The ex-dividend date is September 28, 2023. About Annaly Annaly is a leading diversified capital manager with investment strategies across mortgage finance. Annaly's principal business obje.

Annaly Capital Management, Inc. Announces 3rd Quarter 2023 Common Stock Dividend of $0.65 per Share

NEW YORK--(BUSINESS WIRE)--Annaly Capital Management, Inc. (NYSE: NLY) (“Annaly” or the “Company”) announced today that the Board of Directors of the Company (the “Board”) has elected Manon Laroche, former Head of Global Spread Products Securitized Sales, North America at Citigroup, and Scott Wede, former Global Head of Securitized Products and Municipal Finance at Barclays Capital, as independent members of the Board, effective October 1, 2023. Following their appointment, Annaly's Board will.

Annaly Capital Management, Inc. Expands Board with Election of Manon Laroche and Scott Wede

Part 1 of this article compares NLY's recent investment composition, leverage, hedging coverage ratio, quarterly BV, economic return (loss), and current valuation to 19 mREIT peers. Due to what has occurred during the third quarter of 2023 (fluctuating rates/yields), understanding the composition of NLY's MBS/investment and derivatives portfolio is crucial in understanding current/future performance. My current NLY BV projection and updated price target is in the “Conclusions Drawn” section. NLY is currently deemed appropriately valued (hold recommendation).

Annaly Capital's Sector Comparative Analysis - Part 1 (Includes Recommendation For 19 Peers As Of 9/1/2023)

Crown Castle International

Iron Mountain

National Storage Affiliates Trust

Vici Properties

Investors and analysts are closely watching the upcoming U.S. Federal Reserve meeting for clues on monetary policy. Some experts predict the Fed will pause its inflation-busting policy, while others expect further rate hikes. REITs, such as Crown Castle and National Storage Affiliates Trust, offer potential opportunities for income investors in the high-interest rate environment.

5 REIT Picks With Steady Dividends For Income Investors

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AGNC Investment Corp - FXDFR PRF PERPETUAL USD 25 - Ser D 1/1000th int

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Blackrock Income Trust

First Trust Low Duration Opportunities ETF

Agency MBS is an attractive asset class for income investors due to its cheap valuation, high quality, and diversification benefits. The option-adjusted spread for Agency MBS is elevated compared to corporate credit spreads, making it an appealing investment. There are various ways to invest in Agency MBS, including through mortgage REITs, leveraged CEFs, unleveraged ETFs, and mREIT preferreds.

Why The Agency MBS Sector Is Worth A Look Now

Carvana

Nikola

Consumers are feeling the pinch. The Bureau of Labor Statistics (BLS) dramatically lowered June's jobs numbers for the second time.

3 Stocks Getting Ready to Sink as Consumer Wallets Keep Getting Squeezed

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Dogsofthedow.com recently published this list of 50 large-cap high-dividend stocks as of 8/31/23 per data from YCharts. The list targeted investors who “don't want to simply focus on a high dividend yield only to discover that the stock price has plunged or that the corporation went belly-up." Investors reduce volatility/risk by limiting high-dividend search to large-well-established companies.

50 Large-Cap High-Yield Stocks For September

Dynex Capital

Invesco Mortgage Capital

PennyMac Mortgage Investment

Ready Capital Corp

PennyMac Mortgage Trust caused confusion with their announcement on fixed-to-floating shares, requiring re-examination of these shares. Some REITs have stated they will use 3-month Term SOFR + 26.161 basis points as a substitute for 3-month LIBOR. AGNC has a higher dividend yield and consensus earnings yield compared to DX, but I strongly doubt this will lead to superior returns.

Wild Times For Mortgage REITs

Agree Realty

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Camden Property

Innovative Industrial Properties

Mid-America Apartment Communities

Medical Properties Trust

Realty Income Corp

Prologis

Rexford Industrial Realty

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REIT stocks have not performed well this year, but the quality of the management team is an important factor in determining the success of a REIT. Examples of REITs with strong management teams include Realty Income, Prologis, Alexandria Real Estate, Rexford Industrial, Mid-America Apartment, and Camden Property Trust. These REITs have experienced positive AFFO growth and have strong balance sheets, making them attractive investment opportunities.

Never Forget: REITs Own Property Run By People

Annaly's business model is a lot different from most other REITs. Changes in interest rates have a much bigger impact on the company.

Annaly Capital Management May Be a Buy, but Is It Right for You?

Mortgage REITs are facing a tough quarter due to increased interest rates and volatility. Annaly Capital Management is an agency mortgage REIT with a projected book value per share of $19.60. NLY's high hedging ratio may be due to the inverted yield curve, which allows for net interest income from hedges.

How Annaly Capital Management Generates Extra Income

Altria

When examined over multiple decades, dividend stocks have vastly outperformed publicly traded companies that don't offer a payout. Billionaires are aggressively buying shares of a downtrodden, brand-name, ultra-high-yield company that's historically cheap.

1 Ultra-High-Yield Dividend Stock Billionaires Are Piling Into and 2 They're Selling Big-Time

Annaly Capital Management's 13% dividend yield might look attractive to investors trying to generate income. The stock's yield is generally in the double-digit space.

Annaly Capital Management Might Not Be the Bargain You Think

Dividend investors may find Annaly's 13%+ dividend yield to be irresistible. However, the mREIT sector as a whole is sensitive to the macro-credit cycle and I see tremendous headwinds ahead, even for leading stocks like Annaly. The current rate situation, combined with the company's leverage, creates too much risk.

Annaly: Wait Until After Jackson Hole

The outlook for residential mortgage REITs may perk up. That's due to a slew of economic data pointing toward a so-called soft landing becoming more plausible.

Op-ed: Mortgage real estate investment trusts may be a soft-landing winner. Here are REITs worth a look

NLY recently released its Q2 numbers, which provide a good opportunity to revisit the company in the context of its 7-10% yielding preferreds. NLY preferreds remain our favorite choice in the Agency mortgage REIT preferreds sector. After enjoying a great run with NLY.PF for over a year, we are now rotating to sister preferred NLY.PI which we expect to outperform over the next year.

Annaly Capital: Our Latest Move In The 7-10% Yielding Preferreds

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The U.S. economy added 187, 000 jobs in July of 2023, below market expectations of 200, 000.

4 Sector ETFs & Stocks to Play Despite Soft July Jobs Data

The Fed's tightening cycle remains a headwind. Once the Fed is done hiking rates, mortgage REITs might become worthy investments.

Is Annaly Capital a Buy?

One Liberty Properties

U.S. markets have been down recently, creating opportunities to buy quality stocks at lower prices. Real estate investment trusts have been trading low compared to the larger market, presenting undervaluation and potential buying opportunities. However, investors should be cautious and carefully evaluate stocks to ensure they are headed toward a turnaround before making any purchases.

Don't Get Too Cute

Cherry Hill Mortgage

Two Harbors Investment

We're picking one share with a big discount to book value and a reasonable dividend payout ratio relative to book value. The market may be misreading this dividend payout as plenty of sites are reporting a different value. Seeking Alpha is accurate. On the other hand, one of the darlings in the sector is far less attractive.

1 Fat Yielder To Buy And 1 To Dump

Annaly Capital Management, Inc. (NYSE:NLY ) Q2 2023 Earnings Conference Call July 27, 2023 9:00 AM ET Company Participants Sean Kensil - VP, Annaly Capital Management David Finkelstein - CEO, CIO & Director Serena Wolfe - CFO Michael Fania - Deputy CIO & Head, Residential Credit Ken Adler - Head, Mortgage Servicing Rights & Portfolio Analytics Conference Call Participants Bose George - KBW Crispin Love - Piper Sandler & Co. Eric Hagen - BTIG Vilas Abraham - UBS Trevor Cranston - JMP Securities Douglas Harter - Crédit Suisse Richard Shane - JPMorgan Chase & Co. Operator Good morning, and welcome to the Second Quarter 2023 Earnings Call for Annaly Capital. All participants who may listen only mode -- should you need assistance, please see a conference specialist by pressing star 0 on your telephone keypad.

Annaly Capital Management, Inc. (NLY) Q2 2023 Earnings Call Transcript

Improving average yield on interest-earning assets supports Annaly's (NLY) Q2 earnings, while a decline in NII is a key undermining factor.

Annaly (NLY) Tops Q2 Earnings Estimates, Reports Negative NII

Annaly's most watched metric has been falling like a lead balloon. This quarter, EAD missed by 2 cents but more importantly fell by 9 cents from the previous quarter and 50 cents from four quarters back. This is playing out as we expect, and you should expect another distribution cut in 2024.

Annaly Capital: Q2 2023 Shows Rapid Erosion Of Distributable Earnings

Annaly Capital Management (NLY) came out with quarterly earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $1.20 per share a year ago.

Annaly Capital Management (NLY) Beats Q2 Earnings Estimates

News for Annaly Capital Stock (NLY)