Group 1 - HDO is the largest community of income investors and retirees with over 6800 members, focusing on generating strong returns regardless of market volatility [1] - The Income Method employed by HDO aims to simplify retirement investing, making it less stressful and straightforward [1] - The service offers features such as a model portfolio with buy/sell alerts, preferred and baby bond portfolios, and regular market updates [2] Group 2 - The service philosophy emphasizes community, education, and the belief that investing should not be done alone [2] - HDO closely monitors all positions and provides exclusive Buy and Sell alerts to its members [4]

Core Viewpoint - Mortgage REITs, particularly Annaly Capital Management, are experiencing fundamental improvements in investment spreads and have a positive investment outlook due to anticipated federal fund rate cuts in 2025 [1] Group 1 - Annaly Capital Management (NYSE: NLY) is highlighted as a key player in the mortgage REIT sector [1] - The investment outlook for mortgage REITs is favorable, driven by expected reductions in federal fund rates [1] - The improvements in investment spreads are a significant factor contributing to the positive outlook for these companies [1]

Group 1 - Annaly Capital Management, Inc. (NYSE: NLY) stands to benefit from lower interest rates projected for 2025 due to its portfolio of Agency mortgage-backed securities [1] - A recent shift in central bank policy may impact the financial landscape, influencing investment strategies [1] Group 2 - The article emphasizes the importance of monitoring high-tech and early growth companies for potential investment opportunities [1]

Core Viewpoint - Annaly Capital Management (NLY) reported its fourth-quarter 2024 results, with adjusted earnings surpassing estimates but revenue falling short, highlighting its resilience amid economic uncertainties [1][2][6]. Financial Performance - Adjusted earnings available for distribution (EAD) per average share were 72 cents, up from 68 cents year-over-year [6]. - Net interest income (NII) reached $187.3 million, a significant recovery from a negative NII of $53.6 million in the prior-year quarter [6]. - As of December 31, 2024, the book value per share was $19.15, down 1.5% from $19.44 a year earlier [7]. Investment Strategy & Portfolio Diversification - Annaly's investment portfolio totaled $80.9 billion, including residential credit, mortgage servicing rights (MSR), and agency mortgage-backed securities (MBS), aimed at reducing volatility and interest rate sensitivity [9][10]. - The company exited its Middle Market Lending portfolio and commercial real estate business to focus on its core housing finance strategy [10]. - The inclusion of MSRs is significant as they tend to increase in value with rising interest rates, providing a hedge against declines in agency MBS values [11]. Liquidity Position & Capital Distribution - Annaly maintained a strong liquidity position with an unencumbered asset portfolio of $5.8 billion, enhancing its ability to respond to market conditions [12][13]. - The company boasts a dividend yield of 13.06%, higher than the industry average of 11.39%, with a payout ratio of 98% [13]. Market Outlook - The outlook for agency MBS is improving, with management optimistic about favorable dynamics in 2025, including attractive returns and a better supply-demand balance [16][17]. - The Federal Reserve's interest rate cuts in 2024 positively impacted NII, which rose to $247.8 million from a negative NII of $111.4 million in 2023 [19]. - Mortgage rates are expected to decline gradually, which may enhance purchase originations and refinancing activities, benefiting Annaly's book value [20][22]. Valuation - Annaly is currently trading at a premium with a forward price-to-tangible book (P/TB) multiple of 0.93X, compared to the industry average of 0.88X [23]. - Despite premium valuation, the company's strong growth potential and favorable outlook make it an attractive investment for long-term returns [26][28].

Core Viewpoint - Annaly Capital Management, Inc. (NLY) reported strong fourth-quarter 2024 adjusted earnings, surpassing estimates, but faced a decline in annual earnings compared to the previous year. Financial Performance - Fourth-quarter adjusted earnings available for distribution (EAD) per share was 72 cents, exceeding the Zacks Consensus Estimate of 67 cents and up from 68 cents in the same quarter last year [1] - For the full year 2024, adjusted EAD per share was $2.7, beating the Zacks Consensus Estimate of $2.66, but down from $2.86 in the previous year [2] - Net interest income (NII) for the fourth quarter was $187.3 million, missing the Zacks Consensus Estimate of $242 million, and significantly improved from a negative $53.6 million in the prior-year quarter [3] - Total assets at the end of the fourth quarter were $103.6 billion, reflecting a 2% increase from the prior quarter [3] Yield and Margins - The average yield on interest-earning assets (excluding premium amortization adjustment) was 5.26%, up from 4.64% in the prior-year quarter [4] - The net interest spread (excluding PAA) increased to 1.47% from 1.22% in the prior-year quarter, while the net interest margin (excluding PAA) rose to 1.71% compared to 1.58% in the fourth quarter of 2023 [4] Book Value and Capital Ratios - Book value per share (BVPS) was $19.15 as of December 31, 2024, down 1.5% from $19.44 in the prior-year quarter [5] - The economic capital ratio improved to 14.6%, up from 14% in the previous year [5] - Economic leverage was 5.5X as of December 31, 2024, a decrease from 5.7X sequentially and year-over-year [5] Returns and Rankings - Annaly generated an annualized EAD return on average equity of 14.27% in the fourth quarter, an increase from 13.76% in the prior-year quarter [6] - The company currently holds a Zacks Rank 2 (Buy) [6]

Financial Performance - Annaly generated a ~12% economic return for the year with earnings available for distribution in excess of the dividend[8] - Earnings available for distribution was $0.72 per average common share for the quarter[9] - Book value per common share was $19.15[9] - Declared quarterly common stock cash dividend of $0.65 per share[9] - Economic return was 1.3% for the fourth quarter and 11.9% for the full year 2024[9] Portfolio Composition and Performance - Total portfolio was $80.9 billion, including $70.6 billion in highly liquid Agency MBS strategy, which represents 87% of total assets and 59% of dedicated capital[9] - Annaly's Residential Credit portfolio increased to $7.0 billion, representing a 17% increase year-over-year[9] - Annaly's MSR portfolio increased 24% year-over-year to $3.3 billion in market value, now representing 19% of dedicated capital[9] Financing and Liquidity - Economic leverage was 5.5x, down from 5.7x in the third quarter[9] - $6.9 billion of total assets were available for financing, including cash and unencumbered Agency MBS of $3.9 billion[9] - Financing costs decreased quarter-over-quarter with average GAAP cost of interest-bearing liabilities of 4.96%, down 46 basis points quarter-over-quarter, and average economic cost of interest-bearing liabilities of 3.79%, down 14 basis points quarter-over-quarter[9]

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or ...

Annaly Capital Management (NLY) came out with quarterly earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.67 per share. This compares to earnings of $0.68 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.46%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.67 per share when it actually produced earnings of $0.66, delivering a surprise of -1.49%.Over the las ...

Financial Performance - GAAP net income for Q4 2024 was $0.78 per average common share, with an economic return of 1.3% for the quarter and 11.9% for the full year 2024[6]. - For the year ended December 31, 2024, net interest income increased to $247,796,000 compared to a loss of $111,384,000 in 2023[21]. - Net income attributable to Annaly for the year ended December 31, 2024, was $1,001,906,000, a significant recovery from a loss of $1,643,171,000 in 2023[21]. - Basic net income per share available to common stockholders for 2024 was $1.62, compared to a loss of $3.61 per share in 2023[21]. - Comprehensive income attributable to common stockholders for 2024 was $1,165,073,000, compared to $588,649,000 in 2023[21]. - GAAP net income for the year ended December 31, 2024, was $1,011,768, compared to a loss of $1,638,457 for the year ended December 31, 2023[33]. - Annualized GAAP return on average equity for the year ended December 31, 2024, was 8.53%, improving from a loss of 14.33% in 2023[33]. Portfolio and Asset Management - Annaly's total portfolio reached $80.9 billion, with a 3% decrease in the Agency portfolio, which now represents 59% of dedicated equity capital[6]. - The Residential Credit portfolio increased by 8% quarter-over-quarter to $7.0 billion, accounting for 22% of dedicated equity capital[6]. - The Mortgage Servicing Rights (MSR) portfolio grew by 17% quarter-over-quarter to $3.3 billion, representing 19% of dedicated equity capital[6]. - Annaly's MSR portfolio grew by 24% year-over-year, positioning the company as the third largest purchaser of MSR in 2024[7]. - As of December 31, 2024, the total investment portfolio amounted to $98.19 billion, an increase from $97.74 billion in the previous quarter and $87.40 billion year-over-year[25]. Income and Expenses - Interest income for the year ended December 31, 2024, was $4,840,034,000, up from $3,731,581,000 in 2023, representing a growth of approximately 29.8%[21]. - Interest expense for the year ended December 31, 2024, was $4,592,238,000, compared to $3,842,965,000 in 2023, reflecting an increase of about 19.5%[21]. - Total general and administrative expenses for 2024 were $171,356,000, compared to $162,553,000 in 2023, showing a slight increase[21]. - Economic interest expense for Q4 2024 was $879,287 thousand, up from $664,525 thousand in Q4 2023, marking a 32.3% increase[51]. Balance Sheet and Equity - Total assets increased to $103,556,384 thousand as of December 31, 2024, up from $101,515,995 thousand at September 30, 2024, representing a growth of 2.01%[17]. - Total liabilities rose to $90,859,432 thousand, up from $88,976,046 thousand, an increase of 2.10%[17]. - Stockholders' equity increased to $12,696,952 thousand from $12,539,949 thousand, reflecting a growth of 1.25%[17]. - Total equity increased to $12,696,952 thousand as of December 31, 2024, up from $11,345,091 thousand a year earlier, representing a 11.9% increase[43]. Market Outlook and Future Projections - The outlook for 2025 is optimistic, supported by favorable dynamics in Agency MBS, decreasing financing costs, and a steeper yield curve[8]. - The company will hold its fourth quarter 2024 earnings conference call on January 30, 2025, at 9:00 a.m. Eastern Time[14]. Dividends and Returns - The company declared a dividend of $0.65 per common share for the quarter, maintaining the same level as the previous quarter and year[23]. - The annualized dividend yield increased to 14.21% for the quarter ended December 31, 2024, compared to 12.95% in the previous quarter and 13.42% a year earlier[23]. Economic Ratios and Leverage - The economic leverage at period-end was 5.5:1 as of December 31, 2024, a slight decrease from 5.7:1 in the previous quarter and unchanged from a year ago[23]. - Economic leverage ratio decreased to 5.5:1 as of December 31, 2024, down from 5.7:1 in the previous periods[43]. - The economic capital ratio remained stable at 14.6% for both December 31, 2024, and September 30, 2024, compared to 14.0% a year ago[44].

Core Viewpoint - Annaly Capital Management (NLY) is showing potential as a strong investment option due to its recent technical indicators and positive earnings estimate revisions [1][2][3] Technical Analysis - NLY has recently crossed above the 200-day moving average, indicating a long-term bullish trend [1] - The stock has increased by 6% over the past four weeks, suggesting upward momentum [2] Earnings Estimates - There have been two upward revisions in earnings estimates for the current fiscal year, with no downward revisions, indicating positive sentiment among analysts [3] - The consensus estimate for NLY has also moved up, reinforcing the bullish outlook [3] Market Position - NLY is currently rated as a Zacks Rank 2 (Buy), suggesting that it may continue to experience price increases [2]