As the owner of a portfolio of Agency mortgage-backed securities, Annaly Capital Management, Inc. (NYSE: NLY ) could profit from lower interest rates in 2025. That said, the central bank adopted a sudden change in policy toward the end of theA financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the ind ...

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]

This presentation is issued by Annaly Capital Management, Inc. ("Annaly"), an internally-managed, publicly traded company that has elected to be taxed as a real estate investment trust for federal income tax purposes, and is being furnished in connection with Annaly's Fourth Quarter 2024 earnings release. This presentation is provided for investors in Annaly for informational purposes only and is not an offer to sell, or a solicitation of an offer to buy, any security or instrument. Forward-Looking Statemen ...

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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 ...

ANNALY CAPITAL MANAGEMENT, INC. REPORTS 4th QUARTER 2024 RESULTS NEW YORK—January 29, 2025—Annaly Capital Management, Inc. (NYSE: NLY) ("Annaly" or the "Company") today announced its financial results for the quarter and year ended December 31, 2024. Financial Highlights Business Highlights Fourth Quarter 2024 Highlights Full-Year 2024 Highlights Investment and Strategy Financing and Capital • Annaly's Agency portfolio increased by nearly $5 billion throughout 2024; increased the weighted average coupon of ...

Annaly Capital Management (NLY) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, NLY crossed above the 200-day moving average, suggesting a long-term bullish trend.The 200-day simple moving average is widely-used by traders and analysts, and helps establish market trends for stocks, commodities, indexes, and other financial instruments over the long term. The indicator moves higher or lower together with longer-term price moves, servi ...

Annaly Capital Management Inc. (NLY) is scheduled to report fourth-quarter 2024 results on Jan. 29, after market close. The company’s results are expected to reflect year-over-year growth in net interest income (NII), while earnings are likely to decline. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the last reported quarter, the mortgage real estate investment trust (mREIT) posted adjusted earnings available for distribution (EAD) per average share of 66 cents, which missed t ...

Join for a 100% Risk-Free trial and see if our proven method can help you too. You do not need to pay for the costly lessons from the market itself.Readers familiar with our investing approach know that we like contrarian bets. In the case of Annaly Capital (NYSE: NLY ) stock, we have published a few articles in 2024Sensor Unlimited contributes to the investing group Envision Early Retirement which is led by Sensor Unlimited. They offer proven solutions to generate both high income and high growth with isol ...