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Annaly: A Top High-Yield Play For 2025
Seeking Alpha· 2025-05-13 15:22
Core Insights - Annaly (NYSE: NLY) reported solid earnings for the first fiscal quarter, driven by continuous improvement in the spread picture and robust distributable earnings [1] - The company increased its dividend for the first time, indicating positive financial performance [1] Financial Performance - The earnings report highlighted a continual improvement in the spread picture, which is crucial for mortgage REITs [1] - Robust distributable earnings were a key factor contributing to the solid performance in the first fiscal quarter [1] Dividend Policy - Annaly increased its dividend for the first time, reflecting confidence in its financial stability and growth prospects [1]
Is Abacus Life, Inc. (ABL) Outperforming Other Finance Stocks This Year?
ZACKS· 2025-05-13 14:46
Company Performance - Abacus Life, Inc. (ABL) has gained approximately 11.1% year-to-date, outperforming the average gain of 4.6% in the Finance group [4] - The Zacks Consensus Estimate for ABL's full-year earnings has increased by 2% over the past 90 days, indicating improving analyst sentiment [4] - Abacus Life, Inc. currently holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook for the stock [3] Industry Context - Abacus Life, Inc. is part of the Insurance - Life Insurance industry, which consists of 16 individual stocks and is currently ranked 75 in the Zacks Industry Rank [6] - The Insurance - Life Insurance industry has seen an average gain of 1.6% year-to-date, indicating that ABL is performing better than its peers in this specific sector [6] - In contrast, the REIT and Equity Trust industry, to which Annaly Capital Management (NLY) belongs, is ranked 155 and has declined by 2.7% this year [6]
Annaly Capital: How Management Is Positioning For Volatility And Banking On Reform
Seeking Alpha· 2025-05-13 11:32
Annaly Capital Management, Inc. (NYSE: NLY ) is the largest company in the mortgage Real Estate Investment Trust (mREIT) sector by market cap. Its high dividend yield of 14.42% (forward rate) looks very attractive. However, Annaly's forward total return is quite dependentBram de Haas brings 15 years of investing experience to the table and has over 5 years of experience managing a Euro hedge fund. He is also a former professional poker player and utilizes his bundle of risk management skills to uncover lucr ...
Meet the 14% Yield Dividend Stock That Raised Its Payout Recently
The Motley Fool· 2025-05-10 09:19
Core Viewpoint - Annaly Capital Management offers an exceptionally high dividend yield of over 14%, significantly higher than the S&P 500 average, but concerns exist regarding the sustainability of this yield due to the nature of its investments and market conditions [1][2]. Group 1: Dividend and Financial Performance - Annaly Capital raised its quarterly dividend payout by 7.7% to $0.70 per share, despite the high yield appearing unsustainable [2]. - The company reported earnings available for distribution of $0.72 per share in the first quarter, aligning with its increased dividend commitment [5]. - It will take over five years for investors to recoup their principal investment based on the current yield [3]. Group 2: Investment Strategy and Portfolio Composition - Unlike traditional REITs, Annaly invests in mortgage-backed securities (MBS), mortgage servicing rights (MSR), and residential credit, allowing it to avoid income taxes by distributing at least 90% of profits [4]. - As of March 31, 2023, Annaly's portfolio asset values were $77.6 billion in Agency MBS, $1.8 billion in MSR, and $5.2 billion in residential credit, with committed capital of $7.7 billion, $1.8 billion, and $2.1 billion respectively [5]. - The company utilizes approximately $8 billion in capital to manage a $75 billion MBS portfolio, indicating significant leverage [6]. Group 3: Risks and Market Conditions - The high yields offered by mortgage REITs like Annaly are tied to the performance of their MBS portfolios, which can be adversely affected by rising interest rates [7]. - Rapid interest rate increases can lead to significant challenges for Annaly, as evidenced by a 26% dividend reduction in early 2023 due to previous rate hikes [9][10]. - The Federal Reserve's decision to maintain interest rates and reduce its MBS portfolio adds uncertainty to Annaly's future dividend sustainability [11].
Annaly(NLY) - 2025 Q1 - Quarterly Report
2025-05-08 20:16
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FOR THE TRANSITION PERIOD FROM _______________ TO _________________ COMMISSION FILE NUMBER: 1-13447 ANNALY CAPITAL MANAGEMENT INC (Exact Name of Registrant as Specified in its Charter) Maryland 22-3479661 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED: March ...
This More Than 14%-Yielding Dividend Stock is Surprisingly Raising Its Already Monster Payout
The Motley Fool· 2025-05-07 08:36
Annaly Capital Management (NLY -1.22%) pays a monster dividend. The real estate investment trust's (REIT) yield is currently over 14%. That's a massive 10 times higher than the S&P 500. More often than not, dividends with yields over 10% seem to be screaming that a cut is forthcoming. However, that's not the case with this mortgage REIT's payout. Instead, the company recently gave investors a surprise dividend increase. Here's a look at whether Annaly is a solid option for investors seeking a big-time incom ...
Annaly Q1 Earnings Surpass Estimates, Book Value Declines Y/Y
ZACKS· 2025-05-01 17:10
Annaly Capital Management, Inc. (NLY) reported first-quarter 2025 adjusted earnings available for distribution (EAD) per average share of 72 cents, which beat the Zacks Consensus Estimate of 71 cents. The figure increased from 64 cents in the year-ago quarter.NLY’s average yield on interest-earning assets improved in the reported quarter. However, the company recorded a year-over-year decline in book value per share (BVPS).Inside Annaly’s HeadlinesNet interest income (NII) was $219.9 million in the reported ...
Annaly(NLY) - 2025 Q1 - Earnings Call Transcript
2025-05-01 13:00
Financial Data and Key Metrics Changes - The economic return for Q1 2025 was 3%, consistent with the previous quarter, with earnings available for distribution per share at $0.72 [18][19] - Book value per share slightly declined to $19.02, a decrease of less than 1% quarter over quarter [19][22] - The common stock dividend was increased from $0.65 to $0.70 per share, reflecting earnings momentum [7][19] Business Line Data and Key Metrics Changes - The Agency portfolio saw a notional growth of $3.5 billion, driven by purchases of intermediate coupon TBAs [10][11] - The Residential Credit portfolio decreased by $340 million quarter over quarter, ending at $6.6 billion in market value [12][13] - The Mortgage Servicing Rights (MSR) portfolio remained relatively unchanged at $3.3 billion in market value [15][16] Market Data and Key Metrics Changes - Economic leverage increased modestly to 5.7 turns, remaining at the low end of the historical range [9][19] - The housing market showed signs of regional disparity, with home price appreciation slowing down due to increased inventory and affordability issues [13][60] - Inventory levels increased by 18% year over year, impacting existing home sales, which were at their lowest since February [57][58] Company Strategy and Development Direction - The company aims to maintain a conservative leverage approach amidst market volatility while focusing on agency investments due to attractive returns [17][37] - The strategic alignment with industry-leading sub-servicing partners is expected to create competitive advantages in the MSR business [15][16] - The company is optimistic about the potential for regulatory reforms that could positively impact the market dynamics [32][71] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment remains uncertain, with volatility expected to persist [9][17] - The outlook for the housing market is stable in the long term, supported by low delinquencies and tight underwriting standards, despite short-term pullbacks [60][61] - The company is prepared for potential market fluctuations with a diversified and actively managed portfolio [17][22] Other Important Information - The company has approximately $7.5 billion in assets available for financing, reflecting a $600 million increase compared to the previous quarter [22] - The weighted average repo days extended to 50 days, indicating a strategic shift in financing [21] Q&A Session Summary Question: Update on book value quarter to date - The book value was off roughly 3.5% as of the latest update, improving from a 4.5% decline post-Easter [25] Question: Outlook for spreads and regulatory impacts - Swap spreads have tightened due to volatility, and regulatory reforms are anticipated to positively influence market conditions [26][32] Question: Thoughts on leverage amidst spread widening - The company is balancing the opportunity to increase leverage against the risks posed by high volatility [36][37] Question: Housing price moderation and systemic risks - Housing price increases are regional, with some areas experiencing declines, but overall, the market remains stable due to strong borrower equity [60][61] Question: Agency portfolio supply-demand dynamics - Demand from fixed income funds was strong before recent volatility, with banks and REITs also showing reasonable demand [85] Question: Impact of rate and spread volatility on loan acquisitions - The company is adopting a more defensive posture in response to increased spreads, but lock volumes remain stable [90]
Annaly(NLY) - 2025 Q1 - Earnings Call Transcript
2025-05-01 13:00
Financial Data and Key Metrics Changes - The company reported earnings available for distribution per share of $0.72, consistent with the prior quarter, driven by lower average repo rates of 4.56% compared to 4.93% in the previous quarter [18] - The book value per share was $19.02, reflecting a modest decline of less than 1% quarter over quarter [18] - The economic return for Q1 was 3%, with individual business segments contributing positively despite a challenging macro environment [18] Business Line Data and Key Metrics Changes - The Agency portfolio saw a notional growth of $3.5 billion, driven by purchases of intermediate coupon TBAs [9] - The Residential Credit portfolio ended the quarter at $6.6 billion in market value, with a decrease of $340 million quarter over quarter due to opportunistic sales and increased securitizations [11] - The Mortgage Servicing Rights (MSR) portfolio remained relatively unchanged at $3.3 billion in market value, with $28 billion in principal balance settled during Q1 [14] Market Data and Key Metrics Changes - Economic leverage increased modestly to 5.7 turns, remaining at the low end of the historical range [6] - The housing market is showing signs of increased regional disparity, with some areas experiencing a modest reversal in home price appreciation trends [12] - Inventory levels have increased, with a year-over-year rise of 18%, impacting the spring selling season [58] Company Strategy and Development Direction - The company aims to maintain a conservative leverage approach amidst market volatility, balancing the opportunity to increase leverage with the risks associated with high volatility [38] - The focus remains on agency investments as spreads have cheapened, while also continuing to grow the OBX platform for loan acquisition and securitization [76] - The company is strategically aligned with industry-leading sub-servicing partners to enhance efficiency and technological investment in the mortgage industry [15] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the impact of U.S. trade policy on consumer and business confidence, which may affect economic growth [7] - Despite the uncertain outlook, the company believes its diversified and actively managed portfolio positions it well to perform across various economic scenarios [17] - The management remains optimistic about the housing market's long-term stability due to low delinquencies and tight underwriting standards, despite short-term pullbacks in certain regions [62] Other Important Information - The company increased its common stock dividend to $0.70 per share, underscoring earnings momentum [6] - The total assets available for financing increased to approximately $7.5 billion, reflecting enhanced liquidity [22] Q&A Session Summary Question: Update on book value quarter to date - The book value was off roughly 3.5% as of Tuesday evening, improving from a 4.5% decline post-Easter [26] Question: Outlook for spreads and regulatory impacts - Swap spreads have tightened due to volatility, and regulatory reforms are anticipated to positively impact market conditions in the future [27][33] Question: Thoughts on leverage given current market conditions - The company is maintaining a conservative leverage approach due to high volatility, despite wider spreads suggesting a potential increase in risk [37][39] Question: Supply-demand dynamics in the agency portfolio - There was strong demand from fixed income funds and banks, but foreign demand, particularly from Asian accounts, remains limited [87][88] Question: Impact of housing price moderation on the market - Housing prices have increased significantly since 2019, but recent inventory increases may lead to short-term pullbacks in certain regions [58][62]
Annaly Capital Management (NLY) Q1 Earnings Surpass Estimates
ZACKS· 2025-04-30 22:55
Annaly Capital Management (NLY) came out with quarterly earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.71 per share. This compares to earnings of $0.64 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.41%. 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 $0.72, delivering a surprise of 7.46%.Over the last ...