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 ...

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 ...

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]

Core Viewpoint - Annaly Capital Management Inc. (NLY) is expected to report fourth-quarter 2024 results on January 29, with anticipated year-over-year growth in net interest income (NII) but a likely decline in earnings [1]. Financial Performance - In the last reported quarter, NLY posted adjusted earnings available for distribution (EAD) per average share of 66 cents, missing the Zacks Consensus Estimate of 67 cents, despite improvements in the average yield on interest-earning assets [2]. - The consensus estimate for fourth-quarter earnings is 67 cents per share, indicating a 1.47% decrease from the year-ago reported number [3]. - The consensus estimate for revenues is pegged at $242 million, showing a significant year-over-year rise from negative $53.5 million [4]. Market Conditions - The mREIT sector is likely to have benefited from favorable conditions in the fourth quarter, driven by reduced volatility in fixed-income markets, which is expected to have tightened mortgage spreads and boosted NLY's book value per share (BVPS) [5]. - Mortgage rates were close to 6.8% in the fourth quarter, slightly higher than the 6.2% observed at the end of the third quarter, impacting housing affordability and overall mortgage demand [6]. Operational Insights - A significant portion of NLY's mortgage-backed securities (MBS) holdings is expected to have experienced elevated levels of constant prepayment rates, positively impacting net premium amortization and supporting growth in interest income and average asset yield [7]. - The consensus estimate for fourth-quarter NII is pegged at $241.9 million, compared to an NII of $13.4 million in the previously reported quarter [7]. - The Federal Reserve's 50 basis point interest rate reduction in the fourth quarter is expected to have positively impacted NLY by decreasing funding costs [8]. Servicing Income - Prepayment speeds increased in October but have since slowed due to rising mortgage rates, likely negatively impacting NLY's mortgage servicing rights (MSR) portfolio and reducing servicing fees [9]. - The Zacks Consensus Estimate for net servicing income in the fourth quarter of 2024 is $104 million, indicating a sequential decline of 5.1% [9]. Earnings Prediction - The model indicates that it cannot be conclusively predicted that NLY will beat the Zacks Consensus Estimate this time, as the company lacks a positive Earnings ESP and a favorable Zacks Rank [10]. - Annaly has an Earnings ESP of 0.00% and currently carries a Zacks Rank of 4 (Sell) [11].