Annaly(US:NLY)2025-01-29 21:18Financial 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].