Annaly(US:NLY)2025-04-30 20:16Financial Performance - GAAP net income of $0.15 per average common share for Q1 2025, down from $0.78 in Q4 2024[5] - Net income attributable to Annaly for Q1 2025 was $124.22 million, compared to $482.05 million in Q4 2024, indicating a decline of 74.2%[16] - Comprehensive income attributable to common stockholders for Q1 2025 was $317.35 million, up from $137.87 million in Q4 2024, reflecting a growth of 130%[16] - GAAP net income for Q1 2025 was $130,305,000, compared to $473,076,000 in Q4 2024 and $465,174,000 in Q1 2024[27] - Earnings available for distribution for Q1 2025 were $461,857,000, up from $447,015,000 in Q4 2024 and $357,962,000 in Q1 2024, representing a 28.9% year-over-year increase[27] Earnings and Dividends - Earnings available for distribution (EAD) of $0.72 per average common share, consistent with Q4 2024[5] - The dividend declared per common share increased to $0.70 from $0.65 in the previous quarter and the same amount a year ago, resulting in an annualized dividend yield of 13.79%[18] - Dividends on preferred stock decreased to $37.16 million in Q1 2025 from $38.70 million in Q4 2024, a reduction of 3.9%[16] Portfolio and Assets - Total portfolio valued at $84.9 billion, including $75.0 billion in highly liquid Agency portfolio, which increased by 6%[5] - Total assets increased to $105.12 billion as of March 31, 2025, up from $103.56 billion at December 31, 2024, representing a growth of 1.52%[14] - As of March 31, 2025, the total investment portfolio reached $101.96 billion, an increase from $98.19 billion as of December 31, 2024, and $87.48 billion as of March 31, 2024[20] Leverage and Debt - GAAP leverage improved to 6.8x from 7.1x in the prior quarter; economic leverage increased to 5.7x from 5.5x[5] - Total liabilities stood at $92.03 billion as of March 31, 2025, compared to $90.86 billion at the end of 2024, an increase of 1.29%[14] - Total GAAP debt as of March 31, 2025, was $88,629,051,000, slightly down from $89,605,046,000 as of December 31, 2024[38] Interest Income and Expenses - Net interest income for Q1 2025 was $219.97 million, a significant increase from $187.29 million in Q4 2024, marking a rise of 17.5%[16] - Interest income for Q1 2025 was $1.32 billion, slightly down from $1.34 billion in Q4 2024, reflecting a decrease of 0.57%[16] - Economic interest expense for Q1 2025 was $892,748, an increase from $879,287 in Q4 2024 and $770,790 in Q1 2024[44] - The average yield on interest-earning assets was 5.18%, slightly down from 5.36% in the previous quarter but up from 4.88% a year ago[18] Economic Metrics - Economic return of 3.0% for Q1 2025, supported by all three investment strategies[5] - The annualized GAAP return on average equity significantly decreased to 4.04% from 15.00% in the previous quarter and 16.29% a year ago[18] - The economic capital ratio remained stable at 14.6% for the quarters ended March 31, 2025, December 31, 2024, and March 31, 2024[18] Securitization and Sales - Annaly priced eight securitizations totaling $4.2 billion since the beginning of 2025, including its inaugural HELOC securitization[5] - Annaly's Residential Credit portfolio decreased to $6.6 billion due to securitization issuance and opportunistic sales[5] Cash and Equivalents - The company’s cash and cash equivalents rose to $1.83 billion as of March 31, 2025, compared to $1.49 billion at December 31, 2024, a growth of 23.1%[14]