By Scott Kennedy, Produced with Colorado Wealth Management Fund Introduction Annaly Capital (NYSE:NLY) had a pretty normal quarter with just tiny changes. The value of what the company owns went down a bit, but that was expected. Overall, NLY is doing OK. The stock price is a bit overpriced right now. Commentary Quarterly BV Fluctuation: Nearly an Exact Match – Very Minor Outperformance (Only a 0.6% Variance). Core Earnings/EAD: Basically an Exact Match (Only a $0.010 Variance). An “as expected” quarter r ...

Core Viewpoint - Two Harbors Investment (TWO) experienced a significant decline in book value (BV) during Q2 2025, attributed to legal losses and hedging decisions, leading to a recommendation of "hold" on shares [1][8][10]. Performance Summary - The actual quarterly BV decrease for TWO was 17.2%, which was worse than the projected 14.8% decline, indicating a severe underperformance [2][8]. - A unique legal dispute with the previous external manager negatively impacted TWO's BV during the quarter [2][10]. - Hedging decisions made by TWO had a negative effect on BV but positively influenced core earnings/EAD [3][7]. Portfolio Management - TWO maintained the size of its on-balance sheet fixed-rate agency MBS/investment portfolio, contrary to expectations of asset shedding due to legal issues [4][10]. - The company made bulk purchases of $6.4 billion in MSRs, resulting in a $2.0 billion increase in UPB, which was contrary to the anticipated decrease [5][10]. - The derivatives sub-portfolio underperformed expectations, primarily due to the lack of asset sales and an increase in the hedging coverage ratio from 77% to 85% [6][14]. Earnings Performance - Core earnings/EAD for TWO modestly outperformed expectations, driven by lower net interest expenses and higher net servicing income [7][8]. - The reported core earnings were $29.594 million, exceeding the projected $24 million, marking a 23.48% beat [18]. Valuation and Recommendations - TWO's current valuation is deemed appropriate, with a hold recommendation due to the ongoing legal matters and the need for spread stabilization [22][23]. - The company’s dividend yield stands at 15.45%, with a payout ratio of 107% [20].

Key Takeaways MFC Q2 core EPS of $0.69 missed estimates by 2.8% but rose 4.5% YoY; core earnings fell 7.6% to $1.2B.New business value rose 15.7% YoY to $611M; new business CSM grew 38.7% to $637M.APE sales increased 12.8% YoY to $1.58B, reflecting strong sales momentum and margin expansion.Manulife Financial Corporation (MFC) delivered second-quarter 2025 core earnings of 69 cents per share, which missed the Zacks Consensus Estimate by 2.8%. The bottom line improved 4.5% year over year.Core earnings of $1. ...

Core Insights - FirstEnergy Corp. reported second quarter 2025 GAAP earnings of $268 million, or $0.46 per share, on revenue of $3.4 billion, a significant increase from $45 million, or $0.08 per share, on revenue of $3.3 billion in the same quarter of 2024 [1][9] - Core Earnings (non-GAAP) for the second quarter of 2025 were $0.52 per share, slightly up from $0.51 per share in the second quarter of 2024, reflecting a year-over-year growth [2][10] - The company has deployed $2.5 billion in capital investments through the first half of 2025, aligning with its $5 billion investment plan for 2025 and a broader $28 billion Energize365 program for 2025-2029 [1][3] Financial Performance - Year-to-date GAAP earnings for June 2025 reached $1.09 per share, with Core Earnings at $1.19 per share, marking a 19% increase in Core Earnings year-over-year [1][10] - FirstEnergy affirmed its full-year 2025 Core Earnings guidance of $2.40 to $2.60 per share, targeting the upper half of this range [3][4] - The company expects a compounded annual growth rate of 6-8% in Core Earnings from 2025 through 2029, supported by its capital investment strategy [3][4] Segment Performance - In the Distribution segment, Core Earnings increased by $0.06 per share compared to the second quarter of 2024, primarily due to new base rates in Pennsylvania and lower operating expenses [5] - The Integrated segment's Core Earnings remained flat year-over-year, benefiting from a 14% growth in transmission rate base but offset by lower customer demand [6] - The Stand-Alone Transmission segment saw a decrease of $0.01 per share in Core Earnings compared to the previous year, despite an 8% increase in rate base due to capital investments [7] Special Items and Adjustments - The GAAP results for both the second quarter and first half of 2025 reflect the impact of special items, which include various adjustments that management believes are not indicative of ongoing core activities [12][16] - For the second quarter of 2025, total special items amounted to $0.06 per share, compared to $0.43 per share in the same quarter of 2024 [12]

Core Viewpoint - Dynex Capital (DX) reported a Q2 2025 performance that was largely in line with expectations, with a minor book value (BV) outperformance of 1.6% and core earnings meeting projections. Strong capital raises and timely mortgage-backed securities (MBS) purchases helped mitigate early-quarter volatility [1][2][9]. Financial Performance - The quarterly BV for DX showed a modest decrease, consistent with expectations, amidst a volatile environment for agency mREIT stocks. The BV fluctuations were influenced by market conditions, including a spike in mortgage interest rates and U.S. Treasury yields in early April 2025 [2][3]. - DX's management aggressively raised capital during Q2 2025, increasing on-balance sheet MBS by 25% and off-balance sheet MBS by 33%, exceeding initial projections of 15% and 20% respectively [4][10]. - Core earnings/EAD for DX improved, driven by net interest income that matched expectations, although NDR income slightly underperformed. Operational expenses were largely in line with projections [6][9]. Market Conditions - The early part of Q2 2025 saw market volatility due to proposed tariff policies, which led to increased mortgage interest rates and margin calls for some agency mREIT peers. However, DX was insulated from significant margin calls due to its cash reserves and equity issuance [3][4]. - As market conditions stabilized in May 2025, driven by trade negotiations and reduced economic risks, both stock market and MBS pricing rebounded, contributing to DX's performance [3][4]. Risk and Valuation - DX's risk/performance rating remains at 3, reflecting the need to navigate various risks including spread/basis, leverage, and interest rate fluctuations. The company is projected to experience 1-2 basis point cuts in the Federal Funds Rate in the latter half of 2025 [8][16]. - The current valuation of DX is deemed appropriate, with a HOLD recommendation in place. The company is expected to maintain its dividend payout, although future sustainability will be closely monitored [22][21].

KKR Real Estate Finance Trust Inc. 4th Quarter 2018 Supplemental Information February 20, 2019 NOTE: The accompanying presentation updates the presentation previously issued by the company on February 20, 2019, in order to correct the presentation of the company's non-GAAP financial measures Net Core Earnings and Core Earnings (and related per share amounts) for the year ended December 31, 2018. No other information has been modified. All financial information in this presentation is as of December 31, 2018 ...

KKR Real Estate Finance Trust Inc. 4th Quarter 2019 Supplemental Information February 19, 2020 Legal Disclosures This presentation has been prepared for KKR Real Estate Finance Trust Inc. (NYSE: KREF) for the benefit of its stockholders. This presentation is solely for informational purposes in connection with evaluating the business, operations and financial results of KKR Real Estate Finance Trust Inc. and its subsidiaries (collectively, "KREF" or the "Company"). This presentation is not and shall not be ...

Core Points - Advanced Flower Capital Inc. declared a quarterly dividend of $0.15 per share for the quarter ending June 30, 2025, payable on July 15, 2025 [1] - The second quarter dividend was affected by a realized loss related to a loan to Public Company A [2] Company Overview - Advanced Flower Capital Inc. is a commercial mortgage real estate investment trust (REIT) that provides loans to state law compliant cannabis operators in the U.S., with loans ranging from $10 million to over $100 million [3] - The company is based in West Palm Beach, Florida, and leverages a deep network and significant expertise in credit and cannabis to manage its loan portfolio [3] Financial Metrics - The company uses "Distributable Earnings" as a non-GAAP financial measure to evaluate performance, which excludes certain transactions and GAAP adjustments [4][6] - Distributable Earnings is defined as net income excluding stock-based compensation, depreciation, unrealized gains/losses, and other non-cash items [6] - The determination of Distributable Earnings is similar to Core Earnings but includes Incentive Compensation earned during the period [5] Dividend Policy - As a REIT, the company is required to distribute at least 90% of its annual taxable income, which influences its dividend payments [7] - Distributable Earnings is one of the factors considered by the Board of Directors when authorizing dividends, although it is not a direct measure of net taxable income [8]

Financial Performance and Key Metrics - The company reported 2024 GAAP earnings of $1.70 per share, with operating earnings at $2.63 per share, benefiting from new rates and investments in regulated businesses [9][10][12] - The company faced headwinds including lower sales volumes due to mild weather and storm activity, impacting Ohio revenues [10][11] - The company achieved a total of 40 ratings upgrades in 2024, marking a return to investment grade status across all subsidiaries [18] Business Line Performance - In the distribution segment, earnings increased by $0.04 per share year-over-year, driven by higher weather-related distribution sales and lower Ohio rate credits [45] - The integrated segment saw earnings rise by $0.29 per share, primarily due to new base rates in New Jersey, West Virginia, and Maryland [46] - Standalone transmission business earnings declined by $0.12 per share, impacted by the dilution from the sale of a 30% interest in FirstEnergy Transmission [47] Market Data and Key Metrics - The company completed rate reviews in four of five states, derisking 83% of its rate base, resulting in a net annual revenue increase of approximately $450 million [13] - The Pennsylvania Commission approved a $225 million base rate case settlement, effective January 1, 2025, enhancing service reliability [14] - The company anticipates investing $5 billion in regulated properties in 2025, an increase of approximately 11% over 2024 [36] Company Strategy and Industry Competition - The company is focused on a comprehensive capital investment program, Energize365, with a total investment of $28 billion through 2029 [37][38] - The new leadership team is implementing an operating model that emphasizes accountability and operational excellence [21][22] - The company aims to maintain a low-risk investment proposition with an attractive total return opportunity of 10% to 12% [39] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving a core earnings growth rate of 6% to 8% through 2029, with a focus on regulatory outcomes and operational efficiency [51][57] - The company is addressing challenges related to higher financing costs and regulatory changes, particularly in Ohio [33][57] - Management highlighted the importance of maintaining affordability for customers while investing in infrastructure [120] Other Important Information - The company introduced core earnings as a measure to better reflect the performance of its regulated utilities, with core earnings growing by 33% from 2022 to 2024 [29] - The company plans to provide guidance for core earnings and growth rates starting in 2025, with a range of $2.40 to $2.60 per share [31] Q&A Session Summary Question: Insights on the 2025 guidance and O&M pressures - Management anticipates being in the 6% to 8% growth range for 2025, with O&M changes primarily related to the Pennsylvania base rate case settlement [72][74] Question: Thoughts on the Ohio audit report and its implications - Management noted the audit report's focus on capital structure and ROE, indicating a need to reconcile findings in upcoming filings [77][78] Question: Path to achieving the target FFO to debt ratio - Management expects to reach a sustainable FFO to debt ratio of slightly above 14% in 2025, aided by new rates from the Pennsylvania rate case [83] Question: Update on transmission projects and their financial implications - Management anticipates a share of approximately $675 million from selected projects, with financing handled off-balance sheet [85][86] Question: ROE assumptions in the context of core EPS CAGR - Management assumes a consolidated ROE of 9.5% to 10% during the forecast period, with Ohio expected to contribute similarly [102] Question: Update on pension funding status - The company ended the year with a pension funded status of about 84%, slightly down from the previous year [126] Question: Schedule for the Ohio rate case - Management expects to respond to the audit report within 30 days and anticipates a constructive outcome by the end of the year [130]