Mar 31, 2020

Annaly Q1 2020 Earnings Report

Annaly's financial performance was affected by extreme volatility, but the company performed well due to its investments and financing flexibility.

Key Takeaways

Annaly Capital Management reported a GAAP net loss of $2.57 per average common share, but core earnings (excluding PAA) were $0.21 per average common share. The company actively managed its portfolio to reduce leverage, with total assets of $99.3 billion. Annaly also announced that it will acquire its external manager and transition to an internally-managed REIT.

GAAP net loss of ($2.57) per average common share for the quarter

Core earnings (excluding PAA) of $0.21 per average common share for the quarter

Actively managed portfolio size to reduce leverage with total assets of $99.3 billion

Announced Annaly will acquire its external manager, Annaly Management Company LLC, and transition to an internally-managed REIT

Total Revenue
$555M
Previous year: $866M
-35.9%
EPS
$0.84
Previous year: $1.16
-27.6%
Net Interest Margin
0.18%
Previous year: 0.79%
-77.2%
Average Yield on Assets
1.91%
Previous year: 3.15%
-39.4%
Cost of Interest Bearing Liabilities
1.86%
Previous year: 2.71%
-31.4%
Cash and Equivalents
$2.82B
Previous year: $1.52B
+85.4%
Total Assets
$96.9B
Previous year: $119B
-18.7%

Annaly

Annaly

Forward Guidance

Annaly is cautiously optimistic due to the meaningful tailwinds in the mortgage market and is prepared to capitalize on upcoming investment prospects.

Positive Outlook

  • Annaly performed well through one of the most challenging and unique operating environments in our Company's history.
  • The breadth and flexibility in our investments and financing positioned us to successfully navigate the market uncertainty
  • We continue to benefit from the size of our capital base and strength of our business model.
  • We took significant, measured steps to fortify our balance sheet and liquidity to position ourselves for the remainder of the year.
  • We are encouraged by the meaningful tailwinds in the mortgage market and are poised to take advantage of upcoming investment opportunities.

Challenges Ahead

  • Our thoughts go out to all those affected by COVID-19.
  • The health and well-being of our staff and our community remains our first priority
  • In light of extreme volatility
  • While we continue to be cautious
  • Challenging time