Mar 31, 2021

Annaly Q1 2021 Earnings Report

Announced its financial results, demonstrating strong underlying performance and proactive portfolio management, enabling book value growth despite a rapid sell-off in rates.

Key Takeaways

Annaly Capital Management reported a strong start to the year with GAAP net income of $1.23 per average common share. The company also announced an agreement to sell its Commercial Real Estate business for $2.33 billion to focus on its core residential mortgage finance business.

GAAP net income of $1.23 per average common share for the quarter, up from $0.60 in the prior quarter

Core earnings (excluding PAA) of $0.29 per average common share for the quarter

Economic return and tangible economic return of 2.8% and 3.6%, respectively, for the first quarter

Book value per common share of $8.95, up $0.03 quarter-over-quarter

Total Revenue
$763M
Previous year: $555M
+37.5%
EPS
$1.16
Previous year: $0.84
+38.1%
Net Interest Margin
3.39%
Previous year: 0.18%
+1783.3%
Yield on Assets
3.76%
Previous year: 1.91%
+96.9%
GAAP Cost of Liabilities
0.42%
Previous year: 1.86%
-77.4%
Cash and Equivalents
$1.12B
Previous year: $2.82B
-60.2%
Total Assets
$85.4B
Previous year: $96.9B
-11.9%

Annaly

Annaly

Forward Guidance

Annaly is well-positioned to create value for shareholders throughout the remainder of the year, with relatively low leverage and substantial liquidity.

Positive Outlook

  • Constructive on the outlook for Agency MBS given ongoing support from the Federal Reserve.
  • Robust demand from banks and other investors.
  • Sustained low financing costs
  • A moderating prepay environment.
  • Credit assets should benefit from the strengthening economy.