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Sep 30, 2020
Annaly Q3 2020 Earnings Report
Announced financial results for the quarter ended September 30, 2020.
Key Takeaways
Annaly Capital Management reported a GAAP net income of $0.70 per average common share, a core earnings (excluding PAA) of $0.32 per average common share, and an economic return of 6.3%. The company's book value per common share increased to $8.70, and economic leverage decreased to 6.2x. They completed two residential whole loan securitizations totaling $1.0 billion and repurchased $209 million of common stock year-to-date.
GAAP net income of $0.70 per average common share, up from $0.58 in the prior quarter.
Core earnings (excluding PAA) of $0.32 per average common share, up 18.5% from the prior quarter.
Book value per common share of $8.70, up 3.7% from the prior quarter.
Economic leverage of 6.2x, down from 6.4x in the prior quarter.
Annaly
Annaly
Annaly Revenue by Segment
Revenue by Segment
Agency MBS Revenue
CapyFin.comCRT Securities Revenue
CapyFin.comNon-Agency MBS Revenue
CapyFin.comCMBS Revenue
CapyFin.com Forward Guidance
The CEO is optimistic about the operating environment for Agency MBS due to low-interest rate volatility, strong carry, and low financing costs.
Positive Outlook
- Low interest rate volatility.
- Strong carry.
- Lowest financing costs in the last decade.
- Enhanced cost of capital and liquidity profile through securitizations.
- Proactive management of portfolio increased book value.
Challenges Ahead
- Risks and uncertainties related to the COVID-19 pandemic.
- Changes in interest rates.
- Changes in the yield curve.
- Changes in prepayment rates.
- Availability of mortgage-backed securities for purchase.