Sep 30, 2022

Annaly Q3 2022 Earnings Report

Reported financial results for the quarter ended September 30, 2022.

Key Takeaways

Annaly Capital Management reported a GAAP net loss of ($0.70) per average common share for the quarter, with earnings available for distribution (EAD) of $1.06 per average common share. The company's total assets increased to $86.2 billion, and the Agency Portfolio grew by 4.5% to $78.2 billion. Annaly was also added to the S&P MidCap 400 Index.

GAAP net loss of ($0.70) per average common share for the quarter.

Earnings available for distribution (EAD) of $1.06 per average common share for the quarter; dividend coverage of 120%.

Total assets of $86.2 billion, up from $82.3 billion in the prior quarter.

Annaly's Agency Portfolio increased by 4.5% to $78.2 billion in assets at the end of the third quarter.

Total Revenue
$678M
Previous year: $413M
+64.3%
EPS
$1.06
Previous year: $1.12
-5.4%
Net Interest Margin
1.42%
Previous year: 2.01%
-29.4%
Average Yield on Assets
3.47%
Previous year: 2.29%
+51.5%
Cost of Interest Bearing Liabilities
2.38%
Previous year: 0.32%
+643.8%
Cash and Equivalents
$1.47B
Previous year: $1.05B
+40.1%
Total Assets
$85.4B
Previous year: $76.7B
+11.4%

Annaly

Annaly

Forward Guidance

The company expects to maintain its defensive positioning due to the difficult operating environment, but views asset valuations as attractive and is prepared to take advantage of opportunities when technical factors improve.

Positive Outlook

  • Strong capital base.
  • Disciplined portfolio and risk management.
  • Deep financing sources.
  • Attractive asset valuations.
  • Poised to take advantage of opportunities when technical factors improve.

Challenges Ahead

  • Elevated market volatility.
  • Pressure on book value due to spread widening in Agency MBS.
  • Significant moves in interest rates.
  • Difficult operating environment.
  • Sustained macroeconomic uncertainty.