Dec 31, 2021

Annaly Q4 2021 Earnings Report

Announced financial results for the quarter and year ended December 31, 2021.

Key Takeaways

Annaly Capital Management reported GAAP net income of $0.27 per average common share and earnings available for distribution (EAD) of $0.28 per average common share for Q4 2021. The company's capital allocation to credit businesses increased, and its MSR platform grew by 12%.

GAAP net income of $0.27 per average common share for the quarter.

Earnings available for distribution (“EAD”) of $0.28 per average common share for the quarter with dividend coverage of +125%.

Capital allocation to credit businesses increased by approximately 200 basis points to 32% during the quarter driven by $2.2 billion of credit originations.

Annaly's Mortgage Servicing Rights ("MSR") platform grew by 12% in the fourth quarter and successfully executed on its strategy to finish the year as the fifth largest buyer of bulk MSR.

Total Revenue
$423M
Previous year: $527M
-19.8%
EPS
$1.12
Previous year: $1.2
-6.7%
Net Interest Margin
1.97%
Previous year: 2.14%
-7.9%
Average Yield on Assets
2.31%
Previous year: 2.61%
-11.5%
Cost of Interest Bearing Liabilities
0.38%
Previous year: 0.51%
-25.5%
Cash and Equivalents
$1.34B
Previous year: $1.24B
+7.9%
Total Assets
$76.8B
Previous year: $88.5B
-13.2%

Annaly

Annaly

Forward Guidance

Annaly's portfolio is well prepared for periods of turbulence with historically low leverage, a conservatively hedged portfolio and disciplined asset allocation across the spectrum of housing finance. Despite the volatility, the company is encouraged by improving investment returns in Agency MBS and are poised to capitalize on attractive opportunities as they arise.