Dallas, Texas 03/05/2014 (FINANCIALSTRENDS) – Annaly Capital Management, Inc. (NYSE:NLY) is known to be one of the top-line mortgage sector companies which offers investment services. It is also known to be one of the largest of the REITs and also the oldest in the mREITS. For long it has been the benchmark company for the REIT sector in the US.
One of the reasons for NLYs popularity is in the numbers. The company has once again reported fourth quarter earnings which are way better than what the analysts estimates had expected.
Annaly Capital Management, Inc.(NYSE:NLY) has been successful in the competitive REIT scenario, because of the leverage it holds. The trick in the mortgage real-estate investment is all about the leverage. Therefore, if the company holds higher leverage, the earnings are higher or at least reaching equal position. NLY has been quick to adapt to the high changes in the industry and has always maintained its leverage points at just the 5 equity market. In comparison, peers who have maintained 7 to 8 times the equity position are known to have lost out to NLY.
Annaly Capital Management, Inc.(NYSE:NLY) added on to this advantage with capital reinvestment. The company was able to bring in wider mortgage spreads, helping it work on higher margins. The point of control to achieve here was the costs of funding projects as against the investment yields. T
The next big move by Annaly Capital Management, Inc.(NYSE:NLY) in helping it retain its leaderboard position is its aversion to buying back shares from the market. Where most competitors have been quick to do this, NLY has refrained from this industry process and appears to be gaining higher financial gains.
Simultaneously, Annaly Capital Management, Inc.(NYSE:NLY) has been keen on providing services on a higher incidence to corporate players. Commercial mortgages are known to form 14% of the portfolio it currently holds.