How Annaly Capital Management, Inc. (NYSE:NLY) Fared In Q2 2017?


Annaly Capital Management, Inc. (NYSE:NLY) posted its financial report for the quarter closed June 30, 2017. GAAP net income came at $14.5 million, while core earnings excluding PAA stood at $332.6 million. Core return on average equity excluding PAA came at 10.54% while GAAP return on average equity came at 0.46%. Book value/common share was $11.19. Economic leverage surged modestly to 6.4x as against to 6.1x at March 31, 2017. The company announced common stock payout of $0.30 a share for the 15th successive fiscal quarter.

The highlights

Annaly Capital reported that the company has executed a preferred and common stock capital raise worth $1.5 billion. It reported redemption of 7.875% Series ‘A’ Cumulative Redeemable Preferred Stock, reducing the economic cost of preferred capital. The company improved stock ownership commitments from CLO, CCO, CFO, CEO and CIO, to be achieved only with open market deals. Annaly established associations with committed third party strategic associates across its four segments, including Bayview Asset Management via the sale of Pingora Holdings; and with Pearlmark Real Estate Partners, via the acquisition of GP and LP stake in a Pearlmark fund

Kevin Keyes, the President and CEO of Annaly, reported that the Q2 2017 was another stable and strong reporting period for company. Amidst a comparatively favorable investment setting they delivered core earnings excluding PAA equal to the $0.30 payout they have now distributed to their shareholders for the 15th successive quarter.

The company has also recently made numerous complementary organizational and strategic announcements including, starting a new JV in the MSR resource class with a leading Sovereign Wealth Fund, selling Pingora Holdings, starting a Commercial Real Estate association, hiring numerous senior hires to Annaly investment teams and voluntarily growing the stock purchase commitments by the aforementioned executive officers. Also, subsequent to the close the quarter, the company raised additional funds in two public offerings.

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