Annaly Capital Management Reports Solid 2024 Earnings

Annaly Capital Management ( (NLY) ) has released its Q4 earnings. Here is a breakdown of the information Annaly Capital Management presented to its investors.

Annaly Capital Management, Inc. is a diversified capital manager specializing in mortgage finance, primarily operating as a real estate investment trust (REIT). The company aims to optimize returns through a diversified investment strategy across various mortgage-related assets.

In its recent earnings report, Annaly Capital Management announced a GAAP net income of $0.78 per average common share for the fourth quarter of 2024, coupled with earnings available for distribution of $0.72 per share. The company also declared a quarterly cash dividend of $0.65 per share, reflecting a stable income return for shareholders.

Key financial highlights from the report include a total portfolio valuation of $80.9 billion, with a significant portion invested in highly liquid Agency portfolios. The company experienced a modest decrease in its Agency portfolio while increasing its Residential Credit and Mortgage Servicing Rights portfolios by 8% and 17% respectively. Annaly managed its financing costs effectively, achieving a decrease in average GAAP cost of interest-bearing liabilities to 4.96%.

Throughout 2024, Annaly demonstrated strategic growth by increasing its Agency portfolio by nearly $5 billion and expanding its MSR portfolio by 24%. The company’s economic return for the year stood at 11.9%, with a robust performance across its investment strategies.

Looking ahead, Annaly’s management expresses optimism for 2025, citing favorable market dynamics and the company’s well-positioned portfolios. The emphasis on low leverage and liquidity suggests preparedness for market volatility, underpinning an optimistic outlook for sustained growth and performance in the coming year.