In This Article:
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Economic Return: 3% economic return during the first quarter.
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Dividend: Increased to $0.70 per share.
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Economic Leverage: Increased modestly to 5.7 turns.
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Liquidity: $7.5 billion in total assets available for financing.
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Residential Credit Portfolio: Ended the quarter at $6.6 billion in market value.
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Book Value Per Share: $19.02, a modest decline of less than 1% quarter over quarter.
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Earnings Available for Distribution (EAD) Per Share: $0.72 per share, consistent with the prior quarter.
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Repo Rates: Lower average repo rates of 4.56% compared to 4.93% in the prior quarter.
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Unencumbered Assets: $6.3 billion, including cash and unencumbered agency MBS of $4.7 billion.
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MSR Portfolio: Ended the first quarter at $3.3 billion in market value.
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Warehouse Capacity: Total capacity of $5.8 billion across both Residential Credit and MSR businesses.
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Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Annaly Capital Management Inc (NYSE:NLY) delivered a 3% economic return during the first quarter.
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The company increased its common stock dividend to $0.70 per share, highlighting earnings momentum.
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Annaly Capital Management Inc (NYSE:NLY) maintained a disciplined approach to interest rate exposure, enhancing liquidity to $7.5 billion in total assets available for financing.
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The MSR portfolio remained stable with low note rates and delinquency attributes, contributing to strong returns.
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The OBX securitization platform closed six transactions in Q1, reflecting the programmatic nature of the platform and strong investor demand.
Negative Points
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The macro environment remains uncertain with elevated volatility, impacting economic growth and financial asset stability.
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Interest rate volatility and widening agency MBS spreads present challenges for the company's portfolio.
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The housing market shows signs of regional disparity, with some areas experiencing a modest reversal in home price appreciation trends.
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Economic leverage increased modestly to 5.7 turns, though it remains at the low end of the historical range.
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Book value per share experienced a modest decline of less than 1% quarter over quarter.
Q & A Highlights
Q: Can I get an update on your book value quarter to date? A: As of Tuesday evening, our book value inclusive of the dividends, so, economic return was off roughly 3.5%. Coming out of the Easter holiday weekend, the economic return was roughly off 4.5%. - David Finkelstein, CEO