Annaly Capital Management, Inc. NLY reported first-quarter earnings available for distribution (EAD) per average share of 64 cents, meeting the Zacks Consensus Estimate. However, the figure declined from the 81 cents reported in the year-ago quarter.

NLY registered a year-over-year decline in book value per share (BVPS) and the margin, while the average yield on interest-earning assets improved.

Inside the Headlines

Net interest income (NII) was negative $6.4 million in the reported quarter. The Zacks Consensus Estimate was pegged at $320 million. In the prior-year quarter, the company reported $19.46 million in NII.

At the first-quarter end, Annaly had $91.48 billion of total assets, down 1.9% from the prior quarter.

In the reported quarter, the average yield on interest-earning assets (excluding premium amortization adjustment or PAA) was 4.88%, up from the prior-year quarter’s 3.96%. The average economic costs of interest-bearing liabilities were 3.78%, increasing from 2.34% in the prior-year quarter.

Net interest spread (excluding PAA) of 1.09% in the first quarter fell from 1.62% in the prior-year quarter. Also, the net interest margin (excluding PAA) was 1.43% compared with 1.76% in first-quarter 2022.

Annaly’s BVPS was $19.73 as of Mar 31, 2024, down 5% from $20.79 in the prior-year quarter. At the end of the reported quarter, the company’s economic capital ratio was 14.6%, up from 13.2% in the prior-year quarter.

In the first quarter, the weighted average actual constant prepayment rate was 6%, down from 5.5% in the year-ago quarter.

Economic leverage was 5.6X as of Mar 31, 2024, declining from 5.7X sequentially and 6.4X year over year. Annaly generated an annualized EAD return on average equity of 12.63% in the first quarter, down from the prior-year quarter’s 14.82%.

NLY currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Annaly Capital Management Inc Price, Consensus and EPS Surprise Annaly Capital Management Inc Price, Consensus and EPS Surprise

Annaly Capital Management Inc price-consensus-eps-surprise-chart | Annaly Capital Management Inc Quote

Performance & Earnings Release Date of Other REITs

AGNC Investment Corp.’s AGNC first-quarter 2024 net spread and dollar roll income per common share (excluding estimated "catch-up" premium amortization benefit) of 58 cents beat the Zacks Consensus Estimate of 56 cents. However, the bottom line declined from the 60 cents reported in the previous quarter.

AGNC’s adjusted net interest and dollar roll income of $496 million moved down from $497 million in the previous quarter.



Starwood Property Trust, Inc. STWD is slated to post quarterly results on May 8.

Over the past month, the Zacks Consensus Estimate for STWD’s quarterly earnings has been unchanged at 46 cents per share, indicating a decline of 6.1% from the prior-year quarter’s reported figure.

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