Q3 2024 Annaly Capital Management Inc Earnings Call Transcript
Key Points
- Annaly Capital Management Inc (NLY) generated an economic return of 4.9% for Q3 and 10.5% year-to-date, exceeding their dividend.
- The company successfully raised $1.2 billion of accretive common equity since the beginning of the third quarter, highlighting strong institutional demand.
- Annaly's agency portfolio grew by over $4 billion notional, benefiting from price appreciation and strategic capital allocation.
- The residential credit portfolio increased by $535 million quarter over quarter, driven by the growth of the correspondent platform.
- Annaly's MSR portfolio remained stable with minimal valuation decline, demonstrating the durability of their holdings.
- Interest rate volatility remains above pre-COVID levels, posing a challenge to Annaly's investment strategies.
- The company's earnings available for distribution per share decreased modestly in Q3 compared to Q2, due to an increase in share count and higher preferred dividend expense.
- Annaly's net interest margin ex-PAA declined by 6 basis points to 1.52%, indicating pressure on profitability.
- The MSR portfolio experienced a slight decrease in valuation due to lower mortgage rates, impacting overall returns.
- Political uncertainty and potential election outcomes present risks to Annaly's market positioning and strategy.
Good morning, and welcome to the third-quarter 2024 earnings call for Annaly Capital Management. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Sean Kensil, Investor Relations. Please go ahead.
Good morning, and welcome to the third-quarter 2024 earnings call for Annaly Capital Management. Any forward-looking statements made during today's call are subject to certain risks and uncertainties, which are outlined in the risk factors section in our most recent annual and quarterly SEC filings. Actual events and results may differ materially from these forward-looking statements. We encourage you to read the disclaimer in our earnings release in addition to our quarterly and annual filings.
Additionally, the content of this conference call may contain time-sensitive information that is accurate only as of the date hereof. We do not undertake and specifically disclaim any obligation to update or revise this information
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