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Annaly Capital Management (NYSE:NLY) inventory superior 1.2% in Wednesday after-hours buying and selling as its This autumn earnings for distribution unexpectedly rose from the prior quarter as rates of interest declined.
This autumn EPS for distribution of $0.68, beating the common analyst estimate of $0.65, elevated from $0.66 in Q3 and fell from $0.89 a 12 months in the past.
“Annaly delivered a 10.1% economic return in the fourth quarter as interest rates declined and mortgage-related assets exhibited strong performance,” said CEO and Chief Investment Officer David Finkelstein.
Economic return of 10.1% swung from -8.8% in Q3. Economic leverage of 5.7x fell from 6.4x in the prior quarter.
Book value per common share climbed to $19.44 at Dec. 31, 2023 (Visible Alpha consensus $19.02) from $18.25 at Sept. 30.
Total assets of $93.2B at Dec. 31, 2023 increased from $89.6B at Sept. 30.
Its total portfolio of $74.3B included $65.7B in highly liquid agency portfolio. Annaly’s (NLY) agency portfolio decreased 4% with portfolio activity focused on continued rotation up in coupon, reduction in TBA position, and growth of agency CMBS position.
Q4 net interest income of -$53.6M, vs. the $142.8M Visible Alpha consensus, dropped from -$45.3M in Q3 and $M in Q4 2022. Net interest margin, excluding PAA, of 1.58% vs. 1.48% in the previous quarter and 1.90% a year ago.
Q4 net interest spread, excluding PAA, was 1.22%, compared with 1.18% in Q3 and 1.71% in Q4 2022.
Net servicing income of $87.3M fell from $88.0M in the previous quarter and rose from $74.8MM a year ago.
Average economic cost of interest-bearing liabilities was 3.42% at Dec. 31, 2023 vs. 3.28% at Sept. 30 and 2.11% at Dec. 31, 2022.
Total general and administrative expenses were $38.9M, down from $39.9M in Q3 and $42.9M in Q4 2022.
Conference call on Feb. 9 at 9:00 AM ET.
Earlier, Annaly Capital Management non-GAAP EPS of $0.68 beats by $0.03