We updated our research report on Annaly Capital Management, Inc. (NLY Quick QuoteNLY - Free Report) on Aug 10, 2016. This New York-based mortgage real estate investment trust (“mREIT”) is mainly engaged in owning, managing and financing a portfolio of real estate-related investment securities. Its investment portfolio comprises agency MBS, agency pass-through certificates, collateralized mortgage obligations (CMOs), interest-only securities and inverse floaters.
 
On Jul 12, 2016, Annaly closed the acquisition of Winston Salem, NC–based mREIT, Hatteras Financial Corp. for $1.5 billion. This strategic acquisition is likely to diversify the investment and financing options for the company, and uplift its status in the mREIT space. Further, judicious selection of assets, exposure to high-quality MBS, expansion of commercial real estate investments and a solid financial position help maintain its growth momentum.

On Aug 3, Annaly reported second-quarter 2016 core earnings of 29 cents per share, in line with the Zacks Consensus Estimate and down from 33 cents earned in the year-ago quarter.

Annaly is slated to incur upfront expenses due to the latest acquisition. Further, competition with several players and adverse macro-economic conditions pose concerns for the company.

The stock presently carries a Zacks Rank #3 (Hold).

ANNALY CAP MGMT Price

ANNALY CAP MGMT Price | ANNALY CAP MGMT Quote

Investors interested in the mREIT sector can consider stocks like Chimera Investment Corporation (CIM Quick QuoteCIM - Free Report) , Invesco Mortgage Capital Inc. (IVR Quick QuoteIVR - Free Report) and MFA Financial, Inc. (MFA Quick QuoteMFA - Free Report) . While both Chimera Investment Corporation and Invesco Mortgage Capital sport a Zacks Rank #1 (Strong Buy), MFA Financial holds a Zacks Rank #2 (Buy).

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