Annaly Capital Management, Inc. (NLY - Free Report) – the mortgage real estate investment trust (mREIT) – reported fourth-quarter 2016 adjusted core earnings of 30 cents per share, in line with the Zacks Consensus Estimate. However, it came lower than 31 cents earned in the year-ago quarter.
Net interest income (NII) in the quarter totaled $623.6 million, up 36.2% year over year.
For full-year 2016, the bottom-line came in at $1.17 per share, down from $1.28 recorded in the prior-year.
For 2016, NII came in at $1.55 billion, down from $1.70 billion recorded a year ago.
Quarter in Detail
For the reported quarter, average yield on interest-earning assets was 3.81%, while average cost of interest-bearing liabilities (including interest expense on interest rate swaps) was 1.53%.
This led to a net interest rate spread of 2.28% for the quarter, reflecting a year-over-year increase of 81 basis points. Net interest margin came in at 2.49% compared with 1.80% in the year-ago period.
The company’s investment at fair value (including Agency mortgage-backed securities and Agency debentures) was $75.6 billion as of Dec 31, 2016, up from $65.9 billion as of Dec 31, 2015.
Annaly’s book value per share came in at $11.16 as of Dec 31, 2016, compared with $11.73 as of Dec 31, 2015. At the end of the fourth quarter, the company’s capital ratio (representing the ratio of stockholders’ equity to total assets) was 13.1%, down from 13.7% at the end of the prior-year quarter.
Leverage was 5.8:1 as of Dec 31, 2016, compared with 6.0:1 as of Dec 31, 2015. The company offered an annualized core return on average equity of 10.13% in the quarter, down from 10.30% in the year-ago quarter.
Our Take
Going forward, we believe Annaly’s diversification into commercial assets would help enhance its top-line growth.
Another mREIT – AGNC Investment Corp. (AGNC - Free Report) – reported fourth-quarter 2016 net spread and dollar roll income of 64 cents per share (excluding estimated "catch-up" premium amortization benefit) that comfortably beat the Zacks Consensus Estimate of 60 cents. The reported figure was same as the prior quarter.
While Annaly sports a Zacks Rank #1 (Strong Buy), AGNC Investment carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Two other REITs which are slated to report results next week are Welltower Inc. and Host Hotels & Resorts, Inc. (HST - Free Report) .
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Annaly Capital Management, Inc. (NLY - Free Report) – the mortgage real estate investment trust (mREIT) – reported fourth-quarter 2016 adjusted core earnings of 30 cents per share, in line with the Zacks Consensus Estimate. However, it came lower than 31 cents earned in the year-ago quarter.
Net interest income (NII) in the quarter totaled $623.6 million, up 36.2% year over year.
For full-year 2016, the bottom-line came in at $1.17 per share, down from $1.28 recorded in the prior-year.
For 2016, NII came in at $1.55 billion, down from $1.70 billion recorded a year ago.
Quarter in Detail
For the reported quarter, average yield on interest-earning assets was 3.81%, while average cost of interest-bearing liabilities (including interest expense on interest rate swaps) was 1.53%.
This led to a net interest rate spread of 2.28% for the quarter, reflecting a year-over-year increase of 81 basis points. Net interest margin came in at 2.49% compared with 1.80% in the year-ago period.
The company’s investment at fair value (including Agency mortgage-backed securities and Agency debentures) was $75.6 billion as of Dec 31, 2016, up from $65.9 billion as of Dec 31, 2015.
Annaly’s book value per share came in at $11.16 as of Dec 31, 2016, compared with $11.73 as of Dec 31, 2015. At the end of the fourth quarter, the company’s capital ratio (representing the ratio of stockholders’ equity to total assets) was 13.1%, down from 13.7% at the end of the prior-year quarter.
Leverage was 5.8:1 as of Dec 31, 2016, compared with 6.0:1 as of Dec 31, 2015. The company offered an annualized core return on average equity of 10.13% in the quarter, down from 10.30% in the year-ago quarter.
Our Take
Going forward, we believe Annaly’s diversification into commercial assets would help enhance its top-line growth.
Another mREIT – AGNC Investment Corp. (AGNC - Free Report) – reported fourth-quarter 2016 net spread and dollar roll income of 64 cents per share (excluding estimated "catch-up" premium amortization benefit) that comfortably beat the Zacks Consensus Estimate of 60 cents. The reported figure was same as the prior quarter.
While Annaly sports a Zacks Rank #1 (Strong Buy), AGNC Investment carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Two other REITs which are slated to report results next week are Welltower Inc. and Host Hotels & Resorts, Inc. (HST - Free Report) .
Just Released – Driverless Cars: Your Roadmap to Mega-Profits Today
In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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