Company Summary
Annaly Capital Management, Inc. is a mortgage real estate investment trust (mREIT) that primarily owns, manages and finances a portfolio of real-estate-related investment securities. Its investment portfolio includes mortgage pass-through certificates, collateralized mortgage obligations (CMOs), credit risk transfer (CRT). The company’s investment may also comprise, other securities indicating interests in or obligations backed by pools of mortgage loans, residential mortgage loans, MSR and corporate debt.
Annaly has three investment groups — Agency, Residential Credit and Mortgage Servicing Rights.
The Annaly Agency Group invests in Agency MBS, collateralized by residential mortgages guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae, and other complementary investments in the Agency market, including Agency commercial MBS. The Residential Credit Group invests in non-Agency residential whole loans and securitized products in the residential and commercial markets, while the Annaly Mortgage Servicing Rights Group invests in MSRs.
On Sep 8, 2022, Annaly announced a 1-for-4 reverse stock split effective the close of business on Sep 23, 2022.
In 2022, Annaly sold assets of its Middle Market Lending portfolio. In March 2021, to exit the commercial real estate business, Annaly entered a definitive agreement with Slate Asset Management L.P. to sell its commercial real estate business in a transaction valued at $2.33 billion. While the majority of the assets were transferred in 2021, the remaining assets were transferred in first-quarter 2022.
On Jul 1, 2020, Annaly completed the acquisition of its external manager, Annaly Management Company LLC and transformed itself from an externally-managed REIT to an internally-managed REIT. Per the agreement, it acquired the equity interests of the external manager and its affiliates, all of which are owned by members of Annaly’s senior management team. This was done for a nominal cash purchase price ($1) and no termination fee. This internalized structure is likely to provide greater operating flexibility and create cost savings.