Annaly Capital Management (NYSE: NLY) book value per share fell 15% in the first quarter due to market turmoil led to an underperformance of the agency’s MBS. First-quarter earnings, however, beat analysts’ average estimate and more than covered its dividend.
“The market environment during the first quarter of 2022 was one of the most challenging for fixed income securities in decades, characterized by exceptional volatility with a substantial widening of spreads and a notable increase in benchmark rates” , said Annaly CEO David Finkelstein.
First quarter earnings available for distribution of $0.28 per share beat consensus of $0.25 and were unchanged from fourth quarter 2021 earnings.
Economic leverage of 6.4x vs. 5.7x in Q4; economic return of -12.3% vs. -2.4% in Q4.
Book value per common share of $6.77 as of March 31, 2022 decreased from $7.97 as of December 31, 2021.
Annaly Capital (NLY) stock was trading down 0.2% in Wednesday after-hours trading.
Net interest margin in Q1, excluding PAA, of 2.04% compared to 2.03% in Q4 and 1.91% in Q1 2021.
Net interest spread in the first quarter, excluding PAA, of 1.73% compared to 1.88% in the prior quarter and 1.84% in the prior year quarter.
The average economic cost of interest-bearing liabilities is 0.89% as of March 31, 2022 compared to 0.79% as of December 31, 2021.
Conference call April 28 at 9:00 a.m. ET.
Earlier, Annaly Capital Management (NLY) non-GAAP EPS of $0.28 beats by $0.03.