Book value

Annaly Capital Q2 book value down 13% in volatile market, earnings beat (NYSE:NLY)


Annaly Capital Management (NYSE: NLY) book value fell 13% during the second quarter of 2022 and posted a negative economic return of 9.6% as the spread widened and rate volatility continued to rock markets as sentiment turned to risk aversion.

“These pressures weighed on our book value, even as our portfolio again generated earnings that exceeded our dividend,” said CEO and Chairman David Finkelstein. on the way forward for interest rate hikes and quantitative tightening.”

Q2 earnings available for distribution of $0.30 per share beat consensus of $0.25, increased from $0.28 in Q1 and provided dividend coverage of over 135%.

Economic leverage of 6.6x increased from 6.4x in Q1; economic return of -9.6% against -12.3% in the previous quarter.

Book value per common share of $5.90 as of June 30, 2022 compared to $6.77 as of March 31.

Annaly Capital (NLY) stock is down 1.5% in Wednesday after-hours trading.

Net interest margin in Q2, excluding PAA, of 2.20% compared to 2.04% in Q1 and 2.09% in Q2 2021.

The net interest spread in the second quarter, excluding PAA, was 1.76% compared to 1.73% in the prior quarter and 1.93% in the prior year quarter.

The average economic cost of interest-bearing liabilities is 1.11% as of June 30, 2022 compared to 0.89% as of March 31.

Conference call on July 28 at 9:00 a.m. ET.

Earlier, Annaly Capital Management (NLY) non-GAAP EPS of $0.30 beats $0.05