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Annaly Capital Management Inc. (NLY-2.24%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing reports net income of $1.0 billion for 2024, compared to a net loss of $1.6 billion in 2023. This improvement is attributed to favorable changes in net gains on derivatives and investments, as well as increased net interest income and net servicing income.
Annaly's investment portfolio increased to $98.2 billion at the end of 2024 from $87.4 billion at the end of 2023. The company reported an economic return of 11.9% for the year.
The company's Agency MBS portfolio grew to $70.6 billion, with a focus on prepayment-protected specified pools. The Residential Credit business issued 21 securitizations totaling $11.0 billion, while the Mortgage Servicing Rights portfolio increased to $3.3 billion.
Annaly's leverage ratio decreased to 5.5:1 at the end of 2024 from 5.7:1 at the end of 2023, reflecting a strategic reduction in leverage and diversification into less levered assets.
The Federal Reserve's actions, including a 1% reduction in the Federal Funds Rate in the second half of 2024, influenced market conditions. The yield on the 10-year U.S. Treasury note ended the year at 4.57%, up from 3.88% at the end of 2023.
Annaly's earnings available for distribution were $1.6 billion, or $2.70 per average common share, for 2024, compared to $1.6 billion, or $2.86 per average common share, in 2023. The company attributes this change to higher coupon income and net servicing income, offset by increased interest expenses.
The filing also highlights Annaly's continued focus on risk management, with a firm-wide risk appetite statement guiding investment management activities.
Annaly's board authorized a new share repurchase program of up to $1.5 billion through December 31, 2029, replacing the previous program that expired at the end of 2024.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Annaly Capital Management Inc. annual 10-K report dated February 13, 2025. To report an error, please email earnings@qz.com.