Annaly Capital reports Q2 distribution EPS 72c, consensus 74c

Economic return of 2.9% for the second quarter. Annualized GAAP return on average equity of 5.4% and annualized EAD return on average equity of 13.2%. Book value per common share of $20.73. “We were pleased to generate a 3% economic return in the second quarter of 2023 driven by our proactive portfolio management and an improved operating environment,” remarked David Finkelstein, Annaly’s Chief Executive Officer and Chief Investment Officer. “As we have noted for some time, Annaly is well-prepared for volatility and strategically managed our leverage position during the quarter given uncertainties emanating from the regional banking turbulence and debt ceiling negotiations. These efforts enabled book value to end the quarter effectively unchanged while our portfolio out-earned our dividend. Overall, we have generated a 6% economic return for the first half of the year despite substantial market volatility – demonstrating the stability and efficacy of our diversified housing finance model.”