Annaly Capital Management Reports Significant Financial Turnaround in Q3 2024

Annaly Capital Management, Inc. reported significant financial improvements for the third quarter of 2024 compared to the same period in 2023. The company achieved a net income of $82.4 million, translating to $0.05 per share, a stark contrast to the net loss of $569.1 million, or $(1.21) per share, in Q3 2023. This turnaround was driven by a substantial increase in net interest income, which rose to $13.4 million from a loss of $45.3 million in the prior year. Interest income also saw a notable increase, reaching $1.23 billion, up from $1.00 billion in Q3 2023.

The company's total assets grew to $101.5 billion as of September 30, 2024, up from $93.2 billion at the end of 2023. This increase was primarily attributed to a rise in securities held, which reached $71.7 billion, and a significant jump in assets transferred to securitization vehicles, which rose to $21.0 billion from $13.3 billion. Total liabilities also increased to $89.0 billion, up from $81.9 billion, with repurchase agreements rising to $64.3 billion.

Annaly's strategic developments included the issuance of 57 million shares under its at-the-market sales program, generating proceeds of $1.1 billion in Q3 2024, compared to only 0.9 million shares for $17.8 million in the same quarter of 2023. The company also reported a comprehensive income of $527.1 million for Q3 2024, compared to a loss of $881.3 million in Q3 2023.

For the nine months ended September 30, 2024, Annaly reported a net income of $538.7 million, a significant recovery from a net loss of $1.25 billion in the same period of 2023. The company’s economic leverage ratio remained stable at 5.7x, while total stockholders’ equity increased to $12.4 billion from $11.3 billion at the end of 2023.

In terms of market conditions, the Federal Reserve's decision to lower the Federal Funds Target Rate by 50 basis points in September 2024 contributed to a favorable environment for Annaly's investments, particularly in Agency mortgage-backed securities. The company’s residential credit portfolio also expanded, reaching $6.5 billion in economic market value, with six securitizations totaling $3.2 billion completed in Q3 2024.

Overall, Annaly Capital Management's performance in Q3 2024 reflects a robust recovery and strategic positioning in a changing economic landscape, marked by increased revenues and improved profitability metrics.