Exhibit 99.1
Annaly Capital Management, Inc. Reports 4th Quarter 2007 Core EPS of $0.37 and Core EPS for the Year 2007 of $1.25
NEW YORK--(BUSINESS WIRE)--Feb. 4, 2008-- Annaly Capital Management, Inc. (NYSE: NLY) today reported Core Earnings for the quarter ended December 31, 2007 of $151.1 million or $0.37 per average share available to common shareholders as compared to Core Earnings of $51.7 million or $0.23 per average share available to common shareholders for the quarter ended December 31, 2006, and Core Earnings of $102.5 million or $0.31 per average share available to common shareholders for the quarter ended September 30, 2007. The Company reported Core Earnings for the year ended December 31, 2007 of $394.4 million or $1.25 per average share available to common shareholders as compared to Core Earnings of $141.8 million or $0.73 per average share available to common shareholders for the year ended December 31, 2006. “Core Earnings” represents a non-GAAP measure and is defined as net income (loss) excluding impairment losses and gains or losses on sales of securities and termination of interest rate swaps. On a GAAP basis, the net income for the quarter ended December 31, 2007 was $152.9 million or $0.38 basic net income per average share available to common shareholders, as compared to a net income of $53.3 million or $0.23 basic net income per average share available to common shareholders for the quarter ended December 31, 2006, and net income of $108.3 million or $0.33 basic net income per average share available to common shareholders for the quarter ended September 30, 2007. On a GAAP basis, the net income for the year ended December 31, 2007 was $414.4 million or $1.32 basic net income per average share available to common shareholders, as compared to net income of $93.8 million or $0.44 basic net income per average share available to common shareholders for the year ended December 31, 2006.
During the quarter ended December 31, 2007, the Company sold $549.4 million of Mortgage-Backed Securities, resulting in a realized gain of $1.8 million. During the quarter ended December 31, 2006, the Company sold $701.3 million of Mortgage-Backed Securities, resulting in a realized gain of $4.8 million. In addition, the Company had a $2.3 million gain on the termination of interest rate swaps with a notional value of $350.0 million. During the quarter ended September 30, 2007, the Company sold $1.8 billion of Mortgage-Backed Securities, resulting in a realized gain of $3.8 million. In addition the Company had a $2.0 million gain on the termination of interest rate swaps with a notional value of $600.0 million. During the year ended December 31, 2007, the Company sold $4.9 billion of Mortgage-Backed Securities, resulting in a realized gain of $19.1 million. In addition, the Company had a $2.1 million gain on the termination of interest rate swaps with a notional value of $900.0 million. During the year ended December 31, 2006, the Company sold $3.2 billion of Mortgage-Backed Securities, resulting in a realized loss of $3.9 million. In addition, the Company had a $10.7 million gain on the termination of interest rate swaps with a notional value of $1.2 billion.
Common dividends declared for the quarter ended December 31, 2007 were $0.34 per share, as compared to $0.19 per share for the quarter ended December 31, 2006 and $0.26 per share for the quarter ended September 30, 2007. The annualized dividend yield on the Company’s common stock for the quarter ended December 31, 2007, based on the December 31, 2007 closing price of $18.18, was 7.48%. On a Core Earnings basis, the Company provided an annualized return on average equity of 12.92% for the quarter ended December 31, 2007, as compared to 7.89% for the quarter ended December 31, 2006 and 11.44% for the quarter ended September 30, 2007. On a GAAP basis, the Company provided an annualized return on average equity of 13.07% for the quarter ended December 31, 2007, as compared to 4.68% for the quarter ended December 31, 2006, and 12.09% for the quarter ended September 30, 2007. On a Core Earnings basis, the Company provided a return on average equity of 10.63% for the year ended December 31, 2007, as compared to 7.07% for the year ended December 31, 2006. On a GAAP basis, the Company provided a return on average equity of 11.17% for the year ended December 31, 2007, as compared to 4.68% for the year ended December 31, 2006.
During the quarter ended December 31, 2007, the Company completed a public offering of 71,300,000 shares of common stock. The estimated net proceeds of the offering, including the exercise of the underwriters’ over-allotment option, were approximately $1.0 billion, net of offering expenses.
Subsequent to quarter end, the Company completed a public offering of 58,650,000 shares of common stock. The estimated net proceeds of the offering, including the exercise of the underwriters’ over-allotment option were approximately $1.1 billion, net of offering expenses.
Michael A.J. Farrell, Chairman, Chief Executive Officer and President of Annaly, commented on the quarter’s results. “While the extreme market turbulence that began in August 2007 has subsided, the US economy is in a tenuous position and fixed income market conditions remain volatile. Policymakers are taking aggressive steps to stimulate the economy and calm the markets through monetary and fiscal policy actions, and financial institutions are in the process of recapitalizing, but the success of these efforts is still evolving. In these conditions, while we continue to manage our portfolio conservatively, we are pleased that we are able to continue to demonstrate the accretive impact of sequential capital raises.”
For the quarter ended December 31, 2007, the annualized yield on average earning assets was 5.81% and the annualized cost of funds on the average repurchase balance was 4.93%, which results in an interest rate spread of 0.88%. This is a 39 basis point increase over the 0.49% annualized interest rate spread for the quarter ended December 31, 2006 and a 21 basis point increase over the 0.67% annualized interest rate spread for the quarter ended September 30, 2007. For the quarter ended December 31, 2006, the annualized yield on average earning assets was 5.64% and the annualized cost of funds on the average repurchase balance was 5.15%. For the quarter ended September 30, 2007, the annualized yield on average earning assets was 5.84% and the annualized cost of funds on the average repurchase balance was 5.17%. At December 31, 2007, the weighted average yield on assets was 5.75% and the cost of funds, including the effect of interest rate swaps, was 4.76%, which results in an interest rate spread of 0.99%. Leverage at December 31, 2007 was 8.7:1, in comparison to 10.4:1 at December 31, 2006 and 9.9:1 at September 30, 2007.
Fixed rate securities comprised 71% of the Company’s portfolio at December 31, 2007. The balance of the portfolio was comprised of 21% adjustable rate mortgages and 8% LIBOR floating rate collateralized mortgage obligations. At December 31, 2007, the Company had entered into interest rate swaps with a notional amount of $16.2 billion. The Company’s swaps are designated as cash flow hedges against the benchmark interest rate risk associated with the Company’s borrowings. The purpose of the swaps is to mitigate the risk of rising interest rates that affect the Company’s cost of funds. Since the Company will be receiving a floating rate on the notional amount of the swaps, the effect of the swaps is to lock in a spread relative to the cost of financing. The Company has continued to avoid the introduction of credit risk into its portfolio. As of December 31, 2007, substantially all of the assets in the Company’s portfolio were FNMA, GNMA and FHLMC mortgage-backed securities and agency debentures, which carry an actual or implied “AAA” rating.
“The yield curve has shifted lower, which brings about opportunity as well as risk,” said Wellington Denahan-Norris, Annaly’s Vice Chairman, Chief Investment Officer and Chief Operating Officer. “For example, investment opportunities for our asset class are attractive as financing spreads widen, but we continue to monitor the market for evidence of changes in prepayment behavior. We believe that our portfolio is positioned for a range of outcomes. After taking into account the effect of interest rate swaps, at December 31, 2007, our portfolio of short duration assets was effectively deployed in our barbell of 40% fixed-rate, 21% adjustable-rate and 39% floating-rate exposure.”
The following table summarizes portfolio information for the Company:
| | | | | | |
| | December 31,
2007 | | December 31,
2006 | | September 30,
2007 |
| Leverage at period-end | | 8.7:1 | | 10.4:1 | | 9.9:1 |
| Fixed-rate investment securities as % of portfolio | | 71% | | 72% | | 71% |
| Adjustable-rate investment securities as % of portfolio | | 21% | | 20% | | 22% |
| Floating-rate investment securities as % of portfolio | | 8% | | 8% | | 7% |
| Notional amount of interest rate swaps as % of portfolio | | 31% | | 31% | | 33% |
| Annualized yield on average earning assets during the quarter | | 5.81% | | 5.64% | | 5.84% |
| Annualized cost of funds on average repurchase balance during the quarter | | 4.93% | | 5.15% | | 5.17% |
| Annualized interest rate spread during the quarter | | 0.88% | | 0.49% | | 0.67% |
| Weighted average yield on assets at period-end | | 5.75% | | 5.63% | | 5.74% |
| Weighted average cost of funds at period-end | | 4.76% | | 5.14% | | 4.99% |
| Interest rate spread at period-end | | 0.99% | | 0.49% | | 0.75% |
The Constant Prepayment Rate was 12% during the fourth quarter of 2007, as compared to 15% during the fourth quarter of 2006, and 14% during the third quarter of 2007. The weighted average cost basis was 100.6 at December 31, 2007. The net amortization of premiums and accretion of discounts on investment securities for the quarters ended December 31, 2007, December 31, 2006 and September 30, 2007 was $16.2 million, $15.0 million, and $16.9 million, respectively. The total net premium remaining unamortized at December 31, 2007, December 31, 2006 and September 30, 2007 was $328.4 million, $140.7 million, and $229.7 million, respectively.
General and administrative expenses as a percentage of average assets were 0.16% each of the quarters ended December 31, 2007, December 31, 2006, and September 30, 2007. At December 31, 2007, December 31, 2006, and September 30, 2007, the Company had a common stock book value per share of $12.51, $11.52 and $11.36, respectively.
At December 31, 2007, FIDAC, Annaly’s wholly-owned registered investment advisor, had under management approximately $3.1 billion in net assets and $15.4 billion in gross assets, as compared to $2.6 billion in net assets and $15.1 billion in gross assets at December 31, 2006 and $2.5 billion in net assets and $13.9 billion in gross assets at September 30, 2007. For the quarter ended December 31, 2007, FIDAC earned investment advisory and service fees, net of fees paid to distributors, of $4.9 million, as compared to $4.4 million for the quarter ended December 31, 2006 and $4.4 million for the quarter ended September 30, 2007. The Company’s financial and operating data reflect the November 21, 2007 launch of Chimera Investment Corporation (NYSE: CIM), a newly-formed specialty finance REIT that is externally managed by FIDAC. Annaly made an investment of approximately $54.3 million in Chimera, representing 9.8% ownership at the date of launch.
Annaly manages assets on behalf of institutional and individual investors worldwide through Annaly and through the funds managed by its wholly-owned registered investment advisor, FIDAC. The Company’s principal business objective is to generate net income for distribution to investors from the spread between the interest income on its mortgage-backed securities and the cost of borrowing to finance their acquisition and from dividends Annaly receives from FIDAC, which earns investment advisory fee income. The Company, a Maryland corporation that has elected to be taxed as a real estate investment trust (“REIT”), currently has 460,477,703 shares of common stock outstanding.
The Company will hold the fourth quarter 2007 earnings conference call on Tuesday, February 5, 2008 at 10:00 a.m. EST. The number to call is 866-362-4829 for domestic calls and 617-597-5346 for international calls and the pass code is 76164346. The replay number is 888-286-8010 for domestic calls and 617-801-6888 for international calls and the pass code is 26909379. The replay is available for 48 hours after the earnings call. There will be a web cast of the call on www.annaly.com. If you would like to be added to the e-mail distribution list, please visit www.annaly.com, click on E-Mail alerts, enter your e-mail address where indicated and click the Subscribe button.
This news release and our public documents to which we refer contain or incorporate by reference certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements which are based on various assumptions (some of which are beyond our control) may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “anticipate,” “continue,” or similar terms or variations on those terms or the negative of those terms. Actual results could differ materially from those set forth in forward-looking statements due to a variety of factors, including, but not limited to, changes in interest rates, changes in yield curve, changes in prepayment rates, the availability of mortgage-backed securities for purchase, the availability of financing and, if available, the terms of any financing, changes in the market value of our assets, changes in business conditions and the general economy, and risks associated with the investment advisory business of FIDAC, including the removal by FIDAC’s clients of assets FIDAC manages, FIDAC’s regulatory requirements, and competition in the investment advisory business, changes in government regulations affecting our business, and our ability to maintain our qualification as a REIT for federal income tax purposes. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in our Annual Report on Form 10-K and all subsequent Quarterly Reports on Form 10-Q. We do not undertake, and specifically disclaim any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (dollars in thousands) |
| |
| December 31,
2007 (Unaudited) | | September 30,
2007 (Unaudited) | | June 30,
2007 (Unaudited) | | March 31,
2007 (Unaudited) | | December 31,
2006(1) |
| | | | | | | | | |
| ASSETS | | | | | | | | | |
| | | | | | | | | |
| Cash and cash equivalents | $ | 103,960 | | $ | 90,028 | | $ | 91,781 | | $ | 96,610 | | $ | 91,782 |
| Mortgage-Backed Securities, at fair value | | 52,879,528 | | | 44,641,352 | | | 38,603,002 | | | 39,176,227 | | | 30,167,509 |
| Agency debentures, at fair value | | 253,915 | | | 249,281 | | | 150,507 | | | 54,421 | | | 49,500 |
| Available for sale equity securities, at fair value | | 64,754 | | | - | | | - | | | - | | | - |
| Trading securities, at fair value | | 11,675 | | | 10,987 | | | 12,131 | | | 7,872 | | | 18,365 |
| Receivable for Mortgage-Backed Securities sold | | 276,737 | | | 516,140 | | | - | | | 28,643 | | | 200,535 |
| Accrued interest and dividends receivable | | 271,996 | | | 235,787 | | | 197,060 | | | 179,816 | | | 146,089 |
| Receivable for advisory and service fees | | 3,598 | | | 2,933 | | | 2,954 | | | 2,949 | | | 3,178 |
| Intangible for customer relationships | | 9,842 | | | 10,178 | | | 10,513 | | | 10,849 | | | 11,184 |
| Goodwill | | 22,966 | | | 22,966 | | | 22,966 | | | 22,966 | | | 22,966 |
| Interest rate swaps, at fair value | | - | | | - | | | 93,404 | | | 1,028 | | | 2,558 |
| Other assets | | 4,543 | | | 3,026 | | | 3,146 | | | 3,138 | | | 2,314 |
| | | | | | | | | |
| Total assets | $ | 53,903,514 | | $ | 45,782,678 | | $ | 39,187,464 | | $ | 39,584,519 | | $ | 30,715,980 |
| | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | |
| | | | | | | | | |
| Liabilities: | | | | | | | | | |
| Repurchase agreements | $ | 46,046,560 | | $ | 40,140,113 | | $ | 35,093,856 | | $ | 33,348,011 | | $ | 27,514,020 |
| Payable for Investment Securities purchased | | 1,677,131 | | | 1,169,324 | | | 744,027 | | | 2,590,429 | | | 338,172 |
| Trading securities sold, not yet purchased, at fair value | | 32,835 | | | 26,823 | | | 37,734 | | | 39,679 | | | 41,948 |
| Accrued interest payable | | 257,608 | | | 148,462 | | | 104,456 | | | 79,362 | | | 83,998 |
| Dividends payable | | 136,618 | | | 85,932 | | | 64,652 | | | 52,577 | | | 39,016 |
| Accounts payable and other liabilities | | 36,688 | | | 25,237 | | | 14,520 | | | 7,942 | | | 18,816 |
| Interest rate swaps, at fair value | | 398,096 | | | 142,061 | | | 838 | | | 42,871 | | | 20,179 |
| Total liabilities | | 48,585,536 | | | 41,737,952 | | | 36,060,083 | | | 36,160,871 | | | 28,056,149 |
| | | | | | | | | |
| Minority interest in equity of consolidated affiliate | | 1,574 | | | 1,329 | | | 5,623 | | | 5,610 | | | 5,324 |
| | | | | | | | | |
6.00% Series B Cumulative Convertible Preferred Stock: 4,600,000 shares authorized, issued and outstanding | | 111,466 | | | 111,466 | | | 111,466 | | | 111,466 | | | 111,466 |
| | | | | | | | | |
| Stockholders’ Equity: | | | | | | | | | |
7.875% Series A Cumulative Redeemable Preferred Stock: 7,637,500 authorized, 7,412,500 shares issued and outstanding | | 177,088 | | | 177,088 | | | 177,088 | | | 177,088 | | | 177,088 |
Common stock: par value $.01 per share; 487,762,500 authorized, 401,822,703, 330,509,203, 269,385,348, 262,887,391 and 205,345,591 outstanding, respectively | | 4,018 | | | 3,305 | | | 2,694 | | | 2,629 | | | 2,053 |
| Additional paid-in capital | | 5,297,922 | | | 4,270,330 | | | 3,447,964 | | | 3,352,417 | | | 2,615,016 |
| Accumulated other comprehensive loss | | (152,197) | | | (385,960) | | | (467,640) | | | (60,040) | | | (76,112) |
| Accumulated deficit | | (121,893) | | | (132,832) | | | (149,814) | | | (165,522) | | | (175,004) |
| | | | | | | | | |
| Total stockholders’ equity | | 5,204,938 | | | 3,931,931 | | | 3,010,292 | | | 3,306,572 | | | 2,543,041 |
| | | | | | | | | |
Total liabilities, minority interest, Series B Cumulative Convertible Preferred Stock and stockholders’ equity | $ | 53,903,514 | | $ | 45,782,678 | | $ | 39,187,464 | | $ | 39,584,519 | | $ | 30,715,980 |
| |
| (1) Derived from the audited consolidated financial statements at December 31, 2006. |
ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (dollars in thousands) |
| |
| For the quarters ended |
| December 31, | | September 30, | | June 30, | | March 31, | | December 31, |
| 2007 | | 2007 | | 2007 | | 2007 | | 2006(1) |
| Interest income | $ | 720,925 | | $ | 628,696 | | $ | 556,262 | | $ | 449,564 | | $ | 407,092 |
| | | | | | | | | |
| Interest expense | | 558,435 | | | 519,118 | | | 468,748 | | | 380,164 | | | 349,302 |
| | | | | | | | | |
| Net interest income | | 162,490 | | | 109,578 | | | 87,514 | | | 69,400 | | | 57,790 |
| | | | | | | | | |
| Other income | | | | | | | | | |
| Investment advisory and service fees | | 5,636 | | | 5,464 | | | 5,366 | | | 5,562 | | | 5,178 |
| Gain on sale of Mortgage-Backed Securities | | 1,829 | | | 3,795 | | | 7,293 | | | 6,145 | | | 4,829 |
Gain on termination of interest rate swaps | | - | | | 2,029 | | | - | | | 67 | | | 2,260 |
| Income from trading securities | | 7,187 | | | 8,288 | | | 243 | | | 3,429 | | | 3,382 |
Dividend income from available-for-sale equity securities | | 91 | | | - | | | - | | | - | | | - |
Loss on other-than-temporarily impaired securities | | - | | | - | | | (698) | | | (491) | | | (5,504) |
| Total other income | | 14,743 | | | 19,576 | | | 12,204 | | | 14,712 | | | 10,145 |
| | | | | | | | | |
| Expenses | | | | | | | | | |
| Distribution fees | | 782 | | | 1,100 | | | 861 | | | 904 | | | 795 |
| General and administrative expenses | | 20,174 | | | 17,334 | | | 12,272 | | | 12,886 | | | 12,219 |
| Total expenses | | 20,956 | | | 18,434 | | | 13,133 | | | 13,790 | | | 13,014 |
| | | | | | | | | |
| Income before income taxes and minority interest | | 156,277 | | | 110,720 | | | 86,585 | | | 70,322 | | | 54,921 |
| | | | | | | | | |
| Income taxes | | 3,100 | | | 2,327 | | | 839 | | | 2,604 | | | 1,288 |
| | | | | | | | | |
| Income before minority interest | | 153,177 | | | 108,393 | | | 85,746 | | | 67,718 | | | 53,633 |
| | | | | | | | | |
| Minority interest | | 245 | | | 106 | | | 13 | | | 286 | | | 296 |
| | | | | | | | | |
| Net income | | 152,932 | | | 108,287 | | | 85,733 | | | 67,432 | | | 53,337 |
| | | | | | | | | |
| Dividend on preferred stock | | 5,374 | | | 5,373 | | | 5,373 | | | 5,373 | | | 5,373 |
| | | | | | | | | |
| Net income available to common shareholders | $ | 147,558 | | $ | 102,914 | | $ | 80,360 | | $ | 62,059 | | $ | 47,964 |
| | | | | | | | | |
| Net income available per share to common shareholders: | | | | | | | | | |
| Basic | $ | 0.38 | | $ | 0.33 | | $ | 0.30 | | $ | 0.29 | | $ | 0.23 |
| Diluted | $ | 0.37 | | $ | 0.32 | | $ | 0.30 | | $ | 0.28 | | $ | 0.23 |
| | | | | | | | | |
| Weighted average number of shares outstanding: | | | | | | | | | |
| Basic | | 389,410,812 | | | 315,969,814 | | | 264,990,422 | | | 217,490,205 | | | 205,092,330 |
| Diluted | | 398,247,632 | | | 324,614,534 | | | 273,578,836 | | | 225,928,127 | | | 213,455,555 |
| | | | | | | | | |
| Net income | $ | 152,932 | | $ | 108,287 | | $ | 85,733 | | $ | 67,432 | | $ | 53,337 |
| Comprehensive income (loss) | | | | | | | | | |
| Unrealized gain (loss) on available-for-sale securities | | 491,626 | | | 320,102 | | | (535,413) | | | 45,948 | | | 35,979 |
| Unrealized (loss) gain on interest rate swaps | | (256,034) | | | (232,598) | | | 134,408 | | | (24,155) | | | 14,971 |
| Reclassification adjustment for gains included in net income | | (1,829) | | | (5,824) | | | (6,595) | | | (5,721) | | | (7,089) |
| Other comprehensive income (loss) | | 233,763 | | | 81,680 | | | (407,600) | | | 16,072 | | | 43,861 |
| Comprehensive income (loss) | $ | 386,695 | | $ | 189,967 | | | ($321,867) | | $ | 83,504 | | $ | 97,198 |
| | | | | | | | | |
| (1) Derived from the audited consolidated financial statements at December 31, 2006. |
ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (dollars in thousands) |
| | |
| | For the twelve months ended |
| | December 31, | | December 31, |
| | 2007 | | 2006 (1) |
| | | | |
| Interest income | | $ | 2,355,447 | | $ | 1,221,882 |
| | | | |
| Interest expense | | | 1,926,465 | | | 1,055,013 |
| | | | |
| Net interest income | | | 428,982 | | | 166,869 |
| | | | |
| Other income (loss) | | | | |
| Investment advisory and service fees | | | 22,028 | | | 22,351 |
| Gain (loss) on sale of Mortgage-Backed Securities | | | 19,062 | | | (3,862) |
| Gain on termination of interest rate swaps | | | 2,096 | | | 10,674 |
| Income from trading securities | | | 19,147 | | | 3,994 |
| Dividend income from available-for-sale equity securities | | | 91 | | | - |
| Loss on other-than-temporarily impaired securities | | | (1,189) | | | (52,348) |
| Total other income (loss) | | | 61,235 | | | (19,191) |
| | | | |
| Expenses | | | | |
| Distribution fees | | | 3,647 | | | 3,444 |
| General and administrative expenses | | | 62,666 | | | 40,063 |
| Total expenses | | | 66,313 | | | 43,507 |
| | | | |
| Impairment of intangible for customer relationships | | | - | | | 2,493 |
| | | | |
| Income before income taxes and minority interest | | | 423,904 | | | 101,678 |
| | | | |
| Income taxes | | | 8,870 | | | 7,538 |
| | | | |
| Income before minority interest | | | 415,034 | | | 94,140 |
| | | | |
| Minority interest | | | 650 | | | 324 |
| | | | |
| Net income | | | 414,384 | | | 93,816 |
| | | | |
| Dividend on preferred stock | | | 21,493 | | | 19,557 |
| | | | |
| Net income available to common shareholders | | $ | 392,891 | | $ | 74,259 |
| | | | |
| Net income per share available to common shareholders: | | | | |
| Basic | | $ | 1.32 | | $ | 0.44 |
| | | | |
| Diluted | | $ | 1.31 | | $ | 0.44 |
| | | | |
| Weighted average number of shares outstanding: | | | | |
| Basic | | | 297,488,394 | | | 167,666,631 |
| | | | |
| Diluted | | | 306,263,766 | | | 167,746,387 |
| | | | |
| Net income | | $ | 414,384 | | $ | 93,816 |
| Comprehensive (loss) income | | | | |
| Unrealized gain on available-for-sale securities | | | 322,264 | | | 91,873 |
| Unrealized loss on interest rate swaps | | | (378,380) | | | (6,404) |
| Reclassification adjustment for net (gains) losses included in net income | | | (19,969) | | | 45,536 |
| Other comprehensive (loss) gain | | | (76,085) | | | 131,005 |
| Comprehensive income | | $ | 338,299 | | $ | 224,821 |
| | | | |
| |
| (1) Derived from the audited consolidated financial statements at December 31, 2006. |
CONTACT:
Annaly Capital Management, Inc.
Investor Relations, 1-888-8Annaly
www.annaly.com
