Annaly Capital Management, Inc. (NYSE:NLY) Files An 8-K Results of Operations and Financial ConditionItem 2.02.
In this Current Report on Form8-K, references to “we,” “us,” “our” or the “Company” refer to Annaly Capital Management, Inc. and its consolidated subsidiaries. As part of a previously announced public offering of its common stock, the Company disclosed the following estimated preliminary financial results for the quarter ended September30, 2017.
PortfolioUpdate
Although our financial results for the third quarter of 2017 are not yet finalized, we estimate that during the quarter ended September30, 2017, we purchased or originated an aggregate amount of approximately $535million of credit assets (“Credit Assets”), consisting of residential mortgage loans, residential mortgage-backed securities (“MBS”) and Agency or private label credit risk sharing transactions (“Residential Credit Assets”), corporate loans and debt securities for middle market companies (“MML Assets”), and commercial real estate loans and securities (“CRE Assets”). The amount of Residential Credit Assets for the quarter ended September30, 2017 reflects the net amount of residential mortgage loans and residential MBS purchased and sold during the quarter ended September30, 2017. The amount of CRE Assets reflects the amount of commercial real estate assets originated or purchased during the quarter ended September30, 2017. The amount of MML Assets reflects the amount of middle market corporate debt originated during the quarter ended September30, 2017.
Although our financial results for the third quarter of 2017 are not yet finalized, we estimate that during the quarter ended September30, 2017, we had net settled purchases of Agency MBS of approximately $10.7billion. The amount of Agency MBS purchased excludes changes in to-be-announced forward contract balances.
Our closing procedures for the three months ended September30, 2017 are not yet complete and, as a result, the financial information above reflects our preliminary estimate with respect to such information, based on information currently available to management, and may vary from our actual financial results as of and for the quarter ended September30, 2017. Further, these estimates are not a comprehensive statement of our financial results or financial condition as of and for the quarter ended September30, 2017. Accordingly, you should not place undue reliance on this preliminary information. These estimates, which are the responsibility of our management, were prepared by our management and are based upon a number of assumptions. Additional items that may require adjustments to the preliminary results may be identified and could result in material changes to our estimated preliminary results. Estimates of results are inherently uncertain and we undertake no obligation to update this information. Ernst& Young LLP has not audited, reviewed, compiled or performed any procedures with respect to this preliminary financial information. Accordingly, Ernst& Young LLP does not express an opinion or provide any form of assurance with respect thereto.
Cautionary Language Regarding Forward-Looking Statements
When used in this report or other written or oral communications, statements which are not historical in nature, including those containing words such as “will,” “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “could,” “would,” “should,” “may” or similar expressions, are intended to identify “forward-looking statements” within the meaning of Section27A of the Securities Act and Section21E of the Exchange Act, and, as such, may involve known and unknown risks, uncertainties and assumptions. Statements regarding the following subjects, among others, may be forward-looking: our ability to accurately estimate our preliminary estimates of purchases and originations of credit assets and purchases of Agency MBS at September30, 2017. The risks and uncertainties associated with forward-looking information in this report include, but are not limited to, factors that are beyond the Company’s control, including the factors listed in the Company’s Annual Report on Form10-K, in the Company’s Quarterly Reports on Form10-Q and in the Company’s Current Reports on Form8-K. All forward-looking statements speak only as of the date on which they are made. New risks and uncertainties arise over time and it is not possible to predict those events or how they may affect the Company. Except as required by law, the Company is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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About Annaly Capital Management, Inc. (NYSE:NLY)
Annaly Capital Management, Inc. (Annaly) is a mortgage real estate investment trust (REIT). The Company’s principal business objectives are to generate net income for distribution to its stockholders from its investments and capital preservation. Its portfolio also includes residential credit investments, such as credit risk transfer securities and non-agency mortgage-backed securities. Its business operations primarily consist of Annaly Commercial Real Estate Group, Inc. (ACREG), which specializes in originating or acquiring, financing and managing commercial loans and other commercial real estate debt, commercial mortgage-backed securities and other commercial real estate-related assets; Annaly Middle Market Lending LLC (MML), which engages in corporate middle market lending transactions, and RCap Securities, Inc. (RCap), which operates as a broker-dealer, and is a member of the Financial Industry Regulatory Authority (FINRA). It is managed by Annaly Management Company LLC.
