Annaly Capital Management, Inc. Reports Results For The 4th Quarter And Year Ended 2011

Annaly Capital Management, Inc. (NYSE: NLY) today reported GAAP net income for the quarter ended December 31, 2011 of $445.6 million or $0.46 per average common share as compared to GAAP net income of $1.2 billion or $1.94 per average common share for the quarter ended December 31, 2010, and GAAP net loss of $921.8 million or $0.98 per average common share for the quarter ended September 30, 2011. GAAP net income for the year ended December 31, 2011 was $344.5 million or $0.37 per average common share as compared to $1.3 billion or $2.12 per average common share for the year ended December 31, 2010.

Without the effect of the unrealized gains or losses on interest rate swaps and Agency interest-only mortgage-backed securities, net income for the quarter ended December 31, 2011, was $525.3 million or $0.54 per average common share as compared to $379.3 million or $0.60 per average common share for the quarter ended December 31, 2010, and $622.8 million or $0.65 per average common share for the quarter ended September 30, 2011.

Without the effect of the unrealized gains or losses on interest rate swaps and Agency interest-only mortgage-backed securities, net income for the year ended December 31, 2011, was $2.3 billion or $2.57 per average common share as compared to $1.6 billion or $2.67 per average common share for the year ended December 31, 2010.

During the quarter ended December 31, 2011, the Company disposed of $10.3 billion of Agency mortgage-backed securities and debentures, resulting in a realized gain of $80.7 million. During the quarter ended December 31, 2010, the Company disposed of $3.1 billion of Agency mortgage-backed securities and debentures, resulting in a realized gain of $33.8 million. During the quarter ended September 30, 2011, the Company disposed of $3.9 billion of Agency mortgage-backed securities and debentures, resulting in a realized gain of $91.7 million.