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Annaly Capital Management, Inc. Reports Results For The 4th Quarter 2012

Stock quotes in this article: NLY 

Annaly Capital Management, Inc. (NYSE: NLY) today reported GAAP net income for the quarter ended December 31, 2012 of $700.5 million or $0.70 per average common share as compared to GAAP net income of $445.6 million or $0.46 per average common share for the quarter ended December 31, 2011, and GAAP net income of $224.8 million or $0.22 per average common share for the quarter ended September 30, 2012.

GAAP net income was $1.7 billion or $1.74 per average common share and $344.5 million or $0.37 per average common share for the years ended December 31, 2012 and 2011, respectively.

Without the effect of the unrealized gains or losses on interest rate swaps and Agency interest-only mortgage-backed securities and net loss on extinguishment of 4% Convertible Senior Notes due 2015 (the “4% Convertible Notes”), net income for the quarter ended December 31, 2012, was $465.1 million or $0.46 per average common share as compared to $525.3 million or $0.54 per average common share for the quarter ended December 31, 2011, and $449.8 million or $0.45 per average common share for the quarter ended September 30, 2012.

Without the effect of the unrealized gains or losses on interest rate swaps and Agency interest-only mortgage-backed securities and net loss on extinguishment of 4% Convertible Notes, net income for the years ended December 31, 2012 and 2011, was $2.0 billion or $2.01 per average common share and $2.3 billion or $2.57 per average common share, respectively.

Agency mortgage-backed securities, Agency debentures, and corporate debt are considered Investment Securities. During the quarter ended December 31, 2012, the Company disposed of $13.2 billion of Investment Securities, resulting in a realized gain of $122.4 million. During the quarter ended December 31, 2011, the Company disposed of $10.3 billion of Investment Securities, resulting in a realized gain of $80.7 million. During the quarter ended September 30, 2012, the Company disposed of $7.3 billion of Investment Securities, resulting in a realized gain of $142.2 million.

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