Boston, MA 11/08/2013 (wallstreetpr) – The mortgage real estate investment trust, Annaly Capital Management Inc (NYSE:NLY) reported an unsatisfactory third quarter results. The core earnings of company per share came in at 28 cents which is 6 cents below the consensus estimates provided by Zacks which is 34 cents. This is also a cent down from the earnings reported in the last quarter. Talking about the recent trading session of Annaly Capital Management Inc, the shares have slumped nearly to around 1.5% on the New York Stock Exchange.
The results of the third quarter report are also reflecting an impact on the monetary policy on the mortgage market and also the uncertainties tied up to the future course policy. Due to this the book value of the company is also falling per share. As of September, it came in at $12.70 which is reflecting a 2.5% sequential decrease and also a 23.5% decline over by year.
Talking about the entire net interest income, it came in at $551.7 million which is going down 4.8% year by year. This was also sequentially ahead of the Zacks Consensus Estimate of around $333 million.
Though, the mortgage market is in trouble, but still the company is also trying to boost their commercial investments portfolio. The commercial investment portfolio includes corporate debt and commercial real estate investments that would be representing 11% of the stock holder’s equity. The commercial real estate investments have also increased 30% sequentially to $1.3 billion in September from $1.0 billion of June.
The annual yield of interest earning assets was 2.82% while the annualized cost of funds on an average interest bearing liabilities was 1.81%. These numbers led to an average interest rate that spread in the entire quarter of 1.01% reflecting a 3 basis points.
Annaly Capital reported a gain of $43.6 million in the entire quarter.
