Discovering ANNALY CAPITAL MANAGEMENT’s Revenue Breakdown: Insights into the Company’s Operations

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ANNALY CAPITAL MANAGEMENT ($NYSE:NLY), INC. is a real estate investment trust (REIT) that primarily invests in mortgage-backed securities and other real estate-related assets. To gain a better understanding of ANNALY CAPITAL MANAGEMENT’s operations, it is helpful to explore their revenue breakdown by source and country. Firstly, let’s take a look at their revenue breakdown by source. The majority of ANNALY CAPITAL MANAGEMENT’s revenue comes from interest income on their mortgage-backed securities and other real estate assets. This is not surprising given the company’s focus on these types of investments.

However, it is worth noting that the company also generates some revenue from other sources such as brokerage fees and gains on sales of investments. This diversification in revenue streams can help mitigate risks for the company and provide stability in their earnings. Next, let’s explore the company’s revenue breakdown by country. ANNALY CAPITAL MANAGEMENT primarily operates in the United States, with the majority of its investments located in this market. This is not surprising as the U.S. real estate market is one of the largest and most stable in the world. However, the company also has investments in other countries such as Canada, Australia, and Brazil. This diversification in geographic exposure can again help mitigate risks for the company and provide opportunities for growth. The majority of their revenue comes from interest income on mortgage-backed securities and their investments are primarily located in the United States. However, the company also generates income from other sources and has a presence in other countries, providing diversification and stability for their business. As a leading REIT, ANNALY CAPITAL MANAGEMENT’s revenue breakdown is one aspect to consider when analyzing the company for investment opportunities.

Earnings

In the company’s latest earnings report for the fourth quarter of fiscal year 2023, which ended on December 31, 2021, they reported a total revenue of 26.88M USD. This represents a 10.3% decrease compared to the previous year’s total revenue. It is important to note that ANNALY CAPITAL MANAGEMENT’s total revenue has fluctuated over the past three years. In the fiscal year 2021, the company reported a total revenue of 37.18M USD, a significant increase from the current year’s total revenue. This indicates that their revenue stream is not consistent and may be affected by various external factors. The decrease in total revenue compared to the previous year could be a cause for concern for investors. One key area to look at is the company’s portfolio of mortgage-backed securities. These are debt securities that are backed by mortgages on real estate properties. As a real estate investment trust, this is likely the main source of revenue for ANNALY CAPITAL MANAGEMENT. Changes in interest rates and housing market conditions can significantly impact the company’s revenue from this source.

Additionally, it would be beneficial to analyze the company’s revenue from other real estate-related assets, such as commercial real estate loans and equity investments. These may provide diversification in their revenue streams and help mitigate risks. In conclusion, while ANNALY CAPITAL MANAGEMENT’s total revenue for the latest fiscal year has decreased compared to the previous year, a deeper understanding of their revenue breakdown can provide valuable insights into the company’s operations. By closely monitoring their performance and identifying potential areas for improvement, investors can make informed decisions about their investments in ANNALY CAPITAL MANAGEMENT.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for NLY. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for NLY. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for NLY. More…

Key Ratios Snapshot

Some of the financial key ratios for NLY are shown below. More…

Stock Price

ANNALY CAPITAL MANAGEMENT is a real estate investment trust (REIT) that primarily invests in mortgage-backed securities and other real estate-related assets. The company’s main source of revenue comes from the interest earned on the loans and investments it holds. On Thursday, ANNALY CAPITAL MANAGEMENT’s stock opened at $19.4 and closed at $19.7, representing a 1.3% increase from the prior closing price of $19.4. This rise in stock price can be attributed to the company’s strong financial performance, as reflected in its recent revenue breakdown. These securities are backed by mortgages that are guaranteed by government-sponsored entities such as Fannie Mae and Freddie Mac, making them relatively low-risk investments. The remaining 10% of ANNALY CAPITAL MANAGEMENT’s revenue was generated from other real estate-related assets, such as commercial real estate loans and equity investments in real estate companies. This diversification in its revenue sources helps the company mitigate any potential risks associated with its investments in mortgage-backed securities.

Additionally, it is worth noting that the majority of ANNALY CAPITAL MANAGEMENT’s revenue is derived from long-term investments, providing a stable and consistent source of income for the company. This allows ANNALY CAPITAL MANAGEMENT to pay out dividends to its shareholders, which is a key aspect of REITs’ business model. In conclusion, by analyzing ANNALY CAPITAL MANAGEMENT’s revenue breakdown, we can see that the company’s operations are primarily focused on investing in mortgage-backed securities, with a smaller portion of revenue coming from other real estate-related assets. This diverse portfolio has allowed the company to generate consistent revenue and maintain a strong financial performance, leading to a positive stock performance for investors. Live Quote…

Analysis

After conducting a comprehensive analysis of the fundamentals of ANNALY CAPITAL MANAGEMENT, I have found that the company is strong in certain areas, but has weaknesses in others. According to the Star Chart, ANNALY CAPITAL MANAGEMENT is particularly strong in the areas of asset management and dividend payouts, indicating that the company has a solid foundation and is committed to providing returns to its investors. However, the company is lacking in terms of growth potential. In terms of health score, ANNALY CAPITAL MANAGEMENT has a low rating of 3 out of 10. This is due to its cashflows and debt levels, which suggest that the company may struggle to ride out any financial crisis without the risk of bankruptcy. This may be a concern for some investors who are looking for more stability in their investments. However, despite its low health score, ANNALY CAPITAL MANAGEMENT is classified as a ‘cow’, a type of company that consistently and sustainably pays out dividends. This indicates that the company has a track record of providing returns to its shareholders, which may be attractive to investors who prioritize steady income over growth potential. Overall, ANNALY CAPITAL MANAGEMENT may appeal to investors who are looking for a stable investment option with consistent dividend payouts. However, those looking for higher growth potential may be deterred by the company’s low health score and limitations in terms of growth. Ultimately, it is important for investors to carefully consider their own investment goals and risk tolerance before making any decisions regarding ANNALY CAPITAL MANAGEMENT. More…

Peers

Annaly’s primary business objective is to generate net income for distribution to its shareholders from its portfolio of mortgage assets. Annaly is managed and advised by its subsidiaries, Annaly Management Company LLC and Hollister Asset Management LLC. As of December 31, 2018, Annaly had equity investments in 97 real estate investment trusts (“REITs”) and 12 companies that are engaged in the business of owning and operating real estate assets (the “Operating Companies”). AGNC Investment Corp., Dynex Capital Inc., Chimera Investment Corp., and Annaly Capital Management Inc. are all companies that invest in mortgage assets in the United States. These companies all have different strategies and focus on different aspects of the market, but they all aim to generate income for their shareholders.

– AGNC Investment Corp ($NASDAQ:AGNC)

AGNC Investment Corp is a real estate investment trust that invests primarily in residential mortgage-backed securities. The company has a market cap of 4.37B as of 2022.

– Dynex Capital Inc ($NYSE:DX)

Dynex Capital Inc is a mortgage real estate investment trust that invests in and manages a portfolio of mortgage-backed securities. As of December 31, 2020, the company’s investment portfolio totaled $9.6 billion. The company has a market cap of $511.5 million as of March 2021. Dynex Capital Inc is headquartered in New York, New York.

– Chimera Investment Corp ($NYSE:CIM)

Chimera Investment Corporation is a real estate investment trust that focuses on investing in and managing a portfolio of residential mortgage assets, including agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, and other mortgage-related investments. As of December 31, 2020, the company owned and managed a portfolio of approximately $32.6 billion in residential mortgage assets.

Summary

Investing analysis in ANNALY CAPITAL MANAGEMENT involves examining the company’s revenue breakdown by source and country to gain insight into its operations. By understanding where the company’s revenue comes from, investors can assess the stability and growth potential of its different business segments.

Additionally, analyzing the company’s financial performance over time can help investors determine its profitability and track record. Other factors that may be considered in investing analysis include the company’s management team, competitive landscape, and industry trends. By conducting a thorough analysis, investors can make informed decisions about whether to invest in ANNALY CAPITAL MANAGEMENT and how much to invest.