NEW YORK--(BUSINESS WIRE)--Sept. 9, 2003--Annaly Mortgage
Management, Inc. (NYSE: NLY) (the "Company") reiterated today the
comments made on its second quarter 2003 earnings conference call held
on July 29, 2003. "As we previously indicated to shareholders, the
high level of mortgage refinancings is having a meaningful impact on
our earnings," said Michael A.J. Farrell, Chairman, Chief Executive
Officer and President of Annaly. "The recently released September
government Agency factors (representing August activity) confirmed
that the pace of prepayments of the last several months is continuing.
As a result, for the third quarter we will experience extremely high
levels of premium amortization on our securities. We currently believe
that the dividend for the third quarter 2003 will be between $0.25 and
$0.30 per share."
The Mortgage Bankers Association weekly Refinancing Index hit an
all-time high of 9,977 on May 30, 2003. The index reflects the number
of refinancing applications filed during the prior calendar week.
Since then, the Refinancing Index has fallen 80% to 1,981. Since
Annaly's IPO in 1997, the average for this index is 2,240. "While this
is welcome news for investors in mortgage-backed securities," said Mr.
Farrell, "the two to three month lag between the filing of a mortgage
refinance application and the actual closing of the mortgage loan
means that our portfolio is only now feeling the effects of the peak
in the Refinancing Index. However, the consensus among Wall Street
analysts is that prepayment speeds will slow substantially going
forward. In our second quarter release and earnings call, we
characterized the third quarter as a transition quarter. Looking ahead
to the fourth quarter and beyond, we expect that the substantial
reduction in prepayment speeds and premium amortization will serve to
enhance earnings."
The Company is a Maryland corporation which owns and manages a
portfolio of mortgage-backed securities. The Company's principal
business objective is to generate net income for distribution to
stockholders from the spread between the interest income on its
mortgage-backed securities and the cost of borrowing to finance their
acquisition. The Company has elected to be taxed as a real estate
investment trust ("REIT") and currently has 95,791,323 shares of
common stock outstanding.
This news release and our public documents to which we refer
contain or incorporate by reference certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements which are based on various assumptions (some of which are
beyond our control) may be identified by reference to a future period
or periods or by the use of forward-looking terminology, such as
"may," "will," "believe," "expect," "anticipate," "continue," or
similar terms or variations on those terms or the negative of those
terms. Actual results could differ materially from those set forth in
forward-looking statements due to a variety of factors, including, but
not limited to, changes in interest rates, changes in yield curve,
changes in prepayment rates, the availability of mortgage-backed
securities for purchase, the availability of financing and, if
available, the terms of any financing. For a discussion of the risks
and uncertainties which could cause actual results to differ from
those contained in the forward-looking statements, see "Risk factors"
in our Annual Report on Form 10-K for the fiscal year ended December
31, 2002. We do not undertake, and specifically disclaim any
obligation, to publicly release the result of any revisions which may
be made to any forward-looking statements to reflect the occurrence of
anticipated or unanticipated events or circumstances after the date of
such statement.
CONTACT: Annaly Mortgage Management
Kathryn Fagan, 212-696-0100
or
Investor Relations
1-888-8Annaly
www.annaly.com
SOURCE: Annaly Mortgage Management, Inc.