NEW YORK--(BUSINESS WIRE)--Sept. 15, 2005--The Board of Directors
of Annaly Mortgage Management, Inc.
(NYSE: NLY) declared the third
quarter 2005 common stock cash dividend of $0.13 per common share.
This dividend is payable October 27, 2005 to common shareholders of
record on September 28, 2005. The ex-dividend date is September 26,
2005. It continues to be the intention of the Company not to return
capital to shareholders.
"As students of our business model are aware, during the
tightening phase of an interest rate cycle our cost of financing will
rise faster than the yield on our assets," said Michael A.J. Farrell,
Chairman, Chief Executive Officer and President of Annaly. "Since June
30, 2004, the Federal Reserve has raised the Federal Funds rate 10
times and 250 basis points. During this period, the 2-year Treasury
has risen in yield from 2.68% to 3.87% and the 10-year Treasury has
fallen in yield from 4.58% to 4.16%. The annualized cost of funds on
our average repurchase balance has reflected this rise in short-term
rates. At the same time, our amortization expense has stayed
relatively high as range-bound long-term interest rates have
perpetuated strong refinancing activity. The resulting pressure on net
interest spread caused by these market conditions will continue for as
long as the Federal Reserve maintains its current course of monetary
policy."
Mr. Farrell continued, "Looking ahead, as the tightening cycle
ends, investors should expect to see the benefits of our barbell
strategy through a complete interest rate cycle. In this strategy,
over time the coupons on our assets--Agency mortgage-backed securities
that are primarily adjustable-rate in nature--will reset upwards into
the new interest rate environment. In addition, we continue to focus
on the long-term advantages of investing in the highest credit quality
assets, keeping operating expenses low and protecting capital.
Moreover, investment opportunities today are attractive for new
capital we receive through amortized principal or raise in the form of
new equity."
Dividends may be reinvested through Annaly's Dividend Reinvestment
Plan. Plan information may be obtained from the Plan Administrator,
ChaseMellon Shareholder Services at 1-800-842-7629, at www.annaly.com,
or by contacting the Company.
Annaly manages assets on behalf of institutional and individual
investors worldwide through Annaly and through the funds managed by
its wholly-owned registered investment advisor, FIDAC. The Company's
principal business objective is to generate net income for
distribution to investors from the spread between the interest income
on its mortgage-backed securities and the cost of borrowing to finance
their acquisition and from dividends Annaly receives from FIDAC, which
earns investment advisory fee income. The Company, a Maryland
corporation that has elected to be taxed as a real estate investment
trust ("REIT"), currently has 123,684,931 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, FIDAC's clients removal of
assets FIDAC manages, FIDAC's regulatory requirements, and competition
in the investment management business. 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, 2004. 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 statements.
CONTACT: Annaly Mortgage Management, Inc.
Investor Relations
1-888-8Annaly
www.annaly.com
SOURCE: Annaly Mortgage Management, Inc.