NEW YORK--(BUSINESS WIRE)--
Annaly Capital Management, Inc. (NYSE: NLY) today reported Core
Earnings for the quarter ended December 31, 2007 of $151.1 million or
$0.37 per average share available to common shareholders as compared
to Core Earnings of $51.7 million or $0.23 per average share available
to common shareholders for the quarter ended December 31, 2006, and
Core Earnings of $102.5 million or $0.31 per average share available
to common shareholders for the quarter ended September 30, 2007. The
Company reported Core Earnings for the year ended December 31, 2007 of
$394.4 million or $1.25 per average share available to common
shareholders as compared to Core Earnings of $141.8 million or $0.73
per average share available to common shareholders for the year ended
December 31, 2006. "Core Earnings" represents a non-GAAP measure and
is defined as net income (loss) excluding impairment losses and gains
or losses on sales of securities and termination of interest rate
swaps. On a GAAP basis, the net income for the quarter ended December
31, 2007 was $152.9 million or $0.38 basic net income per average
share available to common shareholders, as compared to a net income of
$53.3 million or $0.23 basic net income per average share available to
common shareholders for the quarter ended December 31, 2006, and net
income of $108.3 million or $0.33 basic net income per average share
available to common shareholders for the quarter ended September 30,
2007. On a GAAP basis, the net income for the year ended December 31,
2007 was $414.4 million or $1.32 basic net income per average share
available to common shareholders, as compared to net income of $93.8
million or $0.44 basic net income per average share available to
common shareholders for the year ended December 31, 2006.
During the quarter ended December 31, 2007, the Company sold
$549.4 million of Mortgage-Backed Securities, resulting in a realized
gain of $1.8 million. During the quarter ended December 31, 2006, the
Company sold $701.3 million of Mortgage-Backed Securities, resulting
in a realized gain of $4.8 million. In addition, the Company had a
$2.3 million gain on the termination of interest rate swaps with a
notional value of $350.0 million. During the quarter ended September
30, 2007, the Company sold $1.8 billion of Mortgage-Backed Securities,
resulting in a realized gain of $3.8 million. In addition the Company
had a $2.0 million gain on the termination of interest rate swaps with
a notional value of $600.0 million. During the year ended December 31,
2007, the Company sold $4.9 billion of Mortgage-Backed Securities,
resulting in a realized gain of $19.1 million. In addition, the
Company had a $2.1 million gain on the termination of interest rate
swaps with a notional value of $900.0 million. During the year ended
December 31, 2006, the Company sold $3.2 billion of Mortgage-Backed
Securities, resulting in a realized loss of $3.9 million. In addition,
the Company had a $10.7 million gain on the termination of interest
rate swaps with a notional value of $1.2 billion.
Common dividends declared for the quarter ended December 31, 2007
were $0.34 per share, as compared to $0.19 per share for the quarter
ended December 31, 2006 and $0.26 per share for the quarter ended
September 30, 2007. The annualized dividend yield on the Company's
common stock for the quarter ended December 31, 2007, based on the
December 31, 2007 closing price of $18.18, was 7.48%. On a Core
Earnings basis, the Company provided an annualized return on average
equity of 12.92% for the quarter ended December 31, 2007, as compared
to 7.89% for the quarter ended December 31, 2006 and 11.44% for the
quarter ended September 30, 2007. On a GAAP basis, the Company
provided an annualized return on average equity of 13.07% for the
quarter ended December 31, 2007, as compared to 4.68% for the quarter
ended December 31, 2006, and 12.09% for the quarter ended September
30, 2007. On a Core Earnings basis, the Company provided a return on
average equity of 10.63% for the year ended December 31, 2007, as
compared to 7.07% for the year ended December 31, 2006. On a GAAP
basis, the Company provided a return on average equity of 11.17% for
the year ended December 31, 2007, as compared to 4.68% for the year
ended December 31, 2006.
During the quarter ended December 31, 2007, the Company completed
a public offering of 71,300,000 shares of common stock. The estimated
net proceeds of the offering, including the exercise of the
underwriters' over-allotment option, were approximately $1.0 billion,
net of offering expenses.
Subsequent to quarter end, the Company completed a public offering
of 58,650,000 shares of common stock. The estimated net proceeds of
the offering, including the exercise of the underwriters'
over-allotment option were approximately $1.1 billion, net of offering
expenses.
Michael A.J. Farrell, Chairman, Chief Executive Officer and
President of Annaly, commented on the quarter's results. "While the
extreme market turbulence that began in August 2007 has subsided, the
US economy is in a tenuous position and fixed income market conditions
remain volatile. Policymakers are taking aggressive steps to stimulate
the economy and calm the markets through monetary and fiscal policy
actions, and financial institutions are in the process of
recapitalizing, but the success of these efforts is still evolving. In
these conditions, while we continue to manage our portfolio
conservatively, we are pleased that we are able to continue to
demonstrate the accretive impact of sequential capital raises."
For the quarter ended December 31, 2007, the annualized yield on
average earning assets was 5.81% and the annualized cost of funds on
the average repurchase balance was 4.93%, which results in an interest
rate spread of 0.88%. This is a 39 basis point increase over the 0.49%
annualized interest rate spread for the quarter ended December 31,
2006 and a 21 basis point increase over the 0.67% annualized interest
rate spread for the quarter ended September 30, 2007. For the quarter
ended December 31, 2006, the annualized yield on average earning
assets was 5.64% and the annualized cost of funds on the average
repurchase balance was 5.15%. For the quarter ended September 30,
2007, the annualized yield on average earning assets was 5.84% and the
annualized cost of funds on the average repurchase balance was 5.17%.
At December 31, 2007, the weighted average yield on assets was 5.75%
and the cost of funds, including the effect of interest rate swaps,
was 4.76%, which results in an interest rate spread of 0.99%. Leverage
at December 31, 2007 was 8.7:1, in comparison to 10.4:1 at December
31, 2006 and 9.9:1 at September 30, 2007.
Fixed rate securities comprised 71% of the Company's portfolio at
December 31, 2007. The balance of the portfolio was comprised of 21%
adjustable rate mortgages and 8% LIBOR floating rate collateralized
mortgage obligations. At December 31, 2007, the Company had entered
into interest rate swaps with a notional amount of $16.2 billion. The
Company's swaps are designated as cash flow hedges against the
benchmark interest rate risk associated with the Company's borrowings.
The purpose of the swaps is to mitigate the risk of rising interest
rates that affect the Company's cost of funds. Since the Company will
be receiving a floating rate on the notional amount of the swaps, the
effect of the swaps is to lock in a spread relative to the cost of
financing. The Company has continued to avoid the introduction of
credit risk into its portfolio. As of December 31, 2007, substantially
all of the assets in the Company's portfolio were FNMA, GNMA and FHLMC
mortgage-backed securities and agency debentures, which carry an
actual or implied "AAA" rating.
"The yield curve has shifted lower, which brings about opportunity
as well as risk," said Wellington Denahan-Norris, Annaly's Vice
Chairman, Chief Investment Officer and Chief Operating Officer. "For
example, investment opportunities for our asset class are attractive
as financing spreads widen, but we continue to monitor the market for
evidence of changes in prepayment behavior. We believe that our
portfolio is positioned for a range of outcomes. After taking into
account the effect of interest rate swaps, at December 31, 2007, our
portfolio of short duration assets was effectively deployed in our
barbell of 40% fixed-rate, 21% adjustable-rate and 39% floating-rate
exposure."
The following table summarizes portfolio information for the
Company:
December 31, December 31, September 30,
2007 2006 2007
---------------------------------------
Leverage at period-end 8.7:1 10.4:1 9.9:1
Fixed-rate investment
securities as % of portfolio 71% 72% 71%
Adjustable-rate investment
securities as % of portfolio 21% 20% 22%
Floating-rate investment
securities as % of portfolio 8% 8% 7%
Notional amount of interest
rate swaps as % of portfolio 31% 31% 33%
Annualized yield on average
earning assets during the
quarter 5.81% 5.64% 5.84%
Annualized cost of funds on
average repurchase balance
during the quarter 4.93% 5.15% 5.17%
Annualized interest rate
spread during the quarter 0.88% 0.49% 0.67%
Weighted average yield on
assets at period-end 5.75% 5.63% 5.74%
Weighted average cost of funds
at period-end 4.76% 5.14% 4.99%
Interest rate spread at
period-end 0.99% 0.49% 0.75%
The Constant Prepayment Rate was 12% during the fourth quarter of
2007, as compared to 15% during the fourth quarter of 2006, and 14%
during the third quarter of 2007. The weighted average cost basis was
100.6 at December 31, 2007. The net amortization of premiums and
accretion of discounts on investment securities for the quarters ended
December 31, 2007, December 31, 2006 and September 30, 2007 was $16.2
million, $15.0 million, and $16.9 million, respectively. The total net
premium remaining unamortized at December 31, 2007, December 31, 2006
and September 30, 2007 was $328.4 million, $140.7 million, and $229.7
million, respectively.
General and administrative expenses as a percentage of average
assets were 0.16% each of the quarters ended December 31, 2007,
December 31, 2006, and September 30, 2007. At December 31, 2007,
December 31, 2006, and September 30, 2007, the Company had a common
stock book value per share of $12.51, $11.52 and $11.36, respectively.
At December 31, 2007, FIDAC, Annaly's wholly-owned registered
investment advisor, had under management approximately $3.1 billion in
net assets and $15.4 billion in gross assets, as compared to $2.6
billion in net assets and $15.1 billion in gross assets at December
31, 2006 and $2.5 billion in net assets and $13.9 billion in gross
assets at September 30, 2007. For the quarter ended December 31, 2007,
FIDAC earned investment advisory and service fees, net of fees paid to
distributors, of $4.9 million, as compared to $4.4 million for the
quarter ended December 31, 2006 and $4.4 million for the quarter ended
September 30, 2007. The Company's financial and operating data reflect
the November 21, 2007 launch of Chimera Investment Corporation (NYSE:
CIM), a newly-formed specialty finance REIT that is externally managed
by FIDAC. Annaly made an investment of approximately $54.3 million in
Chimera, representing 9.8% ownership at the date of launch.
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 460,477,703 shares of common stock
outstanding.
The Company will hold the fourth quarter 2007 earnings conference
call on Tuesday, February 5, 2008 at 10:00 a.m. EST. The number to
call is 866-362-4829 for domestic calls and 617-597-5346 for
international calls and the pass code is 76164346. The replay number
is 888-286-8010 for domestic calls and 617-801-6888 for international
calls and the pass code is 26909379. The replay is available for 48
hours after the earnings call. There will be a web cast of the call on
www.annaly.com. If you would like to be added to the e-mail
distribution list, please visit www.annaly.com, click on E-Mail
alerts, enter your e-mail address where indicated and click the
Subscribe button.
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, changes in the market value of
our assets, changes in business conditions and the general economy,
and risks associated with the investment advisory business of FIDAC,
including the removal by FIDAC's clients of assets FIDAC manages,
FIDAC's regulatory requirements, and competition in the investment
advisory business, changes in government regulations affecting our
business, and our ability to maintain our qualification as a REIT for
federal income tax purposes. 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 and all subsequent Quarterly Reports on
Form 10-Q. 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.
ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)
December 31, September 30, June 30,
2007 2007 2007
(Unaudited) (Unaudited) (Unaudited)
------------ ------------- ------------
ASSETS
Cash and cash equivalents $ 103,960 $ 90,028 $ 91,781
Mortgage-Backed Securities, at
fair value 52,879,528 44,641,352 38,603,002
Agency debentures, at fair
value 253,915 249,281 150,507
Available for sale equity
securities, at fair value 64,754 - -
Trading securities, at fair
value 11,675 10,987 12,131
Receivable for Mortgage-Backed
Securities sold 276,737 516,140 -
Accrued interest and dividends
receivable 271,996 235,787 197,060
Receivable for advisory and
service fees 3,598 2,933 2,954
Intangible for customer
relationships 9,842 10,178 10,513
Goodwill 22,966 22,966 22,966
Interest rate swaps, at fair
value - - 93,404
Other assets 4,543 3,026 3,146
------------ ------------- ------------
Total assets $ 53,903,514 $45,782,678 $39,187,464
============ ============= ============
LIABILITIES AND STOCKHOLDERS'
EQUITY
Liabilities:
Repurchase agreements $ 46,046,560 $40,140,113 $35,093,856
Payable for Investment
Securities purchased 1,677,131 1,169,324 744,027
Trading securities sold, not
yet purchased, at fair value 32,835 26,823 37,734
Accrued interest payable 257,608 148,462 104,456
Dividends payable 136,618 85,932 64,652
Accounts payable and other
liabilities 36,688 25,237 14,520
Interest rate swaps, at fair
value 398,096 142,061 838
------------ ------------- ------------
Total liabilities 48,585,536 41,737,952 36,060,083
------------ ------------- ------------
Minority interest in equity of
consolidated affiliate 1,574 1,329 5,623
------------ ------------- ------------
6.00% Series B Cumulative
Convertible Preferred Stock:
4,600,000 shares authorized,
issued and outstanding 111,466 111,466 111,466
------------ ------------- ------------
Stockholders' Equity:
7.875% Series A Cumulative
Redeemable Preferred Stock:
7,637,500 authorized,
7,412,500 shares issued and
outstanding 177,088 177,088 177,088
Common stock: par value $.01
per share; 487,762,500
authorized, 401,822,703,
330,509,203, 269,385,348,
262,887,391 and 205,345,591
outstanding, respectively 4,018 3,305 2,694
Additional paid-in capital 5,297,922 4,270,330 3,447,964
Accumulated other
comprehensive loss (152,197) (385,960) (467,640)
Accumulated deficit (121,893) (132,832) (149,814)
------------ ------------- ------------
Total stockholders' equity 5,204,938 3,931,931 3,010,292
------------ ------------- ------------
Total liabilities, minority
interest, Series B Cumulative
Convertible Preferred Stock
and stockholders' equity $ 53,903,514 $45,782,678 $39,187,464
============ ============= ============
March 31, December 31,
2007 2006(1)
(Unaudited)
----------- ------------
ASSETS
Cash and cash equivalents $ 96,610 $ 91,782
Mortgage-Backed Securities, at fair value 39,176,227 30,167,509
Agency debentures, at fair value 54,421 49,500
Available for sale equity securities, at
fair value - -
Trading securities, at fair value 7,872 18,365
Receivable for Mortgage-Backed Securities
sold 28,643 200,535
Accrued interest and dividends receivable 179,816 146,089
Receivable for advisory and service fees 2,949 3,178
Intangible for customer relationships 10,849 11,184
Goodwill 22,966 22,966
Interest rate swaps, at fair value 1,028 2,558
Other assets 3,138 2,314
----------- ------------
Total assets $39,584,519 $30,715,980
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Repurchase agreements $33,348,011 $27,514,020
Payable for Investment Securities
purchased 2,590,429 338,172
Trading securities sold, not yet
purchased, at fair value 39,679 41,948
Accrued interest payable 79,362 83,998
Dividends payable 52,577 39,016
Accounts payable and other liabilities 7,942 18,816
Interest rate swaps, at fair value 42,871 20,179
----------- ------------
Total liabilities 36,160,871 28,056,149
----------- ------------
Minority interest in equity of consolidated
affiliate 5,610 5,324
----------- ------------
6.00% Series B Cumulative Convertible
Preferred Stock: 4,600,000 shares
authorized, issued and outstanding 111,466 111,466
----------- ------------
Stockholders' Equity:
7.875% Series A Cumulative Redeemable
Preferred Stock: 7,637,500 authorized,
7,412,500 shares issued and outstanding 177,088 177,088
Common stock: par value $.01 per share;
487,762,500 authorized, 401,822,703,
330,509,203, 269,385,348, 262,887,391 and
205,345,591 outstanding, respectively 2,629 2,053
Additional paid-in capital 3,352,417 2,615,016
Accumulated other comprehensive loss (60,040) (76,112)
Accumulated deficit (165,522) (175,004)
----------- ------------
Total stockholders' equity 3,306,572 2,543,041
----------- ------------
Total liabilities, minority interest, Series
B Cumulative Convertible Preferred Stock
and stockholders' equity $39,584,519 $30,715,980
=========== ============
(1) Derived from the audited consolidated financial statements at
December 31, 2006.
ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
(dollars in thousands)
For the quarters ended
December 31, September 30, June 30,
2007 2007 2007
------------ ------------- -------------
Interest income $ 720,925 $ 628,696 $ 556,262
Interest expense 558,435 519,118 468,748
------------ ------------- -------------
Net interest income 162,490 109,578 87,514
------------ ------------- -------------
Other income
Investment advisory and
service fees 5,636 5,464 5,366
Gain on sale of Mortgage-
Backed Securities 1,829 3,795 7,293
Gain on termination of
interest rate swaps - 2,029 -
Income from trading
securities 7,187 8,288 243
Dividend income from
available-for-sale equity
securities 91 - -
Loss on other-than-
temporarily impaired
securities - - (698)
------------ ------------- -------------
Total other income 14,743 19,576 12,204
------------ ------------- -------------
Expenses
Distribution fees 782 1,100 861
General and administrative
expenses 20,174 17,334 12,272
------------ ------------- -------------
Total expenses 20,956 18,434 13,133
------------ ------------- -------------
Income before income taxes and
minority interest 156,277 110,720 86,585
Income taxes 3,100 2,327 839
------------ ------------- -------------
Income before minority
interest 153,177 108,393 85,746
Minority interest 245 106 13
------------ ------------- -------------
Net income 152,932 108,287 85,733
------------ ------------- -------------
Dividend on preferred stock 5,374 5,373 5,373
------------ ------------- -------------
Net income available to common
shareholders $ 147,558 $ 102,914 $ 80,360
============ ============= =============
Net income available per share
to
common shareholders:
Basic $ 0.38 $ 0.33 $ 0.30
============ ============= =============
Diluted $ 0.37 $ 0.32 $ 0.30
============ ============= =============
Weighted average number of
shares outstanding:
Basic 389,410,812 315,969,814 264,990,422
============ ============= =============
Diluted 398,247,632 324,614,534 273,578,836
============ ============= =============
Net income $ 152,932 $ 108,287 $ 85,733
------------ ------------- -------------
Comprehensive income (loss)
Unrealized gain (loss) on
available-for-sale
securities 491,626 320,102 (535,413)
Unrealized (loss) gain on
interest rate swaps (256,034) (232,598) 134,408
Reclassification adjustment
for gains included in net
income (1,829) (5,824) (6,595)
------------ ------------- -------------
Other comprehensive income
(loss) 233,763 81,680 (407,600)
------------ ------------- -------------
Comprehensive income (loss) $ 386,695 $ 189,967 ($321,867)
For the quarters ended
March 31, December 31,
2007 2006(1)
------------ ------------
Interest income $ 449,564 $ 407,092
Interest expense 380,164 349,302
------------ ------------
Net interest income 69,400 57,790
------------ ------------
Other income
Investment advisory and service fees 5,562 5,178
Gain on sale of Mortgage-Backed
Securities 6,145 4,829
Gain on termination of interest rate
swaps 67 2,260
Income from trading securities 3,429 3,382
Dividend income from available-for-sale
equity securities - -
Loss on other-than-temporarily impaired
securities (491) (5,504)
------------ ------------
Total other income 14,712 10,145
------------ ------------
Expenses
Distribution fees 904 795
General and administrative expenses 12,886 12,219
------------ ------------
Total expenses 13,790 13,014
------------ ------------
Income before income taxes and minority
interest 70,322 54,921
Income taxes 2,604 1,288
------------ ------------
Income before minority interest 67,718 53,633
Minority interest 286 296
------------ ------------
Net income 67,432 53,337
------------ ------------
Dividend on preferred stock 5,373 5,373
------------ ------------
Net income available to common shareholders $ 62,059 $ 47,964
============ ============
Net income available per share to
common shareholders:
Basic $ 0.29 $ 0.23
============ ============
Diluted $ 0.28 $ 0.23
============ ============
Weighted average number of shares
outstanding:
Basic 217,490,205 205,092,330
============ ============
Diluted 225,928,127 213,455,555
============ ============
Net income $ 67,432 $ 53,337
------------ ------------
Comprehensive income (loss)
Unrealized gain (loss) on available-for-
sale securities 45,948 35,979
Unrealized (loss) gain on interest rate
swaps (24,155) 14,971
Reclassification adjustment for gains
included in net income (5,721) (7,089)
------------ ------------
Other comprehensive income (loss) 16,072 43,861
------------ ------------
Comprehensive income (loss) $ 83,504 $ 97,198
(1) Derived from the audited consolidated financial statements at
December 31, 2006.
ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
(dollars in thousands)
For the twelve months ended
December 31, December 31,
2007 2006 (1)
------------- -------------
Interest income $ 2,355,447 $ 1,221,882
Interest expense 1,926,465 1,055,013
------------- -------------
Net interest income 428,982 166,869
------------- -------------
Other income (loss)
Investment advisory and service fees 22,028 22,351
Gain (loss) on sale of Mortgage-Backed
Securities 19,062 (3,862)
Gain on termination of interest rate
swaps 2,096 10,674
Income from trading securities 19,147 3,994
Dividend income from available-for-sale
equity securities 91 -
Loss on other-than-temporarily impaired
securities (1,189) (52,348)
------------- -------------
Total other income (loss) 61,235 (19,191)
------------- -------------
Expenses
Distribution fees 3,647 3,444
General and administrative expenses 62,666 40,063
------------- -------------
Total expenses 66,313 43,507
------------- -------------
Impairment of intangible for customer
relationships - 2,493
------------- -------------
Income before income taxes and minority
interest 423,904 101,678
------------- -------------
Income taxes 8,870 7,538
------------- -------------
Income before minority interest 415,034 94,140
Minority interest 650 324
------------- -------------
Net income 414,384 93,816
------------- -------------
Dividend on preferred stock 21,493 19,557
------------- -------------
Net income available to common
shareholders $ 392,891 $ 74,259
============= =============
Net income per share available to common
shareholders:
Basic $ 1.32 $ 0.44
============= =============
Diluted $ 1.31 $ 0.44
============= =============
Weighted average number of shares
outstanding:
Basic 297,488,394 167,666,631
============= =============
Diluted 306,263,766 167,746,387
============= =============
Net income $ 414,384 $ 93,816
------------- -------------
Comprehensive (loss) income
Unrealized gain on available-for-sale
securities 322,264 91,873
Unrealized loss on interest rate swaps (378,380) (6,404)
Reclassification adjustment for net
(gains) losses included in net income (19,969) 45,536
------------- -------------
Other comprehensive (loss) gain (76,085) 131,005
------------- -------------
Comprehensive income $ 338,299 $ 224,821
============= =============
(1) Derived from the audited consolidated financial statements at
December 31, 2006.
Source: Annaly Capital Management, Inc.
Contact: Annaly Capital Management, Inc.
Investor Relations, 1-888-8Annaly
www.annaly.com