Annaly Capital Management Inc. · NYSE:NLY
Annaly Capital Management — Shareholder Meeting (May 2020)
18 slides from Annaly Capital Management's shareholder meeting presentation, May 20, 2020
Slide 1: Annual Meeting Presentation
Annual Meeting Presentation May 20, 2020
Slide 2: Important Notices
Important Notices This presentation is issued by Annaly Capital Management, Inc. ("Annaly"), a publicly traded company that has elected to be taxed as a real estate investment trust for federal income tax purposes and is being furnished in connection with Annaly’s 2020 Annual Meeting. This presentat
Slide 3: Annaly is a Leading Diversified Capital Manager
Annaly is a Leading Diversified Capital Manager 93% ~$13 billion 518% of Total Assets Comprised of Permanent Capital(2) Total Shareholder Return Liquid Agency MBS(1) Since IPO(3) 4 Investment Groups Evolved & Evolving $20 billion Agency, Residential Credit, 38 Distinct Investment Common and Preferre
Slide 4: How Annaly is Navigating the COVID-19 Pandemic
How Annaly is Navigating the COVID-19 Pandemic We are committed to supporting our operations, employees and communities through these unprecedented times 100% of our employees are working from home Utilized Annaly’s well-established, and routinely tested, Business Continuity Planning process Emp
Slide 5: Power. Proven. People.
Progressive Approach, Proven Results Power. The industry leader with a differentiated model composed of four sizeable, diversified investment strategies: Agency, Residential Credit, Commercial Real Estate and Middle Market Lending Proven. Proven over 20+ years to be a stable source of yield for shar
Slide 6: Power.
Power. The combination of the four business strategies is intended to enhance risk-adjusted returns over time through investment optionality and risk management Economic and market perspectives Management incentives aligned with provide lens into residential & shareholders; no forced deployment of c
Slide 7: Proven.
Proven. Since inception, Annaly has delivered $20bn in dividends to shareholders(1) ($mm) $20,000 $16,000 $12,000 $8,000 $4,000 – 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD Prior Cumulative Dividends Declared Dividends
Slide 8: People.
People. Strong Culture Drives Ideas, Leads to Performance Our People by the Numbers Diversity & Inclusion Women in Leadership ~180 35% 45% Full-Time Employees of employees Continuing Directors identify as female 5 out of 11 7% 32% 20% Total turnover in 2019, of employees identify Named Executive wel
Slide 9: Our Mission
Our Mission Annaly combines the power of capital together with sound strategy to best serve our shareholders With a culture that champions diversity and talent, we work relentlessly to optimize risk-adjusted returns. With nearly $13 billion in permanent capital(1), we support two fundamental pillars
Slide 10: Our Investments
Our Investments We finance housing across the country and support the vitality of local communities and the economy through our investments Support for Housing Support for American Businesses(5) Nearly $95bn Nearly 700K Our investments in middle market businesses and of residential housing American
Slide 11: Our Strategy
Our Strategy Nearly $13 billion of permanent capital(1) invested across our four, scaled investment strategies Portfolio Overview Equity ESG ARM/HECM 36% 3% 1% Other 6% DUS 2% Annaly AAA CMBS Annaly Agency IO/IIO/ 75% Commercial 1% 8% CMO/MSR of of Group(2) 30yr 1% Dedicated Real Estate Dedicated 91
Slide 12: Our Positioning
Our Positioning Investment Strategy Outlook & Positioning Assets (1) $92.0bn Positive tailwinds for investing in Agency MBS Coordinated fiscal and monetary policy support improving Annaly Agency Sector Rank(2) #1/8 interest rate risk outlook, while challenges remain Group Asset reduction in Q1
Slide 13: Our Capitalization
Our Capitalization With the largest capital base in the sector, Annaly’s deep and diverse financing sources across all investment groups provide the Company with unique competitive advantages Total Financing and Capital 3/31/2020: $92.3bn(1) Overview of Select Financing Options Available Financing O
Slide 14: Our Responsibility
Our Responsibility We have made several important enhancements to our responsibility practices to promote shareholder value and support transparency over the last few years Established Environmental The policy integrates environmental considerations in the investment and risk management process, w
Slide 15: Our Key Stakeholders
Our Key Stakeholders We are committed to maintaining strong corporate governance practices that benefit the long-term interests of our investors Board of Directors | 11 Continuing Directors; 5 Standing Committees Age Gender Diversity Tenure 40’s >10 Years 55 7.1 3 Directors 3 Directors 60’s 5 Direct
Slide 16: Glossary and Endnotes
Glossary and Endnotes ANNALY’
Slide 17: Glossary
Glossary ACREG: Refers to Annaly Commercial Real Estate Group FICC: Refers to Fixed Income Clearing Corporation Agency Peers: Represents companies comprising the Agency sector FHLB: Refers to the Federal Home Loan Bank within the BBREMTG Index*(1) Ginnie Mae: Refers to the Government National Mortga
Slide 18: Endnotes
Endnotes Page 3 1. Assets represent Annaly’s investments that are on balance sheet, net of securitized debt of consolidated VIEs, as well as investments that are off-balance sheet in which the Company has economic exposure. Assets include TBA purchase contracts (market value) of $13.1bn and CMBX der
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