Annaly Capital Management Inc. · NYSE:NLY
Annaly Capital Management — Shareholder Meeting (May 2016)
14 slides from Annaly Capital Management's shareholder meeting presentation, May 2016
Slide 1: Presentation for Annual Meeting
Presentation for Annual Meeting May 2016
Slide 2: Safe Harbor
Safe Harbor This Presentation includes forward-looking statements. These forward-looking statements generally can be identified by phrases such as “will,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar import. Similarly, statements herein that des
Slide 3: Annaly Capital Management, Inc.
Annaly Capital Management, Inc. – PF Market Capitalization: $11.1 Billion Largest mREIT in the Size – PF Total Assets: $91 Billion World Fixed Floating – Agency − Agency ARMs Strategy – Non-Agency − Non-Agency Most Diversified – Commercial RE − Commercial RE − Middle Market Lending Historicall
Slide 4: Total Return vs. Other Yield Investments
Annaly vs. Other Yield Investments Annaly’s current investment team has outperformed all yield options since 2014 60.0% 40.0% 41.6% 28.2% 20.0% 17.0% 16.8% Total Return 4.4% – (0.3%) (20.0%) (22.3%) (40.0%) (60.0%) Annaly mREITs Utilities MLPs Asset Managers Banks S&P Note: Market data from December
Slide 5: Total Return vs. the VIX Index, the Sector and the Market
Annaly vs. the VIX Index, the Sector and the Market Amidst heightened volatility, Annaly has significantly outperformed the industry and the market overall 50.0% 60 40.0% 50 30.0% 40 Total Return VIX Index 20.0% 30 10.0% 20 – 10 (10.0%) 0 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-1
Slide 6: Mortgage REIT Industry Landscape
Mortgage REIT Industry Landscape Annaly’s pro forma market capitalization is 17x the median mREIT market cap $12,000 $11,000 $10,000 Current mREIT Total Market Cap: $54.1bn Pro Forma NLY as % of Total Market Cap: 20.4% $9,000 Market Cap Range # of Companies % of Total Market Cap $8,000 Market Cap ($
Slide 7: Diversified Business Model: $3 Trillion Market Opportunity
Diversified Business Model: $3 Trillion Market Opportunity Annaly is positioned as a permanent capital solution for the redistribution of MBS, residential credit, commercial real estate assets and institutional loans GSE (1) / Federal Reserve (2) CRE Maturities & New Originations(3) Institutional Lo
Slide 8: Annaly's Industry Leading Acquisition of Hatteras Financial Corp.
Annaly’s Industry Leading Acquisition of Hatteras Financial Corp. Largest Mortgage REIT to Mortgage REIT Transaction Ever, by Deal Value and Target Asset Value Announced $1.5 Billion Second Largest Transaction in the Entire REIT Sector Acquisition of Since the Financial Crisis, by Target Asset V
Slide 9: Sum-of-the-Parts Capital Diversification
Annaly Sum-of-the-Parts Capital Diversification Balancing the liquidity of the Agency strategies with the durability of multiple credit strategies Commercial Real Residential Middle Market Agency Estate Credit Lending Dedicated $9.7bn $1.6bn $1.0bn $0.6bn Capital (1) Sector Rank (2) #1 #5 #7 #16 % o
Slide 10: Efficiency of Annaly's Operating Model
Efficiency of Annaly’s Operating Model Annaly outperforms internally and externally managed mREITs Annaly has significantly outperformed its mREIT peers with respect to operating expenditures as a percentage of assets and as a percentage of equity Annaly’s average operating expense levels from 2
Slide 11: Top Management Stock Purchases – "Ownership Culture"
Top Management Stock Purchases – “Ownership Culture” Largest Annaly Management Purchases Since 2011 Purchase Shares Purchase Filing Date Holder (1) Price Per Purchased Value Share (1) 8/7/2015 Kevin G. Keyes - CEO and President; Director 300,000 $10.08 $3,024,000 8/21/2013 Wellington J. Denahan - Ex
Slide 12: Relative Valuation vs. Other Yield Investments
Annaly vs. Other Yield Investments – Relative Valuation Annaly’s performance, leverage and yield profiles are superior to other yield asset classes, yet valuation still lags the other yield sectors Total Return (22.3)% 28.2% (0.3)% 4.4% 16.8% 41.7% Since 2014: 12.0x 12.0% 11.0% 10.0x 10.0x 10.0% 8.7
Slide 13: Annaly's Accomplishments Over the Past 12 Months
Annaly’s Accomplishments Over the Past 12 Months – Four Distinct Asset Classes Provide More Investment Options Diversification – Doubled Invested Capital in Credit to 25% Producing More Strategy Stable EPS and BV Pending Hatteras – Anticipated to be the Largest mREIT Acquisition Ever Acquisition – E
Slide 14: The Annaly Track Record
The Annaly Track Record Annaly has paid out $14.0 billion in dividends since inception 700% Price Total Dividends Appreciation Return Annaly (14%) 657% 643% 600% Berkshire Hathaway 363% 0% 363% S&P 500 112% 88% 201% 500% MSCI US REIT Index 37% 80% 117% Bloomberg mREIT Index (83%) 198% 115% S&P Finan
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