Annaly Capital Management, Inc. Announces Share Repurchase Program of $1.5 Billion

Rhea-AI Summary

Annaly Capital Management (NYSE:NLY) has authorized a new share repurchase program to buy back up to $1.5 billion of its common stock through December 31, 2021. This program replaces the previous $1.5 billion program that expired on December 31, 2020. Repurchases will be conducted in the open market or through private transactions based on economic conditions and stock price. The program provides flexibility as it does not obligate the company to acquire any specific amount and may be suspended at its discretion.

Positive

• Establishing a new $1.5 billion share repurchase program can potentially enhance shareholder value.
• The continuation of a share repurchase program indicates management's confidence in the company's future.

Negative

• None.

Annaly Capital Management, Inc. (NYSE:NLY) (“Annaly” or the “Company”) today announced that its Board of Directors has authorized a new share repurchase program. Under the repurchase program, the Company may repurchase up to $1.5 billion of its outstanding shares of common stock through December 31, 2021.

The new repurchase program replaces the Company’s existing $1.5 billion share repurchase program, which expires on December 31, 2020.

Purchases made pursuant to the program will be made in either the open market or in privately negotiated transactions from time to time as permitted by securities laws and other legal requirements. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The authorization does not obligate the Company to acquire any particular amount of common stock and the program may be suspended or discontinued at the Company’s discretion without prior notice.

About Annaly

Annaly is a leading diversified capital manager that invests in and finances residential and commercial assets. Annaly’s principal business objective is to generate net income for distribution to its stockholders and to optimize its returns through prudent management of its diversified investment strategies. Annaly is internally managed and has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes.

Forward-Looking Statements

This news release and our public documents to which we refer contain or incorporate by reference certain forward-looking statements which are based on various assumptions (some of which are beyond our control) and 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, risks and uncertainties related to the COVID-19 pandemic, including as related to adverse economic conditions on real estate-related assets and financing conditions; changes in interest rates; changes in the yield curve; changes in prepayment rates; the availability of mortgage-backed securities and other 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; our ability to grow our commercial, middle market lending and residential credit businesses; credit risks related to our investments in credit risk transfer securities, residential mortgage-backed securities and related residential mortgage credit assets, commercial real estate assets and corporate debt; risks related to investments in mortgage servicing rights; our ability to consummate any contemplated investment opportunities; changes in government regulations or policy affecting our business; our ability to maintain our qualification as a REIT for U.S. federal income tax purposes; and our ability to maintain our exemption from registration under the Investment Company Act of 1940. 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 most recent Annual Report on Form 10-K and any 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, except as required by law.

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FAQ

What is the new share repurchase program for Annaly Capital Management?

Annaly has authorized a new share repurchase program allowing for the buyback of up to $1.5 billion in common stock until December 31, 2021.

When does the new share repurchase program for NLY begin?

The new share repurchase program for NLY began after the previous program expired on December 31, 2020.

How will Annaly Capital Management execute the share buybacks?

The share buybacks may occur in the open market or through privately negotiated transactions, depending on market conditions.

What is the purpose of Annaly's share repurchase program?

The program aims to enhance shareholder value by potentially increasing earnings per share (EPS) through stock repurchases.

What factors will influence Annaly's stock repurchase decisions?

Decisions will depend on economic conditions, stock price, and legal requirements.