Annaly Capital Management (NYSE: NLY) reported Q3 EPS of $0.21, $0.04 worse than the analyst estimate of $0.25.

Financial Highlights

• GAAP net income (loss) of ($0.54) per average common share
• Core earnings (excluding PAA) of $0.21 per average common share
• GAAP return on average equity of (19.32%) and core return on average equity (excluding PAA) of 8.85%
• Book value per common share of $9.21
• Economic leverage of 7.7x
• Economic return of 6.6% year-to-date (non-annualized)
• Declared quarterly common stock dividend of $0.25 per share; reaffirmed quarterly common stock dividend of $0.25 per share for the fourth quarter of 2019 subject to the approval of our Board of Directors

“Amidst one of the most challenging quarters in the market in recent history, Annaly demonstrated its expertise in navigating heightened volatility with proactive management of our broad investment and financing options,” commented Kevin Keyes, Chairman, Chief Executive Officer and President. “During the third quarter, we invested $1.2 billion in our diversified credit businesses producing attractive returns through our unique origination channels, further diversified our hedge portfolio to protect against elevated interest rate volatility and continued the efficient financing of our Agency Group’s strategies throughout the recent market turbulence. We opportunistically repurchased over $220 million of our common shares to capitalize on temporary market dislocation and underscore the inherent value of our stock. Finally, as part of our ongoing capital optimization and funding diversification efforts, our Residential Credit Group completed their eighth whole loan securitization since the beginning of 2018. Importantly, Annaly is now the fourth largest non-bank issuer of RMBS.

“With the onset of more accommodative Fed policy, we expect our financial performance to improve through the balance of the year and into 2020 as the cost of our financing continues to decline and our diversified investment options increase. We will continue to exercise patience especially given persistent market turbulence. We look forward to the opportunities that will be provided in this next phase of monetary policy and in this upcoming economic cycle.”

For earnings history and earnings-related data on Annaly Capital Management (NLY) click here.