Business Overview

Annaly Capital Management, Inc. is a leading diversified capital manager that invests in and finances residential and commercial assets. Since Annaly’s founding in 1996 and subsequent initial public offering in 1997, the company has generated net income for distribution to its shareholders and preserved capital through the prudent selection of investments and effective management of its portfolio. With approximately $93 billion(1) in assets as of December 31, 2016, Annaly’s portfolio spans securities, loans and equity in the residential, commercial and corporate markets. Annaly has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. Annaly is externally managed by Annaly Management Company LLC. Annaly’s manager guides the company’s overall business strategy and oversees its investment portfolio and financial services processes and solutions.

Company Highlights

Size and Liquidity

  • Approximately 19x Size of Median mREIT by Market Cap(2)

Returns to Shareholders

  • Over $15 Billion Declared in Dividends since IPO

Diversification Strategy

  • Four Distinct Investment Groups Designed to Produce More Stable Earnings and Book Value

Consolidator

  • Largest mREIT Acquisition in History Exemplified Ability to be Opportunistic

Dividend Stability

  • 14 Consecutive Quarters of Stable Dividends

Conservative Leverage

  • Conservative Leverage Profile with a Variety of Potential Financing Sources for Each Investment Group

Premium Yield with Downside Protection

  • Durability of Book Value Supported by Diversification, Asset and Hedge Selection

Management/
Employee Stock Ownership

  • Significant Management Share Purchases; Unique Employee Stock Ownership Guidelines

Operating Efficiency

  • Highly Efficient Operating Expense Model

Track Record

  • Outperformed S&P 500 by ~3x and Bloomberg mREIT Index by ~4x Based on Weekly Total Return since IPO

Note: Market data as of March 31, 2017.

  1. Agency assets include TBA purchase contracts (market value). Commercial Real Estate assets are exclusive of consolidated variable interest entities associated with B-Piece commercial mortgage backed securities.
  2. Reflects BBREMTG Index as of March 31, 2017.