Should You Add Annaly Capital Management, Inc (NYSE: NLY) Stock In Your Portfolio For Solid Gains?

Annaly Capital Management, Inc (NYSE: NLY) Stock closed at $9.39 (up 13.96%) on volumes of 26 million on June 11, 2021. Its P/E ratio is 8.65 compared to the industry’s average P/E of 11.25.

Annaly stock trades at a discount price. Therefore, investors can add this stock to their portfolio on declines for solid gains in the future. 

Ex-dividend date – June 29, 2021

Annaly’s board of directors offered a dividend of $0.22 for each share. The ex-dividend date for the stock is set for June 29, 2021. It will pay the dividend on July 30, 2021. 

The company holds $100.4 million in its assets at the end of Q1 2021.  

Signs an agreement to divest Commercial Real Estate business

Annaly agreed with Slate Asset Management L.P. on March 25, 2021, to divest its Commercial Real Estate business for $2.33 billion.  

The Commercial Real Estate business comprises commercial mortgage-backed securities, loan assets, and equity interests. Following the transaction, Slate Asset will absorb key employees like Michael Quinn, Head (Commercial Investments), and Timothy Gallagher, Head (Commercial Real Estate) of Annaly.

Annaly’s CIO, David Finkelstein, said the Commercial Real Estate business is a core of Annaly’s differentiated investment since 2013. The divestiture offers a significant capacity to improve operational capabilities and leadership across the residential mortgage finance market. 

The company will use the proceeds of this transaction to repay all of its financing facilities. It will adopt a minimalistic approach to commercial real estate in the future. Annaly expects to conclude the transaction in Q3 2021. 

Annaly appointed Evercore as a financial advisor. Ropes & Gray LLP acts as a legal advisor. 

The company increased its capital allocation by 13% to the residential credit business. Annaly holds unencumbered assets of $8.9 billion.

The company elected Eric A. Reeves as an independent director to its board. 

The book value of its common share is increased by $0.03 YoY to $8.95 at the end of Q1 2021. 

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