NEW YORK--(BUSINESS WIRE)--June 20, 2005--The Board of Directors
of Annaly Mortgage Management, Inc.
(NYSE: NLY) declared the second
quarter 2005 common stock cash dividend of $0.36 per common share. The
annualized dividend yield for the quarter, based on the June 17, 2005
closing price of $20.00, was 7.2%. This dividend is payable July 28,
2005 to common shareholders of record on June 30, 2005. The
ex-dividend date is June 28, 2005. It continues to be the intention of
the Company not to return capital to shareholders.
Wellington Denahan-Norris, Vice Chairman and Chief Investment
Officer of Annaly, commented on the dividend: "The continuation of
market conditions we discussed in earlier releases and conference
calls--including rising short-term rates and fluctuating prepayment
speeds--reduced our returns in the second quarter. During the quarter,
we executed some portfolio rebalancing to take advantage of higher
short-term rates and continued to witness growth in fee income and
assets under management of our FIDAC subsidiary.
"The persistence of current market conditions, including any
pick-up in prepayment speeds due to the recent rally in ten-year US
Treasury yields, may adversely affect Annaly's short-term results
going forward. We want to emphasize that we manage our company for
long-term performance, realizing that there will always be some
short-term variability to our return profile. Over the long-term,
however, our barbell portfolio--in which the different performance
characteristics of adjustable-rate and fixed-rate mortgage-backed
securities combine, over time, to enable the portfolio to adapt to
changing market conditions--reinvestment into new market
opportunities, the contribution from FIDAC and our position as
low-cost provider continue to deliver compelling absolute and relative
returns to investors."
Dividends may be reinvested through Annaly's Dividend Reinvestment
Plan. Plan information may be obtained from the Plan Administrator,
ChaseMellon Shareholder Services at 1-800-842-7629, at www.annaly.com,
or by contacting the Company.
Annaly manages assets on behalf of institutional and individual
investors worldwide through Annaly and through the funds managed by
its wholly-owned registered investment advisor, FIDAC. The Company's
principal business objective is to generate net income for
distribution to investors from the spread between the interest income
on its mortgage-backed securities and the cost of borrowing to finance
their acquisition and from dividends Annaly receives from FIDAC, which
earns investment advisory fee income. The Company, a Maryland
corporation that has elected to be taxed as a real estate investment
trust ("REIT"), currently has 122,446,578 shares of common stock
outstanding.
This news release and our public documents to which we refer
contain or incorporate by reference certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements which are based on various assumptions (some of which are
beyond our control) 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, changes in interest rates, changes in yield curve,
changes in prepayment rates, the availability of mortgage-backed
securities for purchase, the availability of financing and, if
available, the terms of any financing, FIDAC's clients removal of
assets FIDAC manages, FIDAC's regulatory requirements, and competition
in the investment management business. 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 Annual Report on Form 10-K for the fiscal year ended December
31, 2004. 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.
CONTACT: Annaly Mortgage Management, Inc.
Investor Relations:
1-888-8Annaly
www.annaly.com
SOURCE: Annaly Mortgage Management, Inc.