NEW YORK--(BUSINESS WIRE)--
Wellington Denahan, Chairman and Chief Executive Officer of Annaly
Capital Management, Inc. (NYSE: NLY) (“Annaly” or the “Company”), made
the following statement regarding Annaly's proposal, announced today, to
acquire the shares of CreXus Investment Corp. that Annaly does not
already own:
“Since our inception in 1997, Annaly has maintained the capacity to
diversify its asset base to include real estate related assets in
addition to Agency mortgage-backed securities if we determined that
compelling other long-term investment opportunities exist relative to
the Agency market. While we remain committed to the Agency market, given
the current environment, we believe it is prudent to diversify a portion
of our investment portfolio. Therefore, we may allocate up to 25% of our
shareholders’ equity to real estate assets other than Agency
mortgage-backed securities.
“A powerful step in this direction is the proposed acquisition of
CreXus. We believe that wholly owning the commercial real estate
platform we currently manage through FIDAC is complementary to our
existing business and return profile and should provide stable and
diversified risk-adjusted returns to our shareholders. CreXus’
capabilities and growth may be significantly enhanced when coupled with
Annaly’s broad capital base.
“Our commercial real estate expertise, as well as our expertise in a
number of other asset classes, are valuable strategic tools, and we look
forward to updating the market on our portfolio as it evolves.
“This proposed transaction would be part of a broad evolution of our
capital allocation strategy. Over the last 12 months, we have taken the
following steps:
-
Lowering our cost of capital by issuing $1.5 billion of preferred
equity and convertible notes at a weighted average rate of 6.3%
-
Extending the duration of our borrowings at September 30, 2012 to 220
days from 127 days at March 31, 2012
-
Restructuring capital by repurchasing $447.1 million of convertible
notes
-
Announcing an up to $1.5 billion common stock repurchase program.”
About Annaly Capital Management, Inc.
Annaly’s principal business objective is to generate net income for
distribution to investors from its investment securities and from
dividends it receives from its subsidiaries. Annaly is a Maryland
corporation that has elected to be taxed as a real estate investment
trust (“REIT”).
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) 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 the 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
financings; changes in the market value of our assets; changes in
business conditions and the general economy; our ability to integrate
the commercial mortgage business; our ability to consummate any
contemplated investment opportunities; risks associated with the
businesses of our subsidiaries, including the investment advisory
business of our wholly-owned subsidiaries, including: the removal by
clients of assets managed, their regulatory requirements, and
competition in the investment advisory business; risks associated with
the broker-dealer business of our wholly-owned subsidiary; changes in
government regulations affecting our business; our ability to maintain
our qualification as a REIT for federal income tax purposes; and our
ability to maintain our exemption from registration under the Investment
Company Act of 1940, as amended. 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.
Annaly Capital Management, Inc.
Investor Relations, 888-8Annaly
Source: Annaly Capital Management, Inc.