- Annaly’s commitment to social responsibility and affordable housing
is demonstrated through this Venture, further aligning Annaly with the
U.S. housing finance market as a permanent capital provider
- This represents Annaly’s second social impact joint venture with
Capital Impact Partners, supporting socially responsible projects
including affordable housing, education and community development in
Washington, D.C.
NEW YORK & ARLINGTON, Va.--(BUSINESS WIRE)--
Annaly Capital Management, Inc. (NYSE:NLY) (“Annaly”) and Capital Impact
Partners (“Capital Impact”) today announced the launch of a new joint
venture (“Venture”) with a $25 million commitment to support affordable
housing and other community development projects in Washington, D.C.
(“D.C.”). This Venture represents Annaly’s second impact investing
partnership since 2017 with Capital Impact, a national mission-driven
non-profit community development financial institution.
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As an innovative structure in the mortgage REIT sector, the Venture
provides direct financing for socially responsible projects in
low-income communities while simultaneously enabling Capital Impact to
further expand its efforts in key cities like Washington, D.C. Annaly’s
commitment will support Capital Impact’s management of the D.C.
Affordable Housing Preservation Fund in partnership with the city’s
Department of Housing and Community Development.1 The Venture
is closely aligned with Annaly’s focus on housing finance given Capital
Impact’s work in preserving affordable housing. Various community
development projects will also benefit from the Venture within the D.C.
area. For example, the Venture will enable several charter schools to
finance expansion into new grades, increase student enrollment and
improve current operations.
“We are excited to announce our second social impact venture with
Capital Impact Partners. Our commitment is aimed at improving economic
opportunity while helping to preserve and protect affordable housing and
foster education in Washington, D.C.” said Kevin Keyes, Chairman, Chief
Executive Officer and President of Annaly. “Housing and educational
opportunity are fundamental to the economic health of individuals and
communities. We are proud of this Venture and look forward to continuing
to deliver long-term benefits and diversified returns to our
shareholders through our social impact investment strategies.”
“Supporting the kinds of high-impact projects that build equity and
inclusion and help fuel inclusive growth requires a variety of dedicated
partners. That is why we are proud to partner once again with Annaly
Capital Management,” said Ellis Carr, President and CEO of Capital
Impact Partners. “I am excited to amplify our previous work by focusing
our efforts in Washington, D.C., and engaging with residents to build
communities of opportunity that provide a bright future for all those
that call the city home.”
Capital Impact and Annaly have created a strong, long-term partnership
through two joint ventures with a combined $50 million of commitments,
which are designed to invest in loans that are cash flow generating,
seasoned assets owned by Capital Impact. The investments represent a diverse
mix of projects within the social impact investing landscape. Each
joint venture is structured to make investments over a five-year period
from the respective launch, and Capital Impact and Annaly have the
option to increase their overall investment as each venture matures.
Update to Initial Social Impact Joint Venture with Capital Impact
Annaly’s initial partnership with Capital Impact, announced in November
2017, supports nearly 500,000 square feet in community development
projects across the U.S. in housing, education, health care, job
training and healthy foods, employing 1,200 individuals. The charter
schools funded through this partnership educate approximately 3,000
students, with 80% qualifying for free and reduced-priced lunches. The
community health centers and eldercare residences supported by the joint
venture provide care for nearly 30,000 patients, with 3,420 elders and
nearly 14,000 below the poverty line served. Finally, the initial
venture supports retail grocery that provides access to healthy foods in
low-income areas and food production services.
About Annaly
Annaly is a leading diversified capital manager that invests in and
finances residential and commercial assets. Annaly’s principal business
objective is to generate net income for distribution to its stockholders
and to preserve capital through prudent selection of investments and
continuous management of its portfolio. 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.
Additional information on the company can be found at www.annaly.com.
About Capital Impact
Through capital and commitment, Capital Impact Partners helps people
build communities of opportunity that break barriers to success. We
champion social and economic justice for underserved communities to
foster good health, economic opportunity, and interconnectedness.
Through mission-driven lending, incubating social impact programs,
impact investing, and policy reform we partner with local communities to
create equitable access to health care and education, healthy foods,
affordable housing, and dignified aging for those most in need. We have
disbursed more than $2.5 billion to revitalize communities over the past
35 years. Our leadership in delivering financial and social impact has
resulted in Capital Impact earning a “AA-” rating from S&P Global and
being recognized by Aeris since 2005 for our performance. Headquartered
in Arlington, VA, Capital Impact Partners operates nationally, with
local offices in Detroit, MI, and Oakland, CA. Learn more at www.capitalimpact.org.
Forward-Looking Statements
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) and
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 and other 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 grow our
commercial real estate business; our ability to grow our residential
credit business; our ability to grow our middle market lending business;
credit risks related to our investments in credit risk transfer
securities, residential mortgage-backed securities and related
residential mortgage credit assets, commercial real estate assets and
corporate debt; risks related to investments in mortgage servicing
rights; our ability to consummate any contemplated investment
opportunities; changes in government regulations or policy affecting our
business; our ability to maintain our qualification as a REIT for U.S.
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, except as
required by law.
1 The Affordable Housing Preservation fund activities are
being funded in partnership with the District of Columbia Department of
Housing and Community Development.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190116005831/en/
Annaly Capital Management, Inc.
Investor Relations
1-888-8Annaly
www.annaly.com
Source: Annaly Capital Management, Inc.