Item 2.02.
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Results of Operations and Financial Condition
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In this Current Report on
Form 8-K,
references to we, us, our or the Company refer to Annaly Capital Management, Inc. and its consolidated subsidiaries. As part of a previously announced
public offering of its common stock, the Company disclosed the following estimated preliminary financial results for the quarter ended September 30, 2017.
Portfolio Update
Although
our financial results for the third quarter of 2017 are not yet finalized, we estimate that during the quarter ended September 30, 2017, we purchased or originated an aggregate amount of approximately $535 million of credit assets
(Credit Assets), consisting of residential mortgage loans, residential mortgage-backed securities (MBS) and Agency or private label credit risk sharing transactions (Residential Credit Assets), corporate loans and
debt securities for middle market companies (MML Assets), and commercial real estate loans and securities (CRE Assets). The amount of Residential Credit Assets for the quarter ended September 30, 2017 reflects the net
amount of residential mortgage loans and residential MBS purchased and sold during the quarter ended September 30, 2017. The amount of CRE Assets reflects the amount of commercial real estate assets originated or purchased during the quarter
ended September 30, 2017. The amount of MML Assets reflects the amount of middle market corporate debt originated during the quarter ended September 30, 2017.
Although our financial results for the third quarter of 2017 are not yet finalized, we estimate that during the quarter ended
September 30, 2017, we had net settled purchases of Agency MBS of approximately $10.7 billion. The amount of Agency MBS purchased excludes changes in
to-be-announced
forward contract balances.
Our closing
procedures for the three months ended September 30, 2017 are not yet complete and, as a result, the financial information above reflects our preliminary estimate with respect to such information, based on information currently available to
management, and may vary from our actual financial results as of and for the quarter ended September 30, 2017. Further, these estimates are not a comprehensive statement of our financial results or financial condition as of and for the quarter
ended September 30, 2017. Accordingly, you should not place undue reliance on this preliminary information. These estimates, which are the responsibility of our management, were prepared by our management and are based upon a number of
assumptions. Additional items that may require adjustments to the preliminary results may be identified and could result in material changes to our estimated preliminary results. Estimates of results are inherently uncertain and we undertake no
obligation to update this information. Ernst & Young LLP has not audited, reviewed, compiled or performed any procedures with respect to this preliminary financial information. Accordingly, Ernst & Young LLP does not express an
opinion or provide any form of assurance with respect thereto.
Cautionary Language Regarding Forward-Looking Statements
When used in this report or other written or oral communications, statements which are not historical in nature, including those containing
words such as will, believe, expect, anticipate, estimate, plan, continue, intend, could, would, should,
may or similar expressions, are intended to identify forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, and, as such, may involve known and
unknown risks, uncertainties and assumptions. Statements regarding the following subjects, among others, may be forward-looking: our ability to accurately estimate our preliminary estimates of purchases and originations of credit assets and
purchases of Agency MBS at September 30, 2017. The risks and uncertainties associated with forward-looking information in this report include, but are not limited to, factors that are beyond the Companys control, including the factors
listed in the Companys Annual Report on
Form 10-K,
in the Companys Quarterly Reports on
Form 10-Q
and in the Companys Current Reports on
Form 8-K.
All forward-looking statements speak only as of the date on which they are made. New risks and uncertainties arise over time and it is not possible to predict those events or how they may affect the
Company. Except as required by law, the Company is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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