Annaly Capital Management, Inc. and Capital Impact Partners Announce Launch of Second Social Impact Investing Joint Venture
January 16 2019 - 4:59PM
Business Wire
- 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.
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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the full release here:
https://www.businesswire.com/news/home/20190116005831/en/
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.
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