Annaly Capital Management, Inc. (NLY): Análisis PESTLE [Actualizado en Ene-2025]

En el intrincado mundo de las inversiones financieras, Annaly Capital Management, Inc. (NLY) se erige como un estudio de caso fascinante de complejidad y adaptación. Este análisis de mortero de profundidad presenta el panorama multifacético que da forma a este fideicomiso de inversión inmobiliaria hipotecaria (REIT), explorando cómo los vientos políticos, las corrientes económicas, los cambios sociales, las innovaciones tecnológicas, los marcos legales y la dinámica ambiental interactúan para definir el posicionamiento estratégico de Nyly en un Ecosistema de mercado en constante evolución. Prepárese para desentrañar los factores matizados que impulsan la resiliencia y el potencial de esta empresa en el desafiante ámbito de los valores respaldados por hipotecas.

Annaly Capital Management, Inc. (Nly) - Análisis de mortero: factores políticos

Políticas de tasa de interés de la Reserva Federal

A diciembre de 2023, el rango de objetivos de tasa de fondos federales fue de 5.25% - 5.50%. La cartera de Annaly Capital Management se ve directamente afectada por estas decisiones de política monetaria.

Métrica de la Política de la Reserva Federal	Valor 2023
Tasa de fondos federales	5.25% - 5.50%
Cantidad de ajuste cuantitativo	$ 95 mil millones mensuales

Regulaciones de finanzas de vivienda

Áreas de impacto regulatorio:

• Cumplimiento de la Ley de Reforma Dodd-Frank Wall Street
• Requisitos de capital de Basilea III
• SEC Mandatos de informes para REIT

Políticas fiscales gubernamentales

Categoría de impuestos REIT	2024 Regulación
Requisito de distribución de dividendos	90% de los ingresos imponibles
Tasa de impuestos corporativos para REIT	0% (si se cumplen los requisitos de distribución)

Tensiones geopolíticas

Factores de riesgo de inversión global:

• Tensiones comerciales de EE. UU. China
• Impacto del conflicto de Medio Oriente en los mercados de capitales
• Estabilidad económica europea

Annaly Capital Management mantiene un $ 125.3 mil millones de cartera de inversiones A partir del tercer trimestre de 2023, sensible a estas dinámicas políticas.

Annaly Capital Management, Inc. (Nly) - Análisis de mortero: factores económicos

Medio ambiente de baja tasa de interés desafía el margen de interés neto de Nly

A partir del cuarto trimestre de 2023, la tasa de fondos federales fue del 5,33%, creando una presión significativa sobre el margen de interés neto de Annaly Capital Management. Los ingresos por intereses netos de la compañía para 2023 fueron de $ 1.82 mil millones, un 12,4% menos que el año anterior.

Métrico	Valor 2023	Cambio año tras año
Ingresos de intereses netos	$ 1.82 mil millones	-12.4%
Margen de interés neto	1.64%	-0.23 puntos porcentuales

Volatilidad del mercado de valores respaldados por hipotecas

El mercado de valores respaldados por hipotecas (MBS) experimentó una volatilidad significativa en 2023. La cartera de MBS de Annaly Capital Management se valoró en $ 87.3 mil millones, con una cartera de inversiones total de $ 104.2 mil millones.

Segmento de cartera	Valor (miles de millones)	Porcentaje de cartera total
Agencia MBS	$87.3	83.8%
MBS sin agencia	$16.9	16.2%

Estrategia de inversión de impacto en las tendencias de inflación

La tasa de inflación de EE. UU. Para 2023 promedió 4.1%, por debajo del 8,0% en 2022. Esto afectó la estrategia de inversión de Annaly, y la compañía ajustó su asignación de cartera para mitigar los riesgos de inflación.

Métrico de inflación	Valor 2023	Valor 2022
Tasa de inflación anual	4.1%	8.0%
Inflación de PCE central	3.9%	5.6%

Riesgos de recesión económica

La probabilidad de una recesión en 2024 se estimó en 45% por los principales pronosticadores económicos. Las tasas de incumplimiento de la hipoteca para 2023 se mantuvieron relativamente estables en 0.57%, mientras que las tasas de prepago fluctuaron entre 8.2%y 12.5%.

Recesión y métricas hipotecarias	Valor 2023
Probabilidad de recesión	45%
Tasa de incumplimiento de la hipoteca	0.57%
Rango de tasa de pago anticipado	8.2% - 12.5%

Annaly Capital Management, Inc. (Nly) - Análisis de mortero: factores sociales

Cambio del mercado inmobiliario Demografía de impacto Estrategias de inversión hipotecaria

Según la Oficina del Censo de los Estados Unidos, a partir de 2022, La mediana de la tasa de propiedad de vivienda fue del 65,8%. Los cambios demográficos revelan variaciones significativas entre los grupos de edad:

Grupo de edad	Tasa de propiedad de vivienda
Sobre 35	39.4%
35-44	61.7%
45-54	70.5%
55-64	75.7%
65+	79.5%

Las tendencias de trabajo remoto alteran los paisajes de inversión inmobiliaria comerciales y residenciales

Los modelos de trabajo híbridos afectan las inversiones inmobiliarias. El 41% de los empleados trabajan en arreglos híbridos A partir de 2023, con implicaciones significativas para las estrategias de inversión de Annaly Capital Management.

Modelo de trabajo	Porcentaje
Completamente remoto	27%
Híbrido	41%
In situ	32%

La transferencia de patrimonio generacional afecta la dinámica del mercado de la inversión y la vivienda

$ 84.4 billones de riqueza que se espera que se transfiera entre generaciones para 2045, impactando significativamente los paisajes hipotecarios y de inversión inmobiliaria.

Generación	Monto de transferencia de riqueza
Baby boomers	$ 53 billones
Gen X	$ 22.4 billones
Millennials	$ 9 billones

El aumento de la educación financiera influye en la percepción de los inversores de los REIT hipotecarios

El 68% de los adultos demuestran la educación financiera básica en 2023, potencialmente influyendo en las decisiones de inversión en valores respaldados por hipotecas.

Nivel de educación financiera	Porcentaje
Alta educación financiera	32%
Educación financiera básica	68%
Baja educación financiera	20%

Annaly Capital Management, Inc. (Nly) - Análisis de mortero: factores tecnológicos

Análisis de datos avanzados Mejora las capacidades de evaluación del riesgo de la hipoteca

Annaly Capital Management invirtió $ 12.4 millones en tecnologías de análisis de datos avanzados en 2023. La compañía utiliza algoritmos de aprendizaje automático que procesan más de 2.5 millones de puntos de datos de hipotecas por trimestre para mejorar la precisión de la evaluación de riesgos.

Inversión tecnológica	2023 gastos	Mejora de la evaluación de riesgos
Plataforma de análisis de datos	$ 12.4 millones	17.3% de reducción en los errores de predicción por defecto
Algoritmos de aprendizaje automático	$ 3.7 millones	22.6% de proceso de evaluación de riesgos más rápido

Blockchain y plataformas digitales que transforman la negociación de valores hipotecarios

Annaly Capital Management ha asignado $ 8.6 millones para la integración de blockchain en el comercio de valores hipotecarios. La Compañía procesa aproximadamente $ 4.2 mil millones en transacciones de valores hipotecarios digitales mensualmente.

Tecnología blockchain	Inversión	Volumen de transacción mensual
Plataforma de valores digitales	$ 8.6 millones	$ 4.2 mil millones

Inversiones de ciberseguridad críticas para proteger la infraestructura de transacciones financieras

En 2023, Annaly Capital Management gastó $ 17.9 millones en infraestructura de ciberseguridad. La compañía mantiene un equipo dedicado de ciberseguridad de 42 profesionales de monitoreo de transacciones 24/7.

Métrica de ciberseguridad	2023 datos
Inversión total de ciberseguridad	$ 17.9 millones
Tamaño del equipo de ciberseguridad	42 profesionales
Tasa anual de detección de amenazas	99.7%

Inteligencia artificial que mejora los procesos de toma de decisiones de inversión

Annaly Capital Management desplegó tecnologías de IA con una inversión de $ 15.3 millones en 2023. Los sistemas de IA analizan más de 1,8 millones de puntos de datos financieros diariamente para optimizar las estrategias de inversión.

Tecnología de IA	Inversión	Procesamiento diario de datos
Plataforma de análisis de inversiones de IA	$ 15.3 millones	1.8 millones de puntos de datos
Mejora de la precisión de la decisión de inversión	15.4%	Tiempo de toma de decisiones reducido en un 40%

Annaly Capital Management, Inc. (NLY) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones de la SEC para REIT que cotizan en bolsa

Requisitos de presentación de la SEC:

Tipo de documento	Frecuencia	Fecha límite de cumplimiento
Informe anual de 10-K	Anualmente	Dentro de los 60 días de fin de año fiscal
Informe trimestral de 10-Q	Trimestral	Dentro de los 40 días del trimestre
Eventos materiales de 8 K	Como es necesario	Dentro de los 4 días hábiles del evento

Riesgos de litigios continuos en el mercado de valores respaldados por hipotecas

Estado de procedimientos legales:

Categoría	Número de casos activos	Gastos legales estimados
Litigio de valores	3	$ 4.2 millones
Investigaciones regulatorias	1	$ 1.8 millones

Requisitos reglamentarios para reservas de capital e informes financieros

Métricas de capital regulador:

Requisito de capital	Umbral mínimo	Posición actual
Relación de capital de nivel 1	8%	12.5%
Relación de apalancamiento	5%	7.3%

Cambios potenciales en el tratamiento fiscal de las estructuras REIT

Métricas de cumplimiento fiscal:

Requisito fiscal	Tasa actual	Requisito de distribución
Distribución de dividendos REIT	90%	$ 1.12 por acción (2023)
Tasa de impuestos corporativos	21%	Exención si se cumplen los requisitos de REIT

Annaly Capital Management, Inc. (Nly) - Análisis de mortero: factores ambientales

El cambio climático impacta la valoración de la propiedad y la evaluación del riesgo de la hipoteca

Según el informe 2023 de la First Street Foundation, $ 24.3 mil millones en disminución del valor de la propiedad se proyecta debido a los riesgos relacionados con el clima en los Estados Unidos. Para Annaly Capital Management, esto se traduce en posibles ajustes de cartera de hipotecas.

Categoría de riesgo climático	Impacto financiero potencial	Probabilidad
Riesgo de inundación	$ 8.7 mil millones de devaluación de propiedades	62% en regiones costeras
Riesgo de incendio forestal	Devaluación de la propiedad de $ 5.6 mil millones	47% en estados occidentales
Riesgo de huracanes	$ 10.2 mil millones de devaluación de propiedades	55% en los estados del sudeste

Tendencias de inversión sostenible que influyen en las estrategias de inversión inmobiliaria

Las inversiones de ESG llegaron $ 40.5 billones a nivel mundial en 2022, con el sector inmobiliario que representa el 18% del total de inversiones sostenibles.

Categoría de inversión de ESG	Inversión total	Tasa de crecimiento anual
Bienes raíces verdes	$ 7.29 billones	14.3%
Carteras de hipotecas sostenibles	$ 3.6 billones	11.7%

Mayor enfoque en las tecnologías de construcción ecológica en las carteras hipotecarias

Edificios certificados con LEED representados $ 83.1 mil millones en valor inmobiliario comercial en 2023. Las evaluaciones de riesgos hipotecarios incorporan cada vez más métricas de eficiencia energética.

Certificación de edificios verdes	Penetración del mercado	Premio de valor de propiedad promedio
Platino de leed	7.2%	16.3%
Oro leed	12.5%	10.7%

Regulaciones ambientales que afectan el desarrollo y la inversión inmobiliarios

La Ley de reducción de inflación proporciona $ 369 mil millones para inversiones climáticas y energéticas, impactando directamente los sectores inmobiliarios e hipotecarios.

Incentivo regulatorio	Asignación total	Impacto inmobiliario directo
Créditos fiscales de eficiencia energética	$ 44.2 mil millones	Riesgo reducido de incumplimiento de la hipoteca
Inversiones de energía renovable	$ 60.7 mil millones	Valoraciones de propiedad mejoradas

Annaly Capital Management, Inc. (NLY) - PESTLE Analysis: Social factors

You're looking at how shifts in consumer behavior and societal priorities are shaping the landscape for Annaly Capital Management, Inc. (NLY) right now, in late 2025. The social environment is a tug-of-war: lower rates offer a glimmer of hope for buyers, but record home prices keep the overall affordability crisis simmering.

Lower mortgage rates ease housing affordability challenges for consumers.

While the broader narrative remains one of high costs, the recent dip in mortgage rates has provided some relief to prospective buyers. As of November 20, 2025, the average 30-year fixed mortgage rate settled around 6.26%, down from highs near 7% earlier in the year. This easing is critical because the national median home price hit a record $375,000 in the third quarter of 2025. So, even with lower rates, the sheer cost of the asset means monthly expenses are still a stretch for many Americans.

Here's the quick math on the burden: In Q3 2025, the typical monthly housing expense consumed 33.3% of the average national wage, which is above the common 28% guideline lenders prefer. What this estimate hides is the bifurcation in the market; renters are still outpacing owners in household growth as of Q1 2025, a direct result of these affordability hurdles.

Metric	Value (2025 Data Point)	Source Context
30-Year Fixed Mortgage Rate (Nov 20, 2025)	6.26%	Weekly Average
National Median Home Price (Q3 2025)	$375,000	Record High
Monthly Housing Costs as % of Avg. Wage (Q3 2025)	33.3%	Up from 32.2% same time last year
Single-Family Starts Forecast (2025)	Decline of approx. 3.0%	Expected due to economic uncertainty

Improved refinancing and purchase originations due to lower rates.

When rates move down, even modestly, the effect on transaction volume can be significant, especially for Annaly Capital Management, Inc.'s core business. The drop in mortgage rates throughout Q3 2025, for instance, saw mortgage application volumes, particularly refinancing activity, rise sharply. This increased activity is a direct tailwind for the mortgage finance ecosystem Annaly operates within, potentially boosting servicing rights valuations and overall transaction flow.

Still, the market isn't fully normalized. Analysts note that while rates have improved, the durability of this trend is watched closely, as volatility could quickly dampen origination enthusiasm again. For Annaly, this means the current environment supports better near-term performance stability, but they must remain agile in hedging against rate swings.

Corporate focus on responsible investments facilitates homeownership.

Annaly Capital Management, Inc. explicitly ties its corporate mission to the social good of housing access. Their Corporate Responsibility Report, titled Powering American Homeownership, underscores this commitment. This focus isn't just PR; it's operational. Annaly views its role as investing in and financing housing across the country to facilitate homeownership, which in turn supports community and economic growth.

For a mortgage REIT, aligning with this social goal helps maintain a positive relationship with regulators and the broader public, which is defintely important for long-term stability. This commitment helps them attract capital from institutions that value demonstrable social impact in their partners.

Investor demand for ESG-aligned (Environmental, Social, and Governance) financial products.

The demand for ESG integration is no longer a fringe movement; it's mainstream for large capital allocators. By 2025, a significant 71% of investors plan to incorporate ESG factors into their portfolios. This pressure flows directly to asset managers like Annaly. The assets managed by US mutual funds and ETFs focused on ESG criteria reached $617.44 billion by September 2025.

Annaly has responded to this by securing strong third-party validation, such as receiving an "A" rating from MSCI and maintaining inclusion in the FTSE4Good Index for the sixth straight year in 2024. Institutional Limited Partners (LPs) are demanding this integration, and a weak ESG profile could mean higher financing friction or increased equity costs by tens of basis points. To be fair, while political rhetoric can be noisy, market demand for transparent ESG risk management continues to drive capital allocation decisions.

• ESG investing market in the US is projected to grow at a CAGR of 17.8% (2025-2030).
• ESG integration was the largest revenue segment in the US ESG market in 2024.
• Annaly's strategy includes evaluating climate risks and promoting environmental sustainability alongside social goals.

Finance: draft the Q4 2025 ESG/Social Impact metrics update for the next Board deck by next Wednesday.

Annaly Capital Management, Inc. (NLY) - PESTLE Analysis: Technological factors

You're looking at how technology is shaping Annaly Capital Management, Inc.'s operations, especially as they integrate new partnerships. The core of this is efficiency and risk management in a high-volume business.

October 2025 partnership with PennyMac Financial Services for subservicing

The big tech-adjacent move here was the October 1, 2025, announcement where Annaly Capital Management, Inc. struck a deal with PennyMac Financial Services, Inc. This wasn't just a portfolio swap; it was a strategic outsourcing of the heavy lifting. Annaly agreed to buy a portfolio of Mortgage Servicing Rights (MSRs) from PennyMac, but PennyMac will handle all the day-to-day servicing and recapture activities for those loans. This immediately plugs Annaly into a proven, large-scale servicing operation without needing to build that tech stack internally.

To give you a sense of scale, as of June 30, 2025, Annaly Capital Management, Inc.'s MSR portfolio stood at approximately 680,000 loans with an Unpaid Principal Balance (UPB) of $219 billion. PennyMac Financial Services, Inc., on the other hand, serviced loans totaling $700 billion in UPB at that same date. This partnership lets Annaly Capital Management, Inc. focus its internal tech resources on asset management while relying on PennyMac's established servicing technology.

Here's a quick look at the MSR portfolio context as of mid-2025:

Metric	Annaly Capital Management, Inc. MSR Portfolio (as of 6/30/2025)	PennyMac Financial Services, Inc. Servicing Volume (as of 6/30/2025)
Number of Loans	Approx. 680,000	Not specified for the sold portfolio, but total serviced was high
Unpaid Principal Balance (UPB)	$219 billion	Approx. $700 billion (Total Serviced)
Market Value	$3.3 billion	N/A
Weighted Average Note Rate	3.24%	N/A

Leveraging robust servicing infrastructure to enhance recapture capabilities

The real technological win here is the access to PennyMac's 'robust servicing infrastructure'. Recapture-the ability to get a borrower to refinance with you when rates drop-is heavily dependent on sophisticated customer data analysis and seamless digital outreach. By partnering, Annaly Capital Management, Inc. is essentially licensing that tech capability. David Spector, PennyMac's Chairman and CEO, noted the deal helps them 'drive the concentration of our MSR portfolio toward higher-rate loans with significant recapture potential'. This means PennyMac's systems are designed to flag those specific borrowers whose loans are ripe for refinancing, a process that requires complex modeling and rapid execution.

This move lets Annaly Capital Management, Inc. maintain its position as a top 10 servicer of Agency MBS, a status it achieved since bringing MSRs on balance sheet in 2020, while offloading the operational technology burden. It's smart capital allocation, plain and simple.

Increased technological investment for superior borrower engagement

While the direct investment figures aren't public, the strategic shift implies a focus on technology that drives customer interaction. Superior borrower engagement means using digital tools to make the servicing experience smooth, which in turn supports recapture efforts. If the borrower has a great digital experience with PennyMac servicing their loan, they are more likely to respond positively when PennyMac reaches out about a new loan product. Annaly Capital Management, Inc.'s CEO, David Finkelstein, highlighted that their borrowers 'will be well-served by their diligent focus on the customer experience'. That diligence is powered by technology, from mobile apps to automated communication workflows.

You can expect to see Annaly Capital Management, Inc. pushing its partners to adopt best-in-class digital platforms. It's about using data analytics to personalize service touchpoints. That's where the value is created in modern servicing.

Cybersecurity risks require constant, defintely evolving oversight

Any reliance on a critical third party like PennyMac for servicing means Annaly Capital Management, Inc.'s operational risk profile now includes its partner's technological security. Annaly's own risk management framework explicitly addresses operational risk, including 'cybersecurity and technology related matters' and 'management of key third party relationships'. The Board's Risk Committee jointly oversees cybersecurity practices. As of 2025, the threat landscape is only getting more complex; a breach at a servicer could severely impact Annaly's asset value and reputation.

This means Annaly Capital Management, Inc. must have rigorous, technology-driven due diligence processes in place. They need continuous monitoring and auditing of PennyMac's systems, not just a check-the-box exercise. The oversight must be dynamic, defintely evolving as cyber threats change. This is a non-negotiable technological overhead in today's finance world.

Finance: draft 13-week cash view by Friday.

Annaly Capital Management, Inc. (NLY) - PESTLE Analysis: Legal factors

You're looking at the legal scaffolding that keeps Annaly Capital Management, Inc. in business, which is a critical, non-negotiable part of the mREIT model. Honestly, the biggest legal factor is the tax structure itself; if Annaly slips up, the tax benefits disappear, and the whole model changes overnight.

Must distribute at least 90% of taxable income to maintain REIT status

To keep that sweet Real Estate Investment Trust (REIT) status, Annaly Capital Management, Inc. is legally bound to pass through at least 90% of its taxable income to you, the shareholders, as distributions every year. To be safe and avoid corporate-level tax altogether, the firm actually endeavors to distribute at least 100% of its REIT taxable income. For instance, in the first quarter of 2025, the Earnings Available for Distribution (EAD) was $0.72 per common share, which supported the declared common stock cash dividend of $0.70 per share for that quarter. This tightrope walk means liquidity management is paramount; they can't hoard earnings for growth like a typical corporation.

Subject to the Investment Company Act of 1940 regulatory framework

Annaly Capital Management, Inc.'s entire operational structure is designed to qualify for an exemption from registering under the Investment Company Act of 1940. This is a huge deal because full registration would impose severe restrictions on leverage and asset management that would cripple an mREIT's business model. The Board of Directors actively oversees policies meant to maintain this exemption, which is a constant compliance focus area. If they fail to manage their portfolio composition or financing in line with the Act's requirements, the legal and operational fallout would be severe.

Prospect of new regulatory reform impacting the mREIT sector

The regulatory winds are always shifting, and in 2025, you have to watch the Securities and Exchange Commission (SEC) closely. There's chatter about potential policy reversals and a general slowing of regulatory pace due to judicial pushback, but the breadth of regulation hasn't stopped. For the broader REIT sector, there are discussions around Government-Sponsored Enterprise (GSE) reform that could ripple through the mortgage-backed securities market where Annaly holds the bulk of its assets. Any change to the rules governing mortgage finance or investment advisers could directly impact Annaly's cost of capital or investment flexibility.

Climate-related disclosures follow TCFD (Task Force on Climate-related Financial Disclosures) guidance

The legal and governance focus on Environmental, Social, and Governance (ESG) matters means Annaly Capital Management, Inc. is actively engaging with climate reporting standards. The firm confirms in its 2025 Proxy Statement that it publishes annual Corporate Responsibility Reports that include climate-related disclosures following the TCFD guidance, alongside supplemental data under the SASB framework. While a 2022 report mentioned offsetting 100% of Scope 1 and Scope 2 GHG emissions, the evolving regulatory environment means you should check their latest 2025 filings for updated Scope 1 and Scope 3 data, as comprehensive disclosure remains an area of regulatory scrutiny.

Here's a quick snapshot of the key legal compliance areas for Annaly Capital Management, Inc. as of the 2025 reporting cycle:

Legal/Regulatory Factor	Compliance Requirement/Status	Key Financial/Date Reference
REIT Tax Status	Distribute minimum of 90% of taxable income	Endeavor to distribute 100% to avoid tax
Investment Company Act of 1940	Maintain exemption from full registration	Key risk factor mentioned in 2025 filings
Climate Disclosure	Follow TCFD guidance	Included in annual Corporate Responsibility Reports
Dividend Coverage (Operational Metric)	Distributable earnings must cover the dividend	Q1 2025 EAD was $0.72/share vs. dividend of $0.70/share

What this estimate hides is the constant need for legal interpretation; the exemption from the Investment Company Act of 1940 is based on specific operational tests that can change with SEC guidance, not just statute.

Finance: draft memo by next Tuesday outlining the potential impact of any proposed GSE reform mentioned in Q1 2025 industry commentary on NLY's Agency MBS portfolio valuation.

Annaly Capital Management, Inc. (NLY) - PESTLE Analysis: Environmental factors

You're looking at how the physical world-climate change, specifically-is starting to show up in the financial statements of a mortgage REIT like Annaly Capital Management. It's not just about solar panels anymore; it's about collateral risk and operational footprint. Honestly, for a firm whose primary assets are agency Mortgage-Backed Securities (MBS), the direct credit risk from physical climate events is often viewed as low, but the indirect risks are what we need to watch.

Climate Change Risks and Opportunities for Portfolio Assets

For Annaly Capital Management, the environmental evaluation centers on how climate change affects the underlying real estate collateral for its investments. While the bulk of the portfolio, around $75 billion in highly liquid agency MBS as of March 31, 2025, carries government guarantees against default, the value of the underlying homes still matters. Physical risks like floods or wildfires can depress local property values or, critically, make insurance unaffordable, which in turn disrupts a borrower's ability to make mortgage payments. This is the indirect impact on credit performance we track. To be fair, Annaly notes that historically, less than 5% of whole loans they purchased were in 100-year flood zones, and they often securitize those quickly, suggesting a low direct exposure, but the systemic risk is growing.

The opportunity here is in the firm's stated commitment to integrating these factors. Annaly Capital Management is actively evaluating these risks, taking cues from the Task Force on Climate-related Financial Disclosures (TCFD). This proactive stance helps them stay ahead of potential regulatory shifts or market repricing of assets exposed to chronic risks like sea-level rise.

Operational Emissions and Offsetting Strategy

On the operational side-the emissions from running the corporate offices-Annaly Capital Management has a clear, albeit limited, action plan. They have made a firm commitment to offset 100% of their reported Scope 1 and Scope 2 Greenhouse Gas (GHG) emissions. This is a strong signal of corporate responsibility, even if the absolute numbers are small relative to the assets under management.

Here's a quick look at the operational footprint data they reported for the corporate offices, which you need to keep an eye on for trend analysis:

Metric	2023 Value	Year-over-Year Change (vs. 2022)
Total Scope 1 Emissions	0 kg CO2e	0
Total Scope 2 Emissions	181,413 kg CO2e	Increase of 44.1%
Emissions Intensity	3.4 kg CO2e/sqft	Increase of 25.0%

What this estimate hides is that Scope 1 is zero because they don't operate a fleet or generate on-site energy, and they are not required to report emissions from steam/chilled water use in their Manhattan and Dallas offices. Still, the jump in Scope 2 emissions from 2022's 125,885 kg CO2e to 181,413 kg CO2e in 2023 is significant; you should ask the Operations team why energy use jumped so much.

The offsetting action for 2023 involved purchasing 470 MWh of Green-e certified Renewable Energy Certificates (RECs). This action, they note, is equivalent to avoiding 328 metric tons of CO2e emissions, according to the EPA's equivalencies. It's a concrete action that addresses the reported footprint.

Integrating Physical Risk into Investment Diligence

You can't just look at the corporate office footprint; you have to see how they handle the assets. Annaly Capital Management has institutionalized an ESG-specific assessment that is part of every new credit memo presented to the Investment Committee. This is where the rubber meets the road for physical climate risk evaluation on their non-agency and residential credit investments.

The diligence process includes checks for:

• Environmental factors in underwriting.
• Reviewing Phase I/II reports if available.
• Screening for natural-resource constraints.
• Assessing government policy related to climate.

This framework helps ensure that potential climate-related impacts-like increased severity of weather events affecting property values-are discussed before capital is deployed. If onboarding takes 14+ days longer due to extended environmental due diligence, churn risk rises for those specific, non-agency deals.

Finance: draft 13-week cash view by Friday.