Annaly Capital Management, Inc. (NLY): Analyse de Pestle [Jan-2025 MISE À JOUR]

Dans le monde complexe des investissements financiers, Annaly Capital Management, Inc. (Nly) est une étude de cas fascinante de la complexité et de l'adaptation. Cette analyse du pilon de plongée profonde dévoile le paysage multiforme qui façonne cette fiducie de placement immobilier hypothécaire (REIT), explorant comment les vents politiques, les courants économiques, les changements sociétaux, les innovations technologiques, les cadres juridiques et la dynamique environnementale interviennent pour définir le positionnement stratégique de Nly dans un Écosystème du marché en constante évolution. Préparez-vous à démêler les facteurs nuancés qui stimulent la résilience et le potentiel de cette entreprise dans le domaine difficile des titres adossés à des hypothèques.

Annaly Capital Management, Inc. (NLY) - Analyse du pilon: facteurs politiques

Politiques de taux d'intérêt de la Réserve fédérale

En décembre 2023, la fourchette cible des fonds fédéraux était de 5,25% - 5,50%. Le portefeuille d'Annaly Capital Management est directement touché par ces décisions de politique monétaire.

Métrique politique de la Réserve fédérale	Valeur 2023
Taux de fonds fédéraux	5.25% - 5.50%
Montant quantitatif	95 milliards de dollars par mois

Règlement sur le financement du logement

Zones d'impact réglementaires:

• Dodd-Frank Wall Street Reform Act Conformité
• Exigences de capital Bâle III
• MANDATS DE RAPPORTS SEC pour les FPI

Politiques fiscales du gouvernement

Catégorie de taxe REIT	2024 Règlement
Exigence de distribution de dividendes	90% du revenu imposable
Taux d'imposition des sociétés pour les FPI	0% (si les exigences de distribution remplies)

Tensions géopolitiques

Facteurs de risque d'investissement mondiaux:

• Tensions commerciales américaines-chinoises
• Impact des conflits du Moyen-Orient sur les marchés des capitaux
• Stabilité économique européenne

Annaly Capital Management maintient un Portfolio d'investissement de 125,3 milliards de dollars au troisième rang 2023, sensible à ces dynamiques politiques.

Annaly Capital Management, Inc. (NLY) - Analyse du pilon: facteurs économiques

L'environnement à faible taux d'intérêt remet en question la marge d'intérêt net de Nly

Du trimestre 2023, le taux des fonds fédéraux était de 5,33%, créant une pression importante sur la marge d'intérêt nette d'Annaly Capital Management. Le revenu net des intérêts nets de la société pour 2023 était de 1,82 milliard de dollars, en baisse de 12,4% par rapport à l'année précédente.

Métrique	Valeur 2023	Changement d'une année à l'autre
Revenu net d'intérêt	1,82 milliard de dollars	-12.4%
Marge d'intérêt net	1.64%	-0,23 points de pourcentage

Volatilité du marché des valeurs mobilières adossé à des créances hypothécaires

Le marché des valeurs mobilières adossés à des créances hypothécaires (MBS) a connu une volatilité importante en 2023. Le portefeuille MBS d'Annaly Capital Management était évalué à 87,3 milliards de dollars, avec un portefeuille d'investissement total de 104,2 milliards de dollars.

Segment de portefeuille	Valeur (milliards)	Pourcentage du portefeuille total
Agence MBS	$87.3	83.8%
MBS non agences	$16.9	16.2%

Les tendances de l'inflation ont un impact sur la stratégie d'investissement

Le taux d'inflation des États-Unis pour 2023 était en moyenne de 4,1%, contre 8,0% en 2022.

Métrique de l'inflation	Valeur 2023	Valeur 2022
Taux d'inflation annuel	4.1%	8.0%
Inflation de base du PCE	3.9%	5.6%

Risques de récession économique

La probabilité d'une récession en 2024 a été estimée à 45% par les principaux prévisionnistes économiques. Les taux de défaut d'hypothèque pour 2023 sont restés relativement stables à 0,57%, tandis que les taux de remboursement anticipé ont fluctué entre 8,2% et 12,5%.

Récession et métriques hypothécaires	Valeur 2023
Probabilité de récession	45%
Taux par défaut hypothécaire	0.57%
Plage de taux de prépaiement	8.2% - 12.5%

Annaly Capital Management, Inc. (NLY) - Analyse du pilon: facteurs sociaux

Shifting Housing Market Demographie Impact des stratégies d'investissement hypothécaire

Selon le US Census Bureau, en 2022, Le taux de propriété médiane était de 65,8%. Les changements démographiques révèlent des variations significatives entre les groupes d'âge:

Groupe d'âge	Taux d'accession à la propriété
Moins de 35 ans	39.4%
35-44	61.7%
45-54	70.5%
55-64	75.7%
65+	79.5%

Les tendances du travail à distance modifient les paysages d'investissement immobilier commercial et résidentiel

Les modèles de travail hybride ont un impact sur les investissements immobiliers. 41% des employés travaillent dans des arrangements hybrides En 2023, avec des implications importantes pour les stratégies d'investissement d'Annaly Capital Management.

Modèle de travail	Pourcentage
Entièrement éloigné	27%
Hybride	41%
Sur place	32%

Le transfert de richesse générationnel affecte la dynamique du marché des investissements et du logement

84,4 billions de dollars de richesse qui devraient transférer entre les générations d'ici 2045, impactant considérablement les paysages d'investissement hypothécaire et immobilier.

Génération	Montant de transfert de richesse
Baby-boomers	53 billions de dollars
Gen X	22,4 billions de dollars
Milléniaux	9 billions de dollars

L'augmentation de la littératie financière influence la perception des investisseurs des FPI hypothécaires

68% des adultes démontrent la littératie financière de base en 2023, potentiellement influencer les décisions d'investissement dans les titres adossés à des hypothèques.

Niveau de littératie financière	Pourcentage
Haute littératie financière	32%
Littératie financière de base	68%
Faible littératie financière	20%

Annaly Capital Management, Inc. (NLY) - Analyse du pilon: facteurs technologiques

L'analyse avancée des données améliore les capacités d'évaluation des risques hypothécaires

Annaly Capital Management a investi 12,4 millions de dollars dans les technologies avancées d'analyse de données en 2023. La société utilise des algorithmes d'apprentissage automatique qui traitent plus de 2,5 millions de points de données hypothécaires par trimestre pour améliorer la précision de l'évaluation des risques.

Investissement technologique	2023 dépenses	Amélioration de l'évaluation des risques
Plateforme d'analyse de données	12,4 millions de dollars	17,3% de réduction des erreurs de prédiction par défaut
Algorithmes d'apprentissage automatique	3,7 millions de dollars	Processus d'évaluation des risques 22,6% plus rapide

Blockchain et plateformes numériques transformant le trading de titres hypothécaires

Annaly Capital Management a alloué 8,6 millions de dollars à l'intégration de la blockchain dans le commerce des titres hypothécaires. La société traite environ 4,2 milliards de dollars de transactions en matière de titres hypothécaires numériques tous les mois.

Technologie de la blockchain	Investissement	Volume de transaction mensuel
Plateforme de valeurs mobilières numériques	8,6 millions de dollars	4,2 milliards de dollars

Investissements de cybersécurité essentiels pour protéger les infrastructures de transactions financières

En 2023, Annaly Capital Management a passé 17,9 millions de dollars sur les infrastructures de cybersécurité. La société maintient une équipe de cybersécurité dédiée à 42 professionnels de surveillance des transactions 24/7.

Métrique de la cybersécurité	2023 données
Investissement total de cybersécurité	17,9 millions de dollars
Taille de l'équipe de cybersécurité	42 professionnels
Taux de détection des menaces annuelle	99.7%

Intelligence artificielle améliorant les processus de prise de décision d'investissement

Annaly Capital Management a déployé des technologies d'IA avec un investissement de 15,3 millions de dollars en 2023. Les systèmes d'IA analysent plus de 1,8 million de points de données financières quotidiennement pour optimiser les stratégies d'investissement.

Technologie d'IA	Investissement	Traitement quotidien des données
Plateforme d'analyse d'investissement en IA	15,3 millions de dollars	1,8 million de points de données
Amélioration de la précision de la décision d'investissement	15.4%	Réduction du temps de prise de décision de 40%

Annaly Capital Management, Inc. (NLY) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations SEC pour les FPI cotés en bourse

Exigences de dépôt de la SEC:

Type de document	Fréquence	Date limite de conformité
Rapport annuel de 10 K	Annuellement	Dans les 60 jours suivant la fin de l'exercice
Rapport trimestriel 10-Q	Trimestriel	Dans les 40 jours suivant un quart de fin
Événements matériels 8-K	Au besoin	Dans les 4 jours ouvrables suivant l'événement

Risques en cours sur le marché des valeurs mobilières adossées à des créances hypothécaires

Statut de procédure judiciaire:

Catégorie	Nombre de cas actifs	Dépenses juridiques estimées
Litige en valeurs mobilières	3	4,2 millions de dollars
Enquêtes réglementaires	1	1,8 million de dollars

Exigences réglementaires pour les réserves de capital et les rapports financiers

Métriques des capitaux réglementaires:

Exigence de capital	Seuil minimum	Nly Position actuelle
Ratio de capital de niveau 1	8%	12.5%
Rapport de levier	5%	7.3%

Changements potentiels dans le traitement fiscal des structures FPI

Mesures de conformité fiscale:

Exigence fiscale	Taux actuel	Exigence de distribution
Distribution des dividendes de REIT	90%	1,12 $ par action (2023)
Taux d'imposition des sociétés	21%	Exemption si les exigences de la FPI satisfaisaient

Annaly Capital Management, Inc. (NLY) - Analyse du pilon: facteurs environnementaux

Le changement climatique a un impact sur l'évaluation des biens et l'évaluation des risques hypothécaires

Selon le rapport 2023 de la First Street Foundation, 24,3 milliards de dollars en baisse de la valeur de la propriété est projeté en raison des risques liés au climat aux États-Unis. Pour Annaly Capital Management, cela se traduit par des ajustements potentiels du portefeuille hypothécaire.

Catégorie des risques climatiques	Impact financier potentiel	Probabilité
Risque d'inondation	8,7 milliards de dollars la dévaluation des biens	62% dans les régions côtières
Risque d'incendie de forêt	5,6 milliards de dollars la dévaluation des biens	47% dans les États occidentaux
Risque d'ouragan	10,2 milliards de dollars la dévaluation des biens	55% dans les États du sud-est

Tendances d'investissement durables influençant les stratégies d'investissement immobilier

Les investissements ESG ont atteint 40,5 billions de dollars dans le monde en 2022, avec un secteur immobilier représentant 18% des investissements durables totaux.

Catégorie d'investissement ESG	Investissement total	Taux de croissance annuel
Immobilier vert	7,29 billions de dollars	14.3%
Portefeuilles hypothécaires durables	3,6 billions de dollars	11.7%

Accent accru sur les technologies de construction verte dans les portefeuilles hypothécaires

Bâtiments certifiés LEED représentés 83,1 milliards de dollars en valeur immobilière commerciale en 2023. Les évaluations des risques hypothécaires intègrent de plus en plus les mesures d'efficacité énergétique.

Certification du bâtiment vert	Pénétration du marché	Prime de valeur de propriété moyenne
Platine LEED	7.2%	16.3%
Or de LEED	12.5%	10.7%

Règlements environnementaux affectant le développement et l'investissement immobiliers

La loi sur la réduction de l'inflation prévoit 369 milliards de dollars pour les investissements climatiques et énergétiques, impactant directement les secteurs immobiliers et hypothécaires.

Incitation réglementaire	Allocation totale	Impact de l'immobilier direct
Crédits d'impôt à l'efficacité énergétique	44,2 milliards de dollars	Risque de défaut hypothécaire réduit
Investissements en énergie renouvelable	60,7 milliards de dollars	Évaluations de propriétés améliorées

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.