Annaly Capital Management, Inc. (Nly): Análise de Pestle [Jan-2025 Atualizada]

No intrincado mundo dos investimentos financeiros, a Annaly Capital Management, Inc. (NLY) permanece como um estudo de caso fascinante de complexidade e adaptação. Esta análise de pestles de mergulho profundo revela o cenário multifacetado que molda esse Trust (REIT), explorando ventos políticos, correntes econômicas, mudanças sociais, inovações tecnológicas, estruturas legais e integrações de dinâmica ambiental para definir o posicionamento estratégico de Nly em um ecossistema de mercado em constante evolução. Prepare-se para desvendar os fatores diferenciados que impulsionam a resiliência e o potencial desta empresa no domínio desafiador dos títulos lastreados em hipotecas.

Annaly Capital Management, Inc. (Nly) - Análise de Pestle: Fatores Políticos

Políticas de taxa de juros do Federal Reserve

Em dezembro de 2023, a faixa -alvo da taxa de fundos federais era de 5,25% - 5,50%. O portfólio da Annaly Capital Management é diretamente impactado por essas decisões de política monetária.

Federal Reserve Policy Metric	2023 valor
Taxa de fundos federais	5.25% - 5.50%
Quantidade quantitativa de aperto	US $ 95 bilhões mensais

Regulamentos de financiamento habitacional

Áreas de impacto regulatório:

• Dodd-Frank Wall Street Reform Lei de conformidade
• Requisitos de capital Basileia III
• Sec Mandatos de relatórios para REITs

Políticas tributárias do governo

Categoria de imposto REIT	2024 Regulamento
Requisito de distribuição de dividendos	90% da renda tributável
Taxa de imposto corporativo para REITs	0% (se os requisitos de distribuição atendem)

Tensões geopolíticas

Fatores de risco de investimento global:

• Tensões comerciais dos EUA-China
• Impacto de conflito no Oriente Médio nos mercados de capitais
• Estabilidade econômica européia

Annaly Capital Management mantém um US $ 125,3 bilhões portfólio de investimentos Até o terceiro trimestre de 2023, sensível a essas dinâmicas políticas.

Annaly Capital Management, Inc. (Nly) - Análise de Pestle: Fatores Econômicos

Baixa taxa de juros Ambiente desafia a margem de juros líquidos de Nly

No quarto trimestre 2023, a taxa de fundos federais foi de 5,33%, criando pressão significativa na margem de juros líquidos da Annaly Capital Management. A receita de juros líquidos da empresa para 2023 foi de US $ 1,82 bilhão, queda de 12,4% em relação ao ano anterior.

Métrica	2023 valor	Mudança de ano a ano
Receita de juros líquidos	US $ 1,82 bilhão	-12.4%
Margem de juros líquidos	1.64%	-0,23 pontos percentuais

Volatilidade do mercado de valores mobiliários apoiados por hipotecas

O mercado de valores mobiliários apoiado por hipotecas (MBS) experimentou uma volatilidade significativa em 2023. O portfólio MBS da Annaly Capital Management foi avaliado em US $ 87,3 bilhões, com um portfólio total de investimentos de US $ 104,2 bilhões.

Segmento de portfólio	Valor (bilhões)	Porcentagem de portfólio total
Agency MBS	$87.3	83.8%
MBS não Agência	$16.9	16.2%

Tendências de inflação impactam a estratégia de investimento

A taxa de inflação dos EUA para 2023 teve uma média de 4,1%, abaixo dos 8,0% em 2022. Isso afetou a estratégia de investimento da Annaly, com a empresa ajustando sua alocação de portfólio para mitigar os riscos da inflação.

Métrica da inflação	2023 valor	2022 Valor
Taxa de inflação anual	4.1%	8.0%
Inflação do PCE central	3.9%	5.6%

Riscos de recessão econômica

A probabilidade de uma recessão em 2024 foi estimada em 45% pelos principais meteorologistas econômicos. As taxas de inadimplência hipotecária para 2023 permaneceram relativamente estáveis ​​em 0,57%, enquanto as taxas de pré -pagamento flutuaram entre 8,2%e 12,5%.

Métricas de recessão e hipoteca	2023 valor
Probabilidade de recessão	45%
Taxa de inadimplência hipotecária	0.57%
Faixa de taxa de pré -pagamento	8.2% - 12.5%

Annaly Capital Management, Inc. (Nly) - Análise de Pestle: Fatores sociais

Mudança de dados demográficos do mercado imobiliário Impacto estratégias de investimento hipotecário

De acordo com o US Census Bureau, a partir de 2022, A taxa mediana da casa de casa foi de 65,8%. As mudanças demográficas revelam variações significativas entre as faixas etárias:

Faixa etária	Taxa de proprietários de imóveis
Abaixo de 35	39.4%
35-44	61.7%
45-54	70.5%
55-64	75.7%
65+	79.5%

As tendências de trabalho remotas alteram as paisagens de investimentos imobiliários comerciais e residenciais

Os modelos de trabalho híbrido afetam os investimentos imobiliários. 41% dos funcionários trabalham em acordos híbridos A partir de 2023, com implicações significativas para as estratégias de investimento da Annaly Capital Management.

Modelo de trabalho	Percentagem
Totalmente remoto	27%
Híbrido	41%
No local	32%

A transferência de riqueza geracional afeta o investimento e a dinâmica do mercado imobiliário

US $ 84,4 trilhões de riqueza que se espera transferir entre gerações até 2045, impactar significativamente as paisagens de hipoteca e investimento imobiliário.

Geração	Valor da transferência de riqueza
Baby Boomers	US $ 53 trilhões
Gen X.	US $ 22,4 trilhões
Millennials	US $ 9 trilhões

O aumento da alfabetização financeira influencia a percepção dos investidores de REITs de hipotecas

68% dos adultos demonstram alfabetização financeira básica em 2023, potencialmente influenciando as decisões de investimento em títulos lastreados em hipotecas.

Nível de alfabetização financeira	Percentagem
Alta alfabetização financeira	32%
Alfabetização financeira básica	68%
Baixa alfabetização financeira	20%

Annaly Capital Management, Inc. (Nly) - Análise de Pestle: Fatores tecnológicos

A análise de dados avançada melhora os recursos de avaliação de risco hipotecário

A Annaly Capital Management investiu US $ 12,4 milhões em tecnologias avançadas de análise de dados em 2023. A Companhia utiliza algoritmos de aprendizado de máquina que processam mais de 2,5 milhões de pontos de dados hipotecários por trimestre para aumentar a precisão da avaliação de riscos.

Investimento em tecnologia	2023 gastos	Melhoria da avaliação de risco
Plataforma de análise de dados	US $ 12,4 milhões	17,3% de redução nos erros de previsão padrão
Algoritmos de aprendizado de máquina	US $ 3,7 milhões	22,6% do processo de avaliação de risco mais rápido

Blockchain e plataformas digitais transformando o comércio de títulos hipotecários

A Annaly Capital Management alocou US $ 8,6 milhões para a integração de blockchain no comércio de valores mobiliários hipotecários. A empresa processa aproximadamente US $ 4,2 bilhões em transações de títulos de hipotecas digitais mensalmente.

Tecnologia Blockchain	Investimento	Volume mensal de transação
Plataforma de valores mobiliários digital	US $ 8,6 milhões	US $ 4,2 bilhões

Investimentos de segurança cibernética crítica para proteger a infraestrutura de transação financeira

Em 2023, a Gestão de Capital Annaly passou US $ 17,9 milhões em infraestrutura de segurança cibernética. A empresa mantém uma equipe dedicada de segurança cibernética de 42 profissionais de monitoramento de transações 24 horas por dia, 7 dias por semana.

Métrica de segurança cibernética	2023 dados
Investimento total de segurança cibernética	US $ 17,9 milhões
Tamanho da equipe de segurança cibernética	42 profissionais
Taxa anual de detecção de ameaças	99.7%

Processos de tomada de decisão de investimento de inteligência artificial

A Annaly Capital Management implantou tecnologias de IA com um investimento de US $ 15,3 milhões em 2023. Os sistemas de IA analisam mais de 1,8 milhão de pontos financeiros diariamente para otimizar estratégias de investimento.

Tecnologia da IA	Investimento	Processamento de dados diários
Plataforma de análise de investimento da IA	US $ 15,3 milhões	1,8 milhão de pontos de dados
Melhoria da precisão da decisão de investimento	15.4%	Tempo de tomada de decisão reduzida em 40%

Annaly Capital Management, Inc. (Nly) - Análise de Pestle: Fatores Legais

Conformidade com os regulamentos da SEC para REITs de capital aberto

Requisitos de arquivamento da SEC:

Tipo de documento	Freqüência	Prazo para conformidade
Relatório anual de 10-K	Anualmente	Dentro de 60 dias do final do ano fiscal
Relatório trimestral de 10-Q	Trimestral	Dentro de 40 dias do final do quarto
Eventos materiais de 8-K	Conforme necessário	Dentro de 4 dias úteis do evento

Riscos de litígios em andamento no mercado de valores mobiliários apoiados por hipotecas

Status de procedimentos legais:

Categoria	Número de casos ativos	Despesas legais estimadas
Litígios de valores mobiliários	3	US $ 4,2 milhões
Investigações regulatórias	1	US $ 1,8 milhão

Requisitos regulatórios para reservas de capital e relatórios financeiros

Métricas de capital regulatório:

Requisito de capital	Limiar mínimo	Posição atual
Índice de capital de camada 1	8%	12.5%
Razão de alavancagem	5%	7.3%

Mudanças potenciais no tratamento tributário das estruturas REIT

Métricas de conformidade tributária:

Requisito de imposto	Taxa atual	Requisito de distribuição
REIT distribuição de dividendos	90%	US $ 1,12 por ação (2023)
Taxa de imposto corporativo	21%	Isenção se os requisitos de REIT atendem

Annaly Capital Management, Inc. (Nly) - Análise de Pestle: Fatores Ambientais

As mudanças climáticas afetam a avaliação da propriedade e a avaliação de risco hipotecário

De acordo com o relatório 2023 da First Street Foundation, US $ 24,3 bilhões em declínio do valor da propriedade é projetado devido a riscos relacionados ao clima nos Estados Unidos. Para o Annaly Capital Management, isso se traduz em possíveis ajustes no portfólio de hipotecas.

Categoria de risco climático	Impacto financeiro potencial	Probabilidade
Risco de inundação	Desvalorização de propriedade de US $ 8,7 bilhões	62% nas regiões costeiras
Risco de incêndio florestal	Desvalorização de propriedade de US $ 5,6 bilhões	47% nos estados ocidentais
Risco de furacão	Desvalorização de US $ 10,2 bilhões	55% nos estados do sudeste

Tendências de investimento sustentável que influenciam estratégias de investimento imobiliário

Os investimentos ESG alcançaram US $ 40,5 trilhões globalmente em 2022, com o setor imobiliário representando 18% do total de investimentos sustentáveis.

Categoria de investimento ESG	Investimento total	Taxa de crescimento anual
Imóveis verdes	US $ 7,29 trilhões	14.3%
Portfólios de hipotecas sustentáveis	US $ 3,6 trilhões	11.7%

Maior foco nas tecnologias de construção verde em portfólios de hipotecas

Edifícios certificados por LEED representados US $ 83,1 bilhões em valor imobiliário comercial em 2023. As avaliações de risco hipotecário incorporam cada vez mais métricas de eficiência energética.

Certificação de construção verde	Penetração de mercado	Prêmio médio de valor da propriedade
LEED PLATINUM	7.2%	16.3%
LEED OURO	12.5%	10.7%

Regulamentos ambientais que afetam o desenvolvimento e o investimento imobiliários

A Lei de Redução de Inflação fornece US $ 369 bilhões para investimentos em clima e energia, afetando diretamente setores imobiliários e hipotecários.

Incentivo regulatório	Alocação total	Impacto imobiliário direto
Créditos fiscais de eficiência energética	US $ 44,2 bilhões	Risco de inadimplência de hipoteca reduzida
Investimentos de energia renovável	US $ 60,7 bilhões	Avaliações de propriedade aprimoradas

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.