Analysis of High-Yield REIT Investment Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 hours ago
0mins
Should l Buy NLY?
Source: Fool
- Healthpeak Properties: Healthpeak Properties currently offers a dividend yield of 7.3%, and its diversified healthcare portfolio generates stable cash flows that enable the payment of high monthly dividends, while the company is undergoing a major portfolio upgrade to unlock existing property value and seize new investment opportunities.
- Annaly Capital Management: Annaly Capital Management boasts a dividend yield of 13.2%, leveraging its nearly $105 billion investment portfolio in mortgages, and despite facing risks during challenging market conditions, its improved earnings have allowed for dividend increases over the past few quarters.
- Vici Properties: Vici Properties focuses on experiential properties with a current dividend yield of 6.6%, and its long-term leases tied to inflation ensure tenants cover all operating costs, while recent acquisitions of hotels and casinos will further support dividend growth.
- Investment Appeal: The high dividend yields offered by Healthpeak, Annaly, and Vici make them ideal choices for investors seeking a reliable income stream, particularly in today's low-yield environment, showcasing their strong attractiveness.
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Analyst Views on NLY
Wall Street analysts forecast NLY stock price to rise
8 Analyst Rating
6 Buy
2 Hold
0 Sell
Strong Buy
Current: 21.260
Low
21.50
Averages
23.09
High
25.00
Current: 21.260
Low
21.50
Averages
23.09
High
25.00
About NLY
Annaly Capital Management, Inc. is a diversified capital manager with investment strategies across mortgage finance. It owns a portfolio of real estate related investments, including mortgage pass-through certificates, collateralized mortgage obligations, credit risk transfer (CRT) securities, and other securities representing interests in or obligations backed by pools of mortgage loans, residential mortgage loans and mortgage servicing rights. Its investment groups include Annaly Agency Group, Annaly Residential Credit Group, and Annaly Mortgage Servicing Rights Group. Annaly Agency Group invests in agency mortgage-backed securities collateralized by residential mortgages. Annaly Residential Credit Group invests in non-agency residential mortgage assets within residential and commercial markets. Annaly Mortgage Servicing Rights Group invests in MSR, which provides the right to service residential mortgage loans in exchange for a portion of the interest payments made on the loans.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of High-Yield REIT Investment Opportunities
- Healthpeak Properties: Healthpeak Properties currently offers a dividend yield of 7.3%, and its diversified healthcare portfolio generates stable cash flows that enable the payment of high monthly dividends, while the company is undergoing a major portfolio upgrade to unlock existing property value and seize new investment opportunities.
- Annaly Capital Management: Annaly Capital Management boasts a dividend yield of 13.2%, leveraging its nearly $105 billion investment portfolio in mortgages, and despite facing risks during challenging market conditions, its improved earnings have allowed for dividend increases over the past few quarters.
- Vici Properties: Vici Properties focuses on experiential properties with a current dividend yield of 6.6%, and its long-term leases tied to inflation ensure tenants cover all operating costs, while recent acquisitions of hotels and casinos will further support dividend growth.
- Investment Appeal: The high dividend yields offered by Healthpeak, Annaly, and Vici make them ideal choices for investors seeking a reliable income stream, particularly in today's low-yield environment, showcasing their strong attractiveness.
See More
Annaly Capital Management Declares $0.70 Quarterly Dividend
- Quarterly Dividend Declaration: Annaly Capital Management has declared a quarterly dividend of $0.70 per share, consistent with previous distributions, indicating the company's stability and commitment to shareholder returns in the current economic climate.
- Yield Analysis: The forward yield of 12.72% reflects investor confidence in the company's ability to maintain dividend payments, providing an attractive option for income-seeking investors amidst market volatility.
- Shareholder Arrangement: The dividend is payable on April 30, with a record date of March 31 and an ex-dividend date also set for March 31, ensuring shareholders receive timely returns and reinforcing trust in the company's management.
- Capital Strategy Shift: Annaly Capital is signaling a shift towards non-agency strategies, with a projected 30% growth in its portfolio by 2025, demonstrating the company's adaptability and long-term growth potential in response to market fluctuations.
See More
Annaly Capital Management Faces Challenges Amid Dividend Cuts
- Dividend Yield Comparison: Annaly Capital Management boasts a dividend yield exceeding 12%, which is ten times higher than the S&P 500's 1.2%, yet repeated dividend cuts have undermined investor confidence, resulting in a share price decline of over 40% over the past decade.
- Financial Performance Decline: Annaly's mortgage portfolio has been adversely affected by interest rate changes, forcing reinvestment into lower-yielding mortgages, which has led to declining profitability and diluted shareholder value, reflecting a lack of long-term growth potential.
- Main Street Capital's Advantages: Main Street Capital focuses on debt and equity investments in small private companies, having increased its dividend by 136% since its 2007 IPO and never cutting it, showcasing its stable income streams and strong shareholder return capabilities.
- Total Return Comparison: Main Street Capital has achieved a total return of nearly 360% over the past decade, with an annualized return of 16.5%, significantly outperforming Annaly's 100% total return, indicating a clear advantage in income and growth potential.
See More
Annaly Capital Management Q4 2025 Earnings Call Highlights
- Strong Economic Returns: Annaly Capital Management reported an economic return of 8.6% for Q4 2025, with over 20% for the full year, underscoring the resilience and competitive strength of its diversified housing finance strategies.
- Significant Capital Raising: The company raised $560 million in common equity in Q4 and $2.9 billion for 2025, enabling a 30% portfolio growth with double-digit increases across all investment strategies, enhancing its market position.
- Increase in Book Value: As of December 31, 2025, book value per share rose from $19.25 to $20.21, reflecting ongoing efforts to maintain strong liquidity and profitability, ensuring stable returns for shareholders.
- Forward-Looking Strategic Adjustments: Management anticipates continued growth in the non-Agency market and plans to allocate more capital towards non-Agency and MSR investments in response to market dynamics while maintaining flexibility.
See More
Annaly Capital Management Set to Release Q4 Earnings on January 28
- Earnings Announcement: Annaly Capital Management is set to announce its Q4 earnings on January 28, with consensus EPS estimated at $0.73 (up 1.34% YoY) and revenue at $567.67 million (up 203.10% YoY), indicating strong growth potential in a favorable market environment.
- Performance Expectations: Over the past two years, NLY has beaten EPS estimates 75% of the time, yet has not surpassed revenue estimates, reflecting challenges in revenue growth, although recent EPS estimates have seen four upward revisions and three downward revisions.
- Market Reaction and Analyst Ratings: Despite peer AGNC Investment's Q4 results falling short of expectations, NLY's stock rose in after-hours trading, with BTIG upgrading its rating from Neutral to Buy, indicating optimism about NLY's future performance, especially as spreads tighten.
- Management Outlook: UBS analysts noted that NLY's earnings report should reflect positive book value gains, with management's outlook on spreads and leverage/returns being key focal points, anticipating stable book value accretion in the coming quarters.
See More
Annaly Capital (NLY) Rallies 14% in Two Months with 12.9% Dividend Yield
- Dividend and Price Gains: Annaly Capital's stock surged 14% over the past two months, with an annualized return of 115% while offering a secure 12.9% dividend yield, highlighting its strong performance amid recession fears and attracting more income-focused investors.
- Favorable Market Conditions: As mortgage rates decline, the value of Annaly's government-backed mortgage assets increases, further solidifying its position as a 'financial landlord' and suggesting continued benefits from future interest rate shifts.
- Surging Power Demand: The Trump administration's agreement with Northeastern governors mandates tech giants to fund new power plants, potentially driving $15 billion in new construction and providing long-term contract support for power producers, boosting investor confidence in utilities.
- Diversified Investment Opportunity: Reaves Utility Income Fund (UTG) offers a 6.3% monthly dividend as a diversified investment in power companies, with expectations that UTG's price will rise as interest rates decline, enhancing overall investment returns.
See More
Analysis of High-Yield REIT Investment Opportunities
- Healthpeak Properties: Healthpeak Properties currently offers a dividend yield of 7.3%, and its diversified healthcare portfolio generates stable cash flows that enable the payment of high monthly dividends, while the company is undergoing a major portfolio upgrade to unlock existing property value and seize new investment opportunities.
- Annaly Capital Management: Annaly Capital Management boasts a dividend yield of 13.2%, leveraging its nearly $105 billion investment portfolio in mortgages, and despite facing risks during challenging market conditions, its improved earnings have allowed for dividend increases over the past few quarters.
- Vici Properties: Vici Properties focuses on experiential properties with a current dividend yield of 6.6%, and its long-term leases tied to inflation ensure tenants cover all operating costs, while recent acquisitions of hotels and casinos will further support dividend growth.
- Investment Appeal: The high dividend yields offered by Healthpeak, Annaly, and Vici make them ideal choices for investors seeking a reliable income stream, particularly in today's low-yield environment, showcasing their strong attractiveness.
See More
Annaly Capital Management Declares $0.70 Quarterly Dividend
- Quarterly Dividend Declaration: Annaly Capital Management has declared a quarterly dividend of $0.70 per share, consistent with previous distributions, indicating the company's stability and commitment to shareholder returns in the current economic climate.
- Yield Analysis: The forward yield of 12.72% reflects investor confidence in the company's ability to maintain dividend payments, providing an attractive option for income-seeking investors amidst market volatility.
- Shareholder Arrangement: The dividend is payable on April 30, with a record date of March 31 and an ex-dividend date also set for March 31, ensuring shareholders receive timely returns and reinforcing trust in the company's management.
- Capital Strategy Shift: Annaly Capital is signaling a shift towards non-agency strategies, with a projected 30% growth in its portfolio by 2025, demonstrating the company's adaptability and long-term growth potential in response to market fluctuations.
See More
Annaly Capital Management Faces Challenges Amid Dividend Cuts
- Dividend Yield Comparison: Annaly Capital Management boasts a dividend yield exceeding 12%, which is ten times higher than the S&P 500's 1.2%, yet repeated dividend cuts have undermined investor confidence, resulting in a share price decline of over 40% over the past decade.
- Financial Performance Decline: Annaly's mortgage portfolio has been adversely affected by interest rate changes, forcing reinvestment into lower-yielding mortgages, which has led to declining profitability and diluted shareholder value, reflecting a lack of long-term growth potential.
- Main Street Capital's Advantages: Main Street Capital focuses on debt and equity investments in small private companies, having increased its dividend by 136% since its 2007 IPO and never cutting it, showcasing its stable income streams and strong shareholder return capabilities.
- Total Return Comparison: Main Street Capital has achieved a total return of nearly 360% over the past decade, with an annualized return of 16.5%, significantly outperforming Annaly's 100% total return, indicating a clear advantage in income and growth potential.
See More
Annaly Capital Management Q4 2025 Earnings Call Highlights
- Strong Economic Returns: Annaly Capital Management reported an economic return of 8.6% for Q4 2025, with over 20% for the full year, underscoring the resilience and competitive strength of its diversified housing finance strategies.
- Significant Capital Raising: The company raised $560 million in common equity in Q4 and $2.9 billion for 2025, enabling a 30% portfolio growth with double-digit increases across all investment strategies, enhancing its market position.
- Increase in Book Value: As of December 31, 2025, book value per share rose from $19.25 to $20.21, reflecting ongoing efforts to maintain strong liquidity and profitability, ensuring stable returns for shareholders.
- Forward-Looking Strategic Adjustments: Management anticipates continued growth in the non-Agency market and plans to allocate more capital towards non-Agency and MSR investments in response to market dynamics while maintaining flexibility.
See More
Annaly Capital Management Set to Release Q4 Earnings on January 28
- Earnings Announcement: Annaly Capital Management is set to announce its Q4 earnings on January 28, with consensus EPS estimated at $0.73 (up 1.34% YoY) and revenue at $567.67 million (up 203.10% YoY), indicating strong growth potential in a favorable market environment.
- Performance Expectations: Over the past two years, NLY has beaten EPS estimates 75% of the time, yet has not surpassed revenue estimates, reflecting challenges in revenue growth, although recent EPS estimates have seen four upward revisions and three downward revisions.
- Market Reaction and Analyst Ratings: Despite peer AGNC Investment's Q4 results falling short of expectations, NLY's stock rose in after-hours trading, with BTIG upgrading its rating from Neutral to Buy, indicating optimism about NLY's future performance, especially as spreads tighten.
- Management Outlook: UBS analysts noted that NLY's earnings report should reflect positive book value gains, with management's outlook on spreads and leverage/returns being key focal points, anticipating stable book value accretion in the coming quarters.
See More
Annaly Capital (NLY) Rallies 14% in Two Months with 12.9% Dividend Yield
- Dividend and Price Gains: Annaly Capital's stock surged 14% over the past two months, with an annualized return of 115% while offering a secure 12.9% dividend yield, highlighting its strong performance amid recession fears and attracting more income-focused investors.
- Favorable Market Conditions: As mortgage rates decline, the value of Annaly's government-backed mortgage assets increases, further solidifying its position as a 'financial landlord' and suggesting continued benefits from future interest rate shifts.
- Surging Power Demand: The Trump administration's agreement with Northeastern governors mandates tech giants to fund new power plants, potentially driving $15 billion in new construction and providing long-term contract support for power producers, boosting investor confidence in utilities.
- Diversified Investment Opportunity: Reaves Utility Income Fund (UTG) offers a 6.3% monthly dividend as a diversified investment in power companies, with expectations that UTG's price will rise as interest rates decline, enhancing overall investment returns.
See More
