MREITs' Q2 Earnings To Watch On Aug 3: NLY, ARR & More
Zacks Investment Research | Aug 02, 2016 06:42AM ET
As we enter into another hectic week of earnings reporting cycle, we find a lot of activity in the real estate investment trust (REIT) space too. A number of companies from the different categories of REITs such as the retail, equity and apartment have come out with the June-quarter end releases.
A bevy of mortgage REITs (“mREITs”) – a variant category of the commonplace REITs – have also declared their results. Some mREITs which are slated to report June quarter-end results on Aug 3 are Annaly Capital Management, Inc. (NYSE:NLY) , ARMOUR Residential REIT, Inc. (NYSE:ARR) , Chimera Investment Corporation (NYSE:CIM) , Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) and Newcastle Investment Corp. (NYSE:NCT) .
mREITs borrow money at a low rate of interest, and in turn use it to purchase mortgage backed securities (MBSs). So, a low interest rate environment serves as a boon for the mREIT industry. During the first half of the second quarter, the chances of a rate hike kept the mREIT industry on tenterhooks. However, following the dismal jobs report in early June, chances of a hike were diminished substantially. This somewhat allayed the concerns of this industry.
Now let’s take a look at what’s in store for these mREITs which are slated to report on Aug 3.
For doing this, we rely on the Zacks methodology of combining a favorable Zacks Rank – Zacks Rank #1 (Strong Buy) or 2 (Buy) or 3 (Hold) – and a positive Zacks Investment Research
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