Annaly Capital Management (NYSE:NLY) reported a net loss in its Q1 report today, in sharp contrast to past gains.

A loss of $0.23 per share, or $203 million, came in well below the net income of $870 million, or $0.90 per share, the company reported in the first quarter of 2013, as well as the $1 billion of income, or $1.07 per share, in its previous quarter.

The company did see core earnings, which factor out derivative contracts related to interest rates as well as other adjustments, of $239 million, or $0.23 per share. However, core earnings also faltered in comparison with last quarter and last year's Q1.

 Metric

Q1 2013

Q4 2013

Q1 2014

Core earnings
($ millions)

$296.4

$350.1

$239.7

GAAP net income per
average common share

$0.90

$1.07

($0.23)

Core earnings per
average common share

$0.29

$0.35

$0.23

Even with the loss reported in the quarter, Annaly Capital Management saw its book value rise by 1.4%, relative to the fourth quarter, to $12.30 per share. It also began to slightly increase its leverage ratio, which rose from 5.0:1 to 5.2:1.

"We remain optimistic about the investment landscape in light of the market's reaction to the Federal Reserve's ongoing reduction of bond purchases," CEO Wellington Denahan said. "We continue to be flexible with our capital deployment and feel comfortable in our ability to sustain attractive risk-adjusted returns in the quarters ahead."

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