Mortgage REITs Start Branching Out
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Annaly Capital Management, headquartered in Midtown Manhattan, has diversified away from a single-focus business model.
NEW YORK CITY—Compressing margins are leading mortgage REITs to diversify outside of single-focus investments in order to maintain target dividends, Kroll Bond Rating Agency says in a new report on the sector. An added inducement to mREITs evolving and expanding their business models, says KBRA, is the possibility of rising interest rates.
KBRA cites recent moves by Annaly Capital Managementas a case in point illustrating where the sector is headed. The largest residential mREIT, Annaly has diversifed away from its agency-only mortgage business model by hiring a team of commercial real estate investors from the GE Capital Real Estate group…
