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Document Preview Anthracite Capital, Inc. Reports Fourth Quarter Operating Earnings Up 33% Over the Prior Year and 16% Over the Third Quarter of 2001 |
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Title: |
Anthracite Capital, Inc. Reports Fourth Quarter Operating Earnings Up 33% Over the Prior Year and 16% Over the Third Quarter of 2001 |
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2002 |
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$47 |
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#333323 |
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FOR IMMEDIATE RELEASE
Contact: Richard Shea or Robert Friedberg
COO and CFO Vice-President and Controller
Anthracite Capital, Inc. Anthracite Capital, Inc.
Tel: (212) 754-5579 Tel: (212) 409-3333
ANTHRACITE CAPITAL, INC. REPORTS FOURTH QUARTER OPERATING EARNINGS UP 33%
OVER THE PRIOR YEAR AND 16% OVER THE THIRD QUARTER OF 2001
Operating earnings increase to $0.44 for the Fourth
Quarter up from $0.33 for the prior year
period and $0.38 for the third quarter of 2001
Dividend Yield of 12.1% based on current stock price
New York, NY - February 13, 2002, - Anthracite Capital, Inc. ("the
Company") (NYSE: AHR) today reported record fourth quarter earnings per
share from the operating portfolio of $0.44 per share versus $0.33 for the
year earlier quarter. Income from the operating portfolio consists of net
interest income less hedging, management and other expenses. Operating
earnings for the full year ended December 31, 2001 was $1.44 per share
versus $1.19 per share for the year ended December 31, 2000.
Total earnings including realized gains and losses and SFAS 133 adjustments
for the year ended December 31, 2001 was $1.35 per share, as compared to
$1.28 per share for the year ended December 31, 2000. The difference
between operating earnings and total earnings for the full year 2001 was
largely based on SFAS 133 adjustments for hedging and changes in the value
of securities held for trading. Based on the $0.35 per share dividend
declared on December 12, 2001, and the February 12, 2002 closing price of
$11.61, Anthracite's annualized dividend yield is 12.1%.
Total earnings including realized gains and losses for the fourth quarter
were $0.31 per share versus $0.34 for the year earlier quarter. The net
loss of $0.13 per share reported in other gain/(loss) for the quarter
represents mark to market losses on securities classified as held for
trading for accounting purposes and net losses from active trading. The
Company's fourth quarter operating results represent an annualized return
on the quarter's average common stock equity (Annualized ROE) of 23.4% and
a net interest margin of 4.24%. Annualized ROE for the year earlier period
was 17.16% and the net interest margin was 5.55%. The significant year over
year increase in ROE was due to the reinvestment of proceeds from the three
equity raises in 2001, declining borrowing costs and declining expense
ratios. The decrease in net interest margin over the year is attributable
to the greater allocation of equity to higher credit quality assets.
During 2001 the Company raised approximately $145,000,000 in equity
capital. The Company initially deployed this new capital into high credit
quality residential mortgages to take advantage of an unusually steep yield
curve. During the fourth quarter, the Company purchased over $65,000,000 of
fixed rate CMBS and over $42,000,000 of commercial mortgages consistent
with its long term strategy of allocating the majority of its capital to
credit sensitive assets. As of December 31, 2001, approximately 74% of the
Company's equity capital was deployed in credit sensitive assets, up from
62% at September 30, 2001. During the first quarter of 2002 the Company
intends to continue redeployment of capital away from the residential
mortgage sector into the commercial sector as it continues to identify what
it believes are more stable income opportunities. Regardless of this
redeployment, the Company expects to maintain the percentage of equity
capital deployed in liquid securities at a target of 20-25%, consistent
with its longstanding policy.
One of the anticipated benefits to the Company of increased scale is a
reduction of the ratio of general and administrative expenses to operating
income before such expenses. The Company's general and administrative
expenses include both base and incentive compensation paid to the Company's
external adviser. The ratio per share of general and administrative
expenses to per share operating income before such expenses declined from
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