NEW YORK CITY—Annaly Capital Management Inc. and the Inland Real Estate Group of Cos. are partnering on a net lease initiative, the two companies announced Thursday afternoon. Wellington Denahan, Annaly’s chairman and CEO, says the initiative is part of her company’s expansion of its platform into commercial property ownership.
The initiative runs the gamut of net lease property types, including office, industrial, retail and restaurants. Annaly says it will buy properties that fit a certain size and profile, sourced and managed by affiliates of Inland. A spokesman for Annaly declined to provide additional details on the profile for each asset type or how much the REIT planned to invest in net lease.
“Annaly’s impressive expansion of its commercial real estate business highlights the strength of its balance sheet and flexibility, and we look forward to helping one of the largest mortgage REITs leverage upon those attributes,” says Joe Cosenza, president of Inland Real Estate Acquisitions Inc., who is leading the Inland team on the initiative. As of March 31, Annaly owned approximately $1.7 billion in CRE assets, an increase from $1 billion six months earlier.
On Wednesday, Annaly said it posted a GAAP net loss of $203 million for the first quarter, compared to net income of $1 billion for the prior quarter and $870.3 million a year ago. The REIT attributed Q1′s bottom line results to higher unrealized losses on interest rate swaps and interest-only agency mortgage-backed securities and a net loss on trading assets.