Annaly Capital Management To Sell Commercial Real Estate Business To Slate Asset For $2.33 Bln

(RTTNews) - Annaly Capital Management Inc. (NLY) said that it agreed to sell its Commercial Real Estate business to Slate Asset Management L.P., a global investment and asset management firm focused on real estate, for $2.33 billion.

Annaly expects the transaction to have an immaterial impact on key financial metrics, including book value, core earnings and the company's dividend.

The company plans to use proceeds from the sale to repay its financing facilities related to the commercial real estate assets being sold and to purchase targeted assets in accordance with its capital allocation policy, which may include investments in Agency assets as well as residential and corporate credit assets.

Annaly anticipates maintaining limited exposure to the commercial real estate sector through opportunistic and efficient strategies within the securities portfolio.

The transaction is expected to be completed by the third quarter of 2021.