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Hamilton Spectator
8 hours ago
- Business
- Hamilton Spectator
Will Southwest Middlesex Say Yes to Wind Turbines?
SOUTHWEST MIDDLESEX – A recent presentation by Venfor Inc. proposing the construction of 17 wind turbines within the municipality has ignited a strong public backlash, as residents raise concerns over environmental impacts, long-term land use, and community transparency. On July 16, representatives from Venfor Inc. appeared before council to present their plan to participate in Ontario's Long-Term 2 (LT2) electricity procurement process. The company seeks municipal approval in the form of a Municipal Support Resolution (MSR), a requirement for its bid submission to the Independent Electricity System Operator (IESO) this fall. Peter Budd, a founding shareholder of Venfor Inc., emphasized the urgency of Ontario's energy shortage. 'We know we are short of electricity in Ontario,' Budd told council. 'We are importing. The demand is going to double by 2050.' He positioned the project as an opportunity for the municipality to secure new revenue streams through a Community Benefits Agreement, estimating $300,000 annually for every 100 megawatts of energy generated. Each proposed turbine would produce 6.1 megawatts, with the current configuration surpassing 100 megawatts. The company claims to have signed option and lease agreements with 17 landowners and offered $30,000 per year to each for hosting a turbine, potentially over 20 to 30 years. Deputy Mayor Mike Sholdice raised questions about the turbine count and compensation, while Councillor Ed Myers expressed concerns about groundwater contamination, citing 'horror stories in other municipalities.' Budd assured that a full hydrogeological study would be conducted, referencing lessons learned from past issues in Chatham-Kent. Despite these assurances, residents have voiced overwhelming opposition. A Facebook post by Deputy Mayor Sholdice requesting feedback on the proposal garnered over 100 public comments within days, with the vast majority opposing the project. Residents cited concerns about noise pollution, aesthetics, health impacts, and damage to wildlife and farmland. 'Wind turbines ruin the landscape and take away any sense of peace that comes with country living,' wrote one resident. Others questioned the lifespan and reliability of the technology, warning that 'they start severely degrading around 10–15 years' despite being marketed for 20–30 years of use. Water safety emerged as a particularly emotional flashpoint. One commenter claimed, 'This was our well water immediately after they started pile driving the H beams into the ground,' accompanied by a photo of visibly contaminated water. 'They hammered 100-foot steel beams into the aquifer… and the vibrations never let the sediment settle,' another added. These stories have prompted fears of long-term environmental degradation and public health risks. In response, a petition titled Say No to Wind Turbines in Southwest Middlesex was launched online and has begun collecting signatures from residents opposing the project. The sentiment shared among many is that while renewable energy is necessary, this particular development may impose too great a cost on the local community. The presentation also noted that Venfor intends to include First Nations equity partnerships and comply with all provincial regulations, including an Agricultural Impact Assessment and Environmental Review. However, some residents remained unconvinced, with several noting that Venfor is primarily a development firm and may sell the project once permits and agreements are secured. 'Venfor is not the company seeing the project through to decommissioning,' one commenter wrote. 'They won't be the ones honouring the original terms.' Mayor Allan Mayhew thanked the delegation and confirmed that council would deliberate further. 'The proposal cannot proceed without municipal support,' he said. Council is expected to make a decision by mid-October to meet the IESO's deadline. For now, the community remains sharply divided. While some landowners see financial incentive, many residents are calling for more public meetings and transparency before any resolution is passed. As one citizen wrote: 'If council votes yes, they should put them in their own backyard first and tell us how it works out.' Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
Business Wire
a day ago
- Business
- Business Wire
Annaly Capital Management, Inc. Reports 2nd Quarter 2025 Results
NEW YORK--(BUSINESS WIRE)--Annaly Capital Management, Inc. (NYSE: NLY) ("Annaly" or the "Company") today announced its financial results for the quarter ended June 30, 2025. Financial Highlights GAAP net income of $0.03 per average common share for the quarter Earnings available for distribution ("EAD") of $0.73 per average common share for the quarter Economic return of 0.7% for the second quarter; 3.7% economic return for the first half of the year Book value per common share of $18.45 GAAP leverage of 7.1x, up from 6.8x in the prior quarter; economic leverage of 5.8x, up from 5.7x in the prior quarter Common stock cash dividend of $0.70 per share for the second quarter Business Highlights Investment and Strategy Total portfolio of $89.5 billion, including $79.5 billion in highly liquid Agency portfolio (1) Annaly's Agency portfolio increased by 6%, representing 62% of dedicated capital (2), with accretive capital raised deployed into both specified pools and TBAs across 4.5% through 6.0% coupon securities Hedge portfolio remained defensively positioned with 92% hedge ratio; added hedges to correspond with assets purchased throughout the quarter and to manage upward pressure on long-end Treasury yields while maintaining a balanced mix of swaps and Treasuries at the long end of the yield curve Annaly's Residential Credit portfolio relatively unchanged at $6.6 billion (1) driven by record quarterly securitization issuance; correspondent channel activity remained strong with lock volume and total funded volume in line with the prior quarter at $5.3 billion and $3.7 billion, respectively Annaly's MSR portfolio unchanged at $3.3 billion in market value, representing 19% of dedicated capital (2) Financing and Capital $7.4 billion of total assets available for financing (3), including cash and unencumbered Agency MBS of $4.7 billion Annaly Residential Credit Group priced seven securitizations totaling a record $3.6 billion during the second quarter Annaly remained the largest non-bank issuer and the second largest issuer overall of Prime Jumbo and Expanded Credit MBS year-to-date (4) Since the end of the first quarter, Annaly's Residential Credit and MSR businesses increased financing capacity by $500 million through new and expanded credit facilities; total warehouse capacity across both Annaly's Residential Credit and MSR businesses of $6.2 billion, including $2.6 billion of committed capacity Average GAAP cost of interest-bearing liabilities of 4.76%, down 1 basis point quarter-over-quarter, and average economic cost of interest-bearing liabilities of 3.94%, up 6 basis points quarter-over-quarter Raised $761 million of accretive common equity through the Company's at-the-market sales program during the quarter (5) Corporate Governance Appointed Thomas Hamilton as Independent Chair of the Board of Directors following the 2025 Annual Meeting of Stockholders in May "Despite significant intra-quarter volatility across financial markets, Annaly delivered its seventh consecutive quarter with a positive economic return, underscoring the benefits of holding our Agency, Residential Credit and MSR strategies together on balance sheet," stated Chief Executive Officer & Co-Chief Investment Officer David Finkelstein. "Our Agency portfolio grew by nearly $5 billion as we were able to deploy accretive capital raised into the sector. Residential Credit experienced another record quarter of origination and securitization activity as Onslow Bay furthers its leadership across the non-Agency market. Meanwhile, our MSR portfolio continued to generate substantial cash flow while we expand our flow, subservicing and recapture partners. Looking forward, we remain encouraged by opportunities across our three investment strategies and believe our diversified housing finance portfolio can continue to generate industry leading risk-adjusted returns." (1) Total portfolio represents Annaly's investments that are on-balance sheet as well as investments that are off-balance sheet in which Annaly has economic exposure. Agency assets include TBA purchase contracts (market value) of $7.8 billion. Residential Credit assets exclude assets transferred or pledged to securitization vehicles of $27.0 billion, include $2.7 billion of retained securities that are eliminated in consolidation and are shown net of participations issued totaling $1.6 billion. MSR assets include unsettled MSR commitments of $21 million. MSR commitments represent the market value of deals where Annaly has executed a letter of intent. There can be no assurance whether these deals will close or when they will close. (2) Capital allocation for each of the investment strategies is calculated as the difference between each investment strategy's allocated assets, which include TBA purchase contracts, and liabilities. (3) Comprised of $5.9bn of unencumbered assets, which represents Annaly's excess liquidity and defined as assets that have not been pledged or securitized (generally including cash and cash equivalents, Agency MBS, CRT, Non-Agency MBS, residential mortgage loans, MSR, reverse repurchase agreements, other unencumbered financial assets and capital stock), and $1.5bn of fair value of collateral pledged for future advances. (4) Issuer ranking data from Inside Nonconforming Markets from 2024 to Q2 2025 (July 11, 2025 issue). Used with permission. Expand Financial Performance The following table summarizes certain key performance indicators as of and for the quarters ended June 30, 2025, March 31, 2025 and June 30, 2024: * Represents a non-GAAP financial measure. Please refer to the "Non-GAAP Financial Measures" section for additional information. (1) Net of dividends on preferred stock. (2) Annualized GAAP return on average equity annualizes realized and unrealized gains and (losses) which may not be indicative of full year performance, unannualized GAAP return on average equity is 0.45%, 1.01%, and (0.08%) for the quarters ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. (3) GAAP leverage is computed as the sum of repurchase agreements, other secured financing, debt issued by securitization vehicles, participations issued, and U.S. Treasury securities sold, not yet purchased divided by total equity. Economic leverage is computed as the sum of recourse debt, cost basis of to-be-announced ("TBA") derivatives outstanding, and net forward purchases (sales) of investments divided by total equity. Recourse debt consists of repurchase agreements, other secured financing, and US Treasury securities, sold, not yet purchased. Debt issued by securitization vehicles and participations issued are non-recourse to the Company and are excluded from economic leverage. (4) Net interest margin represents interest income less interest expense divided by average Interest Earning Assets. Net interest margin does not include net interest component of interest rate swaps. Net interest margin (excluding PAA) represents the sum of interest income (excluding PAA) plus TBA dollar roll income and less economic interest expense divided by the sum of average Interest Earning Assets plus average outstanding TBA contract balances. PAA represents the cumulative impact on prior periods, but not the current period, of quarter-over-quarter changes in estimated long-term prepayment speeds related to the Company's Agency mortgage-backed securities. (5) Average yield on interest earning assets represents annualized interest income divided by average interest earning assets. Average interest earning assets reflects the average amortized cost of our investments during the period. Average yield on interest earning assets (excluding PAA) is calculated using annualized interest income (excluding PAA). (6) Average GAAP cost of interest bearing liabilities represents annualized interest expense divided by average interest bearing liabilities. Average interest bearing liabilities reflects the average balances during the period. Average economic cost of interest bearing liabilities represents annualized economic interest expense divided by average interest bearing liabilities. Economic interest expense is comprised of GAAP interest expense, the net interest component of interest rate swaps, and net interest on initial margin related to interest rate swaps, which is reported in Other, net in the Company's Consolidated Statements of Comprehensive Income (Loss). Net interest on variation margin related to interest rate swaps is included in the Net interest component of interest rate swaps in the Company's Consolidated Statements of Comprehensive Income (Loss). Expand Other Information This news release and our public documents to which we refer contain or incorporate by reference certain forward-looking statements which are based on various assumptions (some of which are beyond our control) and may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "anticipate," "continue," or similar terms or variations on those terms or the negative of those terms. Such statements include those relating to the Company's future performance, macro outlook, the interest rate and credit environments, tax reform and future opportunities. Actual results could differ materially from those set forth in forward-looking statements due to a variety of factors, including, but not limited to, changes in interest rates; changes in the yield curve; changes in prepayment rates; the availability of mortgage-backed securities ("MBS") and other securities for purchase; the availability of financing and, if available, the terms of any financing; changes in the market value of the Company's assets; changes in business conditions and the general economy; the Company's ability to grow its residential credit business; the Company's ability to grow its mortgage servicing rights business; credit risks related to the Company's investments in credit risk transfer securities and residential mortgage-backed securities and related residential mortgage credit assets; risks related to investments in mortgage servicing rights; the Company's ability to consummate any contemplated investment opportunities; changes in government regulations or policy affecting the Company's business; the Company's ability to maintain its qualification as a REIT for U.S. federal income tax purposes; the Company's ability to maintain its exemption from registration under the Investment Company Act of 1940; and operational risks or risk management failures by us or critical third parties, including cybersecurity incidents. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law. Annaly is a leading diversified capital manager with investment strategies across mortgage finance. Annaly's principal business objective is to generate net income for distribution to its stockholders and to optimize its returns through prudent management of its diversified investment strategies. Annaly is internally managed and has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. Additional information on the company can be found at We use our website ( and LinkedIn account ( as channels of distribution of company information. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about Annaly when you enroll your email address by visiting the "News & Insights" section of our website, then clicking on "Subscribe" and completing the email notification form. Our website, any alerts and social media channels are not incorporated by reference into, and are not a part of, this document. The Company prepares an investor presentation and financial supplement for the benefit of its shareholders. Please refer to the investor presentation for definitions of both GAAP and non-GAAP measures used in this news release. Both the Second Quarter 2025 Investor Presentation and the Second Quarter 2025 Financial Supplement can be found at the Company's website ( in the "Investors" section under "Investor Presentations." Conference Call The Company will hold the second quarter 2025 earnings conference call on July 24, 2025 at 9:00 a.m. Eastern Time. Participants are encouraged to pre-register for the conference call to receive a unique PIN to gain immediate access to the call and bypass the live operator. Pre-registration may be completed by accessing the pre-registration link found on the homepage or "Investors" section of the Company's website at or by using the following link: Pre-registration may be completed at any time, including up to and after the call start time. For participants who would like to join the call but have not pre-registered, access is available by dialing 844-735-3317 within the U.S., or 412-317-5703 internationally, and requesting the "Annaly Earnings Call." There will also be an audio webcast of the call on A replay of the call will be available for one week following the conference call. The replay number is 877-344-7529 for domestic calls and 412-317-0088 for international calls and the conference passcode is 3172987. If you would like to be added to the e-mail distribution list, please visit click on News & Insights, then select Subscribe and complete the email notification form. Expand (1) Derived from the audited consolidated financial statements at December 31, 2024. (2) 6.95% Series F Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock - Includes 28,800,000 shares authorized, issued and outstanding. 6.50% Series G Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock - Includes 17,000,000 shares authorized, issued and outstanding. 6.75% Series I Preferred Stock - Includes 17,700,000 shares authorized, issued and outstanding. (3) Includes 1,468,250,000 shares authorized. Includes 642,076,127 shares issued and outstanding at June 30, 2025, 602,338,286 shares issued and outstanding at March 31, 2025, 578,357,118 shares issued and outstanding at December 31, 2024, 558,047,743 at September 30, 2024, and 501,018,415 shares issued and outstanding at June 30, 2024. Expand ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (dollars in thousands, except per share data) (Unaudited) For the quarters ended June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 September 30, 2024 Net interest income Interest income $ 1,418,893 $ 1,317,108 $ 1,338,880 $ 1,229,341 $ 1,177,325 Interest expense 1,145,693 1,097,137 1,151,592 1,215,940 1,123,767 Net interest income 273,200 219,971 187,288 13,401 53,558 Net servicing income Servicing and related income 141,670 140,435 127,224 122,583 120,515 Servicing and related expense 14,571 14,113 11,648 12,988 12,617 Net servicing income 127,099 126,322 115,576 109,595 107,898 Other income (loss) Net gains (losses) on investments and other 83,503 810,812 (2,010,426 ) 1,723,713 (568,745 ) Net gains (losses) on derivatives (388,785 ) (977,867 ) 2,215,680 (1,754,010 ) 430,487 Other, net 15,812 7,398 19,339 27,438 24,791 Total other income (loss) (289,470 ) (159,657 ) 224,593 (2,859 ) (113,467 ) General and administrative expenses Compensation expense 36,583 37,297 33,955 34,453 33,274 Other general and administrative expenses 13,435 10,767 10,019 9,468 11,617 Total general and administrative expenses 50,018 48,064 43,974 43,921 44,891 Income (loss) before income taxes 60,811 138,572 483,483 76,216 3,098 Income taxes 440 8,267 10,407 (6,135 ) 11,931 Net income (loss) 60,371 130,305 473,076 82,351 (8,833 ) Net income (loss) attributable to noncontrolling interests 3,272 6,081 (8,976 ) 15,906 650 Net income (loss) attributable to Annaly 57,099 124,224 482,052 66,445 (9,483 ) Dividends on preferred stock 37,260 37,157 38,704 41,628 37,158 Net income (loss) available (related) to common stockholders $ 19,839 $ 87,067 $ 443,348 $ 24,817 $ (46,641 ) Net income (loss) per share available (related) to common stockholders Basic $ 0.03 $ 0.15 $ 0.78 $ 0.05 $ (0.09 ) Diluted $ 0.03 $ 0.15 $ 0.78 $ 0.05 $ (0.09 ) Weighted average number of common shares outstanding Basic 620,208,712 587,149,704 569,201,592 515,729,658 500,950,563 Diluted 621,103,218 588,420,998 570,651,985 516,832,152 500,950,563 Other comprehensive income (loss) Net income (loss) $ 60,371 $ 130,305 $ 473,076 $ 82,351 $ (8,833 ) Unrealized gains (losses) on available-for-sale securities 33,559 164,877 (337,121 ) 428,955 (54,243 ) Reclassification adjustment for net (gains) losses included in net income (loss) 13,797 65,403 31,642 15,769 179,234 Other comprehensive income (loss) 47,356 230,280 (305,479 ) 444,724 124,991 Comprehensive income (loss) 107,727 360,585 167,597 527,075 116,158 Comprehensive income (loss) attributable to noncontrolling interests 3,272 6,081 (8,976 ) 15,906 650 Comprehensive income (loss) attributable to Annaly 104,455 354,504 176,573 511,169 115,508 Dividends on preferred stock 37,260 37,157 38,704 41,628 37,158 Comprehensive income (loss) attributable to common stockholders $ 67,195 $ 317,347 $ 137,869 $ 469,541 $ 78,350 Expand For the six months ended June 30, 2025 June 30, 2024 (unaudited) (unaudited) Net interest income Interest income $ 2,736,001 $ 2,271,813 Interest expense 2,242,830 2,224,706 Net interest income 493,171 47,107 Net servicing income Servicing and related income 282,105 235,599 Servicing and related expense 28,684 24,833 Net servicing income 253,421 210,766 Other income (loss) Net gains (losses) on investments and other 894,315 (1,562,872 ) Net gains (losses) on derivatives (1,366,652 ) 1,807,631 Other, net 23,210 48,158 Total other income (loss) (449,127 ) 292,917 General and administrative expenses Compensation expense 73,880 61,995 Other general and administrative expenses 24,202 21,466 Total general and administrative expenses 98,082 83,461 Income (loss) before income taxes 199,383 467,329 Income taxes 8,707 10,988 Net income (loss) 190,676 456,341 Net income (loss) attributable to noncontrolling interests 9,353 2,932 Net income (loss) attributable to Annaly 181,323 453,409 Dividends on preferred stock 74,417 74,219 Net income (loss) available (related) to common stockholders $ 106,906 $ 379,190 Net income (loss) per share available (related) to common stockholders Basic $ 0.18 $ 0.76 Diluted $ 0.18 $ 0.76 Weighted average number of common shares outstanding Basic 603,770,531 500,781,701 Diluted 604,882,295 501,415,515 Other comprehensive income (loss) Net income (loss) $ 190,676 $ 456,341 Unrealized gains (losses) on available-for-sale securities 198,436 (336,112 ) Reclassification adjustment for net (gains) losses included in net income (loss) 79,200 514,585 Other comprehensive income (loss) 277,636 178,473 Comprehensive income (loss) 468,312 634,814 Comprehensive income (loss) attributable to noncontrolling interests 9,353 2,932 Comprehensive income (loss) attributable to Annaly 458,959 631,882 Dividends on preferred stock 74,417 74,219 Comprehensive income (loss) attributable to common stockholders $ 384,542 $ 557,663 Expand Key Financial Data The following table presents key metrics of the Company's portfolio, liabilities and hedging positions, and performance as of and for the quarters ended June 30, 2025, March 31, 2025 and June 30, 2024: June 30, 2025 March 31, 2025 June 30, 2024 Portfolio related metrics Fixed-rate Residential Securities as a percentage of total Residential Securities 99 % 99 % 98 % Adjustable-rate and floating-rate Residential Securities as a percentage of total Residential Securities 1 % 1 % 2 % Weighted average experienced CPR for the period 8.7 % 7.1 % 7.4 % Weighted average projected long-term CPR at period-end 9.1 % 9.5 % 8.5 % Liabilities and hedging metrics Weighted average days to maturity on repurchase agreements outstanding at period-end 49 50 36 Hedge ratio (1) 92 % 95 % 98 % Weighted average pay rate on interest rate swaps at period-end (2) 3.14 % 2.98 % 3.13 % Weighted average receive rate on interest rate swaps at period-end (2) 4.47 % 4.43 % 5.30 % Weighted average net rate on interest rate swaps at period-end (2) (1.33 %) (1.45 %) (2.17 %) GAAP leverage at period-end (3) 7.1:1 6.8:1 7.1:1 GAAP capital ratio at period-end (4) 12.0 % 12.4 % 12.0 % Performance related metrics Book value per common share $ 18.45 $ 19.02 $ 19.25 GAAP net income per average common share (5) $ 0.03 $ 0.15 $ (0.09 ) Annualized GAAP return on average equity (6) 1.82 % 4.04 % (0.31 %) Net interest margin (7) 1.04 % 0.87 % 0.24 % Average yield on interest earning assets (8) 5.42 % 5.18 % 5.17 % Average GAAP cost of interest bearing liabilities (9) 4.76 % 4.77 % 5.43 % Net interest spread 0.66 % 0.41 % (0.26 %) Dividend declared per common share $ 0.70 $ 0.70 $ 0.65 Annualized dividend yield (10) 14.88 % 13.79 % 13.64 % Non-GAAP metrics * Earnings available for distribution per average common share (5) $ 0.73 $ 0.72 $ 0.68 Annualized EAD return on average equity (excluding PAA) 14.86 % 14.43 % 13.36 % Economic leverage at period-end (3) 5.8:1 5.7:1 5.8:1 Economic capital ratio at period end (4) 14.3 % 14.8 % 14.4 % Net interest margin (excluding PAA) (7) 1.71 % 1.69 % 1.58 % Average yield on interest earning assets (excluding PAA) (8) 5.41 % 5.23 % 5.14 % Average economic cost of interest bearing liabilities (9) 3.94 % 3.88 % 3.90 % Net interest spread (excluding PAA) 1.47 % 1.35 % 1.24 % Expand * Represents a non-GAAP financial measure. Please refer to the "Non-GAAP Financial Measures" section for additional information. (1) Measures total notional balances of interest rate swaps, interest rate swaptions (excluding receiver swaptions), futures and U.S. Treasury securities sold, not yet purchased, relative to repurchase agreements, other secured financing, cost basis of TBA derivatives outstanding and net forward purchases (sales) of investments; excludes MSR and the effects of term financing, both of which serve to reduce interest rate risk. Additionally, the hedge ratio does not take into consideration differences in duration between assets and liabilities. (2) Excludes forward starting swaps. (3) GAAP leverage is computed as the sum of repurchase agreements, other secured financing, debt issued by securitization vehicles, participations issued, and U.S. Treasury securities sold, not yet purchased divided by total equity. Economic leverage is computed as the sum of recourse debt, cost basis of to-be-announced ("TBA") derivatives outstanding, and net forward purchases (sales) of investments divided by total equity. Recourse debt consists of repurchase agreements, other secured financing, and U.S. Treasury securities sold, not yet purchased. Debt issued by securitization vehicles and participations issued are non-recourse to the Company and are excluded from economic leverage. (4) GAAP capital ratio is computed as total equity divided by total assets. Economic capital ratio is computed as total equity divided by total economic assets. Total economic assets include the implied market value of TBA derivatives and are net of debt issued by securitization vehicles and participations issued. (5) Net of dividends on preferred stock. (6) Annualized GAAP return on average equity annualizes realized and unrealized gains and (losses) which may not be indicative of full year performance, unannualized GAAP return on average equity is 0.45%, 1.01% and (0.08%) for the quarters ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. (7) Net interest margin represents interest income less interest expense divided by average interest earning assets. Net interest margin does not include net interest component of interest rate swaps. Net interest margin (excluding PAA) represents the sum of interest income (excluding PAA) plus TBA dollar roll income less economic interest expense divided by the sum of average interest earning assets plus average TBA contract balances. (8) Average yield on interest earning assets represents annualized interest income divided by average interest earning assets. Average interest earning assets reflects the average amortized cost of our investments during the period. Average yield on interest earning assets (excluding PAA) is calculated using annualized interest income (excluding PAA). (9) Average GAAP cost of interest bearing liabilities represents annualized interest expense divided by average interest bearing liabilities. Average interest bearing liabilities reflects the average balances during the period. Average economic cost of interest bearing liabilities represents annualized economic interest expense divided by average interest bearing liabilities. Economic interest expense is comprised of GAAP interest expense, the net interest component of interest rate swaps, and net interest on initial margin related to interest rate swaps, which is reported in Other, net in the Company's Consolidated Statements of Comprehensive Income (Loss). Net interest on variation margin related to interest rate swaps is included in the Net interest component of interest rate swaps in the Company's Consolidated Statements of Comprehensive Income (Loss). (10) Based on the closing price of the Company's common stock of $18.82, $20.31 and $19.06 at June 30, 2025, March 31, 2025 and June 30, 2024, respectively. Expand The following table contains additional information on our investment portfolio as of the dates presented: Non-GAAP Financial Measures To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company provides the following non-GAAP measures: earnings available for distribution ("EAD"); earnings available for distribution attributable to common stockholders; earnings available for distribution per average common share; annualized EAD return on average equity; economic leverage; economic capital ratio; interest income (excluding PAA); economic interest expense; economic net interest income (excluding PAA); average yield on interest earning assets (excluding PAA); average economic cost of interest bearing liabilities; net interest margin (excluding PAA); and net interest spread (excluding PAA). These measures should not be considered a substitute for, or superior to, financial measures computed in accordance with GAAP. While intended to offer a fuller understanding of the Company's results and operations, non-GAAP financial measures also have limitations. For example, the Company may calculate its non-GAAP metrics, such as earnings available for distribution, or the PAA, differently than its peers making comparative analysis difficult. Additionally, in the case of non-GAAP measures that exclude the PAA, the amount of amortization expense excluding the PAA is not necessarily representative of the amount of future periodic amortization nor is it indicative of the term over which the Company will amortize the remaining unamortized premium. Changes to actual and estimated prepayments will impact the timing and amount of premium amortization and, as such, both GAAP and non-GAAP results. These non-GAAP measures provide additional detail to enhance investor understanding of the Company's period-over-period operating performance and business trends, as well as for assessing the Company's performance versus that of industry peers. Additional information pertaining to the Company's use of these non-GAAP financial measures, including discussion of how each such measure may be useful to investors, and reconciliations to their most directly comparable GAAP results are provided below. Earnings available for distribution, earnings available for distribution attributable to common stockholders, earnings available for distribution per average common share and annualized EAD return on average equity The Company's principal business objective is to generate net income for distribution to its stockholders and to preserve capital through prudent selection of investments and continuous management of its portfolio. The Company generates net income by earning a net interest spread on its investment portfolio, which is a function of interest income from its investment portfolio less financing, hedging and operating costs. Earnings available for distribution, which is defined as the sum of (a) economic net interest income, (b) TBA dollar roll income, (c) net servicing income less realized amortization of MSR, (d) other income (loss) (excluding amortization of intangibles, non-EAD income allocated to equity method investments and other non-EAD components of other income (loss)), (e) general and administrative expenses (excluding transaction expenses and non-recurring items), and (f) income taxes (excluding the income tax effect of non-EAD income (loss) items) and excludes (g) the premium amortization adjustment ("PAA") representing the cumulative impact on prior periods, but not the current period, of quarter-over-quarter changes in estimated long-term prepayment speeds related to the Company's Agency mortgage-backed securities is used by the Company's management and, the Company believes, used by analysts and investors to measure its progress in achieving its principal business objective. The Company seeks to fulfill this objective through a variety of factors including portfolio construction, the degree of market risk exposure and related hedge profile, and the use and forms of leverage, all while operating within the parameters of the Company's capital allocation policy and risk governance framework. The Company believes these non-GAAP measures provide management and investors with additional details regarding the Company's underlying operating results and investment portfolio trends by (i) making adjustments to account for the disparate reporting of changes in fair value where certain instruments are reflected in GAAP net income (loss) while others are reflected in other comprehensive income (loss) and (ii) by excluding certain unrealized, non-cash or episodic components of GAAP net income (loss) in order to provide additional transparency into the operating performance of the Company's portfolio. In addition, EAD serves as a useful indicator for investors in evaluating the Company's performance and ability to pay dividends. Annualized EAD return on average equity, which is calculated by dividing earnings available for distribution over average stockholders' equity, provides investors with additional detail on the earnings available for distribution generated by the Company's invested equity capital. * Represents a non-GAAP financial measure. (1) Includes write-downs or recoveries on investments which are reported in Other, net in the Company's Consolidated Statements of Comprehensive Income (Loss). (2) The adjustment to add back Net (gains) losses on derivatives does not include the net interest component of interest rate swaps which is reflected in earnings available for distribution. The net interest component of interest rate swaps totaled $185.7 million, $191.5 million and $298.4 million for the quarters ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively. (3) The Company excludes non-EAD (income) loss allocated to equity method investments, which represents the unrealized (gains) losses allocated to equity interests in a portfolio of MSR, which is a component of Other, net. (4) Represents costs incurred in connection with securitizations of residential whole loans. (5) TBA dollar roll income represents a component of Net gains (losses) on derivatives. (6) MSR amortization utilizes purchase date cash flow assumptions and actual unpaid principal balances and is calculated as the difference between projected MSR yield income and net servicing income for the period. (7) Annualized GAAP return (loss) on average equity annualizes realized and unrealized gains and (losses) which may not be indicative of full year performance, unannualized GAAP return (loss) on average equity is 0.45%, 1.01%, and (0.08%) for the quarters ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Expand From time to time, the Company enters into TBA forward contracts as an alternate means of investing in and financing Agency mortgage-backed securities. A TBA contract is an agreement to purchase or sell, for future delivery, an Agency mortgage-backed security with a specified issuer, term and coupon. A TBA dollar roll represents a transaction where TBA contracts with the same terms but different settlement dates are simultaneously bought and sold. The TBA contract settling in the later month typically prices at a discount to the earlier month contract with the difference in price commonly referred to as the "drop". The drop is a reflection of the expected net interest income from an investment in similar Agency mortgage-backed securities, net of an implied financing cost, that would be foregone as a result of settling the contract in the later month rather than in the earlier month. The drop between the current settlement month price and the forward settlement month price occurs because in the TBA dollar roll market, the party providing the financing is the party that would retain all principal and interest payments accrued during the financing period. Accordingly, TBA dollar roll income generally represents the economic equivalent of the net interest income earned on the underlying Agency mortgage-backed security less an implied financing cost. TBA dollar roll transactions are accounted for under GAAP as a series of derivatives transactions. The fair value of TBA derivatives is based on methods similar to those used to value Agency mortgage-backed securities. The Company records TBA derivatives at fair value on its Consolidated Statements of Financial Condition and recognizes periodic changes in fair value in Net gains (losses) on derivatives in the Consolidated Statements of Comprehensive Income (Loss), which includes both unrealized and realized gains and losses on derivatives. TBA dollar roll income is calculated as the difference in price between two TBA contracts with the same terms but different settlement dates multiplied by the notional amount of the TBA contract. Although accounted for as derivatives, TBA dollar rolls capture the economic equivalent of net interest income, or carry, on the underlying Agency mortgage-backed security (interest income less an implied cost of financing). TBA dollar roll income is reported as a component of Net gains (losses) on derivatives in the Consolidated Statements of Comprehensive Income (Loss). Premium Amortization Expense In accordance with GAAP, the Company amortizes or accretes premiums or discounts into interest income for its Agency mortgage-backed securities, excluding interest-only securities, multifamily and reverse mortgages, taking into account estimates of future principal prepayments in the calculation of the effective yield. The Company recalculates the effective yield as differences between anticipated and actual prepayments occur. Using third-party model and market information to project future cash flows and expected remaining lives of securities, the effective interest rate determined for each security is applied as if it had been in place from the date of the security's acquisition. The amortized cost of the security is then adjusted to the amount that would have existed had the new effective yield been applied since the acquisition date. The adjustment to amortized cost is offset with a charge or credit to interest income. Changes in interest rates and other market factors will impact prepayment speed projections and the amount of premium amortization recognized in any given period. The Company's GAAP metrics include the unadjusted impact of amortization and accretion associated with this method. Certain of the Company's non-GAAP metrics exclude the effect of the PAA, which quantifies the component of premium amortization representing the cumulative impact on prior periods, but not the current period, of quarter-over-quarter changes in estimated long-term CPR. The following table illustrates the impact of the PAA on premium amortization expense for the Company's Residential Securities portfolio and residential securities transferred or pledged to securitization vehicles, for the quarters ended June 30, 2025, March 31, 2025 and June 30, 2024: Economic leverage and economic capital ratios The Company uses capital coupled with borrowed funds to invest primarily in real estate related investments, earning the spread between the yield on its assets and the cost of its borrowings and hedging activities. The Company's capital structure is designed to offer an efficient complement of funding sources to generate positive risk-adjusted returns for its stockholders while maintaining appropriate liquidity to support its business and meet the Company's financial obligations under periods of market stress. To maintain its desired capital profile, the Company utilizes a mix of debt and equity funding. Debt funding may include the use of repurchase agreements, loans, securitizations, participations issued, lines of credit, asset backed lending facilities, corporate bond issuance, convertible bonds or other liabilities. Equity capital primarily consists of common and preferred stock. The Company's economic leverage ratio is computed as the sum of recourse debt, cost basis of TBA derivatives outstanding, and net forward purchases (sales) of investments divided by total equity. Recourse debt consists of repurchase agreements, other secured financing, and U.S. Treasury securities sold, not yet purchased. Debt issued by securitization vehicles and participations issued are non-recourse to the Company and are excluded from economic leverage. The following table presents a reconciliation of GAAP debt to economic debt for purposes of calculating the Company's economic leverage ratio for the periods presented: * Represents a non-GAAP financial measure. Expand The following table presents a reconciliation of GAAP total assets to economic total assets for purposes of calculating the Company's economic capital ratio for the periods presented: * Represents a non-GAAP financial measure. (1) Included in Derivative assets in the Company's Consolidated Statements of Financial Condition. Expand Interest income (excluding PAA), economic interest expense and economic net interest income (excluding PAA) Interest income (excluding PAA) represents interest income excluding the effect of the PAA, and serves as the basis for deriving average yield on interest earning assets (excluding PAA), net interest spread (excluding PAA) and net interest margin (excluding PAA), which are discussed below. The Company believes this measure provides management and investors with additional detail to enhance their understanding of the Company's operating results and trends by excluding the component of premium amortization expense representing the cumulative impact on prior periods, but not the current period, of quarter-over-quarter changes in estimated long-term prepayment speeds related to the Company's Agency mortgage-backed securities (other than interest-only securities, multifamily and reverse mortgages), which can obscure underlying trends in the performance of the portfolio. Economic interest expense includes GAAP interest expense, the net interest component of interest rate swaps (which includes net interest on variation margin related to interest rate swaps) and net interest on initial margin related to interest rate swaps, which is reported in Other, net in the Company's Consolidated Statements of Comprehensive Income (Loss). The Company uses interest rate swaps to manage its exposure to changing interest rates on its repurchase agreements by economically hedging cash flows associated with these borrowings. Accordingly, adding the net interest component of interest rate swaps to interest expense, as computed in accordance with GAAP, reflects the total contractual interest expense and thus, provides investors with additional information about the cost of the Company's financing strategy. The Company may use market agreed coupon ("MAC") interest rate swaps in which the Company may receive or make a payment at the time of entering into such interest rate swap to compensate for the off-market nature of such interest rate swap. In accordance with GAAP, upfront payments associated with MAC interest rate swaps are not reflected in the net interest component of interest rate swaps in the Company's Consolidated Statements of Comprehensive Income (Loss). Similarly, economic net interest income (excluding PAA), as computed below, provides investors with additional information to enhance their understanding of the net economics of our primary business operations. * Represents a non-GAAP financial measure. (1) Interest on initial margin related to interest rate swaps is reported in Other, net in the Company's Consolidated Statements of Comprehensive Income (Loss). Expand Average yield on interest earning assets (excluding PAA), net interest spread (excluding PAA), net interest margin (excluding PAA) and average economic cost of interest bearing liabilities Net interest spread (excluding PAA), which is the difference between the average yield on interest earning assets (excluding PAA) and the average economic cost of interest bearing liabilities, which represents annualized economic interest expense divided by average interest bearing liabilities, and net interest margin (excluding PAA), which is calculated as the sum of interest income (excluding PAA) plus TBA dollar roll income less economic interest expense divided by the sum of average interest earning assets plus average TBA contract balances, provide management with additional measures of the Company's profitability that management relies upon in monitoring the performance of the business. Disclosure of these measures, which are presented below, provides investors with additional detail regarding how management evaluates the Company's performance. * Represents a non-GAAP financial measure. Expand
Daily Mirror
3 days ago
- Science
- Daily Mirror
Next pandemic 'worse than Covid' will arrive within years - and it will come from MARS
Astrobiologist Barry DiGregorio fears astronauts on Mars could die "live on air" after being exposed to deadly alien pathogens as NASA aims to send people to the Red Planet in the 2030s Mars samples returned to Earth by NASA could spark a pandemic worse than Covid-19 in as little as 10 years, a scientist has warned. Astrobiologist Barry DiGregorio, 71, even fears astronauts on Mars will die "live on air" over deadly alien pathogens. NASA says on its website it hopes to send humans to the Red Planet in the 2030s. It was planning to return samples before then through its Mars Sample Return (MSR) mission, but that was cancelled by Donald Trump's recent cuts. Instead NASA says it expects to return samples to Earth through lower-cost missions, without yet confirming how. And DiGregorio, an honorary research fellow at Buckingham Centre for Astrobiology, fears samples returned will be riddled with disease. He also claims aliens were already found by the Viking Mars lander mission in 1976. The author of Discovery on Vera Rubin Ridge, Trace Fossils on Mars said: "I believe samples from Mars could lead to a pandemic because Gilbert Levin discovered life on Mars during the Viking missions. The environmental conditions of Mars are so vastly different than here on Earth that any life that adapted to those conditions could be completely different to anything that we understand. "Levin felt the same way. He was always opposed to bringing samples home before we studied what the life that he found on Mars is. Lately they've been finding examples of extremophiles in areas where they put spacecraft before they're sent to the planets, and they've discovered a whole new line of extremophiles here on Earth that they never knew existed before. Therefore we have been sending all our rovers and landers to Mars without a complete sterilisation. "We were sending to Mars from Earth the type of extremophiles that can survive in very hardy places. So we're not only contaminating Mars, but with the Mars sample return situation, we could be doing the exact same thing by bringing stuff back from Mars." He added: "It is possible that NASA hasn't really thought through the idea that these astronauts, presumably, will be televised. Something really bad could go wrong live on air. I don't think there's any question about it. If one astronaut steps out to plant the flag on Mars and goes back in for the night to catch some rest, and in the morning comes down with symptoms of some new disease, what are you going to do? "They have to wait a year or more to come back to Earth and there's no rescue mission that can be sent there. So the smart thing to do is to send more life detection rovers. You want astronauts to be safe if they go exploring Mars. You don't want to send them to become human petri dishes." Levin made the explosive claim he'd discovered microbial alien life on Mars during the 1976 missions. He had been contracted to run tests on Martian soil but his theory was dismissed by NASA. He spent the rest of his life adamant he was the first man to discover aliens, before he died at the age of 97 in 2021. After NASA had landed two Viking landers on Mars, Levin claimed he'd found the presence of radioactive gas that showed signs of alien life. But NASA determined this was not the case in a separate experiment from Viking. Recently, former NASA Planetary Protection Officer, Catharine Conley, claims she was fired because she said plans to return Mars samples to Earth were not safe. She told The Sun: "The Mars 2020 rover was cleaned in a way that was not compatible with prior levels of cleanliness, in particular regarding the amount of contamination that was getting introduced into the samples that were being collected for return. "I pointed out that having a 0.1 per cent chance of contaminating any individual sample, when you have 40 samples in total, comes out to a 4 per cent chance of having Earth contamination in the samples you're looking at. That makes it fairly difficult to be confident that you can distinguish between Earth life and Mars life. "That was not something that the people at the headquarters management wanted to hear and they took the steps that they thought were appropriate." DiGregorio added: "We need life detection to find current life that exists there now. Tests like those that Gilbert Levin used to detect metabolism on Mars, a very accurate method for detecting microorganisms. There have been many opportunities to go back to check this out for astronaut safety." He added: "Microbes attach themselves to dust particles. Mars is a very dry and dusty place and one of the problems the Apollo missions had was when the astronauts returned from their EVAs, they brought lots and lots of dust on their suits inside the compartment with them. "When they took them off, the dust was getting everywhere. In fact they could smell it. It smelled like burnt gunpowder, they said. "If you remember the Apollo mission planetary protection protocols, we weren't really sure if there were microbes on the Moon, and to prevent cross contamination, the astronauts had to wear isolation gowns, put them on inside the capsule as it was bobbing up and down in the ocean and a recovery crew came to pick them and take them up in a helicopter. "It took them to the aircraft carrier where a makeshift trailer designed to be an isolation booth housed the astronauts for a period of a couple weeks while scientists back on Earth were looking for samples in the lunar dust that might have been contaminated. "The thing that was really odd was as soon as they opened the capsule door to the sea, lunar dust particles that were in the capsule could have been swept out and into the ocean. So if there was any kind of extremophile microorganisms on the Moon that could survive in the Earth Sea, we just contaminated the planet right then and there. We're basically gambling with whatever is out there."
%3Amax_bytes(150000)%3Astrip_icc()%2Fbest-selling-3-person-camping-tent-tout-dd9d305c372347108800fd1fd40874a6.jpg&w=3840&q=100)
Travel + Leisure
4 days ago
- Travel + Leisure
I've Backpacked All Over the World, and I Just Found an Amazon Tent That Rivals My $630 Version—for Just $78
After spending countless nights outdoors in the Southern Alps of New Zealand, the Canadian Rockies, England's Lake District, and the Central Highlands of Tasmania, I know exactly what qualities and features I prefer in a backpacking tent. The best-selling MSR Hubba Hubba is my go-to, and it's kept me dry and warm while camping for years. However, I realize the $630 price tag isn't for everyone—especially not for beginners or those sticking to a budget. If you're planning a multi-day excursion and are looking for a more budget-friendly alternative, you're in luck: I found a three-person tent that reviewers say 'mimics' my tried-and-true MSR portable shelter. Better yet, it's even on sale for just $77 right now, thanks to an on-site coupon. The tent's interior floor space is just large enough to accommodate three adults snugly. Unlike dome-style camping tents, backpacking tents have a low profile to reduce weight in your pack and minimize wind resistance on the windy slopes of mountains, and this version gives you just enough height to sit up inside. Similar to the MSR Hubba Hubba, the top half of this tent is lined entirely with bug-proof mesh—an added bonus for star-gazing on clear, warm nights—and it has two D-shaped doors on either side. The rain fly is designed with vestibules on both sides, which is super handy for keeping your hiking gear sheltered and your boots out of the dew and rain. In terrible weather, I've even cooked my dehydrated dinners under the shelter of the vestibules (if you do the same, just make sure the space is properly ventilated). In addition to the tent, the fly, and the aluminum poles, this three-person backpacking tent kit also includes stakes and guylines (cords or ropes attached to the outside of a tent that are staked into the ground to help keep the tent stable and upright). The footprint, however, is sold separately and costs $25. Much like the MSR Hubba Hubba, my favorite thing about this tent is the quick and easy setup. You don't have to feed the poles through any narrow tubes of nylon; this tent has just one pole that you hook into an eyelet at each corner of the tent, that is then clipped onto the tent via plastic clips. The entire setup process is so fast, that one five-star reviewer shared it took less than a minute. Along with the simple setup process and affordable price point, this backpacking tent's water-resistance is one of the most-loved features among Amazon reviewers. 'I picked this up to replace an old MSR; I loved that tent, but I was on a budget and this looked close enough to work until I could replace it,' one reviewer wrote. Despite two nights of heavy rain, including an hour-long period of torrential downpour, the tent had zero leaks, they wrote. Another camper said they tested the tent multiple times, but 'the real test' was a camping trip in a Nebraska national forest. 'A massive thunderstorm came through on our second night with over an inch of rain and 50-plus-mph winds,' they wrote. 'I set up this tent using a ground mat, the rain fly, and the provided tent stakes and guy lines.' Thanks to the tent's sealed seams and leak-proof construction, 'there wasn't a drop of water inside the tent the next morning.' The brand says the tent is rated for all four seasons (a rare find at this price), and reviewers attest it has served them well in snow and temperatures as low as 20 degrees. 'This tent is one that I could easily justify for a backpacking trip with two buddies without having to break the bank,' another customer wrote. Previously $86, this three-person tent is on sale for $78, due to an on-site coupon—but there's also a smaller two-person version that costs only $60. Getting your camping supplies in order for a backpacking trip this summer? Read on for more Amazon backpacking tents, starting at less than $100. At the time of publishing, the price started at $78. Love a great deal? Sign up for our T+L Recommends newsletter and we'll send you our favorite travel products each week.
Fox Sports
5 days ago
- Automotive
- Fox Sports
Paddock Buzz: Marcus Armstrong Continues to Impress, Climb in Standings
INDYCAR Marcus Armstrong continued his strong run of form by qualifying third in the No. 66 SiriusXM/Root Insurance Honda for Sunday's Ontario Honda Dealers Indy Toronto. 'It was a good day in the office,' Armstrong said. 'The lap felt pretty average if I'm brutally honest.' The result ties Armstrong's best career NTT INDYCAR SERIES start in his 42nd attempt. His best finish is third, most recently achieved last Sunday at Iowa Speedway. Armstrong has surged from 16th to seventh in points, powered by seven top-nine finishes in his last eight starts. 'We're on a bit of a roll right now, so (Sunday) could be a good one,' he said. Together with Meyer Shank Racing w/ Curb-Agajanian teammates Felix Rosenqvist and Helio Castroneves (Indianapolis 500-only starter), MSR has tallied a team-record 17 top-10s in a single season, led laps in eight of 12 races and earned multiple podiums for the first time in team history. Armstrong finished fifth in Toronto last year, driving for Chip Ganassi Racing. MSR's best Toronto finish came last year with a sixth from David Malukas. 'Love the circuit from the first laps I drove around here in 2023,' Armstrong said. 'It's a track that I enjoy going to and a city that I really love and even go to in the offseason. Cool place and cool fans. Had some decent results here the last two years.' Sunday's race coverage begins at noon ET on FOX, FOX Sports app and INDYCAR Radio Network. Palou Makes Fast Six for First Time in Toronto Alex Palou earned his best career start at Toronto by qualifying second in the No. 10 DHL Chip Ganassi Racing. In his previous three Toronto starts, Palou was eliminated in the opening round of qualifying, starting 22nd, 15th and 18th, respectively. 'We've normally been struggling quite a lot here in Toronto,' Palou said. 'Honestly, our target was to try and start up front. It's a surprise that we're starting on the front row, honestly.' This marks Palou's sixth front-row start of the season. He said the car improved with each run on track this weekend, including qualifying, a promising sign for him but scary for the 26 other drivers who battle him in Sunday's 90-lap race. The three-time series champion has shown an ability to charge through the field in Toronto, finishing sixth, second and fourth in previous starts. With just one spot left to gain, he'll look to earn his eighth win of the season on Sunday. 'Super proud of everybody's work,' Palou said. 'Happy to be starting on the front row.' Kirkwood Believes He Threw Away a Pole Back on May 31 in Detroit, Kirkwood believed he had a car capable of winning the NTT P1 Award but made a mistake and settled for third on the grid for the Chevrolet Detroit Grand Prix presented by Lear. He ultimately rebounded to win the race. On Saturday in Toronto, a similar story played out. Kirkwood made another mistake during the Firestone Fast Six round. The No. 27 Silver Gold Bull Honda for Andretti Global was on a one-lap strategy to go for pole, but a near-crash just before crossing the timing line spoiled the effort, leaving him sixth on the starting grid. 'Definitely just gave away a pole, without a doubt,' Kirkwood said. 'Just started the lap — the first time all weekend that happened to me — got a huge snap, a bit of understeer. The one time I go through there when it matters for a pole, it bottoms out and I get a huge snap. 'Unfortunately, it just feels like I'm throwing away poles left and right on street courses. That one didn't feel very good, if I'm being honest. Very, very disappointed with that performance. I tried to come into pit lane because I knew the lap was already shot and wanted to get fuel to try another run, but they said no. In hindsight, that probably cost us a few positions because I didn't even complete a lap, So yeah, a lot of dumb things.' Despite the disappointment, Kirkwood has proven he can bounce back. He leads the series with a 2.33 average finish on street courses and finished second in Toronto last year, just behind teammate Colton Herta. He was quickest in Friday's practice session and second on Saturday morning. Herta Sweeps Street Course Qualifying Front Rows Herta earned NTT P1 Award honors at Toronto, completing a clean sweep of front row starts on street circuits this season. Along with his pole in Detroit, Herta also qualified second at both the Firestone Grand Prix of St. Petersburg presented by RP Funding and the Acura Grand Prix of Long Beach. 'I think it just shows what this team is capable of on street courses,' Herta said. 'We continue to be, I feel, a dominant force in the league when it comes to that style of racing.' Though winless so far this season, Herta won last year's Toronto race from pole and has claimed three of his nine career victories on street circuits. He's also been consistently strong in Toronto, finishing second, third, and first in his last three starts. 'They keep impressing me every time we come here,' Herta said. 'The car's still that much faster than everybody else.' Changes To Turn 3 The city of Toronto laid new asphalt in the braking zone at Turn 3 on Friday night, following requests from drivers who noted a newly developed bump since the series last visited in July 2024. Harsh Canadian winters had worsened the surface, making cars unstable under heavy braking and potentially compromising overtaking opportunities in what is considered the best passing zone on the circuit. 'I think they need to grind it,' Will Power said after Friday's practice. 'It will hurt the racing. I'm very apprehensive about going up the inside. There's a massive new bump at the end of the straight, right in the braking zone.' Herta believed that spot was much better on Saturday. 'It was pretty brutal yesterday,' he said. 'I didn't really mind it because I think it adds character and whatnot. But it was on a limit. It was very aggressive. I think you saw quite a few guys have mistakes because of it. 'It's a very difficult part of the track to be standing on the brakes like that and have the bump there. 'I thought INDYCAR did a good job. I think there are no problems at all with it.' Odds And Ends · Arrow McLaren confirmed that both Pato O'Ward and Christian Lundgaard will have new Chevrolet engines installed for Sunday's race. According to team principal Tony Kanaan, the change was prompted by Chevrolet after detecting a potential issue. As this will be the fourth engine of the season for each driver – within the limit -- no grid penalties will be applied. O'Ward rolls off 10th. Lundgaard starts 19th. The 2023 race winner started 16th and climbed to seventh last year. · Scott McLaughlin admitted to making a driver error by missing the Turn 5 apex during his qualifying run and will start 15th in the No. 3 Gallagher Insurance Team Penske Chevrolet. He was second and fourth, respectively, in practice this weekend and had averaged a fifth-place starting position in three previous street course starts this season. This marks the first-time in four Toronto appearances that McLaughlin was eliminated in the opening round of qualifying, having previously started sixth, second and fourth, respectively. · Callum Ilott had 20.5 average starting spot through the opening eight races of the season. Ilott starts 12th in the No. 90 PREMA Racing Chevrolet and improved to 15th the last five races. · Kyffin Simpson will start 14th in the No. 8 Journie Rewards Chip Ganassi Racing Honda, marking his best street course start this season. He previously climbed from 17th to finish 10th at Long Beach and surged from 19th to finish fifth in Detroit. · Will Power will start fourth in the No. 12 Verizon Team Penske Chevrolet, the fourth time he has qualified in that position at Toronto. He previously won the race from fourth in 2016. · By qualifying fifth, Graham Rahal (No. 15 United Rentals Honda) earned his first Toronto top-five start since qualifying second in 2017. He finished ninth that year. Rahal also qualified fifth in Detroit but suffered a six-spot grid penalty for an engine change. · Honda has won 11 of the 12 races this season and 12 of the last 13 on street circuit events dating back to Toronto in 2022. The manufacturer also secured eight of the top nine starting positions for Sunday's race. · Andretti Global and Chip Ganassi Racing drivers combined for nine of the last 12 top-three finishes at Exhibition Place, including a podium sweep last year. Their drivers share the front row and have three of the top six starters. · Green Flag for Sunday's 90-lap race is 12:22 p.m. ET on FOX, FOX Sports app and INDYCAR Radio Network. recommended Item 1 of 1
