UPDATE 1-Annaly Capital Q1 core profit rises; cuts dividend

Mon May 3, 2010 4:57pm EDT

* Core EPS $0.62 vs $0.56 last yr

* Net interest income up 12 pct at $377.9 mln

* Cuts dividend by 13 percent

May 3 (Reuters) - Annaly Capital Management Inc's (NLY.N) quarterly core earnings rose, helped by a 12 percent jump in net interest income, but cut its dividend.

The company said it will pay 65 cents a share dividend for the quarter ended March 31, down from 75 cents a share in the quarter ended Dec. 31, 2009.

The mortgage real estate investment trust (REIT) reported a first-quarter net income of $281.1 million, or 50 cents a share, compared with $349.9 million, or 64 cents a share last year.

However, core earnings increased to $350.8 million, or 62 cents per share, from $309.3 million, or 56 cents a share, a year ago.

Net interest income rose to $377.9 million for the quarter, from $337.4 million a year earlier.

Shares of the company were down 1 percent at $16.86 after the bell. They closed at $17.11 Monday on the New York Stock Exchange. (Reporting by Archana Shankar in Bangalore)