As indicated in the accompanying Management’s Annual Report on Internal Control over Financial Reporting, management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of certain subsidiaries of Mountain Merger Sub Corporation (successor by merger to MTGE Investment Corp.), namely Annaly Healthcare Investments LLC (formerly Capital Healthcare Investments, LLC) and its subsidiaries, which is included in the 2018 consolidated financial statements of the Company and constituted $321.6 million and $115.1 million of total assets and total equity, respectively, as of December 31, 2018, and $2.1 million of net income (loss) for the year then ended.