Business

Annaly Capital Management, Inc. Reports 1st Quarter 2026 Results

NEW YORK, April 21, 2026--ANNALY CAPITAL MANAGEMENT, INC. REPORTS 1st QUARTER 2026 RESULTS

Annaly Capital Management Inc.April 21, 202615
Annaly Capital Management, Inc. Reports 1st Quarter 2026 Results

About this update from Annaly Capital Management Inc.

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(NYSE: NLY) ("Annaly" or the "Company") today announced its financial results for the quarter ended March 31, 2026.","length":210,"tagName":"p"},{"type":"text","content":" Financial Highlights ","length":20,"tagName":"p"},{"type":"list","items":[{"val":[{"type":"text","content":"GAAP net income of $0.33 per average common share for the quarter","length":65,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Earnings available for distribution ("EAD") of $0.76 per average common share for the quarter","length":103,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Economic return of 1.5% for the first quarter","length":45,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Book value per common share of $19.82","length":37,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"GAAP leverage of 7.3x, up from 7.2x in the prior quarter; economic leverage of 5.7x, up from 5.6x in the prior quarter","length":118,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Common stock cash dividend of $0.70 per share for the first quarter","length":67,"tagName":"p","attribs":{}}]}],"tagName":"ul","bulletedList":true,"length":435,"olType":false},{"type":"text","content":" Business Highlights ","length":19,"tagName":"p"},{"type":"text","content":" Investment and Strategy ","length":23,"tagName":"p"},{"type":"list","items":[{"val":[{"type":"text","content":"Total portfolio of $106.7 billion, including $92.2 billion in highly liquid Agency portfolio (1) ","length":95,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Annaly’s Agency portfolio decreased marginally, representing 56% of dedicated capital (2) , with activity focused on investing paydowns into intermediate coupons, primarily 4.5% securities, and Agency CMBS","length":203,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Maintained a conservative hedge profile throughout the quarter given elevated rate and macro volatility; ended the quarter with hedge ratio of 87% with notional hedge portfolio relatively unchanged","length":197,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Annaly’s Residential Credit portfolio increased 30% to $10.3 billion (1) , representing 23% of dedicated capital (2) , reflecting continued momentum across its whole loan correspondent channel and securitization platform","length":216,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Annaly's MSR portfolio increased 9% to $4.2 billion (1) in market value, representing 21% of dedicated capital (2) , driven by robust bulk and flow purchase activity; Onslow Bay is the fifth largest non-bank servicer of Agency MBS (3) – Received a 2025 Gold SHARP award from Freddie Mac, recognizing superior mortgage servicing portfolio performance","length":349,"tagName":"p","attribs":{}}]}],"tagName":"ul","bulletedList":true,"length":1060,"olType":false},{"type":"text","content":" Financing and Capital ","length":21,"tagName":"p"},{"type":"list","items":[{"val":[{"type":"text","content":"$9.0 billion of total assets available for financing (4) , including cash and unencumbered Agency MBS of $5.0 billion","length":115,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Annaly Residential Credit Group closed eight securitizations totaling a record $4.7 billion during the first quarter, surpassing $50 billion in total issuance – Remained the largest non-bank issuer and the second largest issuer overall of Prime Jumbo and Expanded Credit MBS (5) ","length":277,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Average GAAP cost of interest-bearing liabilities of 4.29%, down 20 basis points quarter-over-quarter, and average economic cost of interest-bearing liabilities of 3.93%, down two basis points quarter-over-quarter","length":213,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Annaly’s Residential Credit and MSR businesses increased financing capacity by $550 million and $100 million, respectively, through new and expanded credit facilities; total warehouse capacity across both businesses of $7.6 billion, including $2.8 billion of committed capacity","length":277,"tagName":"p","attribs":{}}]},{"val":[{"type":"text","content":"Raised $509 million of accretive capital through the Company’s at-the-market sales program (6) ","length":93,"tagName":"p","attribs":{}}]}],"tagName":"ul","bulletedList":true,"length":975,"olType":false},{"type":"readMore"},{"type":"text","content":""The first quarter of 2026 marked Annaly’s tenth consecutive quarter of positive economic returns as our diversified housing finance platform further demonstrated its ability to deliver superior risk-adjusted returns across a range of market environments," remarked Chief Executive Officer & Co-Chief Investment Officer David Finkelstein. "Earnings again exceeded our dividend, and we grew the portfolio through accretive capital raising and disciplined portfolio management.","length":494,"tagName":"p"},{"type":"text","content":""During the first quarter, we increased our capital allocation to our non-Agency businesses considerate of compelling relative value. Our Residential Credit portfolio expanded 30% driven by another quarter of record whole loan production, while continuing our programmatic pace of securitization. Our MSR portfolio also grew nearly 10% as we capitalized on opportunities in the bulk and flow markets, leveraging our strong industry relationships. At the same time, our flagship Agency MBS business performed well with technical factors among the most supportive we have seen in years, bolstered by a disciplined leverage and liquidity profile. Looking ahead, we see attractive investment opportunities across our three strategies and believe Annaly remains well-positioned to deliver sustainable value for our shareholders."","length":834,"tagName":"p"},{"type":"table","headerItems":[],"items":[{"val":[{"colspan":"1","rowspan":"1","style":"padding-left:0.0px;padding-right:0.0px;vertical-align:top;","val":[{"type":"text","content":" (1) ","length":3,"tagName":"p","attribs":{}}]},{"colspan":"1","rowspan":"1","style":"vertical-align:top;padding-left:0.0px;","val":[]},{"colspan":"1","rowspan":"1","style":"vertical-align:top;padding-left:0.0px;","val":[{"type":"text","content":"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. Assets exclude assets transferred or pledged to securitization vehicles of $34.2 billion, include TBA purchase contracts (market value) of $5.8 billion, include unsettled MSR commitments of $13 million, include $3.5 billion of retained securities that are eliminated in consolidation and are shown net of participations issued totaling $2.5 billion. MSR commitments represent the market value of deals where Annaly has executed a letter of intent prior to quarter-end. There can be no assurance whether these deals will close or when they will close.","length":713,"tagName":"p","attribs":{}}]}]},{"val":[{"colspan":"1","rowspan":"1","style":"padding-left:0.0px;padding-right:0.0px;vertical-align:top;","val":[{"type":"text","content":" (2) ","length":3,"tagName":"p","attribs":{}}]},{"colspan":"1","rowspan":"1","style":"vertical-align:top;padding-left:0.0px;","val":[]},{"colspan":"1","rowspan":"1","style":"vertical-align:top;padding-left:0.0px;","val":[{"type":"text","content":"Dedicated capital 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.","length":195,"tagName":"p","attribs":{}}]}]},{"val":[{"colspan":"1","rowspan":"1","style":"padding-left:0.0px;padding-right:0.0px;vertical-align:top;","val":[{"type":"text","content":" (3) ","length":3,"tagName":"p","attribs":{}}]},{"colspan":"1","rowspan":"1","style":"vertical-align:top;padding-left:0.0px;","val":[]},{"colspan":"1","rowspan":"1","style":"vertical-align:top;padding-left:0.0px;","val":[{"type":"text","content":"Based on information aggregated from Fannie Mae and Freddie Mac monthly loan level files by eMBS servicing transfer data as of March 31, 2026. 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The quarter ended December 31, 2025 excludes cumulative and undeclared dividends of $3.7 million on the Company's Series J Preferred Stock as of September 30, 2025.","length":209,"tagName":"p","attribs":{}}]}]},{"val":[{"colspan":"12","rowspan":"1","style":"padding-left:0.0px;padding-right:0.0px;vertical-align:top;","val":[{"type":"text","content":" (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 1.79%, 6.53%, and 1.01% for the quarters ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively.","length":314,"tagName":"p","attribs":{}}]}]},{"val":[{"colspan":"12","rowspan":"1","style":"padding-left:0.0px;padding-right:0.0px;vertical-align:top;","val":[{"type":"text","content":" (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, structured repurchase transactions (included within Debt issued by securitization vehicles) and U.S. Treasury securities sold, not yet purchased. Debt issued by securitization vehicles (excluding structured repurchase transactions) and participations issued are non-recourse to us and are excluded from economic leverage.","length":834,"tagName":"p","attribs":{}}]}]},{"val":[{"colspan":"12","rowspan":"1","style":"padding-left:0.0px;padding-right:0.0px;vertical-align:top;","val":[{"type":"text","content":" (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.","length":671,"tagName":"p","attribs":{}}]}]},{"val":[{"colspan":"12","rowspan":"1","style":"padding-left:0.0px;padding-right:0.0px;vertical-align:top;","val":[{"type":"text","content":" (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).","length":353,"tagName":"p","attribs":{}}]}]},{"val":[{"colspan":"12","rowspan":"1","style":"padding-left:0.0px;padding-right:0.0px;vertical-align:top;","val":[{"type":"text","content":" (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).","length":868,"tagName":"p","attribs":{}}]}]}],"length":4752},{"type":"text","content":" Other Information ","length":17,"tagName":"p"},{"type":"text","content":"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.","length":2666,"tagName":"p"},{"type":"text","content":"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 www.annaly.com .","length":501,"tagName":"p"},{"type":"text","content":"We use our website ( www.annaly.com ) and LinkedIn account ( www.linkedin.com/company/annaly-capital-management ) 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.","length":794,"tagName":"p"},{"type":"text","content":"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 First Quarter 2026 Investor Presentation and the First Quarter 2026 Financial Supplement can be found at the Company’s website ( www.annaly.com ) in the "Investors" section under "Investor Presentations."","length":459,"tagName":"p"},{"type":"text","content":" Conference Call ","length":15,"tagName":"p"},{"type":"text","content":"The Company will hold the first quarter 2026 earnings conference call on April 22, 2026 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 "Investors" section of the Company's website at www.annaly.com , or by using the following link: https://dpregister.com/sreg/10207726/103aa658df0 . Pre-registration may be completed at any time, including up to and after the call start time.","length":613,"tagName":"p"},{"type":"text","content":"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."","length":224,"tagName":"p"},{"type":"text","content":"There will also be an audio webcast of the call on www.annaly.com . A replay of the call will be available for one week following the conference call. The replay number is 855-669-9568 for domestic calls and 412-317-0088 for international calls and the conference passcode is 4019012. If you would like to be added to the e-mail distribution list, please visit www.annaly.com , click on News & Insights, then select Subscribe and complete the email notification form.","length":469,"tagName":"p"},{"type":"text","content":" Financial Statements ","length":20,"tagName":"p"},{"type":"table","headerItems":[],"items":[{"val":[{"colspan":"20","rowspan":"1","style":"padding-left:0.0px;text-align:center;list-style-position:inside;","val":[{"type":"text","content":" ANNALY CAPITAL MANAGEMENT, INC. 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