Annaly Capital Management reports $0.80 EAD per share for third quarter

Annaly Capital Management, Inc. (NYSE: NLY) reported earnings available for distribution of $0.80 per average common share for the quarter ended September 30, 2026, alongside a GAAP net loss of $1.36 per average common share. The company declared a quarterly common stock cash dividend of $0.75 per share.

The firm's total portfolio stood at $106.5 billion, which included a highly liquid Agency portfolio of $91.8 billion. This Agency portfolio represented 55% of dedicated capital, with activity focused on rotation into higher coupon specified pools. The Residential Credit portfolio remained effectively unchanged at $10.4 billion, accounting for 23% of dedicated capital, while the MSR portfolio increased to $4.3 billion in market value, or 22% of dedicated capital.

Leverage metrics shifted during the period. GAAP leverage rose to 8.0x from 7.4x in the prior quarter, and economic leverage increased to 5.9x from 5.6x. The average GAAP cost of interest-bearing liabilities was 4.34%, up six basis points quarter-over-quarter, while the average economic cost of interest-bearing liabilities stood at 4.03%, up seven basis points.

In financing activities, Annaly Residential Credit Group issued twelve securitizations totaling a record $7.4 billion across various product types. The company maintained warehouse capacity of $8.3 billion across its Residential Credit and MSR businesses, including $2.8 billion of committed capacity. Additionally, Annaly raised $757 million of accretive capital through its at-the-market sales program and announced the redemption of all outstanding shares of its $442.5 million Series I Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock.

The hedge portfolio ended the quarter with a hedge ratio of 100%, primarily adding Treasury futures to offset market-driven extension. Book value per common share was reported at $17.86, down from $20.15 in the prior quarter and $19.25 in the same period last year.