Annaly Capital Stock Earnings Reports

Annaly delivered a resilient quarter despite geopolitical volatility, reporting a 1.5% economic return for Q1 2026, earnings available for distribution (EAD) of $0.76 per share (above the $0.70 dividend), and a conservative leverage level of 5.7x. Book value per share was $19.82, down 1.9% QoQ. The firm raised ~ $510 million of common equity via ATM in Q1 and redeployed most of that capital into Residential Credit and MSR, increasing aggregate allocation to those businesses from 38% to 44%. Portfolio sizes at quarter end: Agency MBS $92B (56% of capital), Residential Credit $10.3B (23%), and MSR $4.2B (21%). Residential Credit lock volumes and whole-loan acquisitions were strong (lock volume $7.4B; whole loans acquired $6.7B); OBX securitizations settled $4.7B (8 deals) and Onslow Bay remains the largest non-bank securitizer. MSR activity was robust (committed to ~$24B UPB of purchases, weighted avg note rate ~3.4%); MSR multiple modestly increased to 5.94 and prepayment speeds remained muted (~4.2 CPR). Liquidity and funding remain ample (about $7.4B unencumbered assets and roughly $9B total assets available for financing), and repo funding costs improved (average repo ~3.9% for the quarter). Management sees the recently reproposed bank capital rules as mortgage-market positive (potentially lower RWAs for residential loans and more favorable MSR treatment) and views the three-strategy platform as a competitive advantage. Long-term target capital mix remains ~50% Agency / 30% Residential Credit / 20% MSR, but allocation will be adjusted tactically to capture relative value. Hedging mix favors both swaps and treasuries (roughly two-thirds split historically) with flexibility to adjust based on market conditions.