Annaly Capital Stock Earnings Reports

Annaly reported a strong Q3 2025 driven by spread tightening, lower interest-rate volatility and active capital deployment. Key financials: economic return of 8.1% for the quarter and 11.5% YTD; EAD (earnings available for distribution) of $0.73 per share, which exceeded the $0.70 dividend; book value rose to $19.25 (up 4.3% QoQ) after the dividend; reported NII yields and margins were stable (average asset yields 5.46%, average repo rate ~4.5%); modest leverage (economic leverage ~5.7x) and ~ $7.4 billion unencumbered assets (≈ $8.8 billion available for financing). Capital raising: $1.1 billion in accretive equity (including $800M ATM) and a preferred issuance restarted the mREIT preferred market. Portfolio positioning and activity: Agency portfolio grew to ~$87B (up ~10% QoQ) with increased allocation to specified pools in higher coupons (5.5%–6%) and continued disciplined hedging (bias to swaps); Residential Credit (Onslow Bay) expanded—$6.9B economic market value, $3.9B of transactions closed in Q3 and 24 deals YTD ($12.4B UPB), making Annaly a leading nonbank issuer; MSR portfolio grew to $3.5B market value ($2.9B of firm capital), with purchases across bulk and flow and low CPRs/sub-5 CPR recent prepayment experience. Outlook & risk posture: management remains constructive on Agencies (better technicals, expected Fed cuts), prefers to keep a diversified housing finance platform, and is maintaining low leverage, significant liquidity and a conservative rate/duration stance (near-flat duration gap and ~92% hedge ratio). They plan to opportunistically grow Residential Credit and MSR but remain patient on rebalancing back toward a ~40% combined Resi+MSR weighting. Key near-term considerations for investors: sensitivity to rate moves and volatility (hedging costs/convexity), possible seasonal mortgage activity into year-end, MSR bulk supply dynamics, and how any policy or bank demand shifts could affect Agency technicals.