Annaly Capital Management Stock Earnings Reports

Annaly delivered a resilient Q1 2026 driven by its diversified housing finance platform. Key financials: economic return of 1.5%, EAD of $0.76 per share (above the quarterly dividend), conservative leverage at 5.7x, and book value per share of $19.82 (down 1.9% QoQ). The company raised approximately $510M of common equity via its ATM and deployed most of it into Residential Credit and MSR, increasing non-agency allocation from 38% to 44% of capital. Agency MBS remained the largest bucket ($92B market value; 56% of capital) but was de-emphasized tactically when valuations tightened in January. Residential Credit grew to $10.3B (23% of capital) with strong lock volumes and OBX securitizations ($4.7B settled in Q1; $6.6B year-to-date including post-quarter deals). MSR reached $4.2B (21% of capital); Annaly was a top buyer of conventional MSR in Q1 and reports low prepay speeds and high borrower credit quality. Management highlighted favorable regulatory tailwinds from reproposed bank capital rules that could reduce mortgage securitization and improve technicals for private-label and Agency markets. Hedging remained disciplined (mix of swaps and treasuries) and liquidity robust: ~$7.4B unencumbered assets and ~ $9B total assets available for financing. Near-term risks include geopolitical-driven rate volatility and potential consumer pressure from commodity-driven inflation, but management believes all three strategies (Agency, Residential Credit, MSR) are well positioned to deliver attractive risk-adjusted returns.