Annaly Capital Management Stock Earnings Reports

Annaly reported a resilient Q1 2026 across its diversified housing finance platform despite market volatility from the Middle East conflict. Key financials: economic return of 1.5% for the quarter, book value per share down 1.9% to $19.82, EAD (non-GAAP) of $0.76 per share (above the quarterly dividend), conservative leverage at 5.7x, and about $7.4 billion of unencumbered assets (including $5.0 billion cash/Agency MBS). The firm raised ~ $510 million of common equity via ATM and deployed most of that capital into Residential Credit (whole loans, OBX securitizations) and Mortgage Servicing Rights (MSR), increasing aggregate allocation to resi + MSR from 38% to 44% of capital. Portfolio balances at quarter end: Agency MBS $92B (56% of capital), Residential Credit $10.3B (23% of capital), MSR $4.2B (21% of capital). Operational highlights: strong lock and acquisition activity in whole loans (locks $7.4B; purchased $6.7B whole loans, ~80% via correspondent), OBX settled 8 securitizations ($4.7B) and 12 deals priced year-to-date totaling $6.6B; MSR purchases committed ~$24B UPB (weighted note rate ~3.4%), low prepay speeds and high borrower credit quality. Management views recent proposed bank capital rules as mortgage market positive (reducing RWAs for residential loans and potentially lowering securitization growth) and believes technicals for Agency MBS are supportive. Outlook: firm expects attractive risk-adjusted returns across all three strategies, plans to continue disciplined hedging and selective capital deployment, and maintains a long-term target capital mix of ~50% Agency / 30% Residential Credit / 20% MSR while remaining opportunistic.