Annaly Capital Management Stock Earnings Reports

Annaly reported strong Q3 2025 results driven by favorable market technicals and lower interest-rate volatility. Key financials: economic return of 8.1% for Q3 and 11.5% YTD; earnings available for distribution (EAD) of $0.73 per share, which exceeded the quarterly dividend; book value rose to $19.25 (up 4.3% QoQ); modestly lower leverage (economic leverage ~5.7x) and $7.4 billion of unencumbered assets (about $8.8 billion available for financing). Capital actions included $1.1 billion of accretive equity raised (including $800 million ATM) and a preferred issuance. Business highlights: Agency MBS portfolio grew to ~$87 billion MV, benefited from spread tightening and lower convexity costs, and remains overweight in Agencies with targeted purchases of specified pools (5.5%–6% coupons) to manage prepayment risk; Residential Credit expanded to $6.9 billion EMV with strong OBX securitization activity (24 transactions YTD, $12.4B UPB) and record correspondent lock/funding activity; MSR portfolio increased to $3.5 billion MV, remains low-note-rate (borrowers ~300 bps out of the money), low CPR (sub-5 CPR recent), and stable delinquencies. Outlook/risk posture: management expects continued support from additional Fed cuts, healthy fixed-income demand, and a stable Agency technical backdrop; they remain cautious on duration risk (near-zero duration gap) and maintain a diversified, low-leverage balance sheet with dry powder to opportunistically add Agency, Resi, or MSR exposures. Operationally, efficiency improved (OpEx ratios among the lowest in the mREIT sector). Overall message: profitable quarter with dividend coverage, strong liquidity and capital flexibility, and continued emphasis on credit quality and convexity management.