Annaly Capital Management (NLY) investor relations material

Executive summary

• Delivered a 5.5% economic return for Q2 2026, with book value per share rising to $20.15 and a newly increased dividend of $0.75 per share, supported by strong portfolio yields and disciplined risk management.

• Earnings available for distribution (EAD) reached $0.79 per share, exceeding the dividend for the ninth consecutive quarter.

• GAAP net income for Q2 2026 was $827.8 million, or $1.06 per share, with annualized GAAP return on average equity at 19.88%.

• Total portfolio grew to $109.4 billion, with $95.0 billion in Agency assets and stable Residential Credit and MSR portfolios.

• Raised $447 million in equity via ATM sales in Q2 2026.

Financial highlights

• Net interest margin (excluding PAA) increased to 1.76%, and net interest income rose to $488.2 million.

• Book value per share increased to $20.15, up from $19.82 in the prior quarter and $18.45 a year ago.

• Annualized EAD return on average equity was 15.12%.

• Dividend yield stood at 13.4% as of quarter-end.

• Total assets grew to $143.7 billion from $135.6 billion at year-end 2025.

Outlook and guidance

• Management expects continued robust performance and opportunities across Agency, Residential Credit, and MSR strategies, leveraging scale, liquidity, and disciplined capital allocation.

• Agency MBS technicals remain favorable, with future investments expected to balance between TBA securities and specified pools.

• Dividend is expected to be covered over time, with the board confident in its sustainability despite ongoing geopolitical and market uncertainties.