Annaly Capital Management (NLY) Q1 2026 earnings summary

Executive summary

• Achieved a 1.5% economic return in Q1 2026, marking ten consecutive positive quarters, with EAD of $0.76 per share exceeding the $0.70 dividend.

• Book value per share was $19.82, with portfolio totaling $106.7 billion and $92.2 billion in Agency assets.

• Raised over $509 million in common equity through at-the-market sales, primarily allocated to Residential Credit and MSR, increasing their combined allocation to 44%.

• Maintained conservative leverage at 5.7x and strong liquidity, with $9.0 billion in assets available for financing.

• Agency MBS portfolio represented 56% of capital, with a focus on intermediate coupons and Agency CMBS.

Financial highlights

• GAAP net income for Q1 2026 was $290.5 million ($0.33 per share); EAD was $589.9 million ($0.76 per share).

• Net interest income rose to $452.7 million, with net interest margin (excluding PAA) at 1.71%.

• Book value per share declined to $19.82 from $20.21 in the prior quarter.

• Dividend yield stood at 13.2% based on the annualized dividend and quarter-end share price.

• Total portfolio reached $106.7 billion, with $16.3 billion in stockholders' equity.

Outlook and guidance

• Management expects inflation to remain above the Fed's 2% target in 2026 due to higher energy prices and anticipates policy rates to remain unchanged.

• Attractive investment opportunities are anticipated across Agency, Residential Credit, and MSR strategies.

• Agency spreads now offer prospective new money returns in the mid-teens.

• Long-term capital allocation target remains 50% Agency, 30% Residential Credit, 20% MSR.

• Regulatory changes are expected to support bank lending and prime loan growth.