Annaly Capital Management (NLY) Q2 2026 earnings summary

Executive summary

• Earnings available for distribution (EAD) of $0.79 per share exceeded the dividend, reflecting strong earnings power from a diversified housing finance portfolio.

• Book value per share rose to $20.15, with a quarterly economic return of 5.5% and 6.9% for the first half of 2026.

• Quarterly common stock dividend increased to $0.75 per share, supported by durable earnings.

• Total portfolio reached $109.4 billion, with $95.0 billion in highly liquid Agency assets and stable credit and MSR portfolios.

Financial highlights

• GAAP net income per share was $1.06, up from $0.33 in Q1 2026.

• Annualized GAAP return on average equity reached 19.88%, while annualized EAD return was 15.12%.

• Net interest margin (excluding PAA) improved to 1.76%, with average yield on interest earning assets (excluding PAA) at 5.46%.

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

• Total portfolio grew to $109.4 billion, with $16.9 billion in total stockholders' equity.

Outlook and guidance

• Management expects continued robust performance from the diversified platform, leveraging scale, liquidity, and disciplined capital allocation to deliver risk-adjusted returns.

• Anticipates healthy MSR supply and constructive market conditions for Agency and Residential Credit segments.