Annaly Capital Management, Inc. announced its financial results for the quarter ended September 30, 2026, in a Form 8-K filed on October 20, 2026. The company reported a GAAP net loss of $1.36 per average common share for the third quarter. However, the company reported Earnings Available for Distribution (EAD) of $0.80 per average common share. The economic return for the quarter was a loss of 7.6%, while the book value per common share stood at $17.86.
In terms of portfolio management, Annaly reported a total portfolio of $106.5 billion, which included $91.8 billion in highly liquid Agency mortgage-backed securities. The Agency portfolio decreased modestly to represent 55% of dedicated capital. The company actively managed its hedge portfolio, adding Treasury futures to offset market-driven extension, ending the quarter with a hedge ratio of 100%. The Residential Credit portfolio remained unchanged at $10.4 billion, representing 23% of dedicated capital, while the Mortgage Servicing Rights (MSR) portfolio increased to $4.3 billion in market value, representing 22% of dedicated capital.
Regarding financing and capital, Annaly reported total assets available for financing of $8.5 billion, including cash and unencumbered Agency MBS of $4.2 billion. During the quarter, the company’s Residential Credit Group issued twelve securitizations totaling a record $7.4 billion. The average GAAP cost of interest-bearing liabilities increased to 4.34%, while the average economic cost of interest-bearing liabilities increased to 4.03%.
Annaly declared a quarterly common stock cash dividend of $0.75 per share. The company also announced the redemption of all outstanding shares of its $442.5 million Series I Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, which occurred on October 1, 2026. Additionally, Annaly raised $757 million of accretive capital through its at-the-market sales program.
