Core Insights - The article promotes a portfolio strategy that generates income without the need for selling assets, aiming to simplify retirement investing [1] - It emphasizes the importance of community and education in investment decisions, suggesting that investors should not navigate the market alone [2] Group 1: Investment Strategy - The Income Method is highlighted as a way to achieve strong returns, making retirement investing less stressful and more straightforward [1] - Features of the service include model portfolios with buy/sell alerts, preferred and baby bond portfolios for conservative investors, and regular market updates [2] Group 2: Community and Support - The service philosophy focuses on building a community and providing educational resources to investors [2] - Active chat access to service leaders is mentioned as a feature that enhances investor engagement and support [2]

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents Annaly Capital Management's unaudited consolidated financial statements for Q2 2025, covering financial condition, income, equity, and cash flows, with detailed notes [Consolidated Statements of Financial Condition](index=5&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets increased to $112.1 billion as of June 30, 2025, from $103.6 billion at December 31, 2024, primarily driven by growth in securities and assets transferred to securitization vehicles, with total equity also rising to $13.5 billion from $12.7 billion Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$112,141,892** | **$103,556,384** | | Total Liabilities | $98,667,529 | $90,859,432 | | **Total Equity** | **$13,474,363** | **$12,696,952** | | Securities | $73,500,626 | $69,756,447 | | Loans, net | $3,722,272 | $3,546,902 | | Repurchase agreements | $66,541,378 | $65,688,923 | [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) The company reported a net income of $60.4 million for Q2 2025, a significant turnaround from a net loss of $8.8 million in Q2 2024, driven by a substantial increase in net interest income, with diluted EPS at $0.03 compared to a loss of ($0.09) Quarterly Income Statement Highlights (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Interest Income | $273,200 | $53,558 | | Total Other Income (Loss) | ($289,470) | ($113,467) | | **Net Income (Loss)** | **$60,371** | **($8,833)** | | Net Income (Loss) Available to Common Stockholders | $19,839 | ($46,641) | | **Diluted EPS** | **$0.03** | **($0.09)** | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity increased to $13.4 billion at the end of Q2 2025, supported by net income and the issuance of common stock, which added over $1.2 billion in additional paid-in capital, partially offset by dividend payments - For the six months ended June 30, 2025, the company issued common stock resulting in **$1.26 billion** in additional paid-in capital[16](index=16&type=chunk) - Dividends declared on common stock totaled **$876.1 million** for the first six months of 2025, compared to **$654.6 million** for the same period in 2024[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from financing activities was a significant inflow of $6.2 billion, primarily from net proceeds from stock offerings and repurchase agreements, funding net cash used in investing activities of $5.6 billion, with minimal net cash from operating activities at $24.5 million Six-Month Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $24,474 | $2,174,962 | | Net Cash used in Investing Activities | ($5,649,603) | ($4,305,740) | | Net Cash from Financing Activities | $6,195,947 | $2,305,738 | | **Net Increase in Cash** | **$570,818** | **$174,960** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosure on the company's business structure, accounting policies, and the composition and valuation of its financial instruments, including securities, loans, mortgage servicing rights (MSR), derivative instruments, and secured financing arrangements - The company operates through three primary investment groups: **Annaly Agency Group**, **Annaly Residential Credit Group**, and **Annaly Mortgage Servicing Rights Group**[22](index=22&type=chunk) - The company has elected to be taxed as a **Real Estate Investment Trust (REIT)**[22](index=22&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 economic environment, operational results, and financial condition, covering performance drivers, portfolio changes, capital management, risk, and non-GAAP measures [Overview](index=44&type=section&id=Overview) Annaly is a leading diversified capital manager in mortgage finance, operating as an internally-managed REIT, with its primary business objective to generate net income for stockholders by investing in real estate-related assets and earning the spread between asset yields and financing costs - The company's principal business objective is to generate net income for distribution to stockholders and optimize returns through prudent management of its diversified investment strategies[178](index=178&type=chunk) [Business Environment](index=44&type=section&id=Business%20Environment) In Q2 2025, the U.S. economy showed resilience with a 4.1% unemployment rate and moderating inflation, while Annaly generated an economic return of 0.7%, increased capital allocation to Agency MBS to 62%, and raised economic leverage slightly to 5.8x, growing its Agency portfolio by nearly $5 billion - The company generated earnings available for distribution of **$0.73 per share** and an economic return of **0.7%** for Q2 2025[183](index=183&type=chunk) - Economic leverage increased from **5.7x** to **5.8x**, with capital allocation to Agency MBS rising to **62%**[183](index=183&type=chunk) - The Onslow Bay platform had its highest quarterly securitization activity, closing **$3.6 billion** across seven transactions[188](index=188&type=chunk) [Results of Operations](index=46&type=section&id=Results%20of%20Operations) The company's GAAP net income was $60.4 million ($0.03/share) in Q2 2025, a significant improvement from a loss of $8.8 million (($0.09)/share) in Q2 2024, driven by higher net interest income, while non-GAAP Earnings Available for Distribution (EAD) were $489.9 million ($0.73/share), up from $377.1 million ($0.68/share) Key Performance Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income (Loss) | $60.4M | ($8.8M) | | Diluted EPS | $0.03 | ($0.09) | | EAD per Average Common Share (Non-GAAP) | $0.73 | $0.68 | | Net Interest Margin (GAAP) | 1.04% | 0.24% | | Net Interest Spread (excluding PAA, Non-GAAP) | 1.47% | 1.24% | Reconciliation of GAAP Net Income to EAD (Q2 2025, in thousands) | Description | Amount | | :--- | :--- | | GAAP net income (loss) | $60,371 | | Adjustments for realized/unrealized (gains) losses | $491,581 | | Other adjustments (amortization, TBA income, etc.) | ($65,908) | | Premium amortization adjustment cost (benefit) | ($3,862) | | **Earnings available for distribution** | **$489,906** | [Financial Condition](index=62&type=section&id=Financial%20Condition) As of June 30, 2025, total assets stood at $112.1 billion, with the investment portfolio valued at $107.5 billion, Agency MBS comprising 62% of net equity allocation, Residential Credit and MSR segments each allocated 19%, and the company maintaining a GAAP debt-to-net equity ratio of 7.1:1 - Total assets increased to **$112.1 billion** at June 30, 2025, from **$103.6 billion** at year-end 2024[278](index=278&type=chunk) Net Equity Allocation and Leverage by Segment (June 30, 2025) | Segment | Net Equity Allocated (%) | Debt/Net Equity Ratio | | :--- | :--- | :--- | | Agency MBS | 62% | 7.7:1 | | Residential Credit | 19% | 11.8:1 | | MSR | 19% | 0.4:1 | | **Total** | **100%** | **7.1:1** | [Capital Management](index=65&type=section&id=Capital%20Management) The company maintains a conservative capital strategy, targeting an economic leverage ratio below 10:1, with GAAP leverage at 7.1:1 and economic leverage at 5.8:1 as of June 30, 2025, and raised $1.3 billion through its ATM sales program in the first half of 2025 without any share repurchases Leverage and Capital Ratios | Ratio | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | GAAP Leverage Ratio | 7.1:1 | 7.1:1 | | Economic Leverage Ratio (Non-GAAP) | 5.8:1 | 5.5:1 | | GAAP Capital Ratio | 12.0% | 12.3% | | Economic Capital Ratio (Non-GAAP) | 14.3% | 14.8% | - During the first six months of 2025, the company issued **63.0 million shares** under its at-the-market sales program for net proceeds of **$1.3 billion**[302](index=302&type=chunk) [Risk Management](index=68&type=section&id=Risk%20Management) Annaly's risk management framework addresses liquidity, investment/market, credit, counterparty, and operational risks, maintaining a diversified funding profile primarily through repurchase agreements with a 49-day weighted average maturity, and sensitivity analysis shows potential NAV declines of 3.1% from a 75 basis point interest rate rise and 9.9% from a 25 basis point MBS spread widening - The company's risk appetite statement specifies maintaining an economic leverage ratio generally no greater than **10:1**[313](index=313&type=chunk) Portfolio Sensitivity Analysis (as of June 30, 2025) | Scenario | Estimated Change in Portfolio Value | Estimated Change as % of NAV | | :--- | :--- | :--- | | Interest Rate +75 bps | (0.4%) | (3.1%) | | MBS Spread +25 bps | (1.4%) | (9.9%) | - At June 30, 2025, the company had repurchase agreements with **36 counterparties**, with the majority of exposure to North American and European firms[351](index=351&type=chunk) [Critical Accounting Estimates](index=78&type=section&id=Critical%20Accounting%20Estimates) Management identifies several critical accounting estimates requiring significant judgment, including the valuation of financial instruments (Residential Securities, Residential Mortgage Loans, MSRs, and Interest Rate Swaps), revenue recognition involving prepayment speed assumptions, and the consolidation of Variable Interest Entities (VIEs), all of which can materially impact reported financial results - Key estimates include the fair value of **Residential Securities**, **Residential Mortgage Loans**, **MSRs**, and **derivatives**, which rely on models incorporating inputs like prepayment rates, discount rates, and interest rate curves[365](index=365&type=chunk)[368](index=368&type=chunk)[371](index=371&type=chunk)[373](index=373&type=chunk) - Revenue recognition for securities involves amortizing premiums and discounts based on projected prepayment speeds, which are a significant estimate[376](index=376&type=chunk)[377](index=377&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=80&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section states that the required quantitative and qualitative disclosures regarding market risk are provided within the 'Risk Management' section of Item 2, Management's Discussion and Analysis - Disclosures about market risk are located in the **"Risk Management"** section of the MD&A[534](index=534&type=chunk) [Controls and Procedures](index=80&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period, with no material changes to internal controls over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were **effective** as of June 30, 2025[534](index=534&type=chunk) - No material changes in internal controls over financial reporting occurred during the quarter ended June 30, 2025[535](index=535&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=81&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it was not a party to any pending material legal proceedings as of June 30, 2025 - As of June 30, 2025, the company was not party to any **pending material legal proceedings**[538](index=538&type=chunk) [Risk Factors](index=81&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's most recent Annual Report on Form 10-K - No **material changes** to the risk factors disclosed in the most recent Form 10-K have occurred[539](index=539&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=81&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company's Board authorized a $1.5 billion common stock repurchase program effective through December 31, 2029, with no shares repurchased under this program during the quarter ended June 30, 2025 - No shares were repurchased under the company's **$1.5 billion** common stock repurchase program during the quarter ended June 30, 2025[540](index=540&type=chunk) [Other Information](index=81&type=section&id=Item%205.%20Other%20Information) This section discloses that Anthony Green, Chief Corporate Officer and Chief Legal Officer, adopted a Rule 10b5-1 trading plan on May 5, 2025, for the potential sale of up to 44,999 shares of common stock - On May 5, 2025, Anthony Green, Chief Corporate Officer and Chief Legal Officer, adopted a Rule 10b5-1 trading plan to sell up to **44,999 shares** of common stock[541](index=541&type=chunk) [Exhibits](index=81&type=section&id=Item%206.%20Exhibits) This section provides an index of the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - The exhibits filed with the report include **CEO and CFO certifications** pursuant to the Sarbanes-Oxley Act and **XBRL data files**[543](index=543&type=chunk)

Core Insights - Annaly Capital Management (NLY) reported second-quarter 2025 results with earnings exceeding the Zacks Consensus Estimate, demonstrating resilience amid tariff-related uncertainties and mortgage market volatility [1][4] - The company achieved a positive economic return of 0.7% for the seventh consecutive quarter, supported by its agency, residential credit, and mortgage servicing rights strategies [3] Financial Performance - The average yield on interest-earning assets was 5.42%, an increase from 5.17% in the prior-year quarter [1] - The average net interest spread rose to 1.47% from 1.24% year-over-year, while the net interest margin was 1.71%, up from 1.24% in the same quarter of 2024 [2] - Net interest income (NII) surged to $273.2 million in Q2 2025, compared to $53.6 million in the prior-year quarter [6] - Book value per share decreased to $18.45 as of June 30, 2025, down from $19.25 a year earlier [3] Market Conditions - The Federal Reserve's interest rate cuts have led to a slight decline in mortgage rates, with the average 30-year fixed-rate mortgage at 6.74% as of July 24, 2025, down from 6.78% a year prior [5] - Housing affordability challenges are easing, contributing to increased loan demand, which positively impacted NLY's financials [6] Portfolio Strategy - Annaly's diversified capital allocation includes residential credit, mortgage servicing rights, and agency mortgage-backed securities, totaling an investment portfolio of $89.5 billion [8][10] - The company is focusing on acquiring newly originated mortgage servicing rights to enhance its MSR business, which tends to increase in value as interest rates rise [11] Dividend Profile - Annaly has a strong dividend yield of 13.5%, significantly higher than the industry average of 12.4%, with a payout ratio of 99% [14][17] - The company raised its dividend by 7.7% in March 2025, reflecting confidence in its cash flow and growth prospects [17] Stock Performance - Over the past six months, Annaly shares have increased by 8.4%, outperforming the industry average of 2.8% and peers like AGNC Investment and Arbor Realty Trust [20][21] - The Zacks Consensus Estimate indicates substantial year-over-year growth in sales of 463.4% for 2025 and 29.2% for 2026 [24] Investment Outlook - Annaly is positioned to deliver stable, risk-adjusted returns due to improving interest spreads, a diversified portfolio, and solid liquidity reserves [30] - The company is trading at a forward P/E multiple of 6.97X, lower than the industry average of 7.98X, suggesting an attractive valuation [31]

Core Insights - Annaly Capital Management, Inc. (NLY) reported second-quarter 2025 adjusted earnings available for distribution (EAD) per average share of 73 cents, exceeding the Zacks Consensus Estimate of 72 cents and up from 68 cents in the same quarter last year [1][9] - The average yield on interest-earning assets improved to 5.42% from 5.17% year-over-year, while the net interest spread increased to 1.47% from 1.24% [3][9] - The company's book value per share (BVPS) declined to $18.45 from $19.25 year-over-year, raising concerns about its financial health [4][9] Financial Performance - Net interest income (NII) for the quarter was $273.2 million, missing the Zacks Consensus Estimate by 33.5%, compared to $53.6 million in the prior-year quarter [2] - Total assets at the end of the second quarter reached $112.1 billion, reflecting a 6.7% increase from the previous quarter [2] - The economic capital ratio decreased slightly to 14.3% from 14.4% year-over-year [4] Key Ratios - The average economic costs of interest-bearing liabilities rose to 3.94% from 3.90% in the prior-year quarter [3] - The weighted average actual constant prepayment rate increased to 8.7% from 7.4% year-over-year [4] - Economic leverage remained stable at 5.8X as of June 30, 2025, unchanged from the previous year [4] Return Metrics - Annaly generated an annualized EAD return on average equity of 14.86% in the second quarter, up from 13.36% in the same quarter last year [5]

Financial Data and Key Metrics Changes - The book value per share decreased by 3% from the prior quarter to $18.45, while earnings available for distribution per share increased by $0.01 to $0.73, exceeding the dividend for the quarter [20][21] - The economic return for Q2 was 0.7%, marking the seventh consecutive quarter of positive economic returns, with a year-to-date economic return of 3.7% and total shareholder return exceeding 10% [9][20] - The investment portfolio yield increased to 5.41% from 5.23% in the prior quarter, while average repo rates decreased to 4.53% [21][22] Business Line Data and Key Metrics Changes - The Agency portfolio's market value rose to nearly $80 billion, a 6% increase quarter-over-quarter, with a $4.5 billion growth in notional terms [10][11] - The residential credit portfolio remained stable at $6.6 billion in market value, with Onslow Bay achieving record securitization activity of $3.6 billion across seven transactions [13][14] - The Mortgage Servicing Rights (MSR) portfolio ended the quarter unchanged at $3.3 billion, with solid performance metrics including a three-month CPR of 4.6% and serious delinquencies unchanged at 50 basis points [17][18] Market Data and Key Metrics Changes - The U.S. economy is projected to grow at around 1% annualized for the first half of the year, with an unemployment rate of 4.1% [6][8] - Inflation is expected to run at the slowest level in the past three quarters, with the Fed anticipated to deliver two interest rate cuts in 2025 [7][8] - Agency MBS spreads widened by 5 to 10 basis points during the quarter, despite improvements in market sentiment [9][10] Company Strategy and Development Direction - The company aims to maintain a strong focus on the agency sector while strategically growing its residential credit and MSR portfolios [18] - The management is optimistic about the agency sector fundamentals and potential catalysts for improvement, including GSE reform [12][18] - The company has diversified its funding sources significantly, enhancing liquidity and operational flexibility [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to cover and potentially out-earn the dividend for the remainder of the year, citing a conducive environment for achieving close to the dividend yield [28][29] - The company is well-positioned to navigate macroeconomic uncertainties, with a focus on managing rate risk and maintaining low leverage [34][40] - The outlook remains positive, with expectations for continued strong risk-adjusted returns in the current environment [18][19] Other Important Information - The company raised over $750 million of accretive capital in Q2, predominantly deployed in the agency sector, leading to a modest increase in leverage to 5.8 turns [9][10] - The MSR portfolio's valuation improved modestly due to a steepening yield curve and lower implied volatility [17][18] Q&A Session Summary Question: Update on book value quarter to date - The pre-dividend accrual book was up about 0.5%, indicating a 1.5% economic return [27] Question: Comfort level with the dividend - Management expressed confidence in covering the dividend, with expectations to out-earn it for the remainder of the year [28] Question: Managing the portfolio through volatility - The company maintained a good liquidity position and managed exposure carefully, allowing leverage to drift higher while focusing on rate risk [33][34] Question: Expectations for GSE reform - Management expects GSE reform to be prioritized, which could create opportunities for the company in the origination space [56] Question: Demand for Agency MBS - Demand from fixed income funds has been strong, with expectations for MBS spreads to tighten even without additional demand from banks [75][76] Question: Outlook for residential credit issuance - The company anticipates robust issuance in the second half of the year, tracking to be the highest since 2021 [81] Question: Impact of tariffs on inflation - Management acknowledged that inflation will pass through due to tariffs, but they remain optimistic about achieving the expected Fed cuts [92][96]

Financial Data and Key Metrics Changes - The book value per share decreased by 3% from the prior quarter to $18.45, while earnings available for distribution per share increased by $0.01 to $0.73, exceeding the dividend for the quarter [19][20] - The economic return for Q2 was 0.7%, bringing the year-to-date economic return to 3.7% [7][20] - The net interest spread excluding PAA increased to 1.47% in Q2 compared to 1.24% a year ago, and the net interest margin excluding PAA was 1.71% in Q2 compared to 1.58% in Q2 2024 [21] Business Line Data and Key Metrics Changes - The Agency portfolio ended the quarter at nearly $80 billion in market value, up 6% quarter over quarter, with a growth of approximately $4.5 billion in notional terms [9][10] - The residential credit portfolio remained relatively unchanged at $6.6 billion in market value, with Onslow Bay achieving its highest quarterly securitization activity to date, closing $3.6 billion across seven transactions [12][13] - The MSR portfolio ended the quarter unchanged at $3.3 billion in market value, with solid fundamental performance and a three-month CPR of 4.6% [15][16] Market Data and Key Metrics Changes - The U.S. economy is expected to grow around 1% annualized for the first half of the year, with an unemployment rate marginally lowered to 4.1% [5][6] - Inflation is likely to have run at the slowest level in the past three quarters, with the Fed expected to deliver two interest rate cuts in 2025 [6][7] - Agency MBS spreads widened by 5 to 10 basis points on the quarter, despite a positive reversal in sentiment towards risk assets [7][9] Company Strategy and Development Direction - The company remains optimistic about the agency sector, citing sound fundamentals and potential catalysts for improvement in Agency MBS technicals [11] - The focus is on further building out flow servicing relationships and expanding subservicing and recapture partnerships to capitalize on MSR opportunities [17] - The company plans to strategically grow its residential credit and MSR portfolios while maintaining a flexible investment approach with low leverage and ample liquidity [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment has shown resilience, with a balanced labor market and muted layoffs, affirming the Fed's wait-and-see stance [5][6] - The company expects to be overweight in agency investments due to historically attractive spread levels, while also anticipating growth in residential credit and MSR portfolios [17] - Management expressed confidence in covering and potentially out-earning the dividend for the remainder of the year, given the current economic return [27][28] Other Important Information - The company raised over $750 million of accretive capital in Q2, predominantly deployed in the agency sector, with leverage increasing modestly to 5.8 turns [8] - The company has diversified its funding sources significantly, with non-mark-to-market capacity growing from $150 million to $1.9 billion [22][23] Q&A Session Summary Question: Update on book value quarter to date - The book value was up about 0.5% pre-dividend accrual, indicating a 1.5% economic return [26] Question: Comfort level with the dividend - Management expressed confidence in covering the dividend, expecting to out-earn it for the remainder of the year [27][28] Question: Managing the portfolio through volatility - Management was comfortable allowing leverage to rise due to a strong liquidity position and focused on managing rate exposure [32][34] Question: Dynamics of the credit portfolio - The quality of the credit portfolio is high, with proactive measures taken to tighten credit standards [45][46] Question: Expectations for GSE reform - Management expects GSE reform to be prioritized now that the tax bill is completed, which could create opportunities for the company [56] Question: Demand for Agency MBS - Demand from fixed income funds has been strong, and the company expects MBS spreads to tighten even without additional demand from banks [76][77]

Financial Performance - Earnings available for distribution was $0.73 per average common share for Q2 2025[12] - The book value per common share was $18.45[12] - The economic return was 0.7% for Q2 2025 and 3.7% for the first half of 2025[12] Portfolio Composition and Strategy - The total portfolio was $89.5 billion, with $79.5 billion in Agency MBS, representing 89% of total assets and 62% of dedicated capital[12] - The Residential Credit portfolio remained relatively unchanged at $6.6 billion[12] - The MSR portfolio remained unchanged at $3.3 billion in market value, representing 19% of dedicated capital[12] Financing and Liquidity - Economic leverage was 5.8x, up from 5.7x in Q1 2025[12] - Total assets available for financing were $7.4 billion, including $4.7 billion of cash and unencumbered Agency MBS[12] Residential Credit Business - 15 residential whole loan securitizations totaling $7.6 billion in proceeds were priced year-to-date in 2025[12]

Annaly Capital Management (NLY) came out with quarterly earnings of $0.73 per share, beating the Zacks Consensus Estimate of $0.72 per share. This compares to earnings of $0.68 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +1.39%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.71 per share when it actually produced earnings of $0.72, delivering a surprise of +1.41%.Over the la ...

ANNALY CAPITAL MANAGEMENT, INC. REPORTS 2nd QUARTER 2025 RESULTS NEW YORK—July 23, 2025—Annaly Capital Management, Inc. (NYSE: NLY) ("Annaly" or the "Company") today announced its financial results for the quarter ended June 30, 2025. Financial Highlights Business Highlights Investment and Strategy Financing and Capital Corporate Governance • GAAP net income of $0.03 per average common share for the quarter • Earnings available for distribution ("EAD") of $0.73 per average common share for the quarter • Eco ...

Core Viewpoint - Annaly Capital Management offers a high dividend yield of over 14%, but its volatility and business model may not align with the expectations of income-focused investors [1][7][11]. Group 1: Company Overview - Annaly Capital Management operates as a mortgage real estate investment trust (REIT), purchasing pooled mortgages that are converted into bond-like securities, differing from traditional property leasing [2]. - The company has historically provided total returns that match the S&P 500 index, indicating its potential for diversification within investment portfolios [4]. Group 2: Investment Reasons - The first reason to consider investing in Annaly is its historical performance, which has kept pace with the S&P 500, suggesting it can add diversification benefits to a portfolio [4]. - The second reason is the recent increase in its dividend, which signals positive business performance and is often viewed favorably by dividend investors [5]. - The third reason is the potential for interest rate cuts, which could enhance the value of Annaly's mortgage bond portfolio, benefiting the company's overall performance [6]. Group 3: Cautionary Notes - Despite the attractive dividend yield, it has been historically volatile, with periods of significant reductions, which may not meet the expectations of income investors seeking stable dividends [8][10]. - The volatility of dividends is typical for mortgage REITs, indicating that investors relying on consistent income may find Annaly unsuitable for their needs [10][12]. - The mismatch between the high yield and the company's business model suggests that while Annaly may be a good fit for asset allocators, it may not be ideal for those focused on steady dividend growth [11][12].