Annaly(US:NLY)2026-01-28 21:16Financial Performance - GAAP net income of $1.40 per average common share for Q4 2025, and $2.92 for the full year 2025[5] - Earnings available for distribution (EAD) of $0.74 per average common share for Q4 2025, and $2.92 for the full year 2025[5] - Economic return of 8.6% for Q4 2025 and 20.2% for the full year 2025[5] - For the quarter ended December 31, 2025, net interest income increased to $366,579 thousand from $275,750 thousand in the previous quarter, representing a growth of 32.9%[18] - For the year ended December 31, 2025, net interest income was $1,135,500 thousand, significantly up from $247,796 thousand in 2024, marking a year-over-year increase of 357.5%[19] - The company reported net income attributable to Annaly of $1,013,494 thousand for the quarter ended December 31, 2025, compared to $832,445 thousand in the previous quarter, an increase of 21.7%[18] - Basic net income per share available to common stockholders for the quarter ended December 31, 2025, was $1.40, up from $1.21 in the previous quarter, reflecting a 15.7% increase[18] - For the year ended December 31, 2025, comprehensive income attributable to common stockholders was $2,398,447 thousand, compared to $1,165,073 thousand in 2024, representing a growth of 105.5%[19] - GAAP net income for the year ended December 31, 2025, was $2,051,690, compared to $1,011,768 for the year ended December 31, 2024, representing a 102.9% increase[32] - Earnings available for distribution for the year ended December 31, 2025, totaled $2,024,863, up from $1,564,625 in 2024, reflecting a 29.4% growth[32] Portfolio and Assets - Total portfolio increased to $104.7 billion, with a 6% increase in the Agency portfolio, representing 62% of dedicated capital[5] - Annaly's Residential Credit portfolio increased by 16% to $8.0 billion, driven by record correspondent channel activity[5] - Total assets increased to $135.61 billion as of December 31, 2025, up from $125.86 billion at September 30, 2025, representing a growth of 7.0%[16] - Securities held rose to $91.29 billion, an increase of 7.5% from $85.06 billion in the previous quarter[16] - As of December 31, 2025, the total investment portfolio reached $132.05 billion, up from $122.10 billion as of September 30, 2025, and $98.19 billion as of December 31, 2024[22] Liabilities and Equity - Total liabilities increased to $119.45 billion, up from $110.86 billion, reflecting a rise of 7.1%[16] - Stockholders' equity grew to $16.09 billion, compared to $14.91 billion in the prior quarter, marking an increase of 8.0%[16] - Total GAAP debt increased to $116.19 billion as of December 31, 2025, up from $107.02 billion in the previous quarter and $89.61 billion a year ago[43] - Total equity increased to $16.16 billion as of December 31, 2025, compared to $14.99 billion in the previous quarter and $12.70 billion a year ago[43] Interest and Expenses - Average GAAP cost of interest-bearing liabilities decreased to 4.49%, down 24 basis points quarter-over-quarter[5] - The company reported a net interest margin of 1.18% for the quarter ended December 31, 2025, up from 0.97% in the previous quarter and 0.75% a year ago[20] - Economic interest expense for the quarter was $1.16 billion, an increase from $1.05 billion in the previous quarter and $879.29 million a year ago[52] - Total general and administrative expenses for the year ended December 31, 2025, were $199,629 thousand, up from $171,356 thousand in 2024, reflecting a 16.5% increase[19] Capital and Investments - Annaly raised $2.9 billion of accretive capital throughout 2025, including $2.6 billion of common equity[5] - The company closed eight securitizations totaling a record $4.6 billion during Q4 2025[5] - The company has made significant investments in mortgage servicing rights, which increased to $3.65 billion from $3.48 billion, a rise of 4.9%[16] - The company reported a net interest component of interest rate swaps totaling $716.5 million for the year ended December 31, 2025, compared to $1.2 billion in 2024[33] Market Presence and Future Plans - The company is focused on expanding its market presence and enhancing its product offerings, as indicated in its investor presentation[13] - The company plans to hold its fourth quarter 2025 earnings conference call on January 29, 2026, at 9:00 a.m. Eastern Time[13]