Annaly(US:NLY) ZACKSยท2025-10-23 16:16Core Insights - Annaly Capital Management, Inc. (NLY) reported third-quarter 2025 adjusted earnings available for distribution (EAD) per average share of 73 cents, surpassing the Zacks Consensus Estimate of 72 cents, and an increase from 66 cents in the same quarter last year [1][9] - The average yield on interest-earning assets improved to 5.40%, contributing to a net interest margin of 1.70%, while the book value per share (BVPS) declined to $19.25 from $19.54 year-over-year [3][4][9] Financial Performance - Net interest income (NII) for the quarter was $275.8 million, which fell short of the Zacks Consensus Estimate by 38.3%, compared to $13.4 million in the prior-year quarter [2] - Total assets increased to $125.9 billion, reflecting a 12.2% rise from the previous quarter [2] - The net interest spread (excluding premium amortization adjustment) improved to 1.50%, up from 1.32% in the prior-year quarter [3] Key Ratios and Metrics - The economic capital ratio stood at 14.8%, an increase from 14.6% in the prior-year quarter [4] - The weighted average actual constant prepayment rate rose to 8.6%, compared to 7.6% in the year-ago quarter [4] - Economic leverage remained stable at 5.7X as of September 30, 2025 [4] Return Metrics - Annaly generated an annualized EAD return on average equity of 14.7%, up from 12.9% in the prior-year quarter [5] Market Outlook - The company's performance in the third quarter was bolstered by an increase in average yield and total assets, although the decline in BVPS raises concerns [6] - The financial market's uncertainty may pose challenges in achieving solid returns moving forward [6]