Annaly(US:NLY) ZACKS·2026-01-29 18:20Core Insights - Annaly Capital Management, Inc. (NLY) reported fourth-quarter 2025 earnings available for distribution (EAD) per average share of 74 cents, exceeding the Zacks Consensus Estimate of 72 cents and up from 72 cents in the same quarter last year [1][9] - For the full year 2025, EAD per share was $2.92, surpassing the Zacks Consensus Estimate of $2.90 and showing an increase from $2.70 in the previous year [2] Financial Performance - Net interest income (NII) for the fourth quarter was $366.6 million, missing the Zacks Consensus Estimate by 21.8%, compared to $187.3 million in the prior-year quarter [3] - For the full year 2025, NII totaled $1.13 billion, falling short of the Zacks Consensus Estimate of $1.24 billion, with a reported NII of $247.8 million in 2024 [3] Asset and Yield Metrics - Total assets at the end of the fourth quarter reached $135.6 billion, reflecting a 7.7% increase from the prior quarter [3] - The average yield on interest-earning assets (excluding premium amortization adjustment) was 5.44%, up from 5.26% in the prior-year quarter [4] - The average economic costs of interest-bearing liabilities increased to 3.95% from 3.79% in the year-ago quarter [4] - The net interest spread (excluding PAA) was 1.49%, slightly up from 1.47% in the prior-year quarter, while the net interest margin (excluding PAA) was 1.69%, down from 1.71% in the fourth quarter of 2024 [4] Book Value and Capital Ratios - Book value per share (BVPS) as of December 31, 2025, was $20.21, an increase from $19.15 in the prior-year quarter [5][9] - The economic capital ratio stood at 14.9%, up from 14.8% in the prior-year quarter [5] - Economic leverage was 5.6X as of December 31, 2025, compared to 5.5X in the year-ago quarter [5] Return on Equity - Annaly generated an annualized EAD return on average equity of 14.28% in the fourth quarter, slightly increasing from 14.27% in the prior-year quarter [6] Market Outlook - The fourth-quarter results were bolstered by higher average yields and growth in total assets, with prudent asset selection expected to drive future performance [7] - Despite the increase in book value per share, ongoing market uncertainty may present challenges for achieving consistent returns [7]