Annaly reported a GAAP net loss of $1.36 per average common share in Q3, mainly from unrealized losses on its investment portfolio as interest rates rose. Earnings available for distribution were $0.80 per share, above the $0.75 quarterly dividend. Book value fell 11.4% to $17.86 per share, and economic return was negative 7.6% as the 10-year Treasury yield rose 82 basis points, with wider Agency MBS spreads and higher rate volatility cited as causes. The company raised $757 million through its at-the-market program to redeem $442.5 million of Series I preferred stock and fund investments, and economic leverage increased to 5.9x. Its total portfolio was $106.5 billion, including $91.8 billion in Agency MBS and $10.4 billion in residential credit, while the MSR portfolio reached $4.3 billion.
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Original headline: Annaly ( NLY ) Q3 2026 Earnings Call Transcript
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Annaly Capital Management reported a GAAP net loss of $1.36 per average common share for the third quarter, driven mainly by unrealized losses on its investment portfolio as interest rates rose, while earnings available for distribution (EAD) were $0.80 per share, above the $0.75 quarterly dividend. Book value fell 11.4% to $17.86 per share, and the economic return was negative 7.6% as the 10-year Treasury yield rose 82 basis points. The company raised $757 million of common equity through its at-the-market program and redeemed $442.5 million of Series I preferred stock, while economic leverage rose to 5.9x from 5.6x. Management said the Agency MBS portfolio was positioned defensively, and that housing activity is likely to stay subdued due to affordability challenges and the borrower lock-in effect, with implied volatility in September reaching its highest level in 18 months.
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