NEW YORK–(BUSINESS WIRE)–Annaly Capital Management, Inc. (NYSE: NLY) (“Annaly” or the “Company”) today announced its financial results for the quarter ended June 30, 2025.

Financial Highlights

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
Economic return of 0.7% for the second quarter; 3.7% economic return for the first half of the year
Book value per common share of $18.45
GAAP leverage of 7.1x, up from 6.8x in the prior quarter; economic leverage of 5.8x, up from 5.7x in the prior quarter
Common stock cash dividend of $0.70 per share for the second quarter

Business Highlights

Investment and Strategy

Total portfolio of $89.5 billion, including $79.5 billion in highly liquid Agency portfolio⁽¹⁾
Annaly’s Agency portfolio increased by 6%, representing 62% of dedicated capital⁽²⁾, with accretive capital raised deployed into both specified pools and TBAs across 4.5% through 6.0% coupon securities
Hedge portfolio remained defensively positioned with 92% hedge ratio; added hedges to correspond with assets purchased throughout the quarter and to manage upward pressure on long-end Treasury yields while maintaining a balanced mix of swaps and Treasuries at the long end of the yield curve
Annaly’s Residential Credit portfolio relatively unchanged at $6.6 billion⁽¹⁾ driven by record quarterly securitization issuance; correspondent channel activity remained strong with lock volume and total funded volume in line with the prior quarter at $5.3 billion and $3.7 billion, respectively
Annaly’s MSR portfolio unchanged at $3.3 billion in market value, representing 19% of dedicated capital⁽²⁾

Financing and Capital

$7.4 billion of total assets available for financing⁽³⁾, including cash and unencumbered Agency MBS of $4.7 billion
Annaly Residential Credit Group priced seven securitizations totaling a record $3.6 billion during the second quarter
- Annaly remained the largest non-bank issuer and the second largest issuer overall of Prime Jumbo and Expanded Credit MBS year-to-date⁽⁴⁾
Since the end of the first quarter, Annaly’s Residential Credit and MSR businesses increased financing capacity by $500 million through new and expanded credit facilities; total warehouse capacity across both Annaly’s Residential Credit and MSR businesses of $6.2 billion, including $2.6 billion of committed capacity
Average GAAP cost of interest-bearing liabilities of 4.76%, down 1 basis point quarter-over-quarter, and average economic cost of interest-bearing liabilities of 3.94%, up 6 basis points quarter-over-quarter
Raised $761 million of accretive common equity through the Company’s at-the-market sales program during the quarter⁽⁵⁾

Corporate Governance

Appointed Thomas Hamilton as Independent Chair of the Board of Directors following the 2025 Annual Meeting of Stockholders in May

“Despite significant intra-quarter volatility across financial markets, Annaly delivered its seventh consecutive quarter with a positive economic return, underscoring the benefits of holding our Agency, Residential Credit and MSR strategies together on balance sheet,” stated Chief Executive Officer & Co-Chief Investment Officer David Finkelstein. “Our Agency portfolio grew by nearly $5 billion as we were able to deploy accretive capital raised into the sector. Residential Credit experienced another record quarter of origination and securitization activity as Onslow Bay furthers its leadership across the non-Agency market. Meanwhile, our MSR portfolio continued to generate substantial cash flow while we expand our flow, subservicing and recapture partners. Looking forward, we remain encouraged by opportunities across our three investment strategies and believe our diversified housing finance portfolio can continue to generate industry leading risk-adjusted returns.”

⁽¹⁾	Total portfolio represents Annaly’s investments that are on-balance sheet as well as investments that are off-balance sheet in which Annaly has economic exposure. Agency assets include TBA purchase contracts (market value) of $7.8 billion. Residential Credit assets exclude assets transferred or pledged to securitization vehicles of $27.0 billion, include $2.7 billion of retained securities that are eliminated in consolidation and are shown net of participations issued totaling $1.6 billion. MSR assets include unsettled MSR commitments of $21 million. MSR commitments represent the market value of deals where Annaly has executed a letter of intent. There can be no assurance whether these deals will close or when they will close.
⁽²⁾	Capital allocation for each of the investment strategies is calculated as the difference between each investment strategy’s allocated assets, which include TBA purchase contracts, and liabilities.
⁽³⁾	Comprised of $5.9bn of unencumbered assets, which represents Annaly’s excess liquidity and defined as assets that have not been pledged or securitized (generally including cash and cash equivalents, Agency MBS, CRT, Non-Agency MBS, residential mortgage loans, MSR, reverse repurchase agreements, other unencumbered financial assets and capital stock), and $1.5bn of fair value of collateral pledged for future advances.
⁽⁴⁾	Issuer ranking data from Inside Nonconforming Markets from 2024 to Q2 2025 (July 11, 2025 issue). Used with permission.
⁽⁵⁾	Net of sales agent commissions and other offering expenses.

Financial Performance

The following table summarizes certain key performance indicators as of and for the quarters ended June 30, 2025, March 31, 2025 and June 30, 2024:

	June 30, 2025			March 31, 2025			June 30, 2024

Book value per common share	$	18.45		$	19.02		$	19.25
GAAP net income per average common share ⁽¹⁾	$	0.03		$	0.15		$	(0.09	)
Annualized GAAP return on average equity ⁽²⁾		1.82	%		4.04	%		(0.31	%)
GAAP leverage at period-end ⁽³⁾		7.1:1			6.8:1			7.1:1
Net interest margin ⁽⁴⁾		1.04	%		0.87	%		0.24	%
Average yield on interest earning assets ⁽⁵⁾		5.42	%		5.18	%		5.17	%
Average GAAP cost of interest bearing liabilities ⁽⁶⁾		4.76	%		4.77	%		5.43	%
Net interest spread		0.66	%		0.41	%		(0.26	%)
Non-GAAP metrics *
Earnings available for distribution per average common share ⁽¹⁾	$	0.73		$	0.72		$	0.68
Annualized EAD return on average equity		14.86	%		14.43	%		13.36	%
Economic leverage at period-end ⁽³⁾		5.8:1			5.7:1			5.8:1
Net interest margin (excluding PAA) ⁽⁴⁾		1.71	%		1.69	%		1.58	%
Average yield on interest earning assets (excluding PAA) ⁽⁵⁾		5.41	%		5.23	%		5.14	%
Average economic cost of interest bearing liabilities ⁽⁶⁾		3.94	%		3.88	%		3.90	%
Net interest spread (excluding PAA)		1.47	%		1.35	%		1.24	%

*	Represents a non-GAAP financial measure. Please refer to the “Non-GAAP Financial Measures” section for additional information.
⁽¹⁾	Net of dividends on preferred stock.
⁽²⁾	Annualized GAAP return on average equity annualizes realized and unrealized gains and (losses) which may not be indicative of full year performance, unannualized GAAP return on average equity is 0.45%, 1.01%, and (0.08%) for the quarters ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively.
⁽³⁾	GAAP leverage is computed as the sum of repurchase agreements, other secured financing, debt issued by securitization vehicles, participations issued, and U.S. Treasury securities sold, not yet purchased divided by total equity. Economic leverage is computed as the sum of recourse debt, cost basis of to-be-announced (“TBA”) derivatives outstanding, and net forward purchases (sales) of investments divided by total equity. Recourse debt consists of repurchase agreements, other secured financing, and US Treasury securities, sold, not yet purchased. Debt issued by securitization vehicles and participations issued are non-recourse to the Company and are excluded from economic leverage.
⁽⁴⁾	Net interest margin represents interest income less interest expense divided by average Interest Earning Assets. Net interest margin does not include net interest component of interest rate swaps. Net interest margin (excluding PAA) represents the sum of interest income (excluding PAA) plus TBA dollar roll income and less economic interest expense divided by the sum of average Interest Earning Assets plus average outstanding TBA contract balances. PAA represents the cumulative impact on prior periods, but not the current period, of quarter-over-quarter changes in estimated long-term prepayment speeds related to the Company’s Agency mortgage-backed securities.
⁽⁵⁾	Average yield on interest earning assets represents annualized interest income divided by average interest earning assets. Average interest earning assets reflects the average amortized cost of our investments during the period. Average yield on interest earning assets (excluding PAA) is calculated using annualized interest income (excluding PAA).
⁽⁶⁾	Average GAAP cost of interest bearing liabilities represents annualized interest expense divided by average interest bearing liabilities. Average interest bearing liabilities reflects the average balances during the period. Average economic cost of interest bearing liabilities represents annualized economic interest expense divided by average interest bearing liabilities. Economic interest expense is comprised of GAAP interest expense, the net interest component of interest rate swaps, and net interest on initial margin related to interest rate swaps, which is reported in Other, net in the Company’s Consolidated Statements of Comprehensive Income (Loss). Net interest on variation margin related to interest rate swaps is included in the Net interest component of interest rate swaps in the Company’s Consolidated Statements of Comprehensive Income (Loss).

Other Information

This news release and our public documents to which we refer contain or incorporate by reference certain forward-looking statements which are based on various assumptions (some of which are beyond our control) and may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “anticipate,” “continue,” or similar terms or variations on those terms or the negative of those terms. Such statements include those relating to the Company’s future performance, macro outlook, the interest rate and credit environments, tax reform and future opportunities. Actual results could differ materially from those set forth in forward-looking statements due to a variety of factors, including, but not limited to, changes in interest rates; changes in the yield curve; changes in prepayment rates; the availability of mortgage-backed securities (“MBS”) and other securities for purchase; the availability of financing and, if available, the terms of any financing; changes in the market value of the Company’s assets; changes in business conditions and the general economy; the Company’s ability to grow its residential credit business; the Company’s ability to grow its mortgage servicing rights business; credit risks related to the Company’s investments in credit risk transfer securities and residential mortgage-backed securities and related residential mortgage credit assets; risks related to investments in mortgage servicing rights; the Company’s ability to consummate any contemplated investment opportunities; changes in government regulations or policy affecting the Company’s business; the Company’s ability to maintain its qualification as a REIT for U.S. federal income tax purposes; the Company’s ability to maintain its exemption from registration under the Investment Company Act of 1940; and operational risks or risk management failures by us or critical third parties, including cybersecurity incidents. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law.

Annaly is a leading diversified capital manager with investment strategies across mortgage finance. Annaly’s principal business objective is to generate net income for distribution to its stockholders and to optimize its returns through prudent management of its diversified investment strategies. Annaly is internally managed and has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. Additional information on the company can be found at www.annaly.com.

We use our website (www.annaly.com) and LinkedIn account (www.linkedin.com/company/annaly-capital-management) as channels of distribution of company information. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about Annaly when you enroll your email address by visiting the “News & Insights” section of our website, then clicking on “Subscribe” and completing the email notification form. Our website, any alerts and social media channels are not incorporated by reference into, and are not a part of, this document.

The Company prepares an investor presentation and financial supplement for the benefit of its shareholders. Please refer to the investor presentation for definitions of both GAAP and non-GAAP measures used in this news release. Both the Second Quarter 2025 Investor Presentation and the Second Quarter 2025 Financial Supplement can be found at the Company’s website (www.annaly.com) in the “Investors” section under “Investor Presentations.”

Conference Call

The Company will hold the second quarter 2025 earnings conference call on July 24, 2025 at 9:00 a.m. Eastern Time. Participants are encouraged to pre-register for the conference call to receive a unique PIN to gain immediate access to the call and bypass the live operator. Pre-registration may be completed by accessing the pre-registration link found on the homepage or “Investors” section of the Company’s website at www.annaly.com, or by using the following link: https://dpregister.com/sreg/10200780/ff6cd9f9ec. Pre-registration may be completed at any time, including up to and after the call start time.

For participants who would like to join the call but have not pre-registered, access is available by dialing 844-735-3317 within the U.S., or 412-317-5703 internationally, and requesting the “Annaly Earnings Call.”

There will also be an audio webcast of the call on www.annaly.com. A replay of the call will be available for one week following the conference call. The replay number is 877-344-7529 for domestic calls and 412-317-0088 for international calls and the conference passcode is 3172987. If you would like to be added to the e-mail distribution list, please visit www.annaly.com, click on News & Insights, then select Subscribe and complete the email notification form.

Financial Statements

ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (dollars in thousands, except per share data)

	June 30, 2025			March 31, 2025			December 31, 2024 ⁽¹⁾			September 30, 2024			June 30, 2024
	(unaudited)			(unaudited)						(unaudited)			(unaudited)
Assets
Cash and cash equivalents	$	2,058,845		$	1,833,528		$	1,488,027		$	1,560,159		$	1,587,108
Securities		73,500,626			70,361,364			69,756,447			71,700,177			67,044,753
Loans, net		3,722,272			3,860,555			3,546,902			2,305,613			2,548,228
Mortgage servicing rights		3,281,190			3,272,902			2,909,134			2,693,057			2,785,614
Assets transferred or pledged to securitization vehicles		27,021,790			24,464,281			21,973,188			21,044,007			17,946,812
Derivative assets		149,690			67,257			225,351			59,071			187,868
Receivable for unsettled trades		1,134,896			2,523			2,201,447			766,341			320,659
Principal and interest receivable		830,535			836,946			1,069,038			1,060,991			917,130
Intangible assets, net		8,071			8,743			9,416			10,088			10,761
Other assets		433,977			407,247			377,434			316,491			319,644
Total assets	$	112,141,892		$	105,115,346		$	103,556,384		$	101,515,995		$	93,668,577
Liabilities and stockholders’ equity
Liabilities
Repurchase agreements	$	66,541,378		$	61,659,460		$	65,688,923		$	64,310,276		$	60,787,994
Other secured financing		1,025,000			900,000			750,000			600,000			600,000
Debt issued by securitization vehicles		24,107,249			21,802,193			19,540,678			18,709,118			15,831,915
Participations issued		1,556,900			1,748,273			1,154,816			467,006			1,144,821
U.S. Treasury securities sold, not yet purchased		2,528,167			2,519,125			2,470,629			2,043,519			1,974,602
Derivative liabilities		425,993			181,065			59,586			102,628			100,829
Payable for unsettled trades		1,538,526			2,304,774			308,282			1,885,286			1,096,271
Interest payable		256,245			285,858			268,317			276,397			369,106
Dividends payable		449,453			421,637			375,932			362,731			325,662
Other liabilities		238,618			208,453			242,269			219,085			174,473
Total liabilities		98,667,529			92,030,838			90,859,432			88,976,046			82,405,673
Stockholders’ equity
Preferred stock, par value $0.01 per share ⁽²⁾		1,536,569			1,536,569			1,536,569			1,536,569			1,536,569
Common stock, par value $0.01 per share ⁽³⁾		6,421			6,023			5,784			5,580			5,010
Additional paid-in capital		26,520,657			25,749,468			25,257,716			24,851,604			23,694,663
Accumulated other comprehensive income (loss)		(740,046	)		(787,402	)		(1,017,682	)		(712,203	)		(1,156,927	)
Accumulated deficit		(13,942,302	)		(13,509,942	)		(13,173,146	)		(13,238,288	)		(12,898,191	)
Total stockholders’ equity		13,381,299			12,994,716			12,609,241			12,443,262			11,181,124
Noncontrolling interests		93,064			89,792			87,711			96,687			81,780
Total equity		13,474,363			13,084,508			12,696,952			12,539,949			11,262,904
Total liabilities and equity	$	112,141,892		$	105,115,346		$	103,556,384		$	101,515,995		$	93,668,577

⁽¹⁾	Derived from the audited consolidated financial statements at December 31, 2024.
⁽²⁾	6.95% Series F Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock – Includes 28,800,000 shares authorized, issued and outstanding. 6.50% Series G Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock – Includes 17,000,000 shares authorized, issued and outstanding. 6.75% Series I Preferred Stock – Includes 17,700,000 shares authorized, issued and outstanding.
⁽³⁾	Includes 1,468,250,000 shares authorized. Includes 642,076,127 shares issued and outstanding at June 30, 2025, 602,338,286 shares issued and outstanding at March 31, 2025, 578,357,118 shares issued and outstanding at December 31, 2024, 558,047,743 at September 30, 2024, and 501,018,415 shares issued and outstanding at June 30, 2024.

ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (dollars in thousands, except per share data) (Unaudited)

	For the quarters ended
	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			September 30, 2024
Net interest income
Interest income	$	1,418,893		$	1,317,108		$	1,338,880		$	1,229,341		$	1,177,325
Interest expense		1,145,693			1,097,137			1,151,592			1,215,940			1,123,767
Net interest income		273,200			219,971			187,288			13,401			53,558
Net servicing income
Servicing and related income		141,670			140,435			127,224			122,583			120,515
Servicing and related expense		14,571			14,113			11,648			12,988			12,617
Net servicing income		127,099			126,322			115,576			109,595			107,898
Other income (loss)
Net gains (losses) on investments and other		83,503			810,812			(2,010,426	)		1,723,713			(568,745	)
Net gains (losses) on derivatives		(388,785	)		(977,867	)		2,215,680			(1,754,010	)		430,487
Other, net		15,812			7,398			19,339			27,438			24,791
Total other income (loss)		(289,470	)		(159,657	)		224,593			(2,859	)		(113,467	)
General and administrative expenses
Compensation expense		36,583			37,297			33,955			34,453			33,274
Other general and administrative expenses		13,435			10,767			10,019			9,468			11,617
Total general and administrative expenses		50,018			48,064			43,974			43,921			44,891
Income (loss) before income taxes		60,811			138,572			483,483			76,216			3,098
Income taxes		440			8,267			10,407			(6,135	)		11,931
Net income (loss)		60,371			130,305			473,076			82,351			(8,833	)
Net income (loss) attributable to noncontrolling interests		3,272			6,081			(8,976	)		15,906			650
Net income (loss) attributable to Annaly		57,099			124,224			482,052			66,445			(9,483	)
Dividends on preferred stock		37,260			37,157			38,704			41,628			37,158
Net income (loss) available (related) to common stockholders	$	19,839		$	87,067		$	443,348		$	24,817		$	(46,641	)
Net income (loss) per share available (related) to common stockholders
Basic	$	0.03		$	0.15		$	0.78		$	0.05		$	(0.09	)
Diluted	$	0.03		$	0.15		$	0.78		$	0.05		$	(0.09	)
Weighted average number of common shares outstanding
Basic		620,208,712			587,149,704			569,201,592			515,729,658			500,950,563
Diluted		621,103,218			588,420,998			570,651,985			516,832,152			500,950,563
Other comprehensive income (loss)
Net income (loss)	$	60,371		$	130,305		$	473,076		$	82,351		$	(8,833	)
Unrealized gains (losses) on available-for-sale securities		33,559			164,877			(337,121	)		428,955			(54,243	)
Reclassification adjustment for net (gains) losses included in net income (loss)		13,797			65,403			31,642			15,769			179,234
Other comprehensive income (loss)		47,356			230,280			(305,479	)		444,724			124,991
Comprehensive income (loss)		107,727			360,585			167,597			527,075			116,158
Comprehensive income (loss) attributable to noncontrolling interests		3,272			6,081			(8,976	)		15,906			650
Comprehensive income (loss) attributable to Annaly		104,455			354,504			176,573			511,169			115,508
Dividends on preferred stock		37,260			37,157			38,704			41,628			37,158
Comprehensive income (loss) attributable to common stockholders	$	67,195		$	317,347		$	137,869		$	469,541		$	78,350

ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (dollars in thousands, except per share data)

	For the six months ended
	June 30, 2025			June 30, 2024
	(unaudited)			(unaudited)
Net interest income
Interest income	$	2,736,001		$	2,271,813
Interest expense		2,242,830			2,224,706
Net interest income		493,171			47,107
Net servicing income
Servicing and related income		282,105			235,599
Servicing and related expense		28,684			24,833
Net servicing income		253,421			210,766
Other income (loss)
Net gains (losses) on investments and other		894,315			(1,562,872	)
Net gains (losses) on derivatives		(1,366,652	)		1,807,631
Other, net		23,210			48,158
Total other income (loss)		(449,127	)		292,917
General and administrative expenses
Compensation expense		73,880			61,995
Other general and administrative expenses		24,202			21,466
Total general and administrative expenses		98,082			83,461
Income (loss) before income taxes		199,383			467,329
Income taxes		8,707			10,988
Net income (loss)		190,676			456,341
Net income (loss) attributable to noncontrolling interests		9,353			2,932
Net income (loss) attributable to Annaly		181,323			453,409
Dividends on preferred stock		74,417			74,219
Net income (loss) available (related) to common stockholders	$	106,906		$	379,190
Net income (loss) per share available (related) to common stockholders
Basic	$	0.18		$	0.76
Diluted	$	0.18		$	0.76
Weighted average number of common shares outstanding
Basic		603,770,531			500,781,701
Diluted		604,882,295			501,415,515
Other comprehensive income (loss)
Net income (loss)	$	190,676		$	456,341
Unrealized gains (losses) on available-for-sale securities		198,436			(336,112	)
Reclassification adjustment for net (gains) losses included in net income (loss)		79,200			514,585
Other comprehensive income (loss)		277,636			178,473
Comprehensive income (loss)		468,312			634,814
Comprehensive income (loss) attributable to noncontrolling interests		9,353			2,932
Comprehensive income (loss) attributable to Annaly		458,959			631,882
Dividends on preferred stock		74,417			74,219
Comprehensive income (loss) attributable to common stockholders	$	384,542		$	557,663

Contacts

Annaly Capital Management, Inc.

Investor Relations

1-888-8Annaly

www.annaly.com

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Business Wire 23 July 2025

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