Annaly Capital Management Reports Q3 2026 Results
21 Oct 2026 · 10h ago
Summary
Annaly Capital Management announced its financial results for the quarter ended September 30, 2026, reporting a GAAP net loss of ($1.36) per average common share. However, Earnings Available for Distribution (EAD) were $0.80 per share, exceeding the common stock dividend. The company highlighted its ability to manage its portfolio effectively despite challenging fixed income markets, with a total portfolio of $106.5 billion and strong activity in its Residential Credit and MSR portfolios. Management expressed confidence in Annaly's positioning to deploy capital and generate returns due to its capital base and operating capabilities.
Key Highlights
- 1
Annaly Capital Management reported GAAP net income (loss) of ($1.36) per average common share for the quarter ended September 30, 2026.
- 2
Earnings available for distribution (EAD) were $0.80 per average common share for the third quarter of 2026, exceeding the common stock dividend.
- 3
The total portfolio stood at $106.5 billion, with $91.8 billion in the highly liquid Agency portfolio.
- 4
Annaly's Residential Credit portfolio was $10.4 billion, with strong production from its whole loan correspondent channel including record loan fundings of $5.8 billion.
- 5
The MSR portfolio increased to $4.3 billion in market value.
- 6
Annaly Residential Credit Group issued twelve securitizations totaling a record $7.4 billion across a wide array of product types during the quarter.
- 7
The company announced the redemption of all outstanding shares of its $442.5 million Series I Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock.
Management Comments
David Finkelstein
While the third quarter of 2026 was a challenging period for fixed income markets, which we were not immune to, we entered the quarter prepared for the volatility. Our cycle-low leverage and minimal duration exposure provided us with the flexibility to actively manage our portfolio while continuing to make attractive investments across our three strategies. Meanwhile, Annaly generated EAD of $0.80 per share, once again exceeding the common stock dividend and underscoring the durable earnings power of our platform. Looking ahead, we remain disciplined in our approach to capital allocation, leverage, liquidity and our hedge portfolio. We continue to see ample investment opportunities across each of our three strategies and we believe Annaly’s deep capital base, differentiated operating capabilities and active portfolio management position us well to deploy capital and generate compelling risk-adjusted returns.
Informational and educational content only. Not investment advice.