Annaly reports Q3 2026 earnings of 80 cents per share

Annaly Capital Management, Inc. reported earnings available for distribution of $0.80 per average common share for the third quarter of 2026, a figure that exceeded the company's declared quarterly cash dividend of $0.75 per share. The mortgage REIT disclosed these results alongside a book value per common share of $17.86 as of September 30, 2026.

The company characterized its financial position as defensive amidst a challenging interest rate environment, citing a low leverage profile and ample liquidity. Annaly's economic leverage increased to 5.9x from 5.6x at the end of the second quarter, while the average GAAP cost of interest-bearing liabilities rose 6 basis points quarter-over-quarter to 4.34%. The average economic cost of interest-bearing liabilities climbed 7 basis points to 4.03%. Total assets available for financing stood at $8.5 billion, including $4.2 billion in cash and unencumbered Agency mortgage-backed securities.

Annaly's total portfolio reached $106.5 billion, with the Agency MBS strategy accounting for $91.8 billion, or 86% of total assets. The Residential Credit portfolio remained essentially flat at $10.4 billion, representing 23% of dedicated capital, while the Mortgage Servicing Rights portfolio increased to $4.3 billion in market value, or 22% of dedicated capital. During the quarter, Annaly raised $757 million in accretive common equity through its at-the-market sales program and announced the redemption of all outstanding shares of its $442.5 million Series I preferred stock.

Activity across the company's credit businesses showed mixed year-over-year trends. The correspondent channel generated $7.0 billion in lock volume and $5.8 billion in fundings in the third quarter, increases of 13% and 45%, respectively. Annaly Residential Credit Group maintained its position as the largest non-bank issuer of Prime Jumbo and Expanded Credit mortgage-backed securities, pricing 37 residential whole loan securitizations totaling $21.2 billion in proceeds year-to-date in 2026. The company maintained total warehouse capacity of $8.3 billion across its Residential Credit and MSR businesses, which included $2.8 billion of committed capacity.

In the mortgage servicing segment, Onslow Bay operated as the sixth largest non-bank servicer of Agency MBS and the largest purchaser of conventional mortgage servicing rights year-to-date. Annaly's total hedge portfolio expanded to $94 billion from $92 billion in the second quarter of 2026, with a hedge ratio of 5.45%. The company noted that solid U.S. economic growth and high debt issuance had driven rates higher, increasing volatility and weighing on rate-sensitive sectors, while inflation moved further above the Federal Reserve's target.