Annaly posts third-quarter GAAP loss of $1.36 per share, with $0.80 in EAD

Annaly Capital Management Inc. (NLY) reported a GAAP net loss of $1.36 per average common share for the third quarter of 2026, the company said Tuesday in a press release attached to an 8-K filing.

The loss compares with GAAP net income of $1.21 per share in the third quarter of 2025. The results cover the quarter ended Sept. 30, 2026.

Earnings available for distribution, or EAD, is a non-GAAP measure the company uses to gauge its ability to pay dividends. It came in at $0.80 per average common share, up from $0.73 a year earlier.

Here's how the company did:

• GAAP net income (loss) per share: ($1.36) vs. $1.21 a year earlier
• EAD per average common share: $0.80 vs. $0.73 a year earlier
• Interest income: $1.97 billion vs. $1.53 billion a year earlier
• Net interest income: $543.6 million vs. $275.8 million a year earlier
• Book value per common share: $17.86 vs. $19.25 a year earlier

The filing does not report total revenue. It does show net interest income of $543.6 million, up from $275.8 million a year earlier.

The company recorded net losses on investments and other of $4.72 billion. Net gains on derivatives of $3.07 billion offset part of that loss.

Book value per common share was $17.86 at Sept. 30, down from $20.15 at June 30 and $19.25 a year earlier. The company reported a negative 7.6% economic return for the quarter.

GAAP leverage rose to 8.0 times from 7.4 times in the prior quarter. Economic leverage rose to 5.9 times from 5.6 times.

The total portfolio was $106.5 billion, including $91.8 billion in Agency mortgage-backed securities. The Agency portfolio decreased modestly and represented 55% of dedicated capital, the company said, as it rotated further into higher coupon specified pools.

The company said it actively managed its hedge portfolio, primarily adding Treasury futures to offset market-driven extension. It ended the quarter with a hedge ratio of 100%.

The Residential Credit portfolio was effectively unchanged at $10.4 billion, representing 23% of dedicated capital. Its whole loan correspondent channel produced record loan fundings of $5.8 billion.

Annaly Residential Credit Group issued twelve securitizations totaling a record $7.4 billion across a wide array of product types. The company said it remained the largest non-bank issuer and the second largest issuer overall of Prime Jumbo and Expanded Credit MBS, citing Inside Nonconforming Markets data.

The MSR portfolio increased to $4.3 billion in market value, representing 22% of dedicated capital. The filing says Onslow Bay is the sixth-largest non-bank servicer of Agency MBS.

The company had $8.5 billion of total assets available for financing, including $4.2 billion of cash and unencumbered Agency MBS. It maintained warehouse capacity of $8.3 billion across its Residential Credit and MSR businesses, including $2.8 billion of committed capacity.

The average GAAP cost of interest-bearing liabilities was 4.34%, up six basis points from the prior quarter. The average economic cost was 4.03%, up seven basis points.

Annaly raised $757 million through its at-the-market sales program, net of sales agent commissions and other offering expenses. It also announced the redemption of all outstanding shares of its $442.5 million Series I Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock. The shares were redeemed on Oct. 1, 2026, after quarter end.

The company declared a quarterly common dividend of $0.75 per share, unchanged from the prior quarter and up from $0.70 a year earlier.

“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.” Chief Executive Officer & Co-Chief Investment Officer David Finkelstein said. “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.”

“Looking ahead, we remain disciplined in our approach to capital allocation, leverage, liquidity and our hedge portfolio.” Finkelstein said. “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.”

The company will hold its third-quarter 2026 earnings conference call on Oct. 21, 2026, at 9:00 a.m. Eastern Time, with an audio webcast on its website.