Annaly Capital Management Earnings Call Transcripts
Fiscal Year 2026
-
Q3 economic return was -7.6% as rate volatility and wider Agency spreads hit book value, while EAD of $0.80/share covered the $0.75 dividend. Management entered Q4 liquid and positioned to deploy selectively, prioritizing residential credit.
-
Q2 2026 saw a 5.5% economic return, book value growth, and EAD exceeding the dividend for the ninth straight quarter. Agency, Residential Credit, and MSR segments all contributed, with capital allocation and risk management supporting strong performance.
-
Economic return reached 1.5% in Q1 2026, with capital allocation shifting toward residential credit and MSR. Book value per share declined 1.9%, but EAD per share rose to $0.76, exceeding the dividend. Agency, residential credit, and MSR segments all contributed to resilient performance.
Fiscal Year 2025
-
Economic return reached 8.6% in Q4 and 20% for 2025, with all segments showing double-digit growth and strong liquidity. Capital allocation is shifting toward residential credit and MSR, while risk monitoring focuses on policy and market volatility.
-
Q3 2025 saw an 8.1% economic return, 4.3% book value growth, and strong EAD per share, with all segments contributing positively. Capital was deployed into agency, residential credit, and MSR, while risk and leverage remained conservative amid macro uncertainty.
-
Q2 2025 saw a 0.7% economic return and a 3.7% YTD return, with earnings available for distribution per share rising to $0.73, outpacing the dividend. Agency MBS and residential credit portfolios grew, leverage increased to 5.8x, and funding sources were further diversified.
-
Q1 2025 saw a 3% economic return, stable EAD per share, and a dividend increase to $0.70. Agency allocation rose, MSR and OBX platforms performed well, and funding capacity expanded, while management remains cautious amid ongoing volatility and regulatory uncertainty.
Fiscal Year 2024
-
Delivered a 1.3% Q4 and 11.9% full-year economic return, with EAD rising to $0.72/share and all segments contributing positively. Book value per share declined 2%, but capital and liquidity remain strong, supporting a stable dividend outlook for 2025.
-
The firm has transformed into a diversified housing finance leader, focusing on Agency MBS, MSR, and residential credit, supported by strong liquidity, operational synergies, and a conservative capital structure. Market outlook remains positive, with stable dividends, robust risk management, and growth initiatives in correspondent lending and securitization.
-
Q3 economic return reached 4.9% and book value per share rose to $19.54, with strong performance across Agency MBS, residential credit, and MSR segments. Raised $1.2B in equity, maintained conservative leverage, and announced a new partnership with Rocket Mortgage.
-
Q2 2024 saw a 1% economic return and EAD exceeding the dividend, with strong Agency MBS and MSR growth. Book value per share declined, but leverage and liquidity remain robust. Outlook is positive as Fed rate cuts are expected to boost Agency MBS demand.