Annaly Capital Management, Inc. Q2 2026 Earnings Recap

Shares declined 1.5% following results that showed modest portfolio growth but lacked clear upside surprises, with cautious outlook and margin pressure tempering investor enthusiasm.

Key Takeaways

• Economic return was 5.5%, reflecting steady but unspectacular performance amidst rising interest rates.
• Agency portfolio grew by $3 billion to $95 billion, increasing capital allocation to 57%, driven by spread tightening and healthy inflows.
• Residential Credit portfolio remained flat at $10.4 billion; loan purchases hit a record $7.1 billion, but spreads only tightened modestly by ~10 basis points.
• Mortgage Servicing Rights portfolio stable at $4.1 billion, with modest rotation and incremental purchases offset by bulk sales.
• Raised approximately $450 million in equity via ATM, maintaining conservative leverage of 5.6x despite uncertain macro backdrop.