Annaly Capital Management

Annaly helps provide financing for people to buy homes and for businesses to grow. The company manages a mix of mortgage-related investments to earn steady income. It operates as a real estate investment trust to pass profits back to its shareholders.

What is in the Portfolio?

• Annaly Agency Group: Invests in mortgage-backed securities (MBS) guaranteed by government agencies like Fannie Mae or Freddie Mac; accounts for 89% of the investment portfolio at the end of 2025.
• Annaly Residential Credit Group: Buys home loans and related securities that are not backed by the government; makes up 7% of the portfolio as of December 31, 2025.
• Annaly Mortgage Servicing Rights Group: Owns the right to collect mortgage payments and manage loans in exchange for a fee; represents 4% of the portfolio.

Strategic Moves and Partnerships

• Formed a joint venture with GIC Private Limited, a sovereign wealth fund, to invest together in residential credit assets.
• Committed to investing in Fifth Wall Ventures funds to find new technology for the real estate market.
• Expanded the Onslow Bay platform to work directly with technology companies and mortgage lenders for better loan sourcing.
• Issued 29 OBX securitizations in 2025, which are bundles of home loans turned into tradeable securities worth $15.2 billion.

What Makes This Business Different?

The company uses a shared capital model that allows it to move money between different types of housing investments as market values change. It maintains its own internal technology and staff to manage risks and clear its own financial trades without relying entirely on outside firms.

The Recent Financial Story

• Net income rose to $1.0 billion in Q4 2025, representing a 110.2% increase from the $482.1 million reported in Q4 2024.
• Operating income grew 42.8% year-over-year to reach $2.3 billion in Q4 2025.
• Total revenue for Q4 2025 was $1.8 billion, down 8.4% compared to $2.0 billion in the same period for 2024.
• The company maintained $81.9 billion in repurchase agreements, which are short-term loans used to fund its asset purchases, as of December 31, 2025.

A Changing Business Model

Annaly has transitioned from a specialized buyer of government-backed debt into a broad manager of various housing and corporate credit assets. Its ability to shift capital between different investment groups helps it navigate changing interest rates and housing market conditions.