Annaly Capital Management(NYSE) NLY

Annaly Capital Management, Inc. helps people get home loans. It buys debt used for housing. The company manages many real estate investments.

How Annaly Puts Capital to Work

• Agency Securities: Investments in mortgage-backed securities (MBS), which are pools of home loans guaranteed by the government; represents 57% of firm capital.
• Residential Credit: Non-government-backed loans and mortgage-related securities; represents approximately 22% of firm capital.
• Mortgage Servicing Rights: Rights to collect monthly payments and fees from homeowners (MSR); represents 21% of firm capital.

Adapting the Portfolio

• Shifted Agency portfolio exposure in the second quarter of 2026 by trading $4 billion of 4.5% coupon holdings for higher-yielding 5.5% and 6.0% coupons.
• Purchased a quarterly record $7.1 billion of residential mortgage loans through bulk purchases and partnership securitizations in the second quarter of 2026.
• Closed 13 securitizations totaling $6.8 billion in unpaid principal balance during the three-month period ended June 30, 2026.
• Acquired a record $31 million in market value of current-coupon mortgage servicing rights through its flow channel during the second quarter of 2026.

Why the Firm Is Different

Annaly operates as an internally managed Real Estate Investment Trust (REIT), a company that owns or finances income-producing real estate. This structure removes federal corporate income taxes if the firm pays out most of its taxable earnings to stockholders.

Tracking Financial Performance

• Net income was $827.8 million for the three months ended June 30, 2026, up from $60.4 million for the same period in 2025.
• Total assets were $143.7 billion at June 30, 2026, compared to $135.6 billion at Dec. 31, 2025.
• Non-GAAP earnings available for distribution (EAD), a measure of profit used to fund dividends, was $0.79 per average common share for the three months ended June 30, 2026, compared to $0.73 for the three months ended June 30, 2025.
• Non-GAAP economic leverage, a ratio of debt to equity, was 5.6:1 at June 30, 2026, compared to 5.8:1 at June 30, 2025.
• Market capitalization was $16.3 billion in Q2 2026, while the P/E ratio was 5.2, down 96.4% year over year.

Bottom Line

Annaly has evolved into a diversified mortgage finance firm that balances government-backed assets with private-market credit. This diversification across housing-related debt supports its long-term strategy of generating income through different economic cycles.