Annaly Capital Reports Mixed Q1 2026 Results with Declining GAAP EPS and Book Value, Stable Dividend
Summary
Annaly Capital Management reported a significant decline in Q1 2026 GAAP net income per share and a decrease in book value, while Earnings Available for Distribution (EAD) per share slightly increased and the common dividend remained stable.
Key Events
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GAAP Net Income Per Share Declined
GAAP net income per average common share decreased to $0.33 in Q1 2026 from $1.40 in Q4 2025.
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Earnings Available for Distribution (EAD) Per Share Increased
Earnings Available for Distribution (EAD) per average common share slightly increased to $0.76 in Q1 2026 from $0.74 in Q4 2025.
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Book Value Per Common Share Decreased
Book value per common share declined to $19.82 at March 31, 2026, from $20.21 at December 31, 2025.
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Common Dividend Maintained
The common dividend declared remained stable at $0.70 per share for Q1 2026.
Analysis
This 8-K, filed concurrently with other Q1 2026 earnings disclosures, provides the full financial supplement detailing Annaly Capital Management's performance. The company experienced a substantial drop in GAAP net income per share and a decline in book value per common share quarter-over-quarter. However, a key metric for REITs, Earnings Available for Distribution (EAD) per share, saw a modest increase, and the common stock dividend was maintained at $0.70 per share. The net interest margin also improved. Investors will weigh the GAAP losses and book value erosion against the stable EAD and dividend, which are crucial for income-focused REIT investors. The increase in common shares outstanding indicates recent dilution.
At the time of this filing, NLY was trading at $22.66 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $16.3B. The 52-week trading range was $17.39 to $24.52. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.