Annaly Capital Reports Mixed Q1 Results, Raises $509M via ATM Equity Program

summarizeSummary

Annaly Capital Management reported mixed first-quarter 2026 results, with increased Earnings Available for Distribution (EAD) but a decline in GAAP net income and book value per share, alongside a significant $509 million equity raise through its at-the-market program.

check_boxKey Events

• Q1 2026 Financial Performance

  Earnings available for distribution (EAD) increased to $0.76 per share, while GAAP net income fell to $0.33 per share and book value declined to $19.82 per share.

• Significant Equity Capital Raise

  The company raised $509 million of common equity through its at-the-market (ATM) sales program during the quarter.

• Portfolio Growth and Securitization

  The Residential Credit portfolio grew 30% quarter-over-quarter to $10.3 billion, and the MSR portfolio increased 9% to $4.2 billion, alongside record securitization activity.

• Improved Cost of Funds

  Average GAAP cost of interest-bearing liabilities decreased by 20 basis points quarter-over-quarter to 4.29%.

auto_awesomeAnalysis

This 8-K provides a comprehensive update on Annaly Capital Management's first-quarter 2026 performance and capital strategy. While GAAP net income and book value per share declined, the company achieved its tenth consecutive quarter of positive economic returns with Earnings Available for Distribution (EAD) outperforming the dividend. A key development is the substantial $509 million raised through its at-the-market equity program, providing significant capital for investments but also resulting in dilution. The company also reported strong growth in its Residential Credit and MSR portfolios and a decrease in its average GAAP cost of interest-bearing liabilities. Investors should weigh the dilutive impact of the equity raise against the improved EAD and strategic portfolio growth.