Annaly Reports Strong Q4 & Full-Year 2025 Results with Significant Book Value Growth and 20.2% Economic Return
NLY sits 50% above its 52-week low of $16.595.
Summary
Annaly Capital Management reported strong financial results for Q4 and full-year 2025, featuring increased GAAP and EAD per share, significant book value growth, and a robust 20.2% economic return for the year, driven by accretive capital deployment and improved net interest spreads.
Key Events · Earnings and Guidance · NLY
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Strong Q4 and Full-Year 2025 Performance
Reported GAAP net income of $1.40 per average common share for Q4 and $2.92 for the full year, with Earnings Available for Distribution (EAD) of $0.74 for Q4 and $2.92 for the full year 2025.
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Significant Book Value Growth
Book value per common share increased to $20.21 as of December 31, 2025, up from $19.25 in the prior quarter.
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Robust Economic Return
Achieved an 8.6% economic return for the fourth quarter and a substantial 20.2% for the full year 2025.
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Portfolio Expansion and Accretive Capital Deployment
Total portfolio grew to $104.7 billion, with the Agency portfolio increasing 6% in Q4 and 32% for the full year. The company raised $2.9 billion in accretive capital, including $2.6 billion through its at-the-market (ATM) common equity program, which was predominantly deployed into Agency MBS.
Analysis · NLY · Real Estate & Construction
Annaly Capital Management delivered a strong close to 2025, reporting significant improvements across key financial metrics for an mREIT. The substantial increase in book value per common share to $20.21 and a robust 20.2% economic return for the full year underscore the effectiveness of its diversified housing finance model. The company's strategic deployment of $2.9 billion in accretive capital, including a significant $2.6 billion through its at-the-market (ATM) common equity program, into its Agency, Residential Credit, and MSR portfolios drove substantial growth. The reduction in the average GAAP cost of interest-bearing liabilities and the resulting improvement in net interest margin and spread are particularly positive signals, indicating effective interest rate risk management in a dynamic market. These strong results provide fundamental support for the stock, which is currently trading near its 52-week high. Management's positive outlook for 2026 suggests continued momentum.
At the time of this filing, NLY was trading at $24.81 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $16.6B. The 52-week trading range was $16.60 to $24.52. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.