8-K: Annaly Capital Management Q1 2026 Financial Supplement Released

Annaly Capital Management, Inc. has released its financial supplement for the first quarter ended March 31, 2026, detailing key financial metrics and portfolio performance.

Summary

• Annaly Capital Management, Inc. (Annaly) has published its financial supplement for the first quarter of 2026, ending March 31, 2026.
• The report provides a detailed overview of the company's financial position, including income statement data, balance sheet figures, and key portfolio metrics.
• Key financial highlights include GAAP net income per average common share of $0.33 and Earnings Available for Distribution (EAD) per average common share of $0.76 for the quarter.
• The company's book value per common share stood at $19.82 as of March 31, 2026.
• The total investment portfolio amounted to $134.06 billion as of March 31, 2026.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as negative due to the significant drop in GAAP net income and returns, despite some positive trends in non-GAAP metrics and portfolio growth.

Positives

• Net interest margin (excluding PAA) improved slightly to 1.71% in Q1 2026 from 1.69% in Q4 2025.
• Earnings Available for Distribution (EAD) per average common share increased to $0.76 in Q1 2026 from $0.74 in Q4 2025.
• The average yield on interest-earning assets (excluding PAA) remained strong at 5.35%.
• Book value per common share increased to $19.82 from $19.25 in the prior quarter, despite dividend payouts.
• The company's total investment portfolio grew to $134.06 billion from $132.05 billion in the prior quarter.

Negatives

• GAAP net income per average common share decreased significantly to $0.33 in Q1 2026 from $1.40 in Q4 2025.
• Annualized GAAP return on average equity dropped sharply to 7.15% from 26.14% in the prior quarter.
• Book value per common share decreased to $19.82 from $20.21 in the prior quarter.
• GAAP leverage increased slightly to 7.3x from 7.2x.
• Net interest spread (GAAP) decreased to 1.07% from 0.93%.

Risks

• Changes in interest rates, yield curve, and prepayment rates could materially impact results.
• Availability and terms of financing are subject to market conditions.
• Market value of assets can fluctuate due to economic conditions.
• Cybersecurity incidents pose a risk to operations.
• Regulatory changes affecting the REIT status or Investment Company Act exemption are potential risks.

Future Outlook

The filing does not contain specific forward-looking statements or guidance beyond the general risk factors and assumptions outlined in the 'Forward-Looking Statements' section, which includes potential impacts from changes in interest rates, market conditions, and regulatory environments.

Industry Context

StockSavvy.ai notes that Annaly's Q1 2026 results reflect the ongoing challenges and opportunities within the mortgage REIT sector, particularly concerning interest rate sensitivity and portfolio management. The shift in net interest margin and returns highlights the dynamic nature of this industry.

Stakeholder Impact

• Shareholders may be concerned by the decline in GAAP net income and book value per share, potentially impacting dividend sustainability or stock valuation.
• Creditors and financing partners will monitor leverage ratios and capital adequacy metrics.

Key Dates

Recommendation

While the GAAP results show a significant decline, the non-GAAP metrics like EAD and net interest margin (excluding PAA) show relative stability or slight improvement. The company's large portfolio and established market position suggest resilience, warranting a hold recommendation pending further clarity on the drivers of the GAAP performance decline and future outlook.

Keywords

Annaly Capital Management, 8-K Filing, Financial Supplement, Q1 2026, REIT, Mortgage-Backed Securities, Preferred Stock, Earnings