8-K: Annaly Capital Management Q2 2026 Financial Supplement Released

Annaly Capital Management released its Second Quarter 2026 Financial Supplement, detailing key financial metrics and portfolio performance.

Summary

• Annaly Capital Management, Inc. has released its financial supplement for the second quarter ended June 30, 2026.
• The report provides a detailed snapshot of the company's financial performance, including income statement data, balance sheet figures, and key portfolio metrics.
• Key financial highlights include GAAP net income per average common share of $1.06 and Earnings Available for Distribution (EAD) per average common share of $0.79.
• The company's book value per common share increased to $20.15 from $19.82 in the previous quarter.
• Leverage ratios remained relatively stable, with GAAP leverage at 7.4x and economic leverage at 5.6x.
• The total investment portfolio grew to $139.25 billion, up from $134.06 billion in the prior quarter.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive filing, with significant improvements in key profitability and book value metrics compared to the previous quarter.

Positives

• Book value per common share increased to $20.15 from $19.82.
• GAAP net income per average common share rose significantly to $1.06 from $0.33.
• Earnings Available for Distribution (EAD) per average common share increased to $0.79 from $0.76.
• Annualized GAAP return on average equity improved to 19.88% from 7.15%.
• Annualized EAD return on average equity remained strong at 15.12%.
• Net interest margin (GAAP) increased to 1.47% from 1.41%.
• Net interest margin (excluding PAA) increased to 1.76% from 1.71%.
• Total investment portfolio grew to $139.25 billion.

Negatives

• GAAP leverage increased slightly to 7.4x from 7.3x.
• Economic capital ratio decreased slightly to 14.9% from 14.7% in the prior quarter, though it remains strong.
• Mortgage servicing rights decreased slightly to $4.09 billion from $4.12 billion.

Risks

• The presentation contains forward-looking statements subject to significant risks and uncertainties, and actual results could differ materially.
• Factors that could cause actual results to differ are detailed in the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports.

Future Outlook

The filing does not contain specific forward-looking guidance beyond the general cautionary statements regarding forward-looking statements included in the presentation.

Industry Context

StockSavvy.ai notes that Annaly Capital Management's Q2 2026 results reflect the ongoing dynamics within the mortgage REIT sector, characterized by fluctuating interest rates and portfolio management strategies. The reported increase in net income and book value per share suggests effective navigation of the current market environment.

Stakeholder Impact

• Shareholders: The increase in book value per share and earnings per share is positive for common stockholders.
• Creditors: Stable leverage ratios suggest continued financial stability for creditors.

Key Dates

Recommendation

The filing shows improved financial performance quarter-over-quarter, particularly in net income and book value. However, the overall market conditions for mortgage REITs and the company's specific strategic positioning warrant a 'hold' recommendation, pending further market developments and strategic execution.

Keywords

Annaly Capital Management, 8-K, Financial Supplement, Q2 2026, REIT, Mortgage-Backed Securities, Preferred Stock, Earnings