NLY · Annaly Capital Management, Inc.

Annaly Capital Management delivered its tenth consecutive quarter of positive economic returns in Q1 2026, with earnings available for distribution of $0.76 per share exceeding the $0.70 dividend payout, reflecting resilient performance amid a supportive macro environment. Book value held steady at $19.82 per share, supported by disciplined capital allocation shifting toward higher-return Residential Credit and MSR portfolios. The Residential Credit portfolio surged 30% quarter-over-quarter to $10.3 billion (23% of dedicated capital), fueled by record correspondent channel volumes of $7.4 billion locked and $5.2 billion funded, up 41% and 37% year-over-year, alongside $6.6 billion in securitization proceeds from 12 deals year-to-date. MSR grew 9% to $4.2 billion (21% of capital), driven by bulk and flow purchases, positioning Onslow Bay as the fifth largest non-bank Agency MBS servicer. Agency MBS remained the core at 86% of assets ($92.2 billion), with paydowns reinvested into 4.5% coupon TBAs and CMBS. Financing costs improved, with average GAAP cost at 4.29% (down 20 bps) and economic cost at 3.93% (down 2 bps), while economic leverage ticked up slightly to 5.7x. Liquidity remained robust at $9.0 billion available, including $5.0 billion cash/unencumbered Agency MBS, bolstered by $550 million and $100 million expanded facilities for Residential Credit and MSR, respectively. Equity raised $509 million accretively via ATM program. Management highlights favorable technicals in fixed income, resilient U.S. economy, and contained volatility despite geopolitical risks, with Fed expected to hold rates near neutral.