8-K: Annaly Capital Management Q3 2026 Financial Supplement Released

Annaly Capital Management Inc. has released its Third Quarter 2026 Financial Supplement, detailing a GAAP net loss of $1.36 per share and a decrease in book value per common share to $17.86.

Summary

• Annaly Capital Management, Inc. (Annaly) released its Third Quarter 2026 Financial Supplement on October 20, 2026.
• The company reported a GAAP net loss of $1.36 per average common share for the quarter ended September 30, 2026, a significant decrease from a GAAP net income of $1.06 per share in the prior quarter.
• Book value per common share decreased to $17.86 as of September 30, 2026, down from $20.15 as of June 30, 2026.
• Earnings Available for Distribution (EAD) per average common share was $0.80 for the quarter, a slight increase from $0.79 in the previous quarter.
• The total investment portfolio grew to $140.5 billion as of September 30, 2026, up from $139.2 billion as of June 30, 2026.
• GAAP leverage increased to 8.0x from 7.4x, while economic leverage increased to 5.9x from 5.6x.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a neutral to slightly negative sentiment due to a significant GAAP net loss and a decrease in book value per common share, despite improvements in certain non-GAAP metrics.

Positives

• Earnings Available for Distribution (EAD) per average common share increased slightly to $0.80 from $0.79.
• Annualized EAD return on average equity improved to 15.86% from 15.12%.
• Net interest margin (excluding PAA) remained strong at 1.69%, though slightly down from 1.76%.
• The total investment portfolio increased to $140.5 billion.
• Average yield on interest-earning assets (excluding PAA) was stable at 5.45%.

Negatives

• Reported a GAAP net loss of $1.36 per average common share for the quarter ended September 30, 2026, compared to a net income of $1.06 per share in the prior quarter.
• Book value per common share decreased to $17.86 from $20.15.
• GAAP leverage increased to 8.0x from 7.4x, and economic leverage increased to 5.9x from 5.6x.
• Annualized GAAP return (loss) on average equity was a negative 24.35%, down from a positive 19.88%.

Risks

• The filing 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 Annaly's most recent Annual Report on Form 10-K and subsequent Quarterly Reports.
• The company's financial performance is subject to interest rate fluctuations and changes in mortgage-backed securities spreads.

Future Outlook

The filing contains forward-looking statements based on management's beliefs and expectations, subject to risks and uncertainties. Actual results could differ materially. No specific future guidance or outlook beyond the reported quarter's performance is provided in this supplement.

Industry Context

StockSavvy.ai notes that Annaly's results reflect the challenging interest rate environment impacting mortgage REITs. The significant GAAP loss and decrease in book value are common themes for the sector as rising rates can negatively impact the fair value of fixed-rate mortgage-backed securities and increase borrowing costs.

Stakeholder Impact

• Shareholders may be negatively impacted by the decrease in book value per common share and the GAAP net loss, potentially affecting future dividend capacity and stock price.
• Creditors may note the increase in leverage ratios, which could be a point of consideration in future financing arrangements.

Key Dates

Recommendation

The significant GAAP loss and decline in book value per share are concerning. While non-GAAP metrics like EAD show some stability, the overall financial deterioration and increased leverage suggest caution. A 'hold' recommendation is appropriate pending further clarity on the company's ability to navigate the current interest rate environment and stabilize its financial performance.

Keywords

Annaly Capital Management, Q3 2026, Financial Supplement, Mortgage REIT, Preferred Stock, Book Value, Leverage, Net Interest Margin