Annaly Capital Management Reports $290.5 Million Net Income in Q1 2026

Annaly Capital Management, Inc. reported a significant increase in financial performance for the first quarter of 2026, with net income reaching $290.5 million, or $0.33 per share, compared to $130.3 million, or $0.15 per share, in the same period last year. The company's total interest income rose to $1.72 billion, up from $1.32 billion in Q1 2025, while interest expenses also increased to $1.27 billion from $1.10 billion. This resulted in a net interest income of $452.7 million, a substantial increase from $220.0 million in the prior year. The growth in net income was primarily attributed to favorable changes in net gains on derivatives and an increase in net servicing income.

In terms of operational metrics, Annaly's total assets grew to $138.5 billion as of March 31, 2026, up from $135.6 billion at the end of 2025. The increase was driven by a rise in residential mortgage loans, which increased to $7.23 billion from $5.02 billion, and mortgage servicing rights, which rose to $4.12 billion from $3.65 billion. The company also reported a total equity of $16.27 billion, reflecting a slight increase from $16.09 billion at the end of the previous fiscal year. The number of common shares outstanding increased to 732.8 million from 707.0 million, indicating a strategic move to raise capital through equity offerings.

Strategically, Annaly has focused on diversifying its investment portfolio, with a notable increase in its allocation to residential credit and mortgage servicing rights, which now account for 44% of its capital. The company executed several securitizations during the quarter, totaling $4.7 billion, and continued to expand its residential credit portfolio, which saw a 30% increase in market value compared to the previous quarter. The firm also maintained a conservative economic leverage ratio of 5.7:1, consistent with its risk management strategy.

Looking ahead, Annaly's management expressed optimism about the company's ability to navigate the current economic landscape, which is characterized by geopolitical uncertainties and fluctuating interest rates. The firm plans to continue leveraging its diversified investment strategies to optimize returns while managing risks associated with market volatility. The company remains committed to maintaining its REIT status and distributing a significant portion of its taxable income to shareholders, which is essential for its operational model.