Annaly Capital Management, Inc. · NLY-PF · FY2026 Q3 · Calendar Q4 2026
Annaly prioritizes residential credit amid rate volatility
Annaly’s Q3 results support a mixed but constructive operating picture: earnings covered the dividend and residential credit and MSR activity remained strong, while the negative economic return shows sensitivity to rates and MBS spreads.
Earnings scorecard
Reported versus consensusMarket reaction
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Transcript intelligence
What changed
Compared with the prior quarter, economic performance weakened from a positive 5.5% return to a negative 7.6% return, while capital allocation priority moved toward residential credit. The agency portfolio modestly declined to $92 billion, and the MSR portfolio increased to $4.3 billion.
Guidance delta
Management sentiment remained maintained; the emphasis shifted toward residential credit first, followed by agency MBS and MSR.
Key takeaways
- Q3 EPS of $0.80 exceeded the $0.75 dividend, despite a negative 7.6% economic return.
- Onslow Bay lock volume reached a record $7 billion, while average credit metrics were a 766 FICO and 67% LTV.
- The MSR portfolio grew to $4.3 billion, with 4.8% CPR and a 6.15x valuation multiple.
Management priorities
- Prioritize capital deployment to residential credit, then agency MBS and MSR.
- Add higher-coupon specified agency pools and adjust hedges using Treasury futures and potentially swaps.
- Continue bulk MSR purchases and expand servicing and recapture partnerships.
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Try FN2 freeCompany context
Snapshot as of publicationAnnaly Capital Management, Inc. functions as a multifaceted investment management firm, concentrating its efforts on mortgage financing and lending to the corporate middle market. Its varied investment holdings include agency and non-Agency residential and commercial mortgage-backed securities, along with mortgage servicing rights, residential mortgage loans, credit risk transfer securities, corporate debt instruments, and various other commercial real estate ventures. The company operates under the tax classification of a Real Estate Investment Trust (REIT), which allows it to avoid federal corporate income tax, provided it distributes its taxable profits to its shareholders. Annaly Capital Management was established in 1996 and maintains its principal offices in New York City.
Real Estate peers this season
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| ELS Equity LifeStyle Properties, Inc. | FY2026 Q3 · Calendar Q4 2026 | — | -4.4% | ELS Q3 2026: Guidance Held as Occupancy and Membership Trends Stay Firm |
| NLY-PG Annaly Capital Management, Inc. | FY2026 Q3 · Calendar Q4 2026 | +3.6% | — | Annaly prioritizes residential credit amid volatile fixed-income markets |
| NLY Annaly Capital Management, Inc. | FY2026 Q3 · Calendar Q4 2026 | +3.6% | -0.6% | Annaly’s earnings held above its dividend despite a difficult quarter |
| AGNCZ AGNC Investment Corp. 8.75% Series H Fixed-Rate Cumulative Redeemable Preferred Stock | FY2026 Q3 · Calendar Q4 2026 | -0.6% | +0.3% | AGNCZ: Q3 loss highlights rate volatility and hedging |
| AGNCL AGNC Investment Corp. | FY2026 Q3 · Calendar Q4 2026 | -0.6% | -0.3% | AGNC Q3: Rate Volatility Drove a -12.7% Economic Return |
| AGNCO AGNC Investment Corp. | FY2026 Q3 · Calendar Q4 2026 | -0.6% | +0.3% | AGNC absorbs Q3 rate shock while defending agency MBS fundamentals |
Latest beats and misses
Who reports nextBeat on EPS
- NLY-PGFY2026 Q3 · October 20, 2026+3.6% EPS— move
- NLYFY2026 Q3 · October 20, 2026+3.6% EPS-0.6% move
- CBFY2026 Q3 · October 20, 2026+12.8% EPS-0.4% move
- ISRGFY2026 Q3 · October 20, 2026+13.2% EPS-3.6% move
- SPCXFY2026 Q3 · October 20, 2026+160.0% EPS-0.1% move
- COF-PIFY2026 Q3 · October 20, 2026+21.6% EPS— move
Missed on EPS
- PACFY2026 Q3 · October 20, 2026-2.2% EPS+7.1% move
- AGNCZFY2026 Q3 · October 19, 2026-0.6% EPS+0.3% move
- AGNCLFY2026 Q3 · October 19, 2026-0.6% EPS-0.3% move
- AGNCOFY2026 Q3 · October 19, 2026-0.6% EPS+0.3% move
- AGNCPFY2026 Q3 · October 19, 2026-0.6% EPS0.0% move
- AGNCMFY2026 Q3 · October 19, 2026-0.6% EPS-0.3% move
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Sources
- Earnings call transcript and parsed analysis · 2026-10-21T17:03:26.415863+00:00
- FN2 earnings calendar · 2026-10-21T01:23:14.182042+00:00
- Polygon adjusted daily market bars
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-21T18:30:43.000507+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-10-21. For educational purposes only; not investment advice.