Annaly Capital Management, Inc. · NLY-PG · FY2026 Q1 · Calendar Q2 2026
Annaly shifts capital toward residential credit and MSR
Annaly's diversified housing-finance platform and continued allocation toward Residential Credit and MSR support its earnings trajectory, but the thesis depends on spread conditions, hedging costs and regulatory developments.
Earnings scorecard
Reported versus consensusMarket reaction
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Transcript intelligence
What changed
Capital allocation continued to move toward Residential Credit and MSR, which reached 44% of capital. Management also highlighted 41% year-over-year growth in residential credit lock volume, $570 million of proprietary OBX assets and $24 billion of MSR purchases.
Guidance delta
Maintained; management continued to describe a positive outlook while noting regulatory, inflation and spread risks.
Key takeaways
- Q1 economic return was 1.5%, with $0.76 of earnings per share and a $0.70 dividend paid.
- Residential Credit and MSR reached 44% of capital as management moved toward a 50/30/20 long-term allocation target.
- Management highlighted stabilizing Agency MBS spreads, stronger whole-loan activity and continued MSR purchases.
- The outlook remains supported by platform diversification, but regulatory, inflationary and spread risks remain material.
Management priorities
- Continue deploying capital to Residential Credit and MSR.
- Expand MSR flow-acquisition channels and purchases.
- Use the OBX platform to originate and securitize more residential whole-loan assets.
- Maintain balanced exposure across Agency, Residential Credit and MSR while adjusting hedges as needed.
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Try FN2 freeCompany context
Snapshot as of publicationAnnaly Capital Management, Inc. operates as a comprehensive investment firm, concentrating its efforts on mortgage-related financial activities and providing loans to companies in the corporate middle market. The firm strategically allocates capital across a diverse range of assets. These include various mortgage-backed securities (both agency-backed residential and commercial), residential mortgage assets (including non-Agency types and direct loans), mortgage servicing rights, credit risk transfer securities, corporate debt instruments, and other commercial real estate investments. Notably, Annaly has adopted the tax classification of a Real Estate Investment Trust (REIT). This designation exempts the company from federal corporate income tax, provided it distributes a substantial portion of its taxable earnings to its shareholders. Founded in 1996, the company maintains its headquarters in New York, New York.
Historical context
All NLY-PG earningsReal Estate peers this season
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| CCI Crown Castle Inc. | FY2026 Q3 · Calendar Q4 2026 | -2.5% | -3.1% | Crown Castle raises 2026 guidance as transformation advances |
| 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-PF Annaly Capital Management, Inc. | FY2026 Q3 · Calendar Q4 2026 | +3.6% | — | Annaly prioritizes residential credit amid rate volatility |
| 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 |
Latest beats and misses
Who reports nextBeat on EPS
Missed on EPS
- CCIFY2026 Q3 · October 21, 2026-2.5% EPS-3.1% move
- 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
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars
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.