The sharp book value decline and GAAP loss reflect severe fixed-income market volatility, but EAD continues to cover the dividend. Watch the Q4 earnings call for commentary on portfolio repositioning and whether the ATM issuance pace slows given the stock's discount to book.
Price Chart
Executive Summary
Annaly Capital Management reported Q3 2026 EAD of $0.80 per share, modestly above the $0.79 consensus, but GAAP net loss was ($1.36) per share due to large unrealized mark-to-market losses on its investment portfolio amid a challenging fixed-income environment. Book value per share fell 11.4% sequentially to $17.86, and GAAP leverage increased to 8.0x, while the company announced the redemption of its $442.5M Series I preferred stock and raised $757M in ATM equity.
Key Financial Metrics
Key Facts
- GAAP net loss of ($1.36) per common share vs. prior quarter income of $1.06
- EAD of $0.80 per share vs. consensus $0.79 (1.6% beat)
- Book value per share fell to $17.86 from $20.15 in Q2 2026 (-11.4%)
- Economic return of -7.6% for the quarter
- GAAP leverage increased to 8.0x from 7.4x; economic leverage to 5.9x from 5.6x
- Declared quarterly common dividend of $0.75 per share, up from $0.70 year-ago
- Announced redemption of all outstanding $442.5M Series I preferred stock (post-quarter)
- Raised $757M of accretive capital via ATM program
- Net interest margin (GAAP) improved to 1.54% from 1.47% QoQ
- Hedge ratio increased to 100% from 97% in Q2
Financial Impact
Book value per share declined 11.4% QoQ; GAAP net loss of ($1.36) per share vs. $1.06 gain in Q2; EAD per share modestly beat consensus by $0.01
Risk Factors
- Further fixed-income market volatility could pressure book value and GAAP earnings
- Increased leverage (8.0x GAAP) amplifies downside risk in adverse rate/macro scenarios
- ATM equity issuance dilutes existing shareholders despite being labeled 'accretive'
- Preferred stock redemption reduces equity cushion but signals confidence in capital structure
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001043219-26-000077 |
| Document: nly-20261020.htm | 0001043219-26-000077 |
| Document: 0001043219-26-000077-index-headers.html | 0001043219-26-000077 |
| Document: 0001043219-26-000077-index.html | 0001043219-26-000077 |
| Document: 0001043219-26-000077.txt | 0001043219-26-000077 |
| 8-K Data (Synthetic) | 0001043219-26-000077 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | Institutional Cluster | $18.43 | awaiting T+60 | — | $18.35 (−0.43%) |
Oct 20, 2026 6d ago | 8-K | $18.01 | awaiting T+60 | — | $18.35 (−1.89%) |
Oct 20, 2026 6d ago | 8-K | $18.01 | awaiting T+60 | — | $18.35 (−1.89%) |
Oct 20, 2026 6d ago | 8-K | $18.01 | awaiting T+60 | — | $18.35 (−1.89%) |
Oct 1, 2026 25d ago | 25-NSE | $18.70 | awaiting T+60 | — | $18.35 (−1.87%) |
Jun 11, 2026 19w ago | Institutional Cluster | $22.01 $22.81 | ▲ +3.63% | ▼ −0.76% | $18.35 (−16.63%) |
Apr 21, 2026 26w ago | 8-K | $26.01 $25.89 | ▼ −0.46% | ▼ −5.24% | $18.35 (−29.45%) |
Apr 21, 2026 26w ago | 8-K | $26.01 $25.89 | ▲ +0.46% | ▲ +5.24% | $18.35 (+29.45%) |
Apr 21, 2026 26w ago | 8-K | $26.01 $25.89 | ▲ +0.46% | ▲ +5.24% | $18.35 (+29.45%) |
US Market Status
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