NEW YORK, July 21, 2026, 6:06 p.m. EDT
- Earnings available for distribution stood at $0.79 per share, while the quarterly dividend came in at $0.75.
- Book value increased by 1.7% to $20.15, as economic leverage fell to 5.6 times.
- The stock ended the session at $22.65 and rose nearly 1% to $22.87 in after-hours trading.
Shares of Annaly Capital Management climbed roughly 1% in after-hours trading on Tuesday. The stock had ended the regular session down 0.2% at $22.65. U.S. cash markets were not open.
The rise came after earnings available for distribution reached $0.79 per share, topping the latest $0.75 quarterly dividend by four cents. Book value advanced to $20.15.
A key indicator is Annaly’s equity offering. The firm secured $447 million via its at-the-market program. The number of shares outstanding rose by 20.3 million over the quarter.
Preliminary estimate: Based on using the share increase as a proxy, the average net proceeds came to approximately $22.04. This figure is 11% higher than book value per share of $19.82 in March. The issuance contributed around six cents to pro-forma book value per share.
This accounts for roughly 18% of the 33-cent rise in book value for the quarter. The remaining increase was driven by returns from the portfolio and retained earnings. As a result, selling shares at prices above book value benefited current shareholders.
Chief Executive David Finkelstein stated that Annaly reported “EAD that exceeded the dividend for the ninth consecutive quarter.” As of Tuesday’s close, the dividend pointed to an annualized yield of 13.2%. Dividend coverage was 1.05 times. Annaly
AGNC Investment NASDAQ:AGNC, which released its results on Monday, is the nearest peer for comparison. Data from Tuesday’s market close alongside second-quarter releases indicate a significant difference in valuations.
| Q2 comparison | Annaly | AGNC |
|---|---|---|
| Tuesday closing price | $22.65 | $10.72 |
| Book value per share | $20.15 | $8.58 tangible |
| Price-to-book | 1.12x | 1.25x |
| Earnings measure / dividend | $0.79 / $0.75 | $0.40 / $0.36 |
| Dividend coverage | 1.05x | 1.11x |
| Quarterly economic return | 5.5% | 6.7% |
| Leverage | 5.6x economic | 7.4x at-risk |
| Indicated annualized yield | 13.2% | 13.4% |
Price-to-book, coverage and yields are based on data provided. Companies use different definitions for earnings and leverage.
Annaly provides a comparable indicated yield while trading at about half the premium of AGNC. AGNC posted superior coverage and a higher economic return, along with greater leverage by its metric.
Annaly expanded its Agency portfolio by close to $3 billion. Agency assets totaled $95.0 billion, representing 57% of dedicated capital. The Credit and MSR portfolios stayed around $10.4 billion and $4.1 billion, respectively.
The hedge ratio was kept at 97% by management. Economic leverage dropped to 5.6 times from 5.7 times. Available financing assets amounted to $9.6 billion.
Excluding amortization adjustments from earlier periods, net interest margin gained five basis points to reach 1.76%. EAD advanced from $0.76 in the previous quarter. Sequentially, GAAP net interest income rose 8% to $488.2 million.
The stock declined 1.6% from July 14 to Tuesday ahead of its earnings report. Its highest close in that timeframe was $23.42 on July 16.
The latest challenge arrives soon. Annaly is set to begin its conference call on Wednesday at 9 a.m. EDT. Data on June new-home sales is due Friday, ahead of the Federal Reserve’s meeting on July 28-29.
Investors are set to monitor if management continues selling shares at prices above book value. The strength of the four-cent dividend buffer will also be under scrutiny.
The primary risk involves spread reversal. An increase in mortgage spreads may reduce book value, even with funding hedges in place. An acceleration in prepayments can put pressure on asset yields. Losses from credit or higher servicing expenses might impact Annaly’s non-Agency operations.
The focus for investors is currently on the premium. Annaly shares last traded at $22.87 in after-hours activity, roughly 13% higher than book value. This level allows for further accretive issuance. A significant narrowing of the premium would limit that option.
