Q2 2026 Annaly Capital Management Inc Earnings Call Transcript
Key Points
- Annaly Capital Management Inc (NLY) delivered a 5.5% economic return for the quarter, demonstrating strong performance of its diversified housing finance model.
- The company generated $0.79 of earnings available for distribution, marking the ninth consecutive quarter that EAD has exceeded the dividend.
- Annaly Capital Management Inc (NLY) increased its quarterly common dividend to $0.75 per share, reflecting confidence in its earnings power.
- The company raised approximately $450 million in equity through its ATM program during the quarter, indicating strong capital market access.
- Annaly Capital Management Inc (NLY) maintained a conservative economic leverage of 5.6 times, showcasing prudent risk management.
- Persistent elevated inflation and geopolitical uncertainties, such as the conflict in the Middle East, pose risks to the macroeconomic environment.
- Interest rates continue to rise, led by the front end of the yield curve, which could pressure the bond market.
- The company's book value per share increased by only 1.7% from the prior quarter, indicating modest growth.
- Lower levels of swap income due to a decline in the average receive rate as SOFR declined during the quarter.
- The company's OpEx to equity ratio increased by 11 basis points to 1.4% this quarter, driven by elevated expenses.
Thank you for standing by, and welcome everyone, to the Annaly Capital Management second-quarter 2026 earnings conference call.
(Operator Instructions)
At this time, I would like to turn the conference over to Sean Kensil, Director of Investor Relations. Please go ahead.
Good morning, and welcome to the second-quarter 2026 earnings call for Annaly Capital Management. Please note that this call is being recorded. As a reminder, materials for today's call are available on our website at www.annaly.com. Today's call may include forward-looking statements. which are subject to certain risks and uncertainties that could cause actual results to differ materially and refer to certain non-GAAP measures.
Please see the notices in our earnings release for important information regarding forward-looking statements and non-GAAP measures.
Participants on this morning's call include David Finkelstein
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