$NLY · ANNALY CAPITAL MANAGEMENT INC

Annaly Capital Management filed an 8-K with its Q3 2026 investor presentation. Earnings available for distribution (EAD) came in at $0.80 per share, covering the $0.75 dividend. Book value per share declined to $17.86, resulting in a (7.6%) economic return for the quarter. The total portfolio stood at $106.5 billion, with Agency MBS at $91.8 billion, Residential Credit at $10.4 billion, and MSR at $4.3 billion.

Extended-hours trading shows NLY at $18.35, up 0.33% from the regular close of $18.29. The modest positive reaction suggests the market is taking the dividend-covered EAD and capital raise in stride despite the (7.6%) economic return and book value decline.

Annaly's ability to cover its dividend while absorbing a (7.6%) economic return highlights the tension between income generation and capital preservation in the largest mREIT during a rising-rate,high

Annaly's results reflect the broader mREIT challenge of balancing dividend coverage against book value erosion in a rising-rate environment. The firm's scale ($106.5B portfolio) and diversified credit/MSR platforms differentiate it from Agency-only peers.

Agency MBS spreads widened 15-25 bps during Q3 amid rising rates and volatility; further rate increases could pressure book value and economic returns. Elevated public and private sector debt issuance continues to push long-term rates higher, weighing on rate-sensitive sectors including housing.