Annaly Capital Management Maintains Dividend Coverage Despite Interest Rate Volatility
Annaly Capital Management (NLY) navigated a volatile third quarter characterized by surging 10-year Treasury rates, which impacted the value of its Agency Mortgage-Backed Securities (MBS). While the REIT reported a GAAP loss of $1.36 per share and a decline in book value to $17.86 per share, its underlying earnings available for distribution (EAD) remained resilient at $0.80 per share. This EAD comfortably covers the company's current dividend of $0.75 per share. The firm's ability to maintain coverage is supported by a diversified investment strategy and a growing mortgage servicing rights (MSR) portfolio, which increased 22% to $4.3 billion. Despite market fluctuations, Annaly's low leverage and recent capital raise of $757 million provide significant financial flexibility for future operations.
Tickers: $NLY
Topics: book value dividend earnings report interest rates mortgage REIT
Read the full article at Motley Fool
Part of the story Annaly Capital Management Reports Q3 2026 GAAP Net Loss Amid Interest Rate Volatility (2 articles)