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ANNALY CAPITAL MANAGEMENT INC

For the period ended Mar 31, 2025. Filed May 8, 2025.

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About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2025 · Filed May 8, 2025

NLY$18.75-0.5%Stored close · as of Nov 6, 2026
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Contents

Special Note Regarding Forward-Looking Statements

Certain statements contained in this quarterly report, and certain statements contained in our future filings with the Securities and Exchange Commission (the “SEC” or the “Commission”), in our press releases or in our other public or stockholder communications contain or incorporate by reference certain forward-looking statements which are based on various assumptions (some of which are beyond our control) and may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “anticipate,” “continue,” or similar terms or variations on those terms or the negative of those terms. Such statements include those relating to the Company’s future performance, macro outlook, the interest rate and credit environments, tax reform and future opportunities. Actual results could differ materially from those set forth in forward-looking statements due to a variety of factors, including, but not limited to, changes in interest rates; changes in the yield curve; changes in prepayment rates; the availability of mortgage-backed securities (“MBS”) and other securities for purchase; the availability of financing and, if available, the terms of any financing; changes in the market value of the Company’s assets; changes in business conditions and the general economy; the Company’s ability to grow its residential credit business; the Company's ability to grow its mortgage servicing rights business; credit risks related to the Company’s investments in credit risk transfer securities and residential mortgage-backed securities and related residential mortgage credit assets; risks related to investments in mortgage servicing rights; the Company’s ability to consummate any contemplated investment opportunities; changes in government regulations or policy affecting the Company’s business; the Company’s ability to maintain its qualification as a REIT for U.S. federal income tax purposes; the Company’s ability to maintain its exemption from registration under the Investment Company Act of 1940; and operational risks or risk management failures by us or critical third parties, including cybersecurity incidents. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law.

This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our most recent annual report on Form 10-K. All references to “Annaly,” “we,” “us,” or “our” mean Annaly Capital Management, Inc. and all entities owned by us, except where it is made clear that the term means only the parent company. Refer to the section titled “Glossary of Terms” located at the end of this Item 2 for definitions of commonly used terms in this quarterly report on Form 10-Q.

INDEX TO ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Page
Overview37
Business Environment37
Economic Environment38
Results of Operations39
Net Income (Loss) Summary40
Non-GAAP Financial Measures41
Earnings Available for Distribution, Earnings Available for Distribution Attributable to Common Stockholders, Earnings Available for Distribution Per Average Common Share and Annualized EAD Return on Average Equity42
Premium Amortization Expense44
Economic Leverage and Economic Capital Ratios44
Interest Income (excluding PAA), Economic Interest Expense and Economic Net Interest Income (excluding PAA)45
Experienced and Projected Long-term CPR46
Average Yield on Interest Earning Assets (excluding PAA), Net Interest Spread (excluding PAA), Net Interest Margin (excluding PAA), and Average Economic Cost of Interest Bearing Liabilities47
Economic Interest Expense and Average Economic Cost of Interest Bearing Liabilities48
Other Income (Loss)49
General and Administrative Expenses50
Return on Average Equity50
Unrealized Gains and Losses - Available-for-Sale Investments50
Financial Condition51
Residential Securities51
Contractual Obligations53
Commitments and Contractual Obligations with Unconsolidated Entities54
Capital Management54
Stockholders’ Equity54
Capital Stock55
Leverage and Capital56
Risk Management56
Risk Appetite56
Governance57
Description of Risks57
Liquidity and Funding Risk Management58
Funding58
Excess Liquidity59
Maturity Profile60
Stress Testing61
Liquidity Management Policies61
Investment/Market Risk Management62
Credit Risk Management63
Counterparty Risk Management63
Operational Risk Management64
Compliance, Regulatory and Legal Risk Management65
Critical Accounting Estimates65
Valuation of Financial Instruments66
Residential Securities66
Residential Mortgage Loans66
MSR66
Interest Rate Swaps67
Revenue Recognition67
Consolidation of Variable Interest Entities67
Use of Estimates67
Glossary of Terms68
ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.