Annaly Capital Management reported a 0.7% economic return for Q2 2025, marking its seventh consecutive quarter of positive returns. The company generated earnings available for distribution (EAD) of $0.73 per share, exceeding its declared dividend of $0.70. Despite a 3% decline in book value per share to $18.45, Annaly raised over $750 million through its ATM program, primarily investing in agency mortgage-backed securities (MBS), which saw a 6% quarter-over-quarter increase in market value to nearly $80 billion.
This performance highlights Annaly’s resilience in a challenging macro environment, where the housing market faces headwinds from rising supply and affordability issues. The company’s disciplined approach to capital allocation and risk management, particularly in the agency sector, positions it favorably amid ongoing volatility. With a weighted average FICO of 764 in its current lock pipeline and low delinquency rates, Annaly’s credit quality remains robust.
Market professionals should note Annaly’s strategic focus on agency MBS and its ability to navigate market fluctuations, which could present attractive opportunities for investors as conditions evolve.
Source: fool.com