Annaly Swings to $1 Billion Q3 Loss as Book Value Drops

Annaly Capital Management, Inc. swung to a $1.001 billion GAAP net loss in the third quarter as book value fell, despite a slight increase in its separate measure of earnings available for distribution.

The loss for the quarter ended Sept. 30, 2026, amounted to $1.36 per average common share. In the second quarter, Annaly earned $827.8 million, or $1.06 per average common share.

Book value declined to $17.86 per common share at Sept. 30 from $20.15 at June 30. Annaly recorded a 7.6% economic loss for the third quarter.

Earnings available for distribution, Annaly’s non-GAAP measure, rose to $0.80 per average common share from $0.79 in the preceding quarter. The company declared a quarterly common dividend of $0.75 per share. The increase in that measure came alongside the GAAP loss.

Annaly’s GAAP leverage increased from 7.4 times on June 30 to 8.0 times on Sept. 30. Annaly’s mortgage-related investment portfolio totaled $106.5 billion at quarter-end, including $91.8 billion in its Agency portfolio.

David Finkelstein, Annaly’s CEO and co-chief investment officer, called it “a challenging period for fixed income markets.”