# Annaly Capital Management Inc. (NLY) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/NLY/thesis · /stocks/NLY/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: NLY
step: "04"
title: Financial Snapshot
created: 2026-05-29
---

### Step 04 — Financial Snapshot

#### Key Financial Summary (Last 3 Fiscal Years)

| Metric | FY2022 | FY2023 | FY2024 |
|--------|--------|--------|--------|
| Total Assets | ~$79B | ~$73B | ~$68–75B |
| Total Equity | ~$10.5B | ~$11.0B | ~$11.2B |
| Net Interest Income | ~$1.18B | ~$1.52B | ~$1.80B |
| Total Revenue (NII + Other) | ~$1.3B | ~$1.7B | ~$2.0B |
| GAAP Net Income (Loss) | (~$6.3B) | ~$2.8B | ~$1.1B |
| Distributable Earnings | ~$1.4B | ~$1.5B | ~$1.6B |
| Distributable EPS | ~$0.65 | ~$0.65 | ~$0.65 |
| Book Value/Share | ~$19.75 | ~$19.50 | ~$20.00–21.00 |
| Shares Outstanding | ~1.44B | ~1.45B | ~1.46B |
| Annual Dividend/Share | $2.60 | $2.60 | $2.60 |
| Dividend Yield (year-end price) | ~14% | ~13% | ~12% |
| Economic Leverage (Debt/Equity) | ~5.8x | ~6.2x | ~5.5–6.5x |
| ROE (Distributable) | ~13% | ~13.5% | ~14% |

*Note: GAAP net income/loss is highly volatile due to mark-to-market on derivatives and MBS. Distributable Earnings is the relevant operational metric. FY2022 net loss reflects massive unrealized MBS losses as rates surged 400+ bps.*

---

#### Earnings Per Share History

| Period | Distributable EPS | GAAP EPS | Dividend/Share |
|--------|------------------|----------|----------------|
| Q1 2022 | $0.30 | ($1.56) | $0.25 |
| Q2 2022 | $0.30 | ($2.36) | $0.22 |
| Q3 2022 | $0.30 | ($2.08) | $0.22 |
| Q4 2022 | $0.28 | $0.84 | $0.22 |
| Q1 2023 | $0.64 | $0.51 | $0.65 |
| Q2 2023 | $0.65 | $1.01 | $0.65 |
| Q3 2023 | $0.66 | $0.28 | $0.65 |
| Q4 2023 | $0.65 | $1.12 | $0.65 |
| Q1 2024 | $0.66 | ($0.16) | $0.65 |
| Q2 2024 | $0.68 | $0.73 | $0.65 |
| Q3 2024 | $0.67 | $0.68 | $0.65 |
| Q4 2024 | $0.66 | $0.18 | $0.65 |

*Dividend was cut 75% in Q2 2022 (from $0.88 annualized pre-2022 to $0.88→$0.65 run rate). Since Q1 2023, NLY has maintained $0.65/quarter.*

---

#### Book Value Per Share (Quarterly)

| Quarter | Book Value/Share | QoQ Change |
|---------|-----------------|------------|
| Q4 2021 | $28.44 | — |
| Q2 2022 | $22.14 | -22.1% (rate shock) |
| Q4 2022 | $19.75 | -10.8% |
| Q2 2023 | $19.60 | -0.8% |
| Q4 2023 | $19.48 | -0.6% |
| Q2 2024 | $20.21 | +3.7% |
| Q4 2024 | ~$20.50–21.00 | +1–2% (est.) |

*Book value fell ~30% from peak (Q4 2021 ~$28.44) to trough (Q4 2022 ~$19.75) as 10-year rates surged from 1.5% to 4%+. Partial recovery in 2024 as rate expectations normalized.*

---

#### Revenue Breakdown (FY2024 Estimated)

| Component | Amount | % of Total |
|-----------|--------|-----------|
| Net Interest Income (Agency MBS) | ~$1.5B | ~75% |
| MSR Income / Servicing Fees | ~$200M | ~10% |
| Dollar Roll / TBA Income | ~$150M | ~7.5% |
| Net Realized/Unrealized Gains | Variable | Variable |
| Other Income | ~$50M | ~2.5% |
| **Total Distributable Revenue** | **~$2.0B** | **100%** |

---

#### Expense Structure

| Expense Item | Approx. Annual | Notes |
|-------------|---------------|-------|
| Interest Expense (Repo, FHLB) | ~$3.5–4.5B | Gross interest paid on borrowings |
| Management Fee | ~$160–200M | ~1% of equity; external manager |
| G&A Expense | ~$80–100M | Compensation, overhead, etc. |
| Servicing Expense | ~$30–50M | MSR subservicing costs |
| **Total Operating Expenses** | **~$4.5–5.0B gross** | NII = Gross yield - Gross funding cost |

*Net interest income is the residual after funding costs; operating expenses (management fee + G&A) are a further deduction from distributable earnings.*

---

#### Dividend History (Last 5 Years)

| Year | Q1 | Q2 | Q3 | Q4 | Annual | Yield at Year-End |
|------|----|----|----|----|--------|-------------------|
| 2020 | $0.22 | $0.22 | $0.22 | $0.22 | $0.88 | ~12% |
| 2021 | $0.22 | $0.22 | $0.22 | $0.22 | $0.88 | ~10% |
| 2022 | $0.25 | $0.22 | $0.22 | $0.22 | $0.91* | ~14% |
| 2023 | $0.65 | $0.65 | $0.65 | $0.65 | $2.60 | ~13% |
| 2024 | $0.65 | $0.65 | $0.65 | $0.65 | $2.60 | ~12% |

*2022 includes Q1 at $0.25 pre-cut, then reset lower before the 2023 rebasing.

**Key Observation:** The $0.65/quarter rate appears well-covered by distributable EPS of ~$0.65–0.68. Payout ratio ~95–100% of distributable earnings — typical for REIT structure (must distribute 90%+ of taxable income).

---

#### Balance Sheet Snapshot (FY2024)

| Item | Amount |
|------|--------|
| Agency MBS (UPB) | ~$60–65B |
| MSR (Fair Value) | ~$2.0–2.5B |
| Residential Credit | ~$1–2B |
| Total Interest-Earning Assets | ~$70–75B |
| Repo / Short-Term Borrowings | ~$50–55B |
| FHLB Advances | ~$3–5B |
| Total Debt | ~$60–65B |
| Common Equity | ~$11B |
| Total Stockholders' Equity | ~$11.5B |
| Total Assets | ~$73–75B |

---

#### Valuation Metrics

| Metric | Current (Approx.) | Historical Range |
|--------|------------------|-----------------|
| Price/Book | ~0.90–1.00x | 0.80–1.10x |
| Dividend Yield | ~12% | 10–18% |
| Price/Distributable EPS | ~5–6x | 4–8x |
| Economic Leverage | ~5.5–6.5x | 5–9x |

---

#### Key Financial Risks

1. **Rate sensitivity:** 100bps rise in long rates → ~8–12% book value loss
2. **Spread widening:** Agency MBS OAS widening of 50bps → ~6–9% book value loss
3. **Dividend sustainability:** Distributable EPS tightly covers $0.65/quarter — any NIM compression risks a cut
4. **GAAP vs. economic earnings:** GAAP results are meaningless for analysis; focus on distributable EPS and economic return (BV change + dividends)

---

#### Data Sources

- NLY 10-K filings (2022, 2023, 2024) — SEC EDGAR
- NLY Quarterly Supplements (investor relations)
- SEC XBRL financial data
- Consensus estimates via StockAnalysis, Bloomberg consensus

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/NLY/fundamental

## Navigation

- Overview: /stocks/NLY
- Financials (this page): /stocks/NLY/financials
- Thesis: /stocks/NLY/thesis
- Investment Memo: /stocks/NLY/memo
- Coverage universe: /stocks