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Mar 31
Annaly Q1 2025 Earnings Report
Annaly reported a GAAP net income of $87 million and a 3% economic return in Q1 2025.
Key Takeaways
Annaly Capital delivered stable earnings for Q1 2025, supported by a resilient agency portfolio and increased dividend payouts, while maintaining a defensive position amid market volatility.
GAAP EPS was $0.15; non-GAAP EPS (EAD) remained strong at $0.72
Net income attributable to common stockholders was $87,067,000
Raised dividend to $0.70 per common share
Maintained a 95% hedge ratio to navigate market uncertainty
Annaly
Annaly
Annaly Revenue by Segment
Forward Guidance
Management emphasized preparedness for heightened interest rate volatility and reaffirmed the ability to generate attractive returns through a diversified housing finance portfolio.
Positive Outlook
- Strong balance sheet entering the year with lowest leverage in a decade
- Resilient performance across all three business lines
- Ongoing investment in intermediate and high-coupon MBS
- Raised $496M in accretive equity capital
- Continued high hedge ratio at 95%
Challenges Ahead
- Rising interest rate volatility post-quarter-end
- Spread widening in MBS market
- Residential Credit portfolio saw a decrease
- GAAP EPS down from prior quarter
- Challenging macro environment continues to weigh on securitization markets