Annaly Capital Management (NLY) offers two nearly identical floating-rate preferreds: Series F (NLY.PR.F) and Series I (NLY.PR.I). Both NLY.PR.F and NLY.PR.I share the same credit exposure, floating-rate structure, and cumulative dividend protection, moving almost identically in price. NLY.PR.I currently trades at a modest discount to NLY.PR.F, offering a slightly higher yield—about 0.14% more at current prices.
Almitas Capital LLC acquired a new position in Annaly Capital Management Inc (NYSE: NLY) during the undefined quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 115,765 shares of the real estate investment trust's stock, valued at approximately $2,340,000. Other hedge
Annaly Capital Management's 6.95% Series F Preferred (NLY.PR.F) offers an 8.8% yield, floating quarterly at SOFR plus 5.25%, with cumulative dividends. NLY-F's floating structure sharply reduces duration risk and price volatility vs. fixed-rate preferreds, adjusting payouts upward as rates rise. The preferreds benefit from Annaly's $16B equity cushion, moderate 5.5x leverage, diversified funding, and robust liquidity and hedging practices.
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In the most recent trading session, Annaly Capital Management (NLY) closed at $22.41, indicating a -2.44% shift from the previous trading day.
NLY pairs a 12.2% dividend yield with a $104.7B portfolio heavy in Agency MBS and $9.4B in liquidity, supporting payouts despite rate risks.
With an uncertain outlook of future rate cuts, mREIT investors should look past yield and look for companies with lower leverage, lower rate sensitivity, and better capital reservation. Starwood Property Trust offers a better-rounded package than Annaly Capital on these fronts. NLY currently offers a 12%+ dividend yield, but its long-term tangible book value per share has declined over 56% in the past decade and over 7x leverage.
Annaly (NLY) reported earnings 30 days ago. What's next for the stock?
Annaly Capital's Easy Money Is Gone - But The 12% Yield Isn't
Annaly Capital Management's NLY performance and prospects remain closely tied to movements in mortgage rates and Federal Reserve policy.
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Annaly (NLY) is rapidly expanding its mortgage-backed securities portfolio, delivering strong Q4 results with robust net interest income and book value growth. NLY's net interest spread rose to 0.93%, the highest in a year, supported by 26% Y/Y net interest income growth and lower funding costs. The REIT's dividend remains well-covered with a 1.06X coverage ratio, positioning NLY as a compelling yield play for 2026, amid expectations of falling rates.