ANNALY CAPITAL MANAGEMENT INC

Annaly Capital Management, Inc. (NYSE: NLY) operates as a leading diversified capital manager specializing in residential mortgage finance investments. The company maintains its website at www.annaly.com and has elected to be taxed as a real estate investment trust (REIT) since its founding in 1997. As an internally-managed Maryland corporation, Annaly generates net income for distribution to stockholders by deploying capital coupled with borrowed funds to invest primarily in real estate-related investments, earning spreads between asset yields and borrowing costs.

The company operates through three primary investment groups. The Annaly Agency Group invests in Agency mortgage-backed securities collateralized by residential mortgages guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae, along with complementary Agency investments including Agency commercial mortgage-backed securities. The Annaly Residential Credit Group focuses on non-Agency residential whole loans and securitized products within residential and commercial markets. The Annaly Mortgage Servicing Rights Group invests in mortgage servicing rights, which provide the right to service residential mortgage loans in exchange for a portion of interest payments.

Annaly's business model emphasizes a shared capital approach, allowing the company to rotate investments based on relative value while managing risk across its diversified portfolio. The company maintains strategic relationships with industry-leading partners including mortgage loan originators, sub-servicing firms, and capital partners such as GIC Private Limited and Fifth Wall Ventures. As of December 31, 2025, Annaly employed 212 people and maintained a portfolio composition of 89 percent Agency assets, 7 percent Residential Credit, and 4 percent MSR investments.

The company finances its investments primarily through repurchase agreements, securitizations under its Onslow Bay private-label securitization program, and equity capital. Annaly's operating platform reflects significant investments in systems, infrastructure, and personnel, including proprietary portfolio analytics, financial modeling tools, and risk management systems. The company generally maintains an economic leverage ratio no greater than 10:1 and emphasizes conservative financial positioning relative to industry peers while pursuing attractive risk-adjusted returns for shareholders.