Mission Statement, Vision, & Core Values of Annaly Capital Management, Inc. (NLY)

A company's Mission, Vision, and Core Values aren't just HR boilerplate; they are the strategic compass that dictates how capital is deployed, especially for a giant like Annaly Capital Management, Inc. (NLY), which reported a total portfolio of $97.8 billion in the third quarter of 2025. Given the complexity of the mortgage real estate investment trust (mREIT) sector, where market shifts can swing GAAP net income to $1.21 per average common share, do you defintely know how their core values-like 'Ownership' and 'Humility'-translate into actual investment decisions and risk management? We'll map their stated purpose to the hard numbers, so you can see if their foundational principles truly guide their strategy in a volatile market.

Annaly Capital Management, Inc. (NLY) Overview

Annaly Capital Management, Inc. is one of the largest mortgage Real Estate Investment Trusts (mREITs), a complex but essential part of the US housing finance market. You need to look past the traditional real estate model, because Annaly doesn't buy physical property; it invests in the debt that finances it.

Founded in 1996 and completing its IPO in 1997, Annaly has evolved from a pure-play agency mREIT into a diversified capital manager. Its core business is generating net income for shareholders by capitalizing on the spread between the interest earned on its assets and its cost of borrowing. The company has paid out over $28 billion in dividends across more than 100 consecutive quarters, which is a testament to its long-term strategy.

The company's investment strategy is structured around three main groups:

• Agency Portfolio: Highly liquid, government-guaranteed mortgage-backed securities (MBS) from entities like Fannie Mae and Freddie Mac.
• Residential Credit: Non-Agency residential whole loans and securitized products, offering higher yields.
• Mortgage Servicing Rights (MSRs): Contracts that grant the right to service residential mortgage loans for a fee.

For the trailing twelve months (TTM) ending in the first quarter of 2025, Annaly's revenue stood at approximately $0.93 billion USD. That's the top-line number, but the real story is in the portfolio scale, which hit a massive $97.8 billion as of the third quarter of 2025.

2025 Financial Performance: Portfolio Strength and Record Activity

The latest financial reports through the third quarter of 2025 show Annaly navigating a dynamic rate environment with strong execution, particularly in its credit-focused segments. For the quarter ending September 30, 2025, the company delivered a solid economic return of 8.1%, bringing the year-to-date economic return to 11.5%. This is what you want to see: a diversified return profile.

Earnings available for distribution (EAD)-the most relevant metric for an mREIT's capacity to pay dividends-was strong at $0.73 per average common share for the third quarter, comfortably exceeding the common stock cash dividend of $0.70 per share. Here's the quick math: EAD coverage is solid, which is crucial for income investors. GAAP net income for the quarter was even higher at $1.21 per average common share.

The Residential Credit portfolio, a key area of diversification, saw a 4% increase, growing to $6.9 billion. This segment drove a record-breaking quarter for main product sales, closing nearly $4 billion in securitization issuance, demonstrating the company's ability to create and monetize credit assets in a challenging market. The Mortgage Servicing Rights (MSR) portfolio also grew by 6% to a market value of $3.5 billion.

Annaly Capital Management: A Titan in the mREIT Industry

Annaly Capital Management is defintely a titan in the mortgage REIT sector. It is consistently ranked among the top three largest pure-play agency mREIT competitors by market capitalization, a position solidified by its immense asset size. Its total portfolio of nearly $98 billion is a scale advantage that translates directly into a lower economic cost of funds and operational efficiency compared to many peers.

The strategic focus on a diversified portfolio-Agency MBS, Residential Credit, and MSRs-allows Annaly to better manage the inherent interest rate risk (the biggest challenge for mREITs) and position itself for opportunities like the ongoing runoff of the Federal Reserve's MBS portfolio. The company is a sophisticated capital manager, not just a passive investor. To understand the full scope of this powerhouse, including its history, ownership structure, and how its complex business model generates substantial income, you should find out more below. Annaly Capital Management, Inc. (NLY): History, Ownership, Mission, How It Works & Makes Money

Annaly Capital Management, Inc. (NLY) Mission Statement

Annaly Capital Management's mission is fundamentally about disciplined capital management and long-term value creation for its shareholders, which it achieves by powering American homeownership. The core purpose is clear: to generate net income for distribution to stockholders and optimize returns through the prudent management of its diversified investment strategies, all while leading the market with vision and agility.

This mission is the bedrock of the company's strategy, especially for a real estate investment trust (REIT) focused on mortgage finance. It guides every major decision, from portfolio allocation-like the $97.8 billion total portfolio as of Q3 2025-to risk management, ensuring the firm remains a leader in a constantly shifting interest rate environment.

Honestly, a mission statement in finance is only as good as the execution, and Annaly's recent performance shows this commitment in action. The company generated an impressive 8.1% economic return in the third quarter of 2025 alone, pushing the year-to-date economic return to 11.5%.

You can see the full scope of their market positioning and who benefits from this mission by reading Exploring Annaly Capital Management, Inc. (NLY) Investor Profile: Who's Buying and Why?

Core Component 1: Disciplined Strategy and Ownership Mentality

The first critical component of Annaly's mission is the focus on disciplined strategy, which is directly supported by the core value of Ownership. This isn't just a buzzword; it's an entrepreneurial culture that empowers every professional to think and invest in the company's success. For a diversified capital manager, this means rigorously managing a massive balance sheet, which reported total assets of $125.86 billion as of September 30, 2025.

The practical application of this discipline is visible in their hedging strategy. For instance, in Q3 2025, the hedge ratio was maintained at a defensive 92%, with new hedges primarily allocated to swaps to enhance the portfolio's overall return profile. That's a clear action point showing an owner's mindset toward risk.

Here's the quick math on their core performance: the Earnings Available for Distribution (EAD)-the non-GAAP metric that best reflects their operating earnings-was $0.73 per share for Q3 2025, comfortably out-earning the $0.70 common stock cash dividend.

Core Component 2: Prudent Management and Accountability

The second pillar is the commitment to Prudent Management, which is underpinned by the core value of Accountability. In the complex world of mortgage-backed securities (MBS) and residential credit, prudence means actively managing leverage and maintaining liquidity. The company takes pride in advancing its commitments to shareholders and partners alike, which requires transparent reporting on key financial metrics.

The firm's book value per share rose to $19.25 in Q3 2025, up 4.3% from the prior quarter, a direct result of this prudent management and effective portfolio execution. This growth shows that their diversified approach-across Agency MBS, Residential Credit, and Mortgage Servicing Rights (MSRs)-is working to build shareholder equity, even amidst market volatility.

• Book value per share: $19.25 in Q3 2025.
• GAAP leverage: 7.1x, unchanged quarter-over-quarter.
• Residential Credit securitizations: record $3.9 billion in Q3 2025.

To be fair, managing a mortgage REIT involves high leverage, which inherently increases risk, but their stable GAAP leverage of 7.1x in Q3 2025 suggests a defintely controlled risk posture.

Core Component 3: Evolving for Shareholders and Collaboration

The final component is the mission to continually evolve and expand to best serve shareholders and strengthen the economy, which aligns with the core value of Collaboration. This means fostering a culture that drives innovation and a shared sense of purpose. For Annaly, this evolution is seen in their strategic expansion into higher-yielding, less liquid assets like Residential Credit and MSRs, moving beyond their core Agency MBS portfolio.

The company's revenue for Q3 2025 reached a strong $885.6 million, significantly topping analyst expectations, which is a tangible benefit of this diversified, collaborative strategy. This growth is fueled by their established platforms, which allow for capital rotation based on relative value, a key to optimizing returns.

Their Residential Credit Group, for example, closed a record eight securitizations totaling nearly $4 billion during the third quarter of 2025, a clear sign that collaborative execution across their business lines is driving product and service delivery. This strategic growth is what allows them to consistently deliver attractive investment returns throughout market cycles.

Annaly Capital Management, Inc. (NLY) Vision Statement

You're looking for the blueprint of Annaly Capital Management, Inc.'s strategy-the vision that ties their high-yield mortgage real estate investment trust (mREIT) model together. The core takeaway is simple: Annaly is focused on leading in a volatile, changing market by using a diversified, three-pronged investment strategy to generate stable, long-term risk-adjusted returns for you, the shareholder. They don't just react; their vision is to evolve ahead of change.

This isn't just corporate-speak; it's a necessity for an mREIT. Look at the numbers: through the third quarter of 2025, Annaly generated an 11.5% economic return year-to-date, proving this diversified approach is working even with fluctuating interest rates. That's a strong signal the strategy is holding up.

The Vision: Leading in a Changing Market with Diversification

Annaly's vision to "lead in a changing market" is executed through a disciplined, diversified strategy across three distinct asset classes. This combination on the balance sheet is what they believe delivers superior risk-adjusted returns and stability across different economic environments. It's a smart move because it allows them to rotate capital into the most attractive segment without having to chase yield in a single, crowded market.

Their total portfolio hit $97.8 billion as of September 30, 2025, and this capital is strategically split. The diversification is what mitigates the biggest risk in the mREIT space-interest rate volatility. They use a mix of assets to balance out the risk profile:

• Agency Portfolio: $87.3 billion in highly liquid Agency mortgage-backed securities (MBS). This is the core, low-credit-risk engine.
• Residential Credit Portfolio: $6.9 billion in non-Agency residential mortgage assets. This adds higher-yielding credit exposure.
• Mortgage Servicing Rights (MSR): $3.5 billion in market value. MSRs act as a natural hedge, appreciating when interest rates rise, which is the opposite of Agency MBS.

The vision is to use this breadth of investment options and a robust capital allocation process to take advantage of market dislocations as they arise. It's about having the right tools for every kind of housing market.

Mission: Generating Consistent Net Income for Stockholders

The mission is the engine driving the vision: to consistently generate net income for distribution to its stockholders and optimize returns through prudent management. For you, the investor, this translates directly into the dividend. The company's focus is on Earnings Available for Distribution (EAD), which is the truest measure of their operating performance and dividend coverage.

In the third quarter of 2025, Annaly reported EAD of $0.73 per average common share, which exceeded the common stock cash dividend of $0.70 per share for the quarter. That's the kind of precision you want to see-earnings covering the payout. This solid performance, supported by a Q3 2025 GAAP net income of $1.21 per average common share, reinforces the company's ability to maintain a high, albeit variable, payout level.

Here's the quick math: the annualized dividend of $2.80 per share delivers a substantial yield, which is the primary return mechanism for an mREIT. The variable nature of the dividend, tied to distributable earnings, is a feature, not a bug, in a fluctuating rate environment. For a deeper dive into who is buying into this model, you should be Exploring Annaly Capital Management, Inc. (NLY) Investor Profile: Who's Buying and Why?

Core Values: The Culture of Long-Term Value

Annaly's long-term management vision is underpinned by five core values, which are the cultural framework for how they make investment decisions and serve shareholders. These aren't just posters on a wall; they dictate the rigor (disciplined strategy) and agility (evolve ahead of change) of the investment team.

The five core values are:

• Ownership: Think like an owner; this entrepreneurial culture empowers people to invest in the company's success.
• Humility: Operate with humility; a humble mindset keeps them grounded and focused on shareholder results.
• Accountability: Be accountable; they take pride in advancing commitments to shareholders.
• Collaboration: Drive collaboration; essential for managing complex, diversified strategies.
• Diversity, Equity and Inclusion: Champion DEI; a deep-rooted history of championing diverse talent.

The value of 'Humility' is defintely critical in a leveraged business like an mREIT. It translates to prudent risk management, which is evident in their Q3 2025 book value per common share of $19.25 and a stable economic leverage of 5.7x. You need a management team that respects the market's power, and these values are the guardrails for that respect.

Annaly Capital Management, Inc. (NLY) Core Values

You're looking for the bedrock of Annaly Capital Management, Inc.'s strategy-the core values that drive their investment decisions and, ultimately, your returns. It's not just about the mortgage real estate investment trust (mREIT) structure; it's about the culture. The direct takeaway is that Annaly's culture is built on Ownership, Humility, and a commitment to Responsible Investment that ties their financial performance directly to the stability of the U.S. housing market.

This isn't corporate fluff; these values map to concrete actions on their balance sheet, which is what matters for a diversified capital manager of Annaly's scale. We can see this in their Q3 2025 results, which show the deliberate deployment of capital to generate strong shareholder value while managing risk.

Ownership: Thinking Like a Capital Partner

The core value of Ownership means every employee is encouraged to think and act like an owner, which translates directly into a relentless focus on maximizing risk-adjusted returns for stockholders. This entrepreneurial culture empowers people to invest in the Company's success, so the financial results become a defintely clear measure of this value in action.

Here's the quick math on how this value delivered in Q3 2025: Annaly generated an 8.1% economic return for the quarter, contributing to an 11.5% economic return year-to-date through September 30, 2025. This return profile supported the common stock cash dividend of $0.70 per share for the third quarter, a clear commitment to distributing net income to owners. You want your management team to act like they own the business, and these numbers show that alignment.

• Drove $19.25 Book Value per common share in Q3 2025.
• Deployed accretive capital into specified Agency Mortgage-Backed Securities (MBS) pools.
• Maintained a total portfolio of $97.8 billion as of Q3 2025.

Humility: Prudent Risk Management and Diversification

Operating with Humility means Annaly acknowledges the inherent volatility in the interest rate and housing markets-they don't bet the farm. This value is expressed through a disciplined strategy of diversification and hedging (using financial instruments to offset potential losses). In an elevated interest rate environment, this caution is paramount.

The Company's risk management stance remained prudent throughout 2025. For example, the hedge ratio was unchanged at 92% in Q3 2025, which shows a consistent, non-speculative approach to managing interest rate risk. The strategy of combining three distinct investment strategies-Agency, Residential Credit, and Mortgage Servicing Rights (MSR)-on one balance sheet is the most tangible example of this value. This diversification helps provide stability across different economic cycles.

• Kept the hedge ratio at a defensive 92% in Q3 2025.
• Increased the MSR portfolio by 6% to $3.5 billion in market value in Q3 2025.
• Used swaps as primary new hedges to enhance the portfolio's overall return profile.

Responsible Investment and Inclusion: Powering Homeownership

Annaly's mission is to best serve shareholders, vitalize local communities, and strengthen the economy. This is what they call Responsible Investments, and it's deeply tied to their culture of Diversity, Equity, and Inclusion (DEI). They aim to drive homeownership for all Americans, which is a powerful social mandate for a financial institution. You can see how Annaly Capital Management, Inc. is managing the complexities of the market by Breaking Down Annaly Capital Management, Inc. (NLY) Financial Health: Key Insights for Investors.

Their commitment to this value is evident in the Residential Credit business, which directly supports housing finance. In Q3 2025, the Residential Credit Group closed a record eight securitizations totaling $3.9 billion, facilitating the flow of capital to the housing market. Also, in August 2025, they acted as co-manager on a $701,026,793 Residential Mortgage-Backed Securities (RMBS) transaction, demonstrating their role in the securitization market. On the Human Capital side, their commitment to DEI, including various Employee Networks (like the Black Employee Network and Annaly Pride), fosters an inclusive culture that ultimately drives better decision-making.

• Facilitated $3.9 billion in housing finance through Q3 2025 securitizations.
• Maintained a focus on Human Capital with firm-wide training on inclusive leadership.
• Champions diversity, as evidenced by their inclusion in the Bloomberg Gender-Equality Index for six consecutive years.