Company: NLY-PF
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001043219-25-000012
Chunk: 17

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 2
Chunk 17
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 periods, but not the current period, of quarter-over-quarter changes in estimated long-term prepayment speeds related to our Agency mortgage-backed securities, is used by management and, we believe, used by analysts and investors to measure our progress in achieving our principal business objective. 

We seek to fulfill our principal business objective through a variety of factors including portfolio construction, the degree of market risk exposure and related hedge profile, and the use and forms of leverage, all while operating within the parameters of our capital allocation policy and risk governance framework. 

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ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIESItem 2. Management’s Discussion and Analysis 

We believe these non-GAAP measures provide management and investors with additional details regarding our underlying operating results and investment portfolio trends by (i) making adjustments to account for the disparate reporting of changes in fair value where certain instruments are reflected in GAAP net income (loss) while others are reflected in other comprehensive income (loss), and (ii) by excluding certain unrealized, non-cash or episodic components of GAAP net income (loss) in order to provide additional transparency into the operating performance of our portfolio. In addition, EAD serves as a useful indicator for investors in evaluating our performance and ability to pay dividends. Annualized EAD return on average equity, which is calculated by dividing earnings available for distribution over average stockholders’ equity, provides investors with additional detail on the earnings available for distribution generated by our invested equity capital. 

The following table presents a reconciliation of GAAP financial results to non-GAAP earnings available for distribution for the periods presented:

 For the Three Months Ended September 30,For the Nine Months Ended September 30, 2025202420252024 (dollars in thousands, except per share data)GAAP net income (loss)$843,063 $82,351 $1,033,739 $538,692 Adjustments to exclude reported realized and unrealized (gains) lossesNet (gains) losses on investments and other (1)(560,957)(1,724,051)(1,454,781)(161,057)Net (gains) losses on derivatives (2)284,199 2,071,493 2,028,046 892,383 Other adjustmentsAmortization of intangibles673 673 2,018 2,019 Non-EAD (income) loss allocated to equity method investments (3)376 1,465