Company: NLY-PF
Filing Date: 2025-08-01
Form Type: 424B5
Source: 0001193125-25-171665
Chunk: 106

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-08-01
Form: 424B5
Chunk 106
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| • |     | If due to reasonable cause and not willful neglect we fail to satisfy either the 75% gross income test or the 95%                                                                                                                                     
 gross income test discussed below, but nonetheless maintain our qualification as a REIT because other requirements are met, we will be subject to a 100% tax on the greater of the amount by which we fail the 75% gross income test or the 95% gross 
 income test, multiplied in either case by a fraction intended to reflect our profitability.                                                                                                                                                           |

| • |     | If we fail to satisfy the asset tests (other than a de minimis failure of the 5% asset test or the 10% vote or                                                                                                                                    
 value test, as described below under “— Asset Tests”) as long as the failure was due to reasonable cause and not to willful neglect, we dispose of the assets or otherwise comply with such asset tests within six months after the last          
 day of the quarter in which we identify such failure and we file a schedule with the IRS describing the assets that caused such failure, we will pay a tax equal to the greater of $50,000 or the highest income tax rate then applicable to U.S. 
 corporations on the net income from the nonqualifying assets during the period in which we failed to satisfy such asset tests.                                                                                                                    |

| • |     | If we fail to satisfy one or more requirements for REIT qualification, other than the gross income tests and the                                            
 asset tests, and the failure was due to reasonable cause and not to willful neglect, we will be required to pay a penalty of $50,000 for each such failure. |

| • |     | We may be required to pay monetary penalties to the IRS in certain circumstances, including if we fail to meet                                                                                     
 recordkeeping requirements intended to monitor our compliance with rules relating to the composition of a REIT’s stockholders, as described below in “— Requirements for Qualification as a REIT.” |

| • |     | If we fail to distribute during each calendar year at least the sum of: |

| • |     | 85% of our ordinary income for such calendar year; |

| • |     | 95% of our capital gain net income for such calendar year; and |

| • |     | any undistributed taxable income from prior taxable years, |

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we will pay a 4% nondeductible excise tax on the excess of the required distribution over the amount we actually distributed, plus