Company: NLY-PF
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001043219-25-000012
Chunk: 147

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 147
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 its obligations under contractual terms. The Company has established policies and procedures for mitigating credit risk, including reviewing and establishing limits for credit exposure, limiting transactions with specific counterparties, pre-purchase due diligence, maintaining qualifying collateral, continually assessing the creditworthiness of issuers, borrowers and counterparties, credit rating monitoring and active servicer oversight.The Company depends on third party service providers to perform various business processes related to its operations, including mortgage loan servicers and sub-servicers. The Company’s vendor management policy establishes procedures for engaging, onboarding and monitoring the performance of third party vendors. For mortgage loan servicers and sub-servicers, these procedures include assessing a vendor’s financial health as well as oversight of its compliance with applicable laws and regulations, cybersecurity and business continuity programs and security of personal information.

19.  LEASE COMMITMENTS AND CONTINGENCIES The Company’s operating leases are primarily comprised of corporate office leases with remaining lease terms of approximately two years and seventeen years. The corporate office leases include options to extend for up to five years, however the extension terms were not included in the operating lease liability calculation. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The lease cost for the three and nine months ended September 30, 2025 was $1.5 million and $4.2 million, respectively. The lease cost for the three and nine months ended September 30, 2024 was $0.8 million and $2.5 million, respectively.Supplemental information related to leases as of and for the nine months ended September 30, 2025 was as follows:Operating LeasesClassificationSeptember 30, 2025Assets(dollars in thousands)Operating lease right-of-use assetsOther assets$26,814 LiabilitiesOperating lease liabilities (1)Other liabilities$31,606 Lease term and discount rateWeighted average remaining lease term16.4 yearsWeighted average discount rate (1)7.0%Cash paid for amounts included in the measurement of lease liabilities   Operating cash flows from operating leases$3,086 (1) For the Company’s leases that do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at adoption date in determining the present value of lease payments.The following table provides details related to maturities of lease liabilities:Maturity of Lease LiabilitiesYears ending December