Company: NLY-PF
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001043219-25-000012
Chunk: 177

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 177
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%4.31%4.16%0.15%(0.38%)(0.23%)September 30, 2024$83,467,666 $85,529,919 $2,459,504 3.87%5.29%5.10%0.19%(1.42%)(1.23%)*  Represents a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section for additional information.(1) Economic interest expense is comprised of GAAP interest expense, the net interest component of interest rate swaps, and net interest on initial margin related to interest rate swaps, which is reported in Other, net in the Company’s Consolidated Statements of Comprehensive Income (Loss). Net interest on variation margin related to interest rate swaps is included in the Net interest component of interest rate swaps in the Company’s Consolidated Statements of Comprehensive Income (Loss).

Economic interest expense increased by $169.5 million for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to the reduction in the net interest component of interest rate swaps, which was $191.9 million for the three months ended September 30, 2025, compared to $317.5 million for the same period in 2024.  Adding to this increase was higher interest expense on increased securitized debt balances from new securitizations, partially offset by lower interest expense on repurchase agreements from lower average rates despite higher average balances.

Economic interest expense increased by $432.8 million for the nine months ended September 30, 2025 compared to the same period in 2024, primarily due to the reduction in the net interest component of interest rate swaps, which was $569.1 million for the nine months ended September 30, 2025, compared to $946.0 million for the same period in 2024. Adding to this increase was higher securitized debt balances from new securitizations, partially offset by lower interest expense on repurchase agreements from lower average rates despite higher average balances.

We do not manage our portfolio to have a pre-designated amount of borrowings at quarter or year end. Our borrowings at period end are a snapshot of our borrowings as of a date, and this number may differ from average borrowings over the period 

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