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ANNALY® NEW YORK - July 28 , 2021 - Annaly Capital Management , Inc. ( NYSE : NLY ) ( " Annaly " or the " Company " ) today announced its financial results for the quarter ended June 30 , 2021 . Financial Highlights ● Business Highlights Investment and Strategy Total assets of $ 92.9 billion with capital allocation to credit increasing approximately 200 basis points to 29 % ( 2² ) Annaly prudently managed its Agency portfolio amidst a challenging environment for Agency MBS including spread widening on lower rates , rising volatility and continued elevated speeds and supply ; meanwhile , the complementary MSR platform saw meaningful growth , with the portfolio nearly doubling quarter - over - quarter ● GAAP net income ( loss ) of ( $ 0.23 ) per average common share for the quarter Earnings available for distribution ( “ EAD ” ) ( formerly core earnings ( excluding PAA ) ) of $ 0.30 per average common share for the quarter , up $ 0.01 quarter - over - quarter with dividend coverage of + 135 % Economic return ( loss ) and tangible economic return ( loss ) of ( 4.0 % ) for the quarter Annualized GAAP return ( loss ) on average equity of ( 8.5 % ) and annualized EAD return on average equity of 13.1 % Book value per common share of $ 8.37 GAAP leverage of 4.7x up from 4.6x in the prior quarter ; economic leverage of 5.8x , down from 6.1x in the prior quarter Declared quarterly common stock cash dividend of $ 0.22 per share ● ANNALY CAPITAL MANAGEMENT , INC . REPORTS 2nd QUARTER 2021 RESULTS Capital allocation to residential credit increased from 13 % to 19 % as the portfolio grew 22 % quarter - over - quarter Portfolio increase driven primarily by ~ $ 1.0 billion of whole loan purchases demonstrating continued progress in executing our residential credit strategy , including the launch of our residential whole loan correspondent channel O Annaly Middle Market Lending Group closed six deals during the quarter with an average commitment size of $ 76 million Acted as Lead Left Arranger and Administrative Agent on a $ 715 million senior secured credit facility , which was successfully syndicated subsequent to quarter end , resulting in a final commitment of approximately $ 150 million Previously announced sale of Annaly's Commercial Real Estate Business on track to be completed as planned ; subsequent to quarter end , the platform and the significant majority of the assets were transferred with remaining assets expected to be transferred by the end of the third quarter of 2021 O Financing and Capital $ 9.6 billion of unencumbered assets , including cash and unencumbered Agency MBS of $ 4.7 billion Sustained record - low financing costs with average GAAP cost of interest bearing liabilities decreasing 7 basis points to 0.35 % and average economic cost of interest bearing liabilities decreasing 4 basis points to 0.83 % Annaly Residential Credit Group priced three residential whole loan securitizations totaling $ 1.1 billion since the beginning of the second quarter ( ³ ) Raised approximately $ 420 million of accretive common equity through the Company's at - the - market sales program Corporate Responsibility & Governance Published second Corporate Responsibility Report , which demonstrates Annaly's continued focus on ESG endeavors . Key highlights of the 2020 report include : O O Introduced a new commitment to further assess climate change risks and opportunities , taking into consideration the recommendations of the Task Force on Climate - related Financial Disclosures ( " TCFD " ) Included additional Sustainability Accounting Standards Board ( " SASB " ) disclosures under the Mortgage Finance Standards for our Residential Credit business , supplementing our existing disclosures under the SASB and Global Reporting Initiative ( " GRI " ) reporting frameworks Purchased carbon credits to offset 100 % of our Scope 2 greenhouse gas emissions " During the second quarter , Annaly navigated a more challenging market backdrop marked by heightened rate and spread volatility , an elevated prepay environment and increased discussion of an eventual Fed Taper , " remarked David Finkelstein , Annaly's Chief Executive Officer and Chief Investment Officer . " We proactively reduced leverage and the size of our portfolio while increasing liquidity to preserve capital for more attractive investment opportunities throughout the balance of the year . Despite the more conservative posturing , we generated robust earnings for the quarter well in excess of our dividend . "