Page 1

ANNALY® NEW YORK - October 27 , 2021 - Annaly Capital Management , Inc. ( NYSE : NLY ) ( " Annaly " or the " Company " ) today announced its financial results for the quarter ended September 30 , 2021 . Financial Highlights ● ANNALY CAPITAL MANAGEMENT , INC . REPORTS 3rd QUARTER 2021 RESULTS GAAP net income of $ 0.34 per average common share for the quarter Earnings available for distribution ( " EAD " ) of $ 0.28 per average common share for the quarter , down $ 0.02 quarter - over quarter with dividend coverage of + 125 % Economic return and tangible economic return of 2.9 % for the quarter Annualized GAAP return on average equity of 15.3 % and annualized EAD return on average equity of 12.8 % Book value per common share of $ 8.39 , up $ 0.02 from the prior quarter GAAP leverage of 4.4x down from 4.7x in the prior quarter ; economic leverage of 5.8x unchanged from the prior quarter Declared quarterly common stock cash dividend of $ 0.22 per share Business Highlights Investment and Strategy Total assets of $ 94.2 billion with Agency portfolio representing 92 % of total assets Annaly increased its Agency portfolio by nearly $ 3.0 billion during the quarter by redeploying capital from the sale of the Commercial Real Estate Business O The Mortgage Servicing Rights ( " MSR " ) portfolio , which is complementary to the Agency portfolio , increased 41 % quarter - over - quarter and represented 4 % of dedicated capital ( 2 ) Annaly Residential Credit Group , which represents 21 % of dedicated capital ( 3 ) , has now surpassed its pre - COVID portfolio size group continues to execute on its strategy as the Purchased approximately $ 1.4 billion of whole loans during the quarter Closed inaugural private closed - end Middle Market Lending fund subsequent to quarter end , raising $ 371 million of third - party capital that has been fully deployed at nearly $ 450 million in assets Completed the subsequent closing of previously announced $ 2.33 billion sale of Annaly's Commercial Real Estate Business during the quarter ( 4 ) O Financing and Capital $ 9.8 billion of unencumbered assets , including cash and unencumbered Agency MBS of $ 5.9 billion Financing costs hit another record low with average GAAP cost of interest bearing liabilities decreasing 3 basis points to 0.32 % and average economic cost of interest bearing liabilities decreasing 17 basis points to 0.66 % Annaly Residential Credit Group priced five residential whole loan securitizations totaling $ 1.9 billion since the beginning of the third quarter ( 5 ) Annaly Residential Credit Group expanded credit facility capacity by $ 300 million Raised $ 471 million year - to - date of accretive common equity through the Company's at - the - market sales program ) Corporate Responsibility & Governance Enhanced corporate governance guidelines and Board committee charters to reflect integrated ESG oversight across the Board and its committees Publicly released 2019 and 2020 EEO - 1 Reports and committed to annual disclosure of workforce diversity statistics in line with broader commitment to diversity and transparency Appointed Audrey K. Susanin , Deputy General Counsel , as Chief Compliance Officer and Johanna Griffin as Head of Risk " We are pleased with our third quarter results , which generated a positive economic return for shareholders and earnings available for distribution that continued to provide ample coverage for our current dividend , " remarked David Finkelstein , Annaly's Chief Executive Officer and Chief Investment Officer . " We modestly grew our Agency portfolio redeploying proceeds from our Commercial Real Estate divestiture , while the market removed some event risk given greater clarity from the Federal Reserve on its upcoming asset taper . Our complementary credit portfolio continues to have strong tailwinds and increased to 30 % of our dedicated capital during the quarter . In particular , we maintain a favorable outlook for Annaly's Residential Credit Group , which priced five securitizations since the beginning of the quarter totaling nearly $ 2 billion . Further , our Middle Market Lending Group achieved a major corporate milestone by closing its inaugural private fund subsequent to quarter end , which will significantly enhance the platform's long - term growth potential . "