Annaly Capital’s floating-rate preferred share NLY-G currently yields approximately 8% on a dividend-to-price basis, with a yield to call of 14.1%, the highest among single-A-rated mortgage REIT preferred issues. Because its floating rate resets against short-term benchmarks, NLY-G trades at a discount to peers and has a thinner credit spread of 4.17%, compared with 4.99% on its NLY-F counterpart. Scenario analysis shows that even if short-term rates climb to 7%, Annaly is unlikely to call NLY-G, as the issue remains a cost-effective tool for locking in long-term funding without refinancing risk. Conversely, a sharp drop in rates could push NLY-G’s dividend below 5%, at which point the share price may modestly decline to restore yield levels comparable to other floating-rate issues in the sector. Annaly preferred shares have received a risk rating of 1 out of 5, the lowest in the mREIT space, reflecting the stability of agency mortgage-backed securities and the structure’s insulation from short-term funding volatility.

In its fourth quarter 2025 report, Annaly Capital delivered earnings of $0.74 per share, beating the Zacks Consensus Estimate of $0.72 by 3.25% and matching last year’s performance. Quarterly revenue rose to $366.58 million, up from $187.29 million a year earlier, although it missed the consensus by 21.8%. The year-over-year revenue rebound reflects higher net interest margins on agency mortgage-backed securities and disciplined balance-sheet reinvestment. On January 29, 2026, Wells Fargo reaffirmed an Overweight rating on Annaly shares, citing consistent earnings outperformance and a favorable financing profile, and raised its target return metrics based on anticipated stabilization of funding costs and potential spread compression as rate volatility moderates.