Annaly Capital prices $250 million preferred stock offering

NEW YORK - Annaly Capital Management, Inc. (NYSE:NLY), a $13.05 billion market cap mortgage REIT with a remarkable 29-year dividend payment history, announced Thursday it has priced a public offering of 10 million shares of its 8.875% Series J Fixed-Rate Cumulative Redeemable Preferred Stock, raising approximately $250 million in gross proceeds.

The preferred stock has a liquidation preference of $25.00 per share and is expected to close on or about August 7, 2025, subject to customary closing conditions. Annaly has applied to list the Series J Preferred Stock on the New York Stock Exchange under the symbol "NLY.J." According to InvestingPro, the company currently offers an attractive 13.77% dividend yield and appears undervalued based on its Fair Value analysis.

The company has granted underwriters a thirty-day option to purchase up to an additional 1.5 million shares to cover over-allotments.

Annaly intends to use the net proceeds to acquire targeted assets under its capital allocation policy, including Agency MBS pools, to-be-announced forward contracts, mortgage servicing rights and residential credit assets. The funds will also support general corporate purposes.

Morgan Stanley, BofA Securities, Goldman Sachs, J.P. Morgan, RBC Capital Markets, UBS Investment Bank and Wells Fargo Securities are acting as joint book-running managers for the offering. Keefe, Bruyette & Woods and Piper Sandler are serving as co-managers.

Annaly Capital Management is a diversified capital manager focused on mortgage finance strategies. The company is internally managed and has elected to be taxed as a real estate investment trust.

The information in this article is based on a press release statement from Annaly Capital Management.

In other recent news, Annaly Capital Management Inc. reported its second-quarter 2025 earnings, showcasing a mixed financial performance. The company surpassed earnings per share (EPS) expectations, achieving an EPS of $0.73, which was higher than the projected $0.71. However, Annaly’s revenue came in significantly lower than anticipated, with actual revenue reported at $273.2 million compared to the forecasted $461.81 million. These recent developments highlight the company’s ability to manage earnings despite falling short in revenue generation. The earnings report did not indicate significant stock price movement following the announcement. Investors and analysts are likely to closely monitor Annaly’s financial strategies moving forward.

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