10 Most Undervalued REIT Stocks to Invest In Now

8. Annaly Capital Management, Inc. (NYSE:NLY)

Number of Hedge Fund Holders: 18

Forward P/E: 7.69

Annaly Capital Management, Inc. (NYSE:NLY) is a diversified capital manager that engages in the mortgage finance business. The firm’s portfolio includes securities, loans, and equity in the mortgage finance market. The REIT is a proven industry leader across the residential mortgage finance market with a scale 10x the size of the median mortgage REIT by market capitalization.

Annaly Capital Management, Inc. (NYSE:NLY) is utilizing a differentiated investing model comprising diversified investment strategies including agency mortgage-backed securities, mortgage servicing rights, and residential real estate. The REIT generated an economic return of 11.9% in 2024 driven by strong performance from each of these three investment strategies. While the Agency portfolio grew by nearly $5 billion through 2024, Residential Credit portfolio increased 17% year-over-year and the Mortgage Servicing Rights (MSR) portfolio grew by 24% year-over-year. Regarding the reiterated favorable dynamics for these businesses in 2025, David Finkelstein, the firm’s Chief Executive Officer, said:

“Agency MBS continues to provide attractive returns while an improved supply and demand picture, decreasing financing costs and a steeper yield curve are additional sector tailwinds. Meanwhile, our Residential Credit and MSR portfolios are well-positioned for further growth given Annaly’s deep capital base and strategic relationships with originators. As always, we remain prepared for continued volatility given our low leverage, ample liquidity and dynamic hedging and portfolio management.”