Core Viewpoint - MFA Financial reported quarterly earnings of $0.36 per share, missing the Zacks Consensus Estimate of $0.41 per share, and showing a decrease from $0.40 per share a year ago, indicating an earnings surprise of -12.20% [1][2] Financial Performance - The company posted revenues of $50.63 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 6.25%, compared to $46.14 million in the same quarter last year [2] - Over the last four quarters, MFA Financial has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - MFA Financial shares have increased approximately 9.3% since the beginning of the year, while the S&P 500 has gained 21.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.40 on revenues of $55.4 million, and for the current fiscal year, it is $1.60 on revenues of $211 million [7] Industry Outlook - The REIT and Equity Trust industry, to which MFA Financial belongs, is currently ranked in the bottom 45% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can materially affect stock performance [5][8]

MFA Financial, Inc. (MFA) is slated to report third-quarter 2024 results on Nov. 6. The company is likely to have registered year-over-year growth in revenues and earnings.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the last reported quarter, this real estate investment trust, which is primarily engaged in the business of investing in mortgage-backed securities, posted distributable earnings of 44 cents, beating the Zacks Consensus Estimate by 15.8%. Revenues were $53.49 mill ...

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Quite a few REITs (Real Estate Invesment Trusts) have made their way onto the Zacks Rank #1 (Strong Buy) list with several standing out in terms of affordability. Trading under $20 a share, these REIT stocks have annual dividend yields over 10% which may certainly peak investors' interest. MFA Financial At $12, MFA Financials' (MFA) stock currently has a 10.96% annual dividend yield. More intriguing is that MFA trades at just 7.8X forward earnings with the company's focus being on mortgage-backed securities ...

Core Viewpoint - MFA Financial (MFA) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, largely due to institutional investors adjusting their valuations based on these estimates [4][6]. Recent Performance and Projections - MFA Financial is projected to earn $1.60 per share for the fiscal year ending December 2024, representing a year-over-year increase of 0.6% [8]. - Over the past three months, the Zacks Consensus Estimate for MFA Financial has increased by 1.8%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of MFA Financial to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term [10].

Financial Data and Key Metrics Changes - For Q2 2024, GAAP earnings were $41.9 million, or $0.32 per basic common share, an increase from $23.2 million, or $0.14 per basic common share in Q1 2024 [12] - Distributable earnings increased to $45.6 million, or $0.44 per basic common share, up from $0.35 in Q1 2024 [13] - GAAP and economic book values remained flat at $13.80 and $14.34 per common share, respectively [12] Business Line Data and Key Metrics Changes - The delinquency rate in the residential loan portfolio decreased to 6.5% from 6.9% at the end of Q1 2024, while multifamily transitional loan delinquencies increased [7][8] - Lima One originated approximately $410 million of business purpose loans (BPLs) in Q2 2024, maintaining a consistent origination volume [21] - The average loan-to-value (LTV) ratio for acquired loans was 65%, with an average FICO score of 750 [18] Market Data and Key Metrics Changes - The overall market environment was volatile, with two-year treasuries fluctuating between 5% and 4.75% during the quarter [4] - Securitization spreads remained stable, with recent Non-QM deals pricing in the low 5% yields [11] - The company observed a significant increase in paydowns across the portfolio, with over $640 million paying off in the quarter, a 50% increase quarter-over-quarter [19] Company Strategy and Development Direction - The company is refocusing resources away from multifamily lending due to market challenges and is concentrating on single-family transitional and rental lending [8][22] - The appointment of Josh Woodward as CEO of Lima One is expected to drive future growth in residential transitional and single-family rental lending [9] - The company plans to continue leveraging its securitization strategy to optimize its liability framework and unlock capital for reinvestment [6][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2024, citing potential Fed rate cuts and a more constructive environment for loan prices [10][11] - The company anticipates some level of increased volatility in reported distributable earnings due to the timing of resolutions of delinquent fair value loans [15] - Management highlighted the importance of their asset management capabilities in addressing delinquent loans effectively [30] Other Important Information - The company completed a $75 million senior unsecured bond offering with a 9% coupon rate and paid off $170 million of convertible senior notes [5] - Subsequent to the quarter-end, the economic book value is estimated to have increased by approximately 2% to 3% due to lower market interest rates [17] Q&A Session Summary Question: What are the expectations for multifamily delinquencies? - Management noted that while delinquencies increased, the total balance was manageable, and they have a strong asset management team to address these issues [31][32] Question: How does the company view the Non-QM market as rates decrease? - Management expects increased demand for Non-QM loans as rates decline, with a focus on flow channels for sourcing loans [38][39] Question: What is the potential mark-to-market upside if the Fed cuts rates by 50 basis points? - A 50 basis point cut could imply about a 3% upside in equity [42] Question: How does the company plan to manage securitization spreads moving forward? - Management indicated that while spreads may widen temporarily with a strong rally in rates, demand for securitizations remains robust [49][50]

Financial Performance - GAAP book value remained unchanged at $13.80 per common share, while economic book value rose to $14.34 per common share[7] - Distributable earnings were $0.44 per common share[7] - Net interest income increased to $53.5 million, up from $47.8 million in Q1[8] - A dividend of $0.35 per share was declared[8] Investment Activity - $688 million of high-yielding residential mortgage loans were acquired or originated[8] - $864 million of residential loans and securities were acquired, growing the investment portfolio to $10.2 billion[8] - Lima One originated loans with a maximum UPB of $412 million at an average coupon of 10%[8, 11] Portfolio Composition - Non-QM loans and Business Purpose Loans each represent $4.0 billion of the investment portfolio[9] - Agency MBS comprise $0.7 billion of the portfolio, while Legacy RPL/NPL account for $1.1 billion[9] Liabilities and Hedging - $2.7 billion of unused financing capacity is available across all loan product types[9] - $3.3 billion interest rate hedge has a positive carry of nearly 350 bps[10] - The weighted average fixed pay rate on interest rate swaps was 1.92%, while the variable receive rate was 5.33%[10]

Core Viewpoint - MFA Financial reported quarterly earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.38 per share, and showing an increase from $0.40 per share a year ago, representing an earnings surprise of 15.79% [1][2] Financial Performance - The company posted revenues of $53.49 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 12.14%, compared to revenues of $44.51 million in the same quarter last year [2] - Over the last four quarters, MFA Financial has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance and Outlook - MFA Financial shares have declined approximately 3.9% since the beginning of the year, while the S&P 500 has gained 9% [3] - The company's current consensus EPS estimate for the upcoming quarter is $0.39 on revenues of $50.05 million, and for the current fiscal year, it is $1.52 on revenues of $197.6 million [7] Industry Context - The REIT and Equity Trust industry, to which MFA Financial belongs, is currently ranked in the top 19% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

RUNSTUDIO/DigitalVision via Getty Images MFA Financial (NYSE:MFA) is a mortgage REIT that has a couple of interesting things going for it right now. Its dividend yield trades at a high 13%, and this also comes with a discount to book value. @ MFA Comments of Collection Co.SE MFA Price/Book 5Y History (Seeking Alpha) At 0.58, this looks like a large discount. During this period as well, the company has made some changes to its strategy to avoid some of the pitfalls of the past. After examining where they are ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13991 MFA FINANCIAL, INC. (Exact name of registrant as specified in its charter) ______________________________ ...