Company Overview - Binary Tree Analytics (BTA) has a background in investment banking cash and derivatives trading, focusing on providing transparency and analytics for capital markets instruments and trades [1] - BTA specializes in Closed-End Funds (CEFs), Exchange-Traded Funds (ETFs), and Special Situations, aiming to deliver high annualized returns with a low volatility profile [1] - The company has over 20 years of investment experience, having obtained a Finance major from a top university [1]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ 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) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) ...

Core Viewpoint - MFA Financial, Inc. has declared dividends on its Series B and Series C preferred stocks, indicating a commitment to returning value to shareholders through consistent dividend payments [1] Group 1: Dividend Declaration - The Board of Directors has declared dividends on the Company's outstanding 7.50% Series B Cumulative Redeemable Preferred Stock [1] - The Board has also declared dividends on the 6.50% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock [1]

Financial Data and Key Metrics Changes - As of December 31, GAAP book value was $13.20 per share, and economic book value was $13.75 per share, both showing modest increases from the end of September [21] - Total economic return for the fourth quarter was 3.1% and 9% for the full year of 2025, with total shareholder return for the year at 6% [11][21] - GAAP earnings for the fourth quarter were $54.3 million, or $0.42 per basic common share, with net interest income at $55.5 million, a slight decline from $56.8 million in the previous quarter [23] Business Line Data and Key Metrics Changes - In the fourth quarter, the company acquired $1.9 billion of loans and securities, including $1.2 billion of agencies and $443 million of non-QM loans [13] - The agency book grew by over 50% to $3.3 billion during the quarter, with a focus on low pay-up spec pools [29] - Lima One originated $226 million of new loans in the fourth quarter, including various types of loans, contributing to $5.7 million of mortgage banking income [32] Market Data and Key Metrics Changes - The Bloomberg US Aggregate Index increased by 7.3% in 2025, following a decline of 7.1% over the previous three years [6] - Treasury rates declined, with 2-year yields dropping 77 basis points and 10-year yields dropping by 39 basis points, leading to a steepening of the 2-10 spread from 32 basis points to 70 basis points [7] Company Strategy and Development Direction - The company is focused on increasing earnings and return on equity (ROE) through strategic initiatives, including deploying over $100 million of excess cash into target assets [12] - The company plans to relaunch multifamily lending and has made investments in technology and sales force at Lima One to enhance growth [14][15] - The company is optimistic about 2026, expecting supportive government policies and favorable market conditions to drive growth [10] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 felt like an exit from a challenging period for fixed income investors, with lower rates and volatility creating a favorable environment for the mortgage market [5][9] - The company expects to see the results of its strategic initiatives reflected in financials in 2026, with a focus on resolving delinquent loans and reducing expenses [17][20] Other Important Information - The company reported a decline in general and administrative (G&A) expenses to $119 million in 2025 from $132 million in 2024, achieving a reduction of approximately 9.5% [25] - Approximately 40% of the 2025 common dividends were treated as a tax-deferred return of capital, enhancing the after-tax yield for shareholders [21][22] Q&A Session Summary Question: Can you talk about the run rate ROE on your EAD once loss provisions are through? - Management indicated that DE on a lossless basis was in the 8%-9% range, expected to rise to 10-11% in the back half of 2026 [44] Question: Can you discuss the re-entry into the multifamily market? - The company is targeting higher quality loans with larger unit sizes and an originate-to-sell model to capture fees [46] Question: How do you think about the potential deals that could be called? - Management noted that several deals could unlock $50 million-$100 million of capital for reinvestment [52] Question: How should we think about capital allocation going forward? - The expectation is to initially increase investments in the agency portfolio before transitioning to non-QM and BPL asset classes [55] Question: What are your expectations for margins and total volumes throughout the year? - The company anticipates healthy spreads and significant growth potential, particularly in the back half of the year [70]

Financial Data and Key Metrics Changes - As of December 31, GAAP book value was $13.20 per share, and economic book value was $13.75 per share, both showing modest increases from the end of September [21] - Total economic return for the fourth quarter was 3.1% and 9% for the full year of 2025, with total shareholder return for the year at 6% [11][21] - GAAP earnings for the fourth quarter were $54.3 million, or $0.42 per basic common share, with net interest income at $55.5 million, a decline from $56.8 million in the third quarter [23] Business Line Data and Key Metrics Changes - In the fourth quarter, the company acquired $1.9 billion of loans and securities, including $1.2 billion of agencies and $443 million of non-QM loans [13] - The agency portfolio grew by over 50% to $3.3 billion during the quarter, with significant investments made before spreads tightened [29] - Distributable earnings for the fourth quarter were approximately $27.8 million, or $0.27 per share, an increase from $0.20 per share in the third quarter [26] Market Data and Key Metrics Changes - The Bloomberg US Aggregate Index was up 7.3% in 2025, following a decline of 7.1% over the previous three years [6] - Treasury rates declined, with 2-year yields dropping 77 basis points and 10-year yields dropping by 39 basis points [7] - The MOVE Index, which measures bond market volatility, ended the year at just under 64, down from above 100 for most of the previous three years [8] Company Strategy and Development Direction - The company is focused on increasing earnings and growing return on equity (ROE) through strategic initiatives, including deploying excess cash into target assets [12] - The company plans to relaunch multifamily lending and has hired 45 new salespeople at Lima One, indicating a push for growth in 2026 [14] - The company is also working on resolving delinquent loans, with over $150 million resolved in the fourth quarter, unlocking capital for redeployment [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the macroeconomic environment, citing favorable conditions for the mortgage market due to lower rates and government support for housing affordability [9][10] - The company expects to see the results of its strategic initiatives reflected in financials in 2026, with a focus on enhancing earnings and ROEs [20] - Management noted that while the delinquency rate across the loan portfolio ended the year at just over 7%, it is expected to remain elevated in the legacy portfolio as it winds down [35] Other Important Information - The company reported a decline in general and administrative (G&A) expenses, totaling $119 million for 2025, down from $132 million in 2024 [25] - Approximately 40% of the 2025 common dividends were treated as a tax-deferred return of capital, enhancing after-tax yield for shareholders [21][22] - The company has reauthorized a stock buyback program, utilizing proceeds from preferred stock issuance to repurchase common stock at a discount [20] Q&A Session Summary Question: Can you talk about the run rate ROE on your EAD once loss provisions are through? - Management indicated that DE on a lossless basis was in the 8%-9% range, expected to rise to 10-11% in the back half of 2026 [44] Question: Can you discuss the re-entry into the multifamily market? - The company is targeting higher quality loans with larger average amounts, focusing on an originate-to-sell model [46] Question: How do you think about the potential deals that could be called? - Management noted that several deals could unlock $50 million-$100 million of capital for redeployment [51] Question: What are your expectations for margins and total volumes throughout the year? - The company anticipates healthy spreads and significant growth potential, particularly in the back half of the year [68]

Financial Data and Key Metrics Changes - As of December 31, GAAP book value was $13.20 per share, and economic book value was $13.75 per share, both showing modest increases from the end of September [14] - For the fourth quarter, MFA generated GAAP earnings of $54.3 million, or $0.42 per basic common share, with net interest income at $55.5 million, a slight decline from $56.8 million in the previous quarter [15][16] - Distributable earnings for the fourth quarter were approximately $27.8 million, or $0.27 per share, an increase from $0.20 per share in the third quarter [18] Business Line Data and Key Metrics Changes - In the fourth quarter, MFA acquired $1.9 billion of loans and securities, including $1.2 billion of agencies, $443 million of non-QM loans, and $226 million of new business purpose loans [10] - The agency book grew by over 50% to $3.3 billion during the quarter, with a focus on low payout spec pools [20] - Lima One originated $226 million of new loans in the fourth quarter, including various types of loans such as new construction and rehab loans [22] Market Data and Key Metrics Changes - The Bloomberg US Aggregate Index was up 7.3% in 2025, following a decline of 7.1% over the previous three years [5] - Treasury rates declined, with 2-year yields dropping 77 basis points and 10-year yields dropping by 39 basis points [5] - The delinquency rate across the entire loan portfolio ended the year at just over 7%, down from 7.5% a year ago [23] Company Strategy and Development Direction - MFA is focused on increasing earnings and growing return on equity (ROE) through strategic initiatives, including deploying excess cash into target assets [9] - The company is excited about 2026, starting the year with favorable market conditions and government support for housing affordability [6][7] - MFA plans to relaunch multifamily lending and has made investments in technology and sales force to enhance operational efficiency [11][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the mortgage market due to lower rates, reduced volatility, and a positively sloped yield curve [6] - The company expects to see results from its strategic initiatives in 2026, with a focus on resolving delinquent loans and reducing general and administrative expenses [12][13] - Management anticipates that distributable earnings will reconverge with the common dividend in the latter half of 2026 [30] Other Important Information - MFA paid a common dividend of $0.36 for the fourth quarter and $1.44 for the full year, with approximately 40% of dividends treated as a tax-deferred return of capital [14] - The company has rolled out several technology platforms to enhance borrower experience and drive operational efficiencies [11] Q&A Session Summary Question: Can you talk about the run rate ROE on your EAD once loss provisions are through? - Management indicated that DE on a lossless basis is expected to be in the 8%-9% range, potentially reaching 10-11% in the back half of next year [29] Question: Can you discuss the re-entry into the multifamily market? - The company is targeting higher quality loans with larger unit sizes and an originate-to-sell model to capture fees [31] Question: How do you think about the potential deals that could be called? - Management expects to unlock $50 million-$100 million of capital that can be redeployed, with several deals anticipated in the coming quarters [36] Question: How should we think about capital allocation going forward? - The expectation is to initially increase investments in the agency portfolio before transitioning to non-QM and BPL asset classes as capital is freed up [40] Question: What are your expectations for margins and total volumes throughout the year? - The company anticipates healthy spreads and significant growth potential, particularly in the back half of the year as new channels come online [54]

Earnings Presentation FOURTH QUARTER 2025 Forward-looking statements When used in this presentation or other written or oral communications, statements that are not historical in nature, including those containing words such as "will," "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "could," "would," "may," the negative of these words or similar expressions, are intended to identify "forward-looking statements" within the meaning of Section 27A of the Securities Act of ...

Core Viewpoint - MFA Financial's high dividend yield of approximately 15% is deemed unsustainable due to significant payout ratios and deteriorating cash flow coverage, raising concerns for income investors and retirees [1] Financial Performance - MFA Financial paid out 180% of its Q3 2025 earnings as dividends, with a payout ratio of 180% for the quarter and 128.6% over the trailing twelve months [1] - The company reported distributable earnings of $0.20 per share while paying out $0.36 per share in dividends for Q3 2025 [1] - Operating cash flow for the first nine months of 2025 was only $38.6 million against $140.5 million in dividends paid, resulting in a coverage ratio of 0.27x [1] Leverage and Financial Health - As of Q3 2025, MFA Financial had total debt of $6.60 billion and equity of $1.82 billion, leading to a debt-to-equity ratio of 3.62x, which is considered elevated for a mortgage REIT [1] - The company has negative retained earnings of -$1.88 billion, indicating cumulative losses exceed profits over time [1] - Cash on hand was limited at $305 million, covering only 4.6% of total debt [1] Dividend History and Risks - MFA Financial maintained a stable dividend of $0.20 per quarter from 2014 to 2019, but cut its dividend to $0.05 during the 2020 pandemic [1] - The recent increase to $0.36 in Q1 2025 was the first raise in three years, highlighting the challenges in maintaining dividend stability [1] - The company faces elevated risks regarding dividend sustainability due to high payout ratios and deteriorating cash flow coverage [1]

Company Overview - MFA Financial is being analyzed for its potential in the MREIT sector, with a focus on achieving 9% yields [1] - The company will be compared with its sector peers to assess its credit rating [1] Investment Strategy - The investment group Trade With Beta, led by Denislav Iliev, specializes in identifying mispriced investments in fixed-income and closed-end funds [1] - The service includes frequent picks for mispriced preferred stocks and baby bonds, along with weekly reviews of over 1200 equities [1]

Group 1 - The article does not provide any specific content related to a company or industry, as it appears to be a technical issue regarding browser settings and ad-blockers [1]