Seeking Alpha • Apr 14

MFA Financial: 10% Yielding Preferred Shares Are A Hedge Against Inflation

Summary MFA Financial faces margin compression from increased leverage and a shift toward securities, impacting net interest income. Net interest spread fell to 1.15% in Q4, with net interest income at its lowest quarterly level in 2025 despite higher interest income. Recourse leverage rose to 2.5x, the highest since the pandemic, but loan delinquencies remain stable around 7%. I favor the Series C preferred shares for their 10% yield and inflation hedge, while common shares remain unattractive due to ongoing headwinds. Read the full article on Seeking Alpha

Seeking Alpha • Dec 23

MFA Financial: Upcoming Income Growth Opportunity In Floating Series C Shares

Summary MFA Financial's Series C preferred shares are recommended due to their attractive floating yields, set to start in April 2024. Despite higher interest expenses, MFA Financial's net interest income rose by $22 million year-to-date, driven by increased interest income. The company has diversified its holdings with $400 million in agency-backed securities, enhancing earnings without impairing asset yields. Risks include rising multi-family delinquencies and potential lower incomes if interest rates drop, but Series C shares remain appealing with a 3% discount to par. Read the full article on Seeking Alpha

Seeking Alpha • Oct 14

MFA Financial: Gaining Strength After Rate Cuts

Summary As a long-term investor in MFA Financial, I strongly believe now is an ideal time to buy shares. MFA is well-positioned to increase profits and maintain or even increase its dividend. The next catalysts to price movement are earnings on November 5th, a Fed rate cut, and an ex-dividend date in December. The stock is trading at a discount, below book value of $13.80, and economic book value of $14.34. I expect MFA to beat Q3 earnings with continued coverage for its healthy 11.5% annual dividend. Read the full article on Seeking Alpha

Seeking Alpha • Jun 14

MFA Financial Issues Second Note Due In 2029

Summary MFA Financial operates as a real estate investment trust in the US, investing in residential mortgage assets. The company has a strong financial position, with ample cash and stockholder's equity. MFA Financial recently issued a second Note that does not mature until 2029, making it ideal for long-term fixed income investors willing to accept some risks. In this article, I briefly review the issuer and both Notes, MFAN and MFAO. I give both a Hold rating as the spread against a 5-year CD is only 300bps. Read the full article on Seeking Alpha

Seeking Alpha • May 28

MFA Financial: High Yield But Risk Of Cut Looms

Summary MFA Financial offers a high dividend yield of 13% and trades at a historically large discount to book value. The company has made changes to its strategy, including acquiring Lima One and focusing on loan origination. While there are concerns about interest spreads and missing out on buybacks, MFA is making progress and isn't bad to hold it if you've got it. Read the full article on Seeking Alpha

Seeking Alpha • Dec 26

MFA PFDs Revisited: FOMC Has Changed The Outlook (Rating Upgrade)

Summary MFA Financial uses preferred stocks to finance operations in the mREIT industry. The company's preferred stocks analyzed are MFA Financial, Inc. PFD SER B and MFA Financial, Inc. 6.50 PFD SER C. Recent announcements from FOMC indicate the direction of interest rates might be changing, thus I changed my rating from Hold to Buy on both preferred, with a preference for MFA-B. Read the full article on Seeking Alpha

Seeking Alpha • Nov 22

MFA Financial: Not Yet A Buy, Wait For Bullish Indicators

Summary MFA Financial, Inc. posted stronger-than-expected Q3 2023 performance, demonstrating resilience in challenging economic conditions. The company's business model, focused on higher-yielding assets and stable funding sources, is sustainable and effective. Technical analysis suggests a neutral outlook for the stock. I recommend patience before investing until technical indicators improve. Read the full article on Seeking Alpha

Seeking Alpha • Aug 27

MFA Financial: A High-Yielding Mortgage REIT Started Generating Decent Price Growth

Summary MFA Financial has a history of generating high yields, despite a recent dividend cut. The company's stock price has fallen significantly since a reverse stock split 70 weeks ago. Rising interest rates pose a risk to MFA Financial's profitability, but a steady interest rate could increase its net interest income and yield. Read the full article on Seeking Alpha

Seeking Alpha • Feb 22

MFA Financial Q4 2022 Earnings Preview

MFA Financial (NYSE:MFA) is scheduled to announce Q4 earnings results on Thursday, February 23rd, before market open. The consensus EPS Estimate is $0.30 and the consensus Revenue Estimate is $48.25M (-31.2% Y/Y). Over the last 1 year, MFA has beaten EPS estimates 75% of the time and has beaten revenue estimates 75% of the time. Over the last 3 months, EPS estimates have seen 1 upward revision and 2 downward. Revenue estimates have seen 1 upward revision and 2 downward.

Seeking Alpha • Feb 08

MFA Financial: Don't Chase Yield After A 20% Dividend Cut

Summary MFA Financial just cut its quarterly cash dividend payout by 20% after rising Fed fund rates weighed down on net interest income. The new yield at nearly 12% still provides double-digit income to shareholders but also looks at risk. Shareholders might be interested in the Series B preferreds, which currently offer a 9.3% yield on cost and more certainty. MFA Financial (MFA) recently declared a quarterly per share cash dividend of $0.35, a 20% decline from its prior payout for a forward annualized yield of 11.88%. This is down from a retrospective yield of 14.2% and comes as still-rising Fed fund rates continue to increase the financing costs for highly leveraged companies. The business is straightforward, MFA is engaged in the business of investing on a highly leveraged basis in residential mortgages, including residential mortgage-backed securities and residential whole loans. Mortgage REITs, or mREITS, unlike their non-mortgage REIT counterparts, employ an outsized level of gearing which makes them even more sensitive to interest rate movements. Data by YCharts The mREIT has moved in somewhat of an inverse correlation with a Fed funds rate that is set for two further 25 basis points hikes, with inflation seemingly peaking. This sets the backdrop for the performance of MFA this year. The end of the hike cycle would lead to further stabilization of a stock price that has fallen by 35% from its 52-week high. However, MFA's investors are in the mREIT because of its income. Hence, the broader gyrations from its stock price might be noise in the long term. This is why the cut has proved so destructive, as it has been aggregated with a low stock price whilst opening up the specter of further cuts, especially against the torrid macroeconomic context. The Economic Situation Looks Set To Normalize, But Housing Is Being Discombobulated Freddie Mac US home sales are set to drop by 16% in 2023 to their lowest level since 2011 as higher mortgage rates work through the economy. This is as the 30-year primary mortgage rate currently sits a 6.09%, the highest since 2008, albeit down from highs of around 7%. Fundamentally, the mix of rising Fed fund rates and a weakening economy, potentially set to avoid a soft landing for a deep recession, will continue to place pressure on MFA. The internally managed New York-based hybrid mREIT held a portfolio with a total equity value of $2 billion as of the end of its last reported fiscal 2022 third quarter. This was for a GAAP book value of $15.31 per share, down from $19.28 in the year-ago comp. It's important to note that MFA instituted a 1-for-4 reverse stock split back in April 2022 that would see shareholders swap each four shares of MFA they owned pre-split for one share. Data by YCharts The mREIT's net interest income at $52.29 million was a 15.4% decline from its year-ago quarter and a miss by $610,000 on consensus estimates. Distributable earnings came in at $28.2 million, or $0.28 per share, versus a GAAP net loss of $63.2 million during the quarter. Distributable earnings are still lower than the reduced $0.35 per share dividend. MFA's management was somber during the earnings call, indicating that whilst they held cash of around $435 million as of the end of the third quarter, their previous quarterly dividend level was unsustainable from an earnings perspective. The cut was unexpected in that this was enough cash to maintain the previous payout for two and a half years. Shareholders will now be hoping that the rightsizing of the payout is in the rearview mirror, even as continued economic headwinds negatively impact the mREIT's portfolio. Grab An 9.3% Yield With MFA's Series B Preferreds Preferreds almost always offer a more structurally sound alternative for mREITs with a near-term history of underperformance, and MFA's is no different. MFA Financial 7.50% Series B Cumulative Preferred Stock (MFA.PB) pays out a $1.88 annual coupon for a 9.3% yield on cost. Currently trading at $20.12, they're almost five years past their April 15, 2018 redemption date and come with a number of attractive features.

Seeking Alpha • Jan 10

Consider MFA Financial Convertible Notes Yielding 12.7%

Summary MFA Financial, Inc., an mREIT, has been battered by high interest rates this year. The company has taken a series of steps to fortify itself, including higher quality loans and greater diversification. While the bonds are convertible, it is recommended that they not be converted into MFA Financial, Inc. shares. MFA Financial, Inc. (MFA) is a real estate investment trust ("REIT") that specializes in the investment of loans and mortgages (referred to as mREIT). Like its peers, the company has been put through the wringer in 2022, with higher interest rates and lower mortgage demand. As a result, the company’s short-term bonds, which mature next June, are trading at 91 cents on the dollar and yielding more than 12.5% to maturity. While short on duration, I believe these bonds are a good source of short-term income for investors. FINRA MFA’s income statement highlights its simple mode of operation. The company’s main source of revenue is interest off its investments, and its main source of expenses is the borrowing cost of its collateralized financing arrangements. In the first nine months of 2022, higher interest rates increased both revenue and expenses, but ultimately, net interest income declined by slightly more than 2%. Despite higher interest rates, the company is managing to balance its income against its borrowing cost. A deeper dive into the income statement shows a major loss of $800 million on mark to market adjustments. These adjustments reflect the lower value of MFA assets due to higher interest rates. It is a noncash adjustment and is offset by $253 million in gains from derivatives used to hedge against higher rates. Ultimately, the company’s higher operating expense has me hesitant to commit to a longer-term investment such as preferred or common equity, but there is nothing in the income statement to suggest immediate risk to the operation. SEC 10-Q SEC 10-Q The balance sheet of MFA Financial further exemplifies the simplicity of its business. The entire balance sheet mainly consists of residential loans and cash as assets and financing agreements as liabilities. It is important to note that shareholder equity has declined specifically due to the write-down and decrease in the value of the company’s residential loans. It’s also important to note that cash on hand (both restricted and unrestricted) has increased in 2022, creating a larger buffer for the company. SEC 10-Q MFA’s cash flow statement paints a somewhat stronger picture than the income statement. The company has managed to more than triple its operating cash flow to $361 million compared to the same period in 2021. MFA noted in its third quarter earnings call that it had gotten more selective with its loan purchases, and this can be illustrated by looking in the investing activities where purchases of residential loans slowed by nearly $200 million from 2021. SEC 10-Q MFA has been able to cover dividends through cash flow from operations so far in 2022, but the company is walking a delicate tightrope when it comes to loan origination. MFA opted to lever itself further by borrowing nearly $1 billion to acquire loans in 2022. If these loans do not perform to management’s expectations, and MFA would need additional liquidity, the company could further reduce its dividends (already cut once in 2022) and halt its stock buy back program, freeing up at least $300 million in cash flow. SEC 10-Q While higher interest rates lead to higher interest expenses for MFA, the company has done a good job mitigating interest costs with its weighted average interest rate at 3.6% versus 2.4% at the end of 2021. The convertible notes represent the highest debt servicing cost. Fortunately, MFA can redeem these bonds with cash on hand if it wishes, lowering its interest expense, providing a return to fixed income investors, and avoiding a higher interest rate in refinancing. SEC 10-Q For MFA, the risk is clearly higher interest rates. Higher interest rates are a double-edged sword as they reduce the value of the company’s assets and increase their borrowing costs. The company could also face lower incomes from higher mortgage delinquencies and foreclosures. Fortunately, MFA has changed its asset composition by reducing the number of credit deteriorated and nonperforming loans while increasing the number of loans it holds on rental properties and multifamily housing.

Seeking Alpha • Dec 14

MFA Financial decrease dividend by -20.5% to $0.35/share

MFA Financial (NYSE:MFA) declares $0.35/share quarterly dividend, -20.5% decrease from prior dividend of $0.44. Forward yield 12.21% Payable Jan. 31; for shareholders of record Dec. 30; ex-div Dec. 29. See MFA Dividend Scorecard, Yield Chart, & Dividend Growth.

Seeking Alpha • Dec 06

MFA Financial: Buy This REIT For Solid Dividend Yield

Summary MFA Financial, Inc.'s dividend payment of $1.76 represents a dividend yield of 16.43%. MFA Financial reported net interest income of $52.3 million, down 15.37% compared to $61.8 million in the previous year. After comparing the forward P/FFO ratio of 6.11x with the sector median of 9.87x, I think MFA Financial, Inc. is undervalued. Investment Thesis MFA Financial (MFA) is a specialty finance business and a mortgage real estate investment trust ((REIT)) dealing in Residential Whole Loans, Residential Mortgage Securities, and MSR-related assets. The company has recently reported its third-quarter financial results, which are negatively affected by market volatility. Despite the adverse conditions, I believe the company has a lot of growth opportunities as its SFR portfolio is rapidly growing, which can help it to expand its profit margins. MFA Financial has a high dividend payout, making it an attractive investment opportunity for risk-averse investors. About MFA MFA is a real estate investment trust and a leading specialty finance business that deals in financing & investing in mortgage assets. Targeted investments of the company include Residential whole loans, Residential Mortgage Securities, and MSR-related assets. The Residential whole loans mainly include purchased non-performing loans, purchased credit deteriorated, and purchased performing loans. It also consists of originating and servicing business-related loans for investors dealing in real estate. Residential Mortgage Securities include CRT securities which are debt obligations financed by Fannie Mae and Freddie. MSR-related assets comprise term notes directly or indirectly backed by Mortgage Servicing Rights. In the previous year, MFA Financial acquired the remaining ownership in Lima One Capital and now owns 100% of the company. It deals in originating & servicing business purpose loans and has managed business purpose loans of over $6.0 billion since inception. MFA has reported over $2.9 billion in originations since acquisitions in Q3 2021 and a trailing 12-month origination volume of $2.5 billion in Q3 2022. Portfolio Composition of MFA (Investor Presentation: Slide No. 9) Q3 FY2022 Result The mortgage REIT sector was negatively affected by the global Covid-19 Pandemic and experienced a downturn for a long period. Despite all the economic pressures, the industry rebounded rapidly and outperformed market expectations. It is further expected to grow with improving economic conditions favoring the markets for residential mortgage assets. The company has recently reported its third-quarter results. It reported a net interest income of $52.3 million, down 15.37% compared to $61.8 million in the previous year, mainly due to market volatility and increasing interest rates. However, net interest income from Residential Whole Loans surged 12% to $114.4 million on a sequential basis. The company generated a GAAP loss of $63.2 million, a 150% decrease compared to Q3 2021. A decline in earnings resulted in a loss per share of $0.62. It reported a GAAP book value of $15.31 per common share compared to $4.82 per common share in the same quarter of the previous year. The company reported loan acquisition activities of $710.4 million, which included $519.6 million of funded originations. The company ended its third quarter with $434.1 million in cash and cash equivalents. Though the financials experienced a downturn in the third quarter due to market volatility, some of the company's investment portfolios delivered attractive yields. Lima maintained its strong growth in this quarter by acquiring $152 million of SFR (single-family rental) loans. I believe that the company can benefit from the SFR portfolio in the future as the demand for it is increasing rapidly, mainly due to insufficient housing supply to meet the demand of the U.S. population. I expect that the market conditions can normalize in the coming times, which can further help the company to perform well and expand its profit margins which are currently affected by the volatility despite significant growth in the portfolios. Dividend Yield Dividend Payment History of MFA (Seeking Alpha) The company's impressive dividend payout history signals its well-positioning in the market. In the current year, it distributed a cash dividend of $0.11 in the first quarter. In the second quarter, the company completed a 1-for-4 reverse stock split of its common stock, making the dividend payment per share $0.44. Looking at the company's current cash balance, I think MFA can maintain this dividend payout for the coming quarters. I believe this dividend can remain constant for the fourth quarter making the annual dividend $1.76. This dividend payment represents a dividend yield of 16.43%. I think this is an attractive investment opportunity for risk-averse investors as it can generate stable income in the long term. What is the Main Risk Faced by MFA? MFA Financial's performance highly depends on changes in interest rates. Interest rates can fluctuate due to many factors, such as monetary and fiscal policies, and also highly depends on the international, economic and political environment. The company depends on borrowings under repurchase agreements to raise funds for the purpose of acquiring residential mortgage assets, which exposes it to the risk of fluctuating interest rates. If the interest rate rises, it can increase the company's borrowing cost rapidly as compared to interest earnings. In such cases, its net interest spread and net interest margins can be affected negatively, further contracting its profit margins. Valuation

Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	1/6
Financial Health	1/6
Dividends	2/6

Historical stock prices
Current Share Price	US$9.45
52 Week High	US$10.57
52 Week Low	US$8.78
Beta	1.55
1 Month Change	-7.44%
3 Month Change	-4.55%
1 Year Change	1.18%
3 Year Change	-10.60%
5 Year Change	-45.94%
Change since IPO	-74.11%

	MFA	US Mortgage REITs	US Market
7D	1.5%	-0.3%	1.1%
1Y	1.2%	1.2%	28.7%

MFA volatility
MFA Average Weekly Movement	3.7%
Mortgage REITs Industry Average Movement	3.7%
Market Average Movement	7.2%
10% most volatile stocks in US Market	16.5%
10% least volatile stocks in US Market	3.1%

MFA fundamental statistics
Market cap	US$960.08m
Earnings (TTM)	US$91.21m
Revenue (TTM)	US$288.15m

MFA income statement (TTM)
Revenue	US$288.15m
Cost of Revenue	US$36.11m
Gross Profit	US$252.03m
Other Expenses	US$160.83m
Earnings	US$91.21m

Earnings per share (EPS)	0.90
Gross Margin	87.47%
Net Profit Margin	31.65%
Debt/Equity Ratio	624.8%

Data	Last Updated (UTC time)
Company Analysis	2026/05/24 11:01
End of Day Share Price	2026/05/22 00:00
Earnings	2026/03/31
Annual Earnings	2025/12/31

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

Analyst	Institution
Jason Stewart	Brean Capital Historical (Janney Montgomery)
Jessica Levi-Ribner	B. Riley Securities, Inc.
Eric Hagen	BTIG

MFA Financial (MFA) Stock Overview

Rewards

Risk Analysis

Analyst Price Targets

US Housing Shortage Will Foster Opportunity In Mortgages

Digital Underwriting And Rising Homeownership Will Transform Mortgage REIT Opportunities

Credit Losses And Headwinds Will Limit Prospects But Lend Hope

Top Analyst Narratives

US Housing Shortage Will Foster Opportunity In Mortgages

Digital Underwriting And Rising Homeownership Will Transform Mortgage REIT Opportunities

Credit Losses And Headwinds Will Limit Prospects But Lend Hope

MFA Financial, Inc. Competitors

PennyMac Mortgage Investment Trust

Adamas Trust

Ellington Financial

Franklin BSP Realty Trust

Price History & Performance

Recent News & Updates

MFA Financial Reports 1.2% Economic Return Decline as Loan Resolutions and Securitizations Continue

First quarter 2026 earnings: EPS and revenues miss analyst expectations

MFA: ROE Visibility And Share Repurchases Will Support Future Upside

MFA Financial, Inc., Annual General Meeting, Jun 03, 2026

MFA: ROE Expansion And Share Repurchases Will Support Future Earnings Quality

MFA Financial, Inc. to Report Q1, 2026 Results on May 05, 2026

Recent updates

MFA Financial Reports 1.2% Economic Return Decline as Loan Resolutions and Securitizations Continue

First quarter 2026 earnings: EPS and revenues miss analyst expectations

MFA: ROE Visibility And Share Repurchases Will Support Future Upside

MFA Financial, Inc., Annual General Meeting, Jun 03, 2026

MFA: ROE Expansion And Share Repurchases Will Support Future Earnings Quality

MFA Financial, Inc. to Report Q1, 2026 Results on May 05, 2026

MFA Financial: 10% Yielding Preferred Shares Are A Hedge Against Inflation

MFA: ROE Expansion Potential Will Support Improved Earnings Quality

Upcoming dividend of US$0.36 per share

MFA: ROE Expansion Visibility Will Offset Near Term Credit Loss Volatility

Fourth quarter dividend of US$0.36 announced

MFA Financial, Inc. announces Quarterly dividend, payable on April 30, 2026

MFA: ROE Expansion Hopes Will Confront Near Term Credit Loss Volatility

New major risk - Revenue and earnings growth

MFA Financial, Inc. (NYSE:MFA) announces an Equity Buyback for $200 million worth of its shares.

MFA Financial, Inc. to Report Q4, 2025 Results on Feb 18, 2026

CEO & Director exercised options and sold US$1.2m worth of stock

Third quarter dividend of US$0.36 announced

MFA Financial, Inc. Declares Regular Quarterly Cash Dividend, Payable on January 30, 2026

Consensus EPS estimates fall by 14%

New minor risk - Profit margin trend

Third quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind

Consensus EPS estimates increase by 23%

MFA Financial, Inc. to Report Q3, 2025 Results on Nov 06, 2025

Second quarter dividend of US$0.36 announced

MFA Financial, Inc. Announces Quarterly Dividend, Payable on October 31, 2025

MFA Financial, Inc. has withdrawn its Follow-on Equity Offering in the amount of $300 million.

Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind

Consensus EPS estimates increase by 26%, revenue downgraded

MFA Financial, Inc. to Report Q2, 2025 Results on Aug 06, 2025

First quarter dividend of US$0.36 announced

MFA Financial, Inc Declares Regular Quarterly Cash Dividend, Payable on July 31, 2025

Consensus EPS estimates increase by 65%, revenue downgraded

Consensus EPS estimates increase by 68%

First quarter 2025 earnings: EPS and revenues exceed analyst expectations

MFA Financial, Inc., Annual General Meeting, Jun 03, 2025

MFA Financial, Inc. to Report Q1, 2025 Results on May 06, 2025

Consensus EPS estimates fall by 32%

Investor sentiment deteriorates as stock falls 17%

Upcoming dividend of US$0.36 per share

Fourth quarter dividend increased to US$0.36

MFA Financial, Inc. Announces Quarterly Dividend, Payable on April 30, 2025

MFA Financial, Inc. Elects Christopher Small to Board of Directors and Audit Committee and Compensation Committee of the Board

Consensus revenue estimates fall by 16%

New major risk - Dividend sustainability

Full year 2024 earnings: EPS and revenues miss analyst expectations

CEO & Director exercised options and sold US$1.4m worth of stock

Insufficient new directors

MFA Financial: Upcoming Income Growth Opportunity In Floating Series C Shares

Third quarter dividend of US$0.35 announced

MFA Financial, Inc. Announces the Demise of Independent Board Member Francis J. Oelerich III

MFA Financial, Inc. Declares Regular Quarterly Cash Dividend, Payable on January 31, 2025

New major risk - Revenue and earnings growth

Third quarter 2024 earnings: EPS and revenues miss analyst expectations

MFA Financial, Inc. to Report Q3, 2024 Results on Nov 06, 2024