MFA Financial (NYSE:MFA) Posts Earnings Results, Misses Estimates By $0.01 EPS

MFA Financial (NYSE:MFA) posted its quarterly earnings data on Tuesday. The real estate investment trust reported $0.30 EPS for the quarter, missing analysts’ consensus estimates of $0.31 by ($0.01), FiscalAI reports. MFA Financial had a net margin of 23.73% and a return on equity of 6.67%. The company had revenue of $43.31 million for the quarter, compared to analyst estimates of $67.52 million. During the same quarter in the prior year, the business earned $0.29 EPS.

Here are the key takeaways from MFA Financial’s conference call:

• The first-quarter market shock from the war in Iran drove rates and spreads higher, producing a reported economic return of -1.2%, a GAAP loss of about $1 million, and $28.8 million of mark-to-market losses on the portfolio.
• MFA grew its investment portfolio to $12.5 billion in Q1—adding ~$700 million of agencies (including TBAs), $471 million of non-QM loans, and $219 million of Lima One originations—and executed two non‑QM securitizations (a relever that unlocked ~$40 million of cash).
• Management introduced a new non‑GAAP metric—distributable earnings prior to realized credit losses—and reported DE of $0.30 per share, with guidance that DE should reconverge toward the $0.36 dividend later this year (timing remains uncertain).
• Cost initiatives, including a corporate HQ relocation that incurred near‑term non‑cash charges (~$2.4M this quarter and ~$5M expected next quarter), are expected to deliver ~$4M per year in run‑rate savings and management says nearly $20M per year of overhead savings versus 2024 is achieved.
• The legacy multifamily transitional portfolio remains a drag—about $101 million of capital tied up, delinquencies rose to 7.8% (now 7.3% post‑quarter), and management expects credit losses to accelerate in Q2 (mid‑to‑high‑teens on resolutions), which can cause quarter‑to‑quarter DE volatility (~$0.03–$0.04 swings).

MFA Financial Stock Down 3.1%

MFA Financial stock traded down $0.32 during mid-day trading on Tuesday, hitting $9.85. The company’s stock had a trading volume of 1,374,405 shares, compared to its average volume of 1,424,810. The stock has a market capitalization of $1.00 billion, a P/E ratio of 7.63 and a beta of 1.47. MFA Financial has a twelve month low of $8.78 and a twelve month high of $10.56. The stock’s fifty day moving average price is $9.98 and its two-hundred day moving average price is $9.68.

MFA Financial Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, April 30th. Shareholders of record on Tuesday, March 31st were given a $0.36 dividend. The ex-dividend date was Tuesday, March 31st. This represents a $1.44 annualized dividend and a yield of 14.6%. MFA Financial’s payout ratio is 111.63%.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the stock. Citigroup reiterated an “outperform” rating on shares of MFA Financial in a research note on Monday. Weiss Ratings reiterated a “hold (c-)” rating on shares of MFA Financial in a research note on Wednesday, April 15th. Citizens Jmp raised their price objective on shares of MFA Financial from $11.00 to $11.50 and gave the company a “market outperform” rating in a research note on Monday. Royal Bank Of Canada raised their price objective on shares of MFA Financial from $10.00 to $11.00 and gave the company a “sector perform” rating in a research note on Thursday, March 5th. Finally, Keefe, Bruyette & Woods raised their price objective on shares of MFA Financial from $10.00 to $11.00 and gave the company a “market perform” rating in a research note on Friday, February 20th. Three analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, MFA Financial presently has a consensus rating of “Hold” and an average price target of $10.94.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. AQR Capital Management LLC acquired a new position in MFA Financial in the 1st quarter worth approximately $259,000. Goldman Sachs Group Inc. boosted its stake in MFA Financial by 16.2% in the 1st quarter. Goldman Sachs Group Inc. now owns 691,408 shares of the real estate investment trust’s stock worth $7,094,000 after purchasing an additional 96,365 shares during the period. Rhumbline Advisers boosted its stake in MFA Financial by 7.6% in the 2nd quarter. Rhumbline Advisers now owns 167,481 shares of the real estate investment trust’s stock worth $1,584,000 after purchasing an additional 11,800 shares during the period. Russell Investments Group Ltd. boosted its stake in MFA Financial by 5.3% in the 2nd quarter. Russell Investments Group Ltd. now owns 62,090 shares of the real estate investment trust’s stock worth $587,000 after purchasing an additional 3,146 shares during the period. Finally, Norges Bank acquired a new position in MFA Financial in the 2nd quarter worth approximately $716,000. Institutional investors and hedge funds own 65.28% of the company’s stock.

About MFA Financial

MFA Financial, Inc, headquartered in New York City, is a real estate investment trust that specializes in investing in residential mortgage loans and mortgage-related securities. The company’s primary objective is to generate attractive risk-adjusted returns through net interest income and capital appreciation. As a mortgage REIT, MFA Financial focuses on constructing a diversified portfolio of agency and non-agency residential mortgage assets, leveraging its expertise in acquiring, financing and servicing mortgage products.

MFA Financial’s investment portfolio encompasses a wide range of mortgage instruments, including adjustable-rate and fixed-rate mortgage loans, interest-only securities, and agency mortgage-backed securities guaranteed by government-sponsored entities.