MFA Financial Q3 adjusted EPS misses estimates

Overview

• MFA Financial Q3 adjusted EPS misses analyst expectations

• Company reports Q3 GAAP net income of $37.3 mln

• MFA repurchased nearly 500,000 shares at a discount to book value

Outlook

• Company plans to reduce G&A expenses by 7-10% from 2024 levels

• MFA is deploying excess cash into target asset classes to improve returns

• Company repurchased nearly 500,000 shares at a discount to book value

Result Drivers

• ASSET ACQUISITIONS - MFA acquired $1.2 bln of residential mortgage assets, including $453 mln of Non-QM loans and $473 mln of Agency MBS at attractive yields

• CREDIT LOSSES - Distributable earnings impacted by credit losses on legacy business purpose loans, with steps being taken to improve future returns

• DELINQUENCY REDUCTION - Resolved $223 mln of previously delinquent loans, reducing the delinquency rate to 6.8%

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "hold"

• Wall Street's median 12-month price target for MFA Financial Inc is $10.25, about 9.7% above its November 5 closing price of $9.26

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nBw6bXg09a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)