Overview
* MFA Financial (MFA/PB) 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
Metric Beat/Mis Actual Consensu
s s
Estimate
Q3 Miss $0.20 $0.28 (6
Adjusted Analysts
EPS )
Q3 Miss $21 mln $31.51
Adjusted mln (4
Net Analysts
Income )
Q3 Net $37.30
Income mln
Q3 $0.36
Dividend
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 (MFA/PB) 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:
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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.)
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