MFA Financial (NYSE:MFA) Posts Quarterly Earnings Results, Meets Estimates

MFA Financial (NYSE:MFA) posted its quarterly earnings results on Wednesday. The real estate investment trust reported $0.27 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.27, FiscalAI reports. The business had revenue of $88.72 million for the quarter, compared to analysts’ expectations of $60.56 million. MFA Financial had a return on equity of 6.67% and a net margin of 23.73%.During the same quarter last year, the business earned $0.39 earnings per share.

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

• The company deployed over $100 million of excess cash and acquired $1.9 billion of loans and securities in Q4 (including $1.2B agencies, $443M non‑QM, and $226M Lima One originations), which management says positions MFA to grow earnings and ROE in 2026.
• MFA issued Series C and B preferred shares via an ATM and used proceeds to repurchase ~540,000 common shares at a weighted average discount to Economic Book Value of ~33%; the board reauthorized the buyback program and management calls this accretive while preserving the equity base.
• Management highlighted $2.3 billion of currently callable securitized debt and expects calling/reissuing deals to unlock an estimated $50–$100 million of capital this year to redeploy into higher‑return assets, with non‑QM securitization spreads remaining attractive.
• Credit stress remains in legacy books—overall delinquency ended 2025 just over 7% (down YoY but up 30 bps in Q4) and a legacy multifamily transitional portfolio is carried at a $42 million discount to par, causing nonaccruals and interest reversals that pressured net interest income.
• Operating performance improved—G&A fell ~9.5% to $119M in 2025, distributable earnings rose to $0.27 per share in Q4 (up from $0.20), and management expects DE to reconverge with the dividend in the back half of 2026 while Economic Book Value is estimated to be up ~3% since year‑end.

MFA Financial Stock Down 0.4%

Shares of MFA traded down $0.05 during trading hours on Friday, reaching $10.01. The stock had a trading volume of 168,577 shares, compared to its average volume of 1,470,378. The company has a market cap of $1.02 billion, a P/E ratio of 7.75 and a beta of 1.59. MFA Financial has a 52 week low of $7.85 and a 52 week high of $11.08. The firm has a 50-day moving average of $9.75 and a 200 day moving average of $9.58.

MFA Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 30th. Investors of record on Wednesday, December 31st were given a $0.36 dividend. The ex-dividend date was Wednesday, December 31st. This represents a $1.44 dividend on an annualized basis and a dividend yield of 14.4%. MFA Financial’s dividend payout ratio is currently 169.41%.

Institutional Investors Weigh In On MFA Financial

Hedge funds have recently modified their holdings of the business. Jain Global LLC acquired a new stake in shares of MFA Financial in the 4th quarter valued at about $153,000. Captrust Financial Advisors boosted its position in shares of MFA Financial by 18.9% during the fourth quarter. Captrust Financial Advisors now owns 16,417 shares of the real estate investment trust’s stock worth $153,000 after buying an additional 2,606 shares during the period. Virtus Advisers LLC bought a new position in shares of MFA Financial during the fourth quarter worth about $128,000. PharVision Advisers LLC bought a new position in shares of MFA Financial during the third quarter worth about $117,000. Finally, Ameriprise Financial Inc. acquired a new stake in MFA Financial in the 3rd quarter valued at approximately $107,000. Institutional investors and hedge funds own 65.28% of the company’s stock.

Wall Street Analysts Forecast Growth

MFA has been the topic of several recent research reports. Weiss Ratings raised shares of MFA Financial from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, January 16th. Keefe, Bruyette & Woods lifted their target price on shares of MFA Financial from $10.00 to $11.00 and gave the stock a “market perform” rating in a report on Friday. Wall Street Zen raised MFA Financial from a “sell” rating to a “hold” rating in a research note on Monday, November 10th. Finally, UBS Group reduced their price target on MFA Financial from $10.50 to $10.25 and set a “buy” rating on the stock in a research report on Tuesday, November 18th. Two research 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.com, the company presently has an average rating of “Hold” and a consensus price target of $10.56.

MFA Financial Company Profile

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.