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MFA Financial, Inc. (MFA)

  • Wed, Mar. 18, 2:30 PM
    • Worries about a sharply flatter yield curve abate just a bit as the FOMC drops "patient" from its policy statement - putting rate hikes on the table at subsequent meetings - but Fed economic projections send a dovish signal, with outlooks for economic growth, inflation, and the pace of rate hikes all cut from previous estimates.
    • Outperforming the averages: Annaly Capital (NLY +1.1%), American Capital Agency (AGNC +1.5%), Two Harbors (TWO +1.5%), CYS Investments (CYS +2%), Invesco (IVR +1.7%), Hatteras (HTS +1.7%), Capstead (CMO +2.1%), MFA Financial (MFA +1.7%), Anworth (ANH +2.2%), Dynex (DX +1.5%), Five Oaks (OAKS +3.3%).
    • Previously: FOMC drops "patient," but sends dovish signal (March 18)
  • Fri, Mar. 13, 9:02 AM
    • MFA Financial (NYSE:MFA) declares $0.20/share quarterly dividend, in line with previous.
    • Forward yield 10.13%
    • Payable April 30; for shareholders of record March 27; ex-div March 25.
  • Fri, Mar. 6, 10:21 AM
    • The 10-year Treasury yield has popped all the way to 2.24% (up 11 bps on the session) following the strong jobs report which saw 295K jobs added in February and the unemployment rate dropping to 5.5%.
    • Checking short-term interest rate futures, they're falling (meaning higher rates), but still not pricing in a rate hike until late summer.
    • Annaly Capital (NLY -1.3%), American Capital Agency (AGNC -0.6%), Two Harbors (TWO -1%), Armour (ARR -0.9%), Invesco (IVR -0.9%), CYS Investments (CYS -1.4%), Hatteras (HTS -1.1%), MFA Financial (MFA -1.1%), Western Asset (WMC -0.7%), Dynex (DX -1.2%), AG Mortgage (MITT -1.5%), Ellington Residential (EARN -1.1%).
    • Previously: Dollar and Treasury yields spike after strong jobs print (March 6)
  • Thu, Feb. 12, 9:01 AM
    • Q4 income of $76M or $0.20 per share vs. $75.1M and $0.20 in Q3. Dividend is $0.20.
    • Holdings of securities backed by re-performing and non-performing loans of $2B up from $943.3M; holdings of re-performing and non-performing loans of $351.4M up from $112.9M.
    • Sold $20.3M of nonagency MBS, realizing a gain of $12.2M, making 10 consecutive quarters of ringing up gains on these assets.
    • CPR on agency holdings of 12.34% down from 15.11%.
    • Conference call at 10 ET
    • Previously: MFA Financial beats by $0.03, misses on net interest income (Feb. 12)
    • MFA flat premarket
    | Comment!
  • Thu, Feb. 12, 8:49 AM
    • MFA Financial (NYSE:MFA): Q4 EPS of $0.20 beats by $0.03.
    • Net interest income of $72.23M (-6.9% Y/Y) misses by $5.21M.
    • Press Release
    | Comment!
  • Wed, Feb. 11, 5:30 PM
  • Tue, Feb. 3, 3:52 PM
    • Unable to put any sort of positive move together even as interest rates tumbled this year, mREITs (REM +0.9%) are uniformly higher this session as the 10-year yield jumps 11 basis points to 1.78%.
    • American Capital Agency (AGNC +1.3%) reported better-than-hoped Q4 results last night, but has altered its mix of portfolio holdings and hedges to brace for what it expects will be a wave of prepayments. If rates keep this up, those prepayments may not materialize.
    • Annaly (NLY +1.1%), Chimera (CIM +1.5%), CYS Investments (CYS +1.3%), American Capital Mortgage (MTGE +1.8%), Hatteras (HTS +1.1%), MFA Financial (MFA +1.3%), Western Asset (WMC +1.8%), Dynex (DX +1.1%), Ellington Financial (EFC +1.2%).
  • Mon, Feb. 2, 12:16 PM
    • Non-agency REITs likely fared best in Q4 says the team as credit assets outperformed and were in less need of hedging against higher rates. Two of note are outperform-rated Apollo Residential Mortgage Trust (AMTG -1.2%) and neutral-rated MFA Financial (MFA -1.7%).
    • Agency players, however, were more likely to have positioned themselves for higher rates and should see more limited boosts in book value. Two of note are Annaly Capital (NLY -1.3%) and Western Asset Management (WMC -0.1%) - both neutral-rated.
    • "While the Q4 rally in rates likely drove BVs higher than we previously assumed, in our view it only forestalls the drag from rising rates on future book value," says JPMorgan, cutting price targets on Annaly, American Capital Agency (AGNC -1%), Two Harbors (TWO -1%), Apollo Residential, and Western Asset.
    • Capstead Mortgage already reported its Q4 and results were uninspiring (book value actually slipped a bit).
    • Up after the bell tonight is American Capital Agency.
    • Previously: Credit Suisse downgrades three mortgage REITs (Feb. 2)
    | 1 Comment
  • Mon, Jan. 12, 10:03 AM
    • The mortgage REIT space (REM -0.6%) is cut to Market Weight from Overweight at Wells Fargo, with Annaly Capital (NLY -0.4%), American Capital Agency (AGNC -0.2%), CYS Investments (CYS -0.7%), Capstead Mortgage (CMO -0.8%), American Capital Mortgage (MTGE -0.5%), AG Mortgage (MITT -1.3%), and MFA Financial (MFA -0.3%) - for now - individual names also being cut to Market Weight.
    • It's an interesting move, especially in light of the significant discounts to book value nearly every stock in the sector trades at. The mortgage REITs have been especially notable of late for not being able to make any headway alongside the big rally in bond prices. Lower rates might do something for book values, but the sharply flatter yield curve (which could flatten even more once the Fed begins hiking) doesn't bode well for earnings power.
    • Other ETFs: MORT, MORL
  • Dec. 30, 2014, 12:37 PM
    • Nearly all the mREITs sell at discounts to their most recently disclosed book value, with sector giants Annaly Mortgage (NYSE:NLY) and American Capital Agency (NASDAQ:AGNC) trading at double-digit discounts.
    • Often a sizable haircut to book may make sense, as in the case of Armour Residential (NYSE:ARR) and Javelin Mortgage (NYSE:JMI), both of which just cut their dividend (they have the same external manager).
    • Of the 24 companies examined, New York Mortgage Trust (NASDAQ:NYMT) and Capstead Mortgage (NYSE:CMO) stand alone in trading at premiums to book value.
    • The full list
  • Dec. 9, 2014, 2:47 PM
    • MFA Financial (NYSE:MFA) declares $0.20/share quarterly dividend, in line with previous.
    • Forward yield 9.64%
    • Payable Jan 30; for shareholders of record Dec. 26; ex-div Dec. 23.
    | Comment!
  • Dec. 5, 2014, 10:12 AM
  • Nov. 19, 2014, 3:42 PM
    • A check of the mortgage REITs following FOMC minutes which shows the discussion moving a bit more seriously towards rate hikes finds the sector (REM -0.5%) modestly lower.
    • Individual names: Annaly (NLY -0.3%), American Capital Agency (AGNC), CYS Investments (CYS -0.3%), Invesco Mortgage (IVR -0.9%), New York Mortgage Trust (NYMT -0.4%), Hatteras Financial (HTS -0.8%), MFA Financial (MFA -1%), Capsteam Mortgage (CMO -0.6%), Ellington Residential (EARN -0.4%).
  • Nov. 5, 2014, 10:51 AM
    • On the earnings call (transcript), KBW's Mike Widner questioned the sustainability of MFA Financial's (MFA -2.3%) $0.20 dividend, noting taxable income has been running below GAAP income (and below $0.20 per share) for some time. Widner also says core income (stripping out gains on sales) has been running below GAAP.
    • Widner: "I don't expect you guys to give the answer that taxable is going to continue to run lower and, therefore, there is an implication that the dividend is going to get trimmed. But I mean just that it seems bit sooner or later that's the trend that we’re running on."
    • Also downgrading to Hold (Neutral), is Sterne Agee's Jason Weaver, though - judging by what he had to say on the earnings call - the move seems more valuation-related with the stock higher by nearly 20% YTD and trading at a premium to book value. Weaver: "My questions have actually been asked ... But I'll say congratulations and solid performance in what was a really wild quarter for the space"
    • Previously: MFA Financial beats by $0.01, beats on revenue
    • Previously: MFA Financial creeps higher after earnings
    | Comment!
  • Nov. 4, 2014, 8:49 AM
    • Q3 net income available to common shareholders of $75.1M or $0.20 per share is essentially a repeat of Q2. Dividend is $0.20.
    • Book value per share of $8.28 slips from $8.37 in Q2. Last night's close of $8.44 puts MFA in the rarified air of a mREIT trading at a premium to book.
    • Holdings of paper backed by re-performing/non-performing loans up 91% to $943.3M; holdings of non-securitized re-performing loans (the actual loans) up 89% to $112.9M.
    • Sold were $61.6M of non-agency MBS issued prior to 2008, realizing a gain of $13.9M - the ninth consecutive quarter of ringing the register on legacy non-agency MBS.
    • CPR on agency MBS of 15.11% up 206 bps from Q2; on non-agency MBS of 12.71% up 66 bps; on RPL/NPL MBS of 19.66% up 483 bps.
    • Previously: MFA Financial beats by $0.01, beats on revenue
    • Conference call at 10 ET
    • MFA +0.6% premarket
    | Comment!
  • Nov. 4, 2014, 8:34 AM
    • MFA Financial (NYSE:MFA): Q3 EPS of $0.20 beats by $0.01.
    • Revenue of $89.29M (+8.8% Y/Y) beats by $6.76M.
    • Press Release
    | Comment!
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Company Description
MFA Financial Inc is engaged in real estate finance business. It invests, on a leveraged basis, in residential Agency and Non-Agency mortgage-backed security.
Sector: Financial
Country: United States