NYSE$MFA

MFA Financial Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Announced third quarter 2023 financial results, demonstrating resilience amidst challenging market conditions with distributable earnings exceeding dividends and strategic asset acquisitions.

MFA Financial, Inc. reported its financial results for the third quarter ended September 30, 2023. Despite a challenging environment for fixed-income investors, the company generated distributable earnings in excess of its dividend, acquired or originated over $800 million of loans, and purchased $152 million of Agency MBS. Lima One originated a record $671 million of new loans during the quarter. The net interest spread increased to 2.17%, and the net interest margin rose to 3.02%.

  • Generated distributable earnings exceeding dividend payout.
  • Lima One originated a record $671 million in new loans.
  • Acquired or originated over $800 million in loans with an average coupon of approximately 10%.
  • Net interest spread increased to 2.17% and net interest margin to 3.02%.

Headline financials

Total Revenue

$46.1M

Previous: $52.3M-11.8%
EPS (adj)

$0.40

Previous: -$0.62+164.5%
Free Cash Flow

-$56.4M

Previous: -$56.5M+0.2%
Net Income

-$56.4M

Previous: -$55M-2.6%
Operating Income

$26.3M

Previous: $9.99M+163.7%
Gross Profit

$44.9M

Previous: $51.7M-13.3%
Cash & Equivalents

$454M

Previous: $434M+4.5%
Total Assets

$10.1B

Previous: $9.52B+6.1%

Revenue & EPS history

MFA Financial · Revenue · Quarterly

$46.1M

Q3 2023-11.8%vs Q3 2022
Beat estimate in 2 of 14 quarters(14%)
ActualEstimate

Revenue by segment

MFA Financial · $125M total across 1 segment · Q4 2022

  • Residential whole loans
    $125M

Forward guidance

This earnings report contains forward-looking statements that are subject to risks and uncertainties, including economic factors, interest rate changes, and the performance of the housing and financial markets. Actual results could differ materially from those projected due to these factors.

Headwinds

  • General economic developments and trends and the performance of the housing, real estate, mortgage finance, broader financial markets.
  • Inflation, increases in interest rates and changes in the market (i.e., fair) value of MFA’s residential whole loans, MBS, securitized debt and other assets, as well as changes in the value of MFA’s liabilities accounted for at fair value through earnings.
  • The effectiveness of hedging transactions.
  • Changes in the prepayment rates on residential mortgage assets
  • Credit risks underlying MFA’s assets, including changes in the default rates and management’s assumptions regarding default rates on the mortgage loans in MFA’s residential whole loan portfolio

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-0.2%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-0.5%

Avg return

30 days after

49%

33 / 68 earnings

Positive

+7.6%

Q2 2024

Best reaction

-10.1%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.8%-2.5%-8.8%
Q4 2025+2.4%-0.2%-4.4%
Q3 2025+1.3%-0.2%+6.2%
Q1 2025-5.3%-4.4%-4.3%
Q4 2024+0.2%+0.3%+5.5%
Q3 2024-6.2%-6.1%-10.8%
Q2 2024+7.6%+7.5%+13.2%
Q1 2024-2.7%-1.0%-1.7%
Q4 2023+2.8%+0.1%+6.4%
Q3 2023-0.3%-0.6%+11.9%
Q2 2023-4.0%-3.0%-2.7%
Q1 2023+1.1%+1.1%+9.3%
Q4 2022+1.7%+0.6%-14.3%
Q3 2022+4.7%+5.0%+14.6%
Q2 2022-4.9%-5.1%-15.8%
Q1 2022-1.2%-8.8%-7.2%
Q4 2021-4.4%-4.9%-4.7%
Q3 2021+2.0%+1.8%-0.7%
Q2 2021+2.4%+2.6%+5.1%
Q1 2021-1.6%-2.9%+0.5%
Q4 2020+0.0%-3.8%-1.9%
Q3 2020+5.0%+7.8%+33.7%
Q2 2020+2.5%+8.4%-1.8%
Q1 2020-10.1%-11.5%-9.4%
Q4 2019+0.0%-4.1%-54.4%
Q3 2019+1.9%+2.3%+1.5%
Q2 2019+4.8%+3.8%+2.3%
Q1 2019-2.1%-0.7%-3.9%
Q4 2018+0.3%+0.1%-1.2%
Q3 2018+3.8%+4.2%+4.7%
Q2 2018-4.6%-7.0%-4.7%
Q1 2018-0.9%-0.1%+1.8%
Q4 2017+4.2%+2.2%+7.3%
Q3 2017-4.1%-6.8%-3.5%
Q2 2017+1.8%+2.1%+2.7%
Q1 2017-4.0%-3.5%+1.0%
Q4 2016-0.7%-0.2%+0.6%
Q3 2016+2.6%+3.5%+6.4%
Q2 2016+3.2%+3.7%+4.0%
Q1 2016+2.5%
Q4 2015-0.8%
Q3 2015-1.4%
Q2 2015-0.7%
Q1 2015-1.7%
Q4 2014+1.7%
Q3 2014-2.0%
Q2 2014-0.5%
Q1 2014+0.1%
Q4 2013+1.9%
Q3 2013-0.9%
Q2 2013-0.9%
Q1 2013+0.4%
Q4 2012+1.2%
Q3 2012-3.6%
Q2 2012-3.9%
Q1 2012+2.9%
Q4 2011-0.9%
Q3 2011+2.5%
Q2 2011+0.3%
Q1 2010+1.6%
Q1 2011+0.2%
Q4 2008-1.4%
Q4 2009-1.4%
Q4 2010-1.4%
Q3 2010+1.6%
Q3 2009+1.6%
Q2 2009-1.1%
Q2 2010-1.1%

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