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Mar 31, 2021
MFA Financial Q1 2021 Earnings Report
Earnings driven by strong portfolio performance and lower financing costs, acquisition of leading business purpose loan originator secures substantial and reliable source of high quality assets and expected to be accretive to 2021 earnings.
Key Takeaways
MFA Financial had a strong first quarter in 2021, earning $0.17 per common share, driven by strong portfolio performance and lower financing costs achieved through securitizations. The company also completed a single family rental securitization in February 2021 and a re-lever of a non-performing loan securitization in March 2021. Subsequent to quarter end, they also executed their fourth Non-QM securitization.
Earned $0.17 per common share in the first quarter.
GAAP total return of 3.6% and an economic total return of 5.0%.
Purchased nearly 11 million shares in 2021 at an average price of $4.14.
Entered into an agreement to acquire substantially all of the remaining ownership interests not already owned by us in Lima One Holdings, LLC.
Revenue by Segment
Forward Guidance
MFA expects to materially enhance its capability to purchase and service BPLs, which include fix and flip, single family and other rental and multifamily loans, with the acquisition of Lima One.
Positive Outlook
- Expect to materially enhance our capability to purchase and service BPLs
- MFA has purchased over $1 billion of BPLs from Lima One since 2017
- The company repurchased 5,946,678 shares of common stock at an average price of $4.09 per share.
- MFA’s proactive asset management team has been able to shorten liquidation timelines and increase property sale proceeds, leading to improved outcomes and better returns.
- Our overall expense run rate returned to more normal levels this quarter
Challenges Ahead
- The amount of Non-QM loans that were 60 or more days delinquent, measured as a percentage of the unpaid principal balance, increased during the quarter
- The amount of purchased credit deteriorated loans that were 90 or more days delinquent, measured as a percentage of the unpaid principal balance, marginally increased during the quarter
Historical Earnings Impact
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Avg. Return Before/After Earnings
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