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Mar 31, 2024
MFA Financial Q1 2024 Earnings Report
MFA Financial reported strong distributable earnings, acquired or originated $652 million in residential mortgage loans, and maintained healthy net interest spread and margin.
Key Takeaways
MFA Financial announced its Q1 2024 financial results, reporting strong distributable earnings despite a modest impact on book value from higher interest rates. The company acquired or originated $652 million of residential mortgage loans, including over $400 million of new business purpose loans originated by Lima One Capital. They also benefited from their interest rate swap position and maintained healthy net interest spread and margin.
Acquired or originated $652 million of residential mortgage loans with an average coupon of approximately 10%.
Lima One Capital originated over $400 million of new business purpose loans.
Completed one securitization during the quarter.
Net interest spread and net interest margin remained healthy at 2.06% and 2.88%, respectively.
Revenue by Segment
Forward Guidance
The report provides forward-looking statements regarding MFA's business, financial condition, and future performance, subject to various risks and uncertainties.
Positive Outlook
- MFA is well-situated to take advantage of market opportunities that may arise.
- MFA continues to maintain a substantial cash position.
- MFA's ability to borrow to finance its assets
- MFA's estimates regarding taxable income
- MFA's ability to maintain its qualification as a REIT
Challenges Ahead
- 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 value of MFA’s residential whole loans, MBS, securitized debt and other assets
- Changes in the prepayment rates on residential mortgage assets
Historical Earnings Impact
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Avg. Return Before/After Earnings
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