Overview

* MFA Financial ( MFA/PB ) Q3 adjusted EPS misses analyst expectations

* Company reports Q3 GAAP net income of $37.3 mln

* MFA repurchased nearly 500,000 shares at a discount to book value

Outlook

* Company plans to reduce G&A expenses by 7-10% from 2024 levels

* MFA is deploying excess cash into target asset classes to improve returns

* Company repurchased nearly 500,000 shares at a discount to book value

Result Drivers

* ASSET ACQUISITIONS - MFA acquired $1.2 bln of residential mortgage assets, including $453 mln of Non-QM loans and $473 mln of Agency MBS at attractive yields

* CREDIT LOSSES - Distributable earnings impacted by credit losses on legacy business purpose loans, with steps being taken to improve future returns

* DELINQUENCY REDUCTION - Resolved $223 mln of previously delinquent loans, reducing the delinquency rate to 6.8%

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $0.20 $0.28 (6

Adjusted Analysts

EPS )

Q3 Miss $21 mln $31.51

Adjusted mln (4

Net Analysts

Income )

Q3 Net $37.30

Income mln

Q3 $0.36

Dividend

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the specialized reits peer group is "hold"

* Wall Street's median 12-month price target for MFA Financial Inc ( MFA/PB ) is $10.25, about 9.7% above its November 5 closing price of $9.26

* The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)