MFA Financial Q3 adjusted EPS misses estimates on market volatility
MFA•MFA Financial reported Q3 adjusted EPS of $0.26, below the $0.30 consensus, and adjusted net income of $26.4 million, below the $34.18 million consensus. The company posted a GAAP net loss of $122.4 million as market volatility and wider spreads weighed on results.
1. Quarterly results
MFA Financial reported Q3 adjusted EPS of $0.26, missing analyst expectations of $0.30. Adjusted net income was $26.4 million, below the $34.18 million consensus, while the company recorded a GAAP net loss of $122.4 million, or $1.19 per share.
2. Portfolio activity
The company said spiking Treasury yields and heightened volatility widened spreads and negatively affected results. MFA acquired $1.6 billion of assets, including a $750 million rotation within Agency MBS into higher-coupon bonds, and re-securitized $447 million of seasoned NPL collateral, unlocking $40 million of capital and additional financing capacity. Its Q3 dividend was $0.36 per share.
