MFA Financial to Issue Preferred Shares, Targets $700M Agency MBS, $471M Non-QM Growth
MFA Financial posted an $0.11 per share loss and adjusted EPS of $0.30 on $191.9 million revenue in Q1 2026 while reallocating capital via preferred stock ATM to repurchase common shares. Management plans to add $700 million in Agency MBS and $471 million in Non-QM loans and expects DE to reconverge with its $0.36 dividend by end-2026.
1. Q1 Financial Results
MFA Financial reported a net loss of $984,000, or $0.11 per share, in Q1 2026, while adjusted earnings reached $0.30 per share. Total revenue for the quarter was $191.9 million with adjusted revenue of $59.2 million, reflecting the impact of legacy loan performance and market volatility.
2. Capital Allocation and Legacy Loan Strategy
Management is leveraging an at-the-market preferred stock issuance to repurchase common shares at a discount, supporting common equity without reducing the overall capital base. The in-house team continues to resolve delinquent legacy multifamily loans and plans to call older securitizations to lower borrowing costs and unlock additional capital.
3. Growth Plans and Outlook
MFA aims to invest approximately $700 million in Agency MBS and $471 million in Non-QM loans, taking advantage of current market volatility and entry points. Leadership anticipates Distributable Earnings will align with the $0.36 common dividend by year-end and foresees credit losses peaking in Q2 before normalizing.