MFA Financial plans $200 million stock repurchase program

Overview

• Specialty finance firm's Q4 adjusted EPS met analyst expectations

• Adjusted net income for Q4 missed analyst estimates

• Company announced a new $200 mln stock repurchase program

Outlook

• Company announces new $200 mln stock repurchase program through 2028

• Company did not provide specific guidance for future quarters

Result Drivers

• LOAN ACQUISITIONS - MFA acquired $1.2 bln of Agency MBS and $443 mln of Non-QM loans in Q4, contributing to portfolio growth

• COST MANAGEMENT - Co reduced operating expenses and resolved non-performing loans, enhancing economic return

• LIMA ONE CONTRIBUTION - Lima One funded $145.3 mln of new business purpose loans, generating $5.7 mln in mortgage banking income

Key Details

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 "buy."

• Wall Street's median 12-month price target for MFA Financial Inc is $10.38, about 4.6% above its February 17 closing price of $9.92

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

Press Release: ID:nBw6Yf4Ga

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