MFA Financial Reports $11.4 Billion in Total Assets and $86.4 Million Net Income for 2024

MFA Financial, Inc. reported total assets of $11.4 billion at the end of 2024, with residential whole loans comprising 77% ($8.8 billion) of the total. The company's net income available to common stock and participating securities was $86.4 million, or $0.83 per basic common share, compared to $47.3 million, or $0.46 per share, in 2023. This increase stemmed from higher other income (net) of $22.3 million and higher net interest income after adjustments for credit losses of $19.3 million. Total dividends declared to common stockholders in 2024 were $142.9 million ($1.40 per share), slightly higher than the $142.7 million ($1.40 per share) paid in 2023. A portion of the 2024 common stock dividend, $0.5516 per share, was classified as a return of capital for tax purposes.

The company's residential whole loan portfolio saw a net decrease of $209 million in 2024, despite acquisitions and originations totaling $2.6 billion. This decrease resulted from principal repayments and sales of REO properties. The investment in residential mortgage securities increased by $792 million to $1.5 billion, primarily due to the addition of $932 million in Agency MBS. Lima One Holdings, LLC, a wholly-owned subsidiary, originated $1.4 billion in business purpose loans in 2024, a decrease from $2.2 billion in 2023, largely attributed to a strategic shift away from multifamily transitional lending. Eight securitizations were completed during 2024, resulting in $2.1 billion in securitized debt issued.

The company's financing strategy involved a combination of securitization transactions, term loan warehouse financing, and repurchase agreement financing. At year-end 2024, the company had approximately $3.8 billion in unused financing capacity across its arrangements. The company also noted that it did not repurchase any shares of its common stock under its $200 million stock repurchase program during 2024. The company's GAAP book value per common share decreased to $13.39 at the end of 2024 from $13.98 at the end of 2023, while its non-GAAP economic book value per share decreased to $13.93 from $14.57.

MFA Financial, Inc. highlighted several risk factors, including economic downturns, credit risk associated with its investments, prepayment risk, and the impact of leverage. The company also discussed regulatory risks, cybersecurity risks, and the challenges of maintaining its REIT qualification. The company's outlook for 2025 anticipates continued investment opportunities in residential whole loans, but also acknowledges potential challenges related to the ongoing economic environment and the performance of its business purpose loan portfolio. The company expects origination volumes to remain under pressure in the first half of 2025 due to the shift away from multifamily lending and lower single-family real estate transaction volumes.