MFA Financial appoints Christopher Small to board

NEW YORK - MFA Financial, Inc. (NYSE: MFA), a real estate investment trust specializing in residential mortgage loans and related assets with a market capitalization of $1.07 billion, has announced the appointment of Christopher Small to its Board of Directors, effective immediately. According to InvestingPro analysis, the company maintains a GOOD financial health score and appears undervalued based on its Fair Value assessment.

Christopher Small brings a wealth of experience from his career in investment banking, particularly in residential mortgage finance. He has served as Chief Executive Officer of Black Owl Managing, LLC since October 2022. Prior to that, from 2010 to 2022, Small worked at Wells Fargo (NYSE:WFC) Securities, where he held several senior positions, including Managing Director and Head of Diversified Financials for FIG Corporate and Investment Banking, as well as Managing Director and Head of Financial Institutions Group Investment Banking.

Small’s background also includes a stint as an investment professional at American Capital, Ltd., and his early career at JMP Securities LLC. He is a Princeton University alumnus, holding an A.B. degree.

Laurie Goodman, MFA’s Board Chair, expressed confidence in Small’s abilities to contribute to the company’s growth, citing his extensive experience and expertise in the field.

With this appointment, Small will also serve on the Audit Committee and Compensation Committee of the Board. MFA Financial, which manages a portfolio that includes residential mortgage-backed securities and real estate assets, has been a consistent distributor of dividends to its stockholders, with over $4.8 billion distributed since its initial public offering in 1998. InvestingPro data reveals the company currently offers an impressive 13.42% dividend yield and has maintained dividend payments for 27 consecutive years, making it an attractive option for income-focused investors.

The company, through its subsidiary Lima One Capital, also originates and services business purpose loans for real estate investors. This move to strengthen its Board with Small’s election is part of MFA Financial’s ongoing strategy to enhance its governance and oversight.

This news is based on a press release statement from MFA Financial, Inc.

In other recent news, MFA Financial Inc (NYSE:MFA). reported its fourth-quarter 2024 earnings, revealing a slight miss in both earnings per share (EPS) and revenue compared to forecasts. The company posted an EPS of $0.39, slightly below the forecasted $0.3954, and revenue of $50.8 million, which was significantly under the expected $90.38 million. Despite these results, the company achieved a full-year total economic return of 5.2%. Additionally, MFA Financial plans to expand its agency MBS portfolio and anticipates a 10% economic return in 2025.

Keefe, Bruyette & Woods analysts recently adjusted their financial outlook on MFA Financial, lowering the stock target to $12.50 from $13.50, while maintaining an Outperform rating. The adjustment follows a 3.7% decline in the company’s economic book value to $13.93. Analysts also revised earnings estimates for fiscal years 2025 and 2026 to $1.35 and $1.40 per share, respectively, down from previous projections. Despite the lowered price target, the firm’s positive stance on MFA Financial’s shares remains due to the stock trading at 77% of its tangible book value and offering a substantial dividend yield of 13.6%.

MFA Financial continues to navigate a challenging economic environment, marked by strategic investments and an expansion of its agency securities portfolio by 50% to $1.4 billion. The company reported a total economic return of -1.2% for the fourth quarter. Furthermore, MFA Financial’s management expressed confidence in the company’s portfolio, citing strong earnings power and favorable market conditions as potential tailwinds for future growth.

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