MFA Financial (MFA) Tops Q3 EPS by 1c, Revenues Beat

November 6, 2018 8:36 AM EST

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MFA Financial (NYSE: MFA) reported Q3 EPS of $0.19, $0.01 better than the analyst estimate of $0.18. Revenue for the quarter came in at $58.55 million versus the consensus estimate of $54.5 million.

Craig Knutson, MFA's CEO and President, said, "MFA's investment team was very active in the third quarter, acquiring over $2.3 billion of new assets. With the additional capital from our August common equity raise, we grew our investment portfolio by over $1.3 billion. Our residential whole loan and REO portfolio increased by $543 million, largely due to purchases of newly originated whole loans. RPL/NPL MBS increased by $253 million, and MSR-related investments increased by $184 million. We also purchased approximately $750 million of 30 year fixed rate Agency MBS, growing this portfolio by approximately $540 million. This incremental Agency MBS investment was hedged to minimize duration exposure and also provided an efficient means to deploy a portion of the capital raised in our August common equity raise. These very liquid investments can easily be sold to fund future purchases of residential whole loans or other higher yielding assets. Much of the growth in our residential whole loan portfolio has been through purchases of newly originated whole loans, including Non-QM loans, fix and flip loans and single family rental loans. We are pleased to continue to gain traction on these new acquisition efforts, which involve relationships cultivated over the past year or more. Through our willingness and ability to explore and enter into various arrangements, including flow agreements, strategic alliances and also minority equity investments, we have been able to partner with originators to source attractive new investments, while enabling them to grow with support from MFA as a reliable provider of capital."

For earnings history and earnings-related data on MFA Financial (MFA) click here.

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