Ilona buys MFA 7.31: This represents a $0.80 annualized dividend and a dividend yield of 10.77%. The ex-dividend date was Thursday, June 25th.

On average, analysts predict that MFA Financial will post $0.81 earnings per share for the current fiscal year. The real estate investment trust reported $0.20 earnings per share (EPS) for the quarter, meeting the Thomson Reuters consensus estimate of $0.20. During the same period last year, the business earned $0.20 EPS. Knutson bought 7,500 shares of MFA Financial stock in a transaction that occurred on Monday, August 10th. If repo rates move up substantially it could be challenging for MFA Financial, but if the rates are slow to increase the strong yields on MBS could make this strategy a winner. This portfolio of heavily non-Agency securities combined with lower levels of leverage and lower levels of interest rate hedging meets several of the criteria that interest me in an mREIT.


Joan:
Since the mREIT is using interest rate swaps for hedging, it is interested that they have decided not to report Core EPS as a comparable measure to other mREITs.

Marni:
They work at relatively low levels of leverage (compared to the mREIT sector) and milk those strong yields to produce their earnings.

Eleonor:
I see an mREIT that was willing to take on substantial credit risk to enhance the yield of their portfolio.

Obdulia:
The weighted average maturity was 51 months.

Annice:
Instead, we are working from Net Income which makes me feel less comfortable as an analyst.

Marcell:
So far, that theory is playing out for many mREITs.

Kortney:
I've been warning investors that when share prices for mREITs finally match book values it will likely involve lower book values rather than simply seeing the market correct share prices to match prior book values.

Jacalyn:
I find this portfolio very interesting and it makes MFA Financial an mREIT worthy of thorough research.

Donna:
Even given the low leverage the volume of swaps to repo agreements is fairly low.

Concetta:
The portfolio is heavy on non-Agency MBS which allows them to use a lower level of leverage.

Mfa Financial Inc (NYSE:MFA)
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