MFA Financial (MFA) investor relations material

Executive summary

• Q3 GAAP loss before taxes was $111.7M; net loss available to common stockholders and participating securities was $122.4M, or $1.19/share, as fair-value marks weighed on results.

• Distributable Earnings were $0.26/share; DE before realized credit losses was $0.44/share, or ~$0.39 excluding non-recurring benefits.

• Total economic return was -10.6%; GAAP and Economic Book Value fell 12.5% and 13.3% QoQ to $11.12 and $11.44/share.

• Rates rose and mortgage spreads widened, while expected ROEs on new investments reached the mid-to-high teens.

Financial highlights

• Net interest income was $61.4M, versus $57.0M in Q3 2025; including TBA dollar-roll income, it was $63.4M, up from $60.2M in Q2.

• Fair-value losses included $204.0M on residential whole loans and $223.3M on securities and other investments, partly offset by derivative and securitized-debt gains.

• Distributable Earnings were $26.4M, or $0.26/share; before $18.9M of realized credit losses, they were $45.3M, or $0.44/share.

• DE before realized credit losses, excluding non-recurring benefits, was ~$0.39/share, up 11% QoQ and 30% YoY.

• A $0.36/common-share dividend was paid; quarterly total economic return was -10.6%.

Outlook and guidance

• Expected ROEs on new investments were mid-to-high teens as higher rates and wider spreads improved prospective yields.

• Realized credit losses may remain elevated in the short term as non-performing loans are resolved, though management expected losses to moderate as legacy multifamily exposures shrink.

• Approximately $1.3B of 1.4% pay-fixed swaps mature at year-end and into Q1 2027; they currently contribute ~$0.08/share per quarter to DE.

• Economic Book Value was estimated to have increased ~5% after quarter-end as interest rates rallied.