MFA Financial (MFA) Q4 2025 earnings summary

Executive summary

• Achieved GAAP net income of $43.6 million ($0.42 per share) for Q4 2025 and $136.5 million ($1.31 per share) for the year, with distributable earnings of $27.8 million ($0.27 per share) in Q4 and $104.0 million ($1.00 per share) for 2025.

• Total economic return was 3.1% in Q4 and 9% for 2025; economic book value per share rose to $13.75.

• Paid $0.36 per share in quarterly dividends, totaling $1.44 for 2025, with a dividend yield of 14.6% as of February 13, 2026.

• Deployed over $100 million of excess cash into target assets and resolved over $150 million of delinquent loans in Q4.

• Investment portfolio grew to $12.3 billion, driven by $1.2 billion in Agency MBS, $443 million in Non-QM loans, and $226 million in business purpose loans originated in Q4.

Financial highlights

• GAAP book value per share at year-end was $13.20; economic book value was $13.75.

• Net interest income for 2025 was $231.1 million, with Q4 net interest margin at 2.31% and asset yield at 6.52%.

• G&A expenses for 2025 were $119 million, down from $132 million in 2024.

• Unrestricted cash stood at $213 million at year-end.

• Repurchased over 1 million common shares at a discount to economic book value, funded by preferred share issuance.

Outlook and guidance

• Further reductions in G&A expenses and additional cost savings anticipated in 2026.

• Distributable earnings expected to reconverge with the common dividend in the back half of 2026.

• Growth at Lima One, including new wholesale and multifamily lending channels, expected to materially contribute to earnings in 2026.

• Current rate environment supports attractive yields and mid-teen ROEs for new investments.

• New $200 million stock repurchase program authorized, effective through 2028.