The following is a summary of the MFA Financial, Inc. (MFA) Q4 2023 Earnings Call Transcript:
Financial Performance:
MFA Financial reported a 7.8% economic return for Q4 2023 and a 2.7% return for the full year. The total shareholder return for the year was 30.7%.
They generated distributable earnings that exceeded its dividend and added $860 million of loans in Q4 with an average coupon of 10%.
Q4 net interest income increased to $46.5 million from $46.1 million in Q3. Full year net interest income plus the benefit of positive carry on rate swaps was $283.6 million, a 21% increase from 2022.
MFA reported Q4 GAAP earnings of $81.5 million, or $0.80 per basic common share, and distributable earnings of $49.7 million, or $0.49 per basic common share.
Business Progress:
MFA completed eight securitizations during 2023, collateralized by $2.2 billion of loans, and issued over $450 million of securitized debt in Q4.
The company issued an unsecured senior bond in early 2024, upsized to $115 million due to strong demand.
They grew its loan portfolio by 7% in the quarter and 20% in the full year, while also increasing its asset yield steadily from 5.69% in Q1 to 6.46% in Q4.
MFA anticipates managing interest rate risks with a short net duration approach, with plans to expand its loan financing capacity by further amounts due to its successful mortgage securitization strategy.
More details: MFA Financial IR
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