MFA Financial beats estimates, unveils $200M buyback

New York-based MFA Financial (NYSE:MFA) reported fourth-quarter results on Wednesday that met analyst expectations for core profitability while showcasing a significant rebound in net income and a major new commitment to returning capital to investors.

The specialty finance company posted fourth-quarter GAAP net income of $54.3 million, or 42 cents per share, a sharp increase from the $5.9 million reported in the same period last year.

On a distributable basis—a key metric for REITs that excludes certain non-cash items—earnings came in at 27 cents per share.

This matched the consensus estimate from Wall Street analysts and represented a 35 percent sequential improvement from a challenging third quarter.

A primary driver of the quarter’s success was the aggressive expansion of the firm’s residential investment portfolio, which grew to $12.3 billion by year-end, up from $11.2 billion in September.

MFA added $1.2 billion in Agency Mortgage-Backed Securities (MBS) and $443.5 million in Non-QM loans during the quarter.

The company’s wholly-owned subsidiary, Lima One Capital, also contributed by originating $226.4 million in new business purpose loans.

In a move to drive further value, MFA’s board authorized a new $200 million common stock repurchase program effective through 2028.

This follows a year in which the company had already repurchased over 1 million shares.

Additionally, the company reaffirmed its high-yield status, paying a quarterly dividend of $0.36 per share in late January, which translates to an annualized yield of approximately 14.6 percent.

For the full year 2025, MFA reported total revenue of $231.1 million and a profit of $176.8 million, or $1.30 per share.

With an economic book value of $13.75 per share at year-end, the company enters 2026 with a strengthened balance sheet and a 9 percent total economic return for the prior fiscal year.