MFA Financial reports strong Q4 growth with expanded mortgage investments
MFA Financial, Inc. reported its fourth-quarter and full-year 2025 results during an earnings call on Wednesday, February 18, 2026. The company highlighted steady growth in book value, expanded investments, and improved earnings—all while navigating a more stable economic environment.
Key figures included a GAAP net income of $54.3 million for the quarter and a total economic return of 3.19% over the same period.
The company's GAAP book value per share reached $13.20 by December 31, 2025, a slight increase from September. Economic book value per share stood at $13.75, with estimates suggesting a further 3% rise after the quarter's end.
Distributable earnings climbed to $27.8 million, or $0.27 per share, up from $0.20 in the previous quarter. This improvement came as credit-related charges fell, though gains from real estate-owned (REO) assets were lower. Net interest income for the quarter totalled $55.5 million, boosted by higher returns from Agency mortgage-backed securities (MBS) and non-qualified mortgages (Non-QM). However, this was partly offset by reduced yields on older loans and increased nonaccruals in the multifamily transitional portfolio.
MFA Financial made significant moves to expand its portfolio in Q4. The Agency MBS position grew to $3.3 billion by year-end, with $1.2 billion added in the final quarter alone. Overall, the company deployed around $4.8 billion across its target asset classes in 2025, including a $100 million allocation of excess cash and nearly $2 billion in acquired assets. Management emphasised that these investments would drive future earnings and return on equity (ROE) growth.
The company also maintained its dividend payments, declaring a common dividend of $0.36 per share for the quarter. For the full year, shareholders received $1.44 per share, with 40% of the 2025 dividend classified as a return of capital. Total shareholder return for 2025 reached 6%, while the total economic return for the year was 9%.
Management described 2025 as a year of macroeconomic stabilisation. A steeper yield curve, lower interest rates, and reduced volatility created a more supportive environment for the residential mortgage sector.
MFA Financial closed 2025 with stronger book values, higher distributable earnings, and a significantly expanded mortgage portfolio. The company's strategic investments and stable dividend payments reflect its focus on long-term growth in a more favourable market.
Looking ahead, the increased Agency MBS holdings and new deployments of capital are expected to further support earnings and shareholder returns.
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