Company: MFAN
Filing Date: 2025-04-18
Form Type: DEF 14A
Source: 0001140361-25-014577
Chunk: 99

Company: MFA FINANCIAL, INC.
Filing Date: 2025-04-18
Form: DEF 14A
Chunk 99
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379,527 PRSUs (assuming “target” performance in the case of the PRSUs). PRSUs can be paid at 0% to 200% of target. The Outstanding Full Value Grants do not include dividend equivalents. Dividend equivalents on TRSUs and fully vested RSUs are payable in cash. Dividend equivalents on PRSUs are payable in shares, based on performance. The number of additional shares that may be issued with respect to dividend equivalents for PRSUs grants is calculated by dividing (i) the dollar value of accumulated dividend equivalents in respect of PRSUs that vest at the end of the performance period by (ii) the price per share of our Common Stock at the time of vesting. |

| 2. | Assumes “target” performance of outstanding performance-based grants. |

| 3. | The Total Potential Overhang consists of (i) 4,193,914 total shares subject to outstanding awards as of March 31, 2025, plus (ii) 3,536,231 shares that remain available for grants under the Existing Plan as of March 31, 2025, plus (iii) 5,500,000 additional shares requested, and assumes target performance of outstanding performance-based grants. |

Burn Rate Our equity plan share usage over 2022, 2023 and 2024 represented a three-year average burn rate of 1.18%, as described in the table below.

| Year               |     |  Vested 
   RSUs/ 
  Shares 
 Granted 
     (#) |     |   TRSUs 
 Granted 
     (#) |     |      PRSUs 
 Granted(1) 
        (#) |     |     Total 
    Awards 
       (#) |     |     Weighted 
      Average 
 Common Stock 
  Outstanding 
          (#) |     | Burn 
 Rate 
  (%) |
| 2024               |     |  94,333 |     | 478,777 |     |    776,709 |     | 1,349,819 |     |  103,488,988 |     | 1.30 |
| 2023               |     |  90,388 |     | 520,292 |     |    997,383 |     | 1,608,063 |     |  102,215,800 |     | 1.57 |
| 2022               |     |  74