Company: MFAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001055160-25-000013
Chunk: 287

Company: MFA FINANCIAL, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 287
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 of the statutory federal tax rate to the Company’s effective tax rate at June 30, 2025 and 2024:  Six Months EndedJune 30,20252024Federal statutory rate21.0 %21.0 %Non-taxable REIT income (dividends paid deduction)(20.1)%(17.6)%Other differences in taxable income/(loss) from GAAP(14.8)%9.0 %State and local taxes(0.2)%(0.1)%Change in valuation allowance on DTAs13.3 %(10.6)%Effective tax rate(0.8)%1.7 %

9.    Commitments and Contingencies

 (a) Lease Commitments  The Company’s primary lease commitment relates to its corporate headquarters.  For the three months ended June 30, 2025 and 2024, the Company recorded an expense in connection with this lease of approximately $1.3 million and $1.5 million, respectively, and $2.7 million and $2.8 million for the six months ended June 30, 2025 and 2024, respectively. The original term specified in this lease is approximately fifteen years with a termination date of December 2036 and an option to renew for an additional five years.  Additionally, in December 2024, Lima One executed a new office lease for its headquarters in Greenville, South Carolina. Lima One moved into the new office space on July 15, 2025. The Company recorded an expense in connection with this lease of approximately $0.9 million for the six months ended June 30, 2025. The original term specified in this lease is approximately nine years with a termination date of December 2033 and two options to renew for an additional four years for the first extension and an additional five years for the second extension. The Company recognized total lease expense of $2.8 million, and $1.9 million for the three months ended June 30, 2025 and 2024, respectively, and $4.6 million and $3.8 million for the six months ended June 30, 2025 and 2024, respectively, which is included in Other general and administrative expense on the Company’s consolidated statements of operations.At June 30, 2025, the contractual minimum rental payments (exclusive of possible rent escalation charges and normal recurring charges for maintenance, insurance and taxes) for the Company’s lease