Company: MFAN
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001055160-25-000004
Chunk: 77

Company: MFA FINANCIAL, INC.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 5
Chunk 77
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)20242023Balance at beginning of period$110,174 $130,605 Adjustments to record at lower of cost or fair value(8,304)(4,867)Transfer from residential whole loans (1)103,666 84,662 Purchases and capital improvements, net430 421 Disposals and other (2)(75,112)(100,647)Balance at end of period$130,854 $110,174 Number of properties416 300 (1)The Company recognized $(6.7) million and $0.4 million, respectively, on Residential whole loans in Other Income/(Loss), net associated with the transfer of loans to REO for the years ended December 31, 2024 and December 31, 2023.  (2)During the year ended December 31, 2024, the Company sold 257 REO properties for consideration of $85.3 million, realizing net gains of approximately $10.5 million. During the year ended December 31, 2023, the Company sold 342 REO properties for consideration of $114.3 million, realizing net gains of approximately $14.4 million. These amounts are included in Other Income/(Loss), net on the Company’s consolidated statements of operations.  Commercial REOIn December 2023, the Company received a 75% interest in an entity which owns a newly constructed industrial property as part of the negotiated settlement of a delinquent commercial mortgage loan. In the third quarter of 2024, the Company received 75% and 49% interests, respectively, in two additional VIEs through foreclosure of a multifamily property and a senior living facility underlying delinquent commercial mortgage loans. Each of these entities was determined to be a VIE but the Company was not determined to be the primary beneficiary; as a result, the investments in the entities are considered equity method investments. During 2024, the Company recorded a $0.1 million loss based on updated valuations of the property acquired in 2023, which the Company sold in December 2024. Each entity accounts for its respective commercial REO property similarly to the manner in which the Company accounts for its residential REO. The entities generally do not own any other significant assets or carry any significant liabilities, except that two entities contain properties encumbered by third-party financing. The property acquired in 2023 was considered held-for-sale, while the properties fore