Company: MFAN
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001055160-25-000007
Chunk: 7

Company: MFA FINANCIAL, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
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. During the quarter we executed one securitization and issued $283 million of securitized debt. 

During the quarter we generated GAAP earnings per share (or EPS) of $0.32 per basic common share and Distributable earnings, a non-GAAP financial measure that excludes the impact of fair value changes and certain other items, of $0.29 per basic common share. At March 31, 2025, our GAAP book value was $13.28 and our Economic book value, a non-GAAP financial measure of our financial position that adjusts GAAP book value by the amount of unrealized mark-to-market gains or losses on our residential whole loans and securitized debt held at carrying value, was $13.84 per common share, each representing decreases of less than 1% as compared to December 31, 2024. During the quarter, we increased the dividend on our common stock from $0.35 per common share to $0.36 per common share, an increase that reflects our Board’s confidence in the earnings power of our portfolio.

For the quarter, our Lima One subsidiary originated Business purpose loans with a maximum unpaid principal balance of $213 million, a decrease from the $236 million originated in the fourth quarter of 2024. During the quarter, we made significant progress in augmenting Lima One’s sales force, made several key hires in leadership positions, and continued to enhance Lima One’s technology platform, including a new borrower portal. During the quarter, Lima One sold recently originated Single-family rental loans with an unpaid principal balance of $67.6 million to third parties and realized gains of $1.9 million. We believe that these sales to third parties help to strengthen Lima One’s franchise value, create additional distribution channels to accommodate future growth, and enhance returns.

For additional information regarding the calculation of Distributable earnings and Economic book value per share, including a reconciliation to GAAP Net Income and GAAP book value per share, respectively, refer to “Reconciliation of GAAP and Non-GAAP Financial Measures” below.

First quarter 2025 portfolio activity and impact on financial results

At March 31, 2025, our residential mortgage asset portfolio, which includes residential whole loans and REO, and Securities, at fair value, was approximately $10.7 billion, compared to $10.5 billion at December 31, 2024.  

The following table presents the activity for our residential mortgage asset portfolio for the three months ended March 31,