MFA Mortgage Investments Inc. (MFA, Financial) filed Quarterly Report for the period ended 2009-03-31.
MFA Mortgage Investments Inc. operates as a real estate investment trust primarily engaged in the business of investing in mortgage-backed securities. The company also has indirect investment in Lealand Place a multifamily apartment property located in Lawrenceville Georgia. In addition it provides investment advisory services to a third-party institution with respect to their MBS portfolio investments. MFA Mortgage Investments Inc. has a market cap of $1.31 billion; its shares were traded at around $5.88 with a P/E ratio of 147.1 and P/S ratio of 3.2. The dividend yield of MFA Mortgage Investments Inc. stocks is 14.9%. MFA Mortgage Investments Inc. had an annual average earning growth of 17% over the past 5 years.
At March 31, 2009, approximately $9.177 billion, or 92.3%, of our MBS portfolio was in its contractual fixed-rate period and approximately $766.7 million, or 7.7%, was in its contractual adjustable-rate period. Our MBS in their contractual adjustable-rate period include MBS collateralized by Hybrids for which the initial fixed-rate period has elapsed and the current interest rate on such MBS is generally adjusted on an annual basis.
The current financial environment is driven by exceptionally low short-term interest rates with a federal funds target rate range of 0.0% to 0.25%. At March 31, 2009, we had borrowings under repurchase agreements with 20 counterparties with funding available to us at attractive rates. However, it continues to be our view that the financial industry remains fragile. At March 31, 2009, our debt-to-equity multiple was 6.0 times and our liquidity position was $647.7 million, consisting of $405.6 million of cash and cash investments, $157.1 million of unpledged Agency MBS and $85.0 of excess collateral.
The market value of our Agency MBS continues to be positively impacted by the U.S. Federal Reserve s program to purchase $1.25 trillion of Agency MBS during 2009. These governmental purchases have increased market prices, thereby reducing the current market yield on Agency MBS. As a result, we did not purchase Agency MBS during the quarter ended March 31, 2009. While our primary focus remains high quality, higher coupon Agency Hybrid MBS assets, as part of our strategy we increased our investments in Senior MBS. Through MFR, we have acquired Senior MBS (representing the senior most tranches of residential MBS) at deep discounts to face (or par) value without the use of leverage. From MFR s inception in November 2008 through March 31, 2009, we acquired $75.2 million of Senior MBS at a weighted average purchase price of 51.2% of the face amount, of which $62.0 million were purchased during the quarter ended March 31, 2009. At March 31, 2009, these Senior MBS had weighted average credit enhancement of 10.7%. Unlike our Agency MBS, the yield on our Senior MBS may increase if their prepayment rates trend up, as purchase discounts are accreted into income. During the three months ended March 31, 2009, our Senior MBS portfolio earned $5.8 million, of which $1.6 million was attributable to the Senior MBS held through MFR. At March 31, 2009, $245.1 million, or 2.5%, of our MBS portfolio, including $75.0 million of MBS held through MFR, was invested in non-Agency MBS, of which $244.9 million were Senior MBS. We continue to maintain lower leverage in accordance with our reduced leverage strategy adopted in early 2008 and our recent emphasis on acquiring Senior MBS without the use of leverage. However, if the Treasury expands the eligible collateral under the Term Asset-Backed Security Loan Facility (or TALF) to include Senior MBS, we would consider employing leverage in our Senior MBS portfolio through borrowings under TALF.
Read the The complete ReportMFA is in the portfolios of Arnold Schneider of Schneider Capital Management.
MFA Mortgage Investments Inc. operates as a real estate investment trust primarily engaged in the business of investing in mortgage-backed securities. The company also has indirect investment in Lealand Place a multifamily apartment property located in Lawrenceville Georgia. In addition it provides investment advisory services to a third-party institution with respect to their MBS portfolio investments. MFA Mortgage Investments Inc. has a market cap of $1.31 billion; its shares were traded at around $5.88 with a P/E ratio of 147.1 and P/S ratio of 3.2. The dividend yield of MFA Mortgage Investments Inc. stocks is 14.9%. MFA Mortgage Investments Inc. had an annual average earning growth of 17% over the past 5 years.
Highlight of Business Operations:
At March 31, 2009, we had total assets of approximately $10.518 billion, of which $9.945 billion, or 94.6%, represented our MBS portfolio. At March 31, 2009, our MBS portfolio was comprised of $9.699 billion of Agency MBS, $244.9 million of Senior MBS, and $218,000 of other non-Agency MBS (which were not Senior MBS). The remainder of our investment-related assets was primarily comprised of cash and cash equivalents, restricted cash, MBS-related receivables, securities held as collateral and an investment in a multi-family apartment property.At March 31, 2009, approximately $9.177 billion, or 92.3%, of our MBS portfolio was in its contractual fixed-rate period and approximately $766.7 million, or 7.7%, was in its contractual adjustable-rate period. Our MBS in their contractual adjustable-rate period include MBS collateralized by Hybrids for which the initial fixed-rate period has elapsed and the current interest rate on such MBS is generally adjusted on an annual basis.
The current financial environment is driven by exceptionally low short-term interest rates with a federal funds target rate range of 0.0% to 0.25%. At March 31, 2009, we had borrowings under repurchase agreements with 20 counterparties with funding available to us at attractive rates. However, it continues to be our view that the financial industry remains fragile. At March 31, 2009, our debt-to-equity multiple was 6.0 times and our liquidity position was $647.7 million, consisting of $405.6 million of cash and cash investments, $157.1 million of unpledged Agency MBS and $85.0 of excess collateral.
The market value of our Agency MBS continues to be positively impacted by the U.S. Federal Reserve s program to purchase $1.25 trillion of Agency MBS during 2009. These governmental purchases have increased market prices, thereby reducing the current market yield on Agency MBS. As a result, we did not purchase Agency MBS during the quarter ended March 31, 2009. While our primary focus remains high quality, higher coupon Agency Hybrid MBS assets, as part of our strategy we increased our investments in Senior MBS. Through MFR, we have acquired Senior MBS (representing the senior most tranches of residential MBS) at deep discounts to face (or par) value without the use of leverage. From MFR s inception in November 2008 through March 31, 2009, we acquired $75.2 million of Senior MBS at a weighted average purchase price of 51.2% of the face amount, of which $62.0 million were purchased during the quarter ended March 31, 2009. At March 31, 2009, these Senior MBS had weighted average credit enhancement of 10.7%. Unlike our Agency MBS, the yield on our Senior MBS may increase if their prepayment rates trend up, as purchase discounts are accreted into income. During the three months ended March 31, 2009, our Senior MBS portfolio earned $5.8 million, of which $1.6 million was attributable to the Senior MBS held through MFR. At March 31, 2009, $245.1 million, or 2.5%, of our MBS portfolio, including $75.0 million of MBS held through MFR, was invested in non-Agency MBS, of which $244.9 million were Senior MBS. We continue to maintain lower leverage in accordance with our reduced leverage strategy adopted in early 2008 and our recent emphasis on acquiring Senior MBS without the use of leverage. However, if the Treasury expands the eligible collateral under the Term Asset-Backed Security Loan Facility (or TALF) to include Senior MBS, we would consider employing leverage in our Senior MBS portfolio through borrowings under TALF.
Read the The complete ReportMFA is in the portfolios of Arnold Schneider of Schneider Capital Management.
