MFA Mortgage Investments Inc. (MFA, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $2.04 billion; its shares were traded at around $7.48 with a P/E ratio of 7.8 and P/S ratio of 5. The dividend yield of Mfa Mortgage Investments Inc. stocks is 13.3%. Mfa Mortgage Investments Inc. had an annual average earning growth of 17% over the past 5 years.
We currently use repurchase financing on a limited portion of our non-Agency MBS. All of the repurchase financing on our MFR MBS is considered linked with the associated non-Agency MBS that were purchased during the three months ended September 30, 2009. Our linked transactions are reported net as MBS Forwards, which are assets on our consolidated balance sheet. The changes in the fair value of our MBS Forward are reported as a net gain on our statements of operations. As of September 30, 2009, the fair value of our non-Agency MBS portfolio reported on our balance sheet was $947.6 million. In addition, we had non-Agency MBS held through MFR of $215.2 million that were linked with repurchase agreements of $162.6 million.
The current financial environment is driven by exceptional monetary easing. Funding through repurchase agreements remains available to us at attractive rates from multiple counterparties. However, we continue to refrain from adding interest-rate sensitive Agency MBS at high purchase premiums and historically low yields and instead are acquiring non-Agency MBS at a discount. At September 30, 2009, our MFR MBS portfolio was $743.8 million. In addition at September 30, 2009, through MFR, we had non-Agency MBS of $215.2 million with linked repurchase borrowings of $162.6 million that were reported net, as MBS Forwards on our consolidated balance sheet. By blending non-Agency MBS with Agency MBS, we seek to generate attractive returns with less leverage and less sensitivity to yield curve and interest rate cycles. At September 30, 2009, we had borrowings under repurchase agreements with 18 counterparties and a resulting debt-to-equity multiple of 3.4 times. This low leverage multiple reflects the limited amount of leverage used to finance our MFR MBS. Excluding $811.6 million of equity invested in MFR at September 30, 2009, our leverage multiple was 5.4 times. At September 30, 2009, our liquidity position was $816.0 million, consisting of $486.7 million of cash and cash equivalents, $235.1 million of unpledged Agency MBS and $94.2 of excess collateral. In addition, at September 30, 2009, we had unpledged non-Agency MBS with a fair value of $751.5 million.
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 of Agency MBS, thereby reducing their market yield. As a result, we opportunistically sold 20 of our longest time-to-reset 10/1 Agency MBS, with an amortized cost of $425.0 million, during the nine months ended September 30, 2009, all of which were sold during the second quarter. These sales, which resulted in gains of $13.5 million, decreased our sensitivity to the impact of potential increases in market interest rates in the future.
From November 2008 through September 30, 2009, we acquired $896.2 million of non-Agency MBS, of which $216.6 million were determined to be part of linked transactions during the quarter ended September 30, 2009, at a weighted average purchase price of 60.1% of the face amount. At September 30, 2009, the MFR MBS, including the MBS that are reported as part of linked transactions, had weighted average structural credit enhancement of 10.6%. During the three months ended September 30, 2009, we acquired non-Agency MBS at an aggregate cost of $555.5 million (including linked MBS) at an average price to par value of 67.4%, primarily funded with proceeds from our common stock offering and linked borrowings under repurchase agreements of $162.6 million.
Unlike our Agency MBS, the yield on the MFR MBS are expected to increase if prepayment rates on such assets exceed our prepayment assumptions, as purchase discounts are accreted into income. During the nine months ended September 30, 2009, our non-Agency MBS portfolio earned $37.7 million, of which $25.3 million was attributable to MFR MBS and $12.4 million was earned on our Legacy non-Agency MBS. In addition, we had a net gain of $754,000 on our MBS Forwards, all of which was attributable to MFR MBS purchased as part of a linked transaction during the three months ended September 30, 2009. At September 30, 2009, $947.6 million, or 10.1%, of our MBS portfolio, was invested in non-Agency MBS, of which $743.8 million were MFR MBS and $203.8 million were Legacy non-Agency MBS. In addition, we had forward contracts to repurchase $215.2 million of MFR MBS that are accounted for as linked transactions and reported as a component of our MBS Forwards.
Read the The complete ReportMFA is in the portfolios of Arnold Schneider of Schneider Capital Management, David Dreman of Dreman Value 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 $2.04 billion; its shares were traded at around $7.48 with a P/E ratio of 7.8 and P/S ratio of 5. The dividend yield of Mfa Mortgage Investments Inc. stocks is 13.3%. Mfa Mortgage Investments Inc. had an annual average earning growth of 17% over the past 5 years.
Highlight of Business Operations:
At September 30, 2009, we had total assets of approximately $9.999 billion, of which $9.349 billion, or 93.5%, represented our MBS portfolio. At such date, our MBS portfolio was comprised of $8.401 billion of Agency MBS and $947.6 million of non-Agency MBS. Our remaining investment-related assets were primarily comprised of cash and cash equivalents, restricted cash, MBS Forwards, MBS-related receivables, and an investment in a multi-family apartment property.We currently use repurchase financing on a limited portion of our non-Agency MBS. All of the repurchase financing on our MFR MBS is considered linked with the associated non-Agency MBS that were purchased during the three months ended September 30, 2009. Our linked transactions are reported net as MBS Forwards, which are assets on our consolidated balance sheet. The changes in the fair value of our MBS Forward are reported as a net gain on our statements of operations. As of September 30, 2009, the fair value of our non-Agency MBS portfolio reported on our balance sheet was $947.6 million. In addition, we had non-Agency MBS held through MFR of $215.2 million that were linked with repurchase agreements of $162.6 million.
The current financial environment is driven by exceptional monetary easing. Funding through repurchase agreements remains available to us at attractive rates from multiple counterparties. However, we continue to refrain from adding interest-rate sensitive Agency MBS at high purchase premiums and historically low yields and instead are acquiring non-Agency MBS at a discount. At September 30, 2009, our MFR MBS portfolio was $743.8 million. In addition at September 30, 2009, through MFR, we had non-Agency MBS of $215.2 million with linked repurchase borrowings of $162.6 million that were reported net, as MBS Forwards on our consolidated balance sheet. By blending non-Agency MBS with Agency MBS, we seek to generate attractive returns with less leverage and less sensitivity to yield curve and interest rate cycles. At September 30, 2009, we had borrowings under repurchase agreements with 18 counterparties and a resulting debt-to-equity multiple of 3.4 times. This low leverage multiple reflects the limited amount of leverage used to finance our MFR MBS. Excluding $811.6 million of equity invested in MFR at September 30, 2009, our leverage multiple was 5.4 times. At September 30, 2009, our liquidity position was $816.0 million, consisting of $486.7 million of cash and cash equivalents, $235.1 million of unpledged Agency MBS and $94.2 of excess collateral. In addition, at September 30, 2009, we had unpledged non-Agency MBS with a fair value of $751.5 million.
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 of Agency MBS, thereby reducing their market yield. As a result, we opportunistically sold 20 of our longest time-to-reset 10/1 Agency MBS, with an amortized cost of $425.0 million, during the nine months ended September 30, 2009, all of which were sold during the second quarter. These sales, which resulted in gains of $13.5 million, decreased our sensitivity to the impact of potential increases in market interest rates in the future.
From November 2008 through September 30, 2009, we acquired $896.2 million of non-Agency MBS, of which $216.6 million were determined to be part of linked transactions during the quarter ended September 30, 2009, at a weighted average purchase price of 60.1% of the face amount. At September 30, 2009, the MFR MBS, including the MBS that are reported as part of linked transactions, had weighted average structural credit enhancement of 10.6%. During the three months ended September 30, 2009, we acquired non-Agency MBS at an aggregate cost of $555.5 million (including linked MBS) at an average price to par value of 67.4%, primarily funded with proceeds from our common stock offering and linked borrowings under repurchase agreements of $162.6 million.
Unlike our Agency MBS, the yield on the MFR MBS are expected to increase if prepayment rates on such assets exceed our prepayment assumptions, as purchase discounts are accreted into income. During the nine months ended September 30, 2009, our non-Agency MBS portfolio earned $37.7 million, of which $25.3 million was attributable to MFR MBS and $12.4 million was earned on our Legacy non-Agency MBS. In addition, we had a net gain of $754,000 on our MBS Forwards, all of which was attributable to MFR MBS purchased as part of a linked transaction during the three months ended September 30, 2009. At September 30, 2009, $947.6 million, or 10.1%, of our MBS portfolio, was invested in non-Agency MBS, of which $743.8 million were MFR MBS and $203.8 million were Legacy non-Agency MBS. In addition, we had forward contracts to repurchase $215.2 million of MFR MBS that are accounted for as linked transactions and reported as a component of our MBS Forwards.
Read the The complete ReportMFA is in the portfolios of Arnold Schneider of Schneider Capital Management, David Dreman of Dreman Value Management.
