Invesco Mortgage Capital Inc (IVR), MFA Financial, Inc. (MFA): Another Hybrid mREIT, Another Disappointment?

Conclusion

Despite an earnings miss, MFA Financial reported impressive results for the second quarter. The earnings miss was blamed to the reduction in assets. However, compared to other hybrids, MFA Financial reported one of the lowest book value declines, coupled with a net interest spread that expanded moderately. It’s key metrics remained better than most of its peers’ because it has a large concentration non-Agency MBS.

In the future, investors can expect lower book value declines as the company employs one of the lowest levels of debt in its capital structure, compared to others. Therefore, I am bullish on MFA Financial.

Adnan Khan has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Another Hybrid mREIT, Another Disappointment? originally appeared on Fool.com and is written by Adnan Khan.

Adnan is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.