Published on September 15, 2009
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MFA
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350
Park Avenue
New
York, New York 10022
(212)
207-6400
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PRESS
RELEASE
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FOR
IMMEDIATE RELEASE
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September
15, 2009
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NEW
YORK METRO
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CONTACT:
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MFA
Investor Relations
800-892-7547
www.mfa-reit.com
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NYSE:
MFA
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MFA
Financial, Inc.
Senior
MBS Portfolio Reaches $1 Billion Mark
MFA
announced today that it has made substantial progress in acquiring additional
senior most tranches of non-Agency RMBS (“Senior MBS”) to complement its
existing portfolio of Agency MBS. Utilizing net proceeds from its
July 29, 2009 common stock offering, as of September 10, 2009, MFA had a total
of $1.04 billion market value of Senior MBS, consisting of approximately $840
million owned through its wholly-owned subsidiary, MFResidential Assets I, LLC,
and approximately $200 million of legacy Senior MBS owned directly.
Stewart
Zimmerman, MFA’s Chairman of the Board and CEO, said, “We are pleased with our
progress in investing the proceeds of our July equity offering. MFA’s
strategy of focusing on investment opportunities within the residential MBS
arena continues to deliver value for stockholders. Our book value per
share of common stock has increased to $7.25 as of August 31, 2009 from $6.99 as
of June 30, 2009 and has increased 37% from $5.29 as of December 31,
2008.”
William
Gorin, MFA’s President and CFO, said, “We continue to utilize our cash position
to acquire additional discounted Senior MBS. While we are in the
process of investing the equity offering proceeds and reinvesting portfolio
run-off, there has been an increase in our low-yielding cash
position. This temporary increase in our cash position will be
reflected in our third quarter earnings which, based on current conditions, we
project to be in the range of $0.25 - $0.26. At the midpoint, this
EPS represents a 14% annualized return on $7.25 per share of
equity.”
When used
in this press release or other written or oral communications, statements which
are not historical in nature, including those containing words such as
“believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,”
“should,” “may” or similar expressions, are intended to identify
“forward-looking statements” within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended, and, as such, may involve known and unknown risks, uncertainties and
assumptions. Statements regarding the following subjects, among others, may be
forward-looking: changes in interest rates and the market value of MFA’s MBS;
changes in the prepayment rates on the mortgage loans securing MFA’s MBS; MFA’s
ability to borrow to finance its assets; implementation of or changes in
government regulations or programs affecting MFA’s business; MFA’s ability to
maintain its qualification as a REIT for federal income tax purposes; MFA’s
ability to maintain its exemption from registration under the Investment Company
Act of 1940; and risks associated with investing in real estate assets,
including changes in business conditions and the general economy. These and other risks,
uncertainties and factors, including those described in the annual, quarterly
and current reports that MFA files with the SEC, could cause MFA’s actual
results to differ materially from those projected in any forward-looking
statements it makes. All forward-looking statements speak only as of the date on
which they are made. New risks and uncertainties arise over time and it is not
possible to predict those events or how they may affect MFA. Except as required
by law, MFA is not obligated to, and does not intend to, update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.