Mfa Financial, Inc. · NYSE:MFA
Mfa Financial — Investor Presentation (November 2009)
15 slides from Mfa Financial's investor presentation, Nov 30, 2009
Slide 1: December 2009
December 2009
Slide 2: Forward Looking Statements
Forward Looking Statements ‘When used in this presentation ot 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 expressi
Slide 3: MFA Overview
MFA Overview MFA is uniquely positioned to benefit from an existing portfolio of higher-yielding Agency MBS complimented by the acquisition of non-Agency RMBS
Slide 4: Experienced Management Team Focused Exclusively on Residential MBS Opportunities
Experienced Management Team Focused Exclusively on Residential MBS Opportunities FINANCIAL, INC @ Proven Management Team and Track Record > Founded in 1997, we are an internally managed REIT with permanent equity capital, uniquely positioned with the requisite expertise to benefit from existing inve
Slide 5: Historical Performance
MEA Historical Performance 7) Q S & | o ne} i) 2 6 ot o a S 6 id) 230 200 6080 cosy 800 soxdy 100 toxdy 90%0 oondy S00 sondy 0720 vo38y £00 coxdy z0%0 coxdy 1070 rosy ono assy 660 s6ady 8670 s6ady ‘SGP Fin Ret 3 & Ey FAR
Slide 6: Interest Rates Remain Near Historic Lows
Interest Rates Remain Near Historic Lows Short-term interest rates are exceptionally low November 19, 2009 Fed Funds Target | 0 - 0.25 1-Month LIBOR 0.24 1-Month Repo 0.24 3-Month LIBOR 0.27 3-Month Repo 0.27 PA Spreads have tightened and prices have increased substantially due to $1.25 trillion of
Slide 7: Borrowing Costs Continue to Decline Faster Than Asset Yields
Borrowing Costs Continue to Decline Faster Than Asset Yields While MFA Portfolio Yield Remains Near 5.0%, the Cost of Borrowing Continues to Decline o% % 4% % m% 1% o% Caos FS FA SK FF PPE OSEEESEL ESS ELLE MFA Quarterly Data as of Sep
Slide 8: Attractive Returns With Less Interest Rate Risk
Attractive Retums With Less Interest Rate Risk MP A Hybrid and ARM MBS Limit Risk of Rising Interest Rates* @ After initial fixed term, coupons reset based on short-term interest rates Greater than 60 aaaths Within 12 13% Months @ Less price risk due to adjustability of coupon Im 13t0 60 Months 58%
Slide 9: Repo Capacity Remains Robust
Repo Capacity Remains Robust MF aN Diverse Counterparty Relationships @ MFA maintains strong relationships with numerous leading financial institutions Bane of America Deutsche Bank Mizuho Barclays Goldman Sachs Morgan Stanley BNP Paribas ING Newedge Cantor Fitzgerald Jefferies Pershing Citigroup LB
Slide 10: Continuing to Deliver Solid Results
Continuing to Deliver Solid Results MP A Recent Financial Performance + Investment strategy generating high returns including double- digit Return-on-Equity and book value growth Third quarter earnings of $0.25 representing an ROE of 13.7% Third quarter dividend of $0.25 per share Date Book Value Pe
Slide 11: Currently Focused on Non-Agency MBS
Currently Focused on Non-Agency MBS* + Through MFA’s wholly-owned MFR subsidiary, we are investing in non-Agency residential MBS at deeply discounted prices. Through MFR, we own approximately $959 million fair market value of deeply discounted non-Agency MBS. + In addition, MFA continues to hold app
Slide 12: MFA Strategy
MFA Strategy MEF aN Adding Non-Agency MBS to High-Yielding Agency MBS is a Compelling Strategy + Consistent with MF A’s focus on residential MBS, we are blending non-Agency MBS with higher-yielding Agency securities. +The majority of MF A’s assets will continue to be whole-pool Agency MBS due to att
Slide 13: Senior MBS Highlights
Senior MBS Highlights. MFA Adding Non-Agency MBS to High-Yielding Agency MBS is a Compelling Strategy «MFA is acquiring non-Agency MBS at deep discounts to par value. +Structured credit enhancement and highly discounted purchase price mitigates the risk of loss of invested principal. +These high yie
Slide 14: Uniquely Positioned in Current Environment
Uniquely Positioned in Current Environment MFA is uniquely positioned with the requisite expertise to benefit from existing investment in higher-yielding Agency MBS and acquisition of non-Agency RMBS
Slide 15: Slide 15
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