Mfa Financial, Inc. · NYSE:MFA
Mfa Financial — MFA Mortgage Investments — KBW Diversified Financial Services Conference 2008
12 slides from Mfa Financial's conference presentation, Jun 3, 2008
Slide 1: KBW Diversified Financial Services Conference
KBW Diversified Financial Services Conference June 4, 2008
Slide 2: Forward Looking Statements
MPA Forward Looking Statements ——— ‘When used in this presentation 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
Slide 3: MFA provides attractive returns through leveraged investments in high-quality MBS
MFA provides attractive returns through appropriately leveraged investments in high- quality hybrid and adjustable- rate mortgage-backed securities
Slide 4: MFA Overview
MFA Overview @ Proven Management and Investment Strategy > Strategically repositioned portfolio with appropriate leverage > Greater than 99% of assets are Agency MBS, AAA Rated MBS, related receivables and cash » Hybrids and ARMs limit duration risk Significant Market Dislocation has Enhanced Invest
Slide 5: Investment Opportunity
MEA Investment Opportunity Yield Cur Net Spreads 2.15% (0.03%) 01% 0.90%
Slide 6: Market Spreads Remain High
Opportunity Market Spreads Remain High Asset Yield Borrowing Cost Net Interest Rate Spread 70x 78x Leverage | 8.0% 8.5x 9.0% Net Interest Spread 1.60% 15.60 1640 17.20 18.00 18.80 1,80% 00% 18.40 19.40 20.40 21.40 22.40
Slide 7: Investment Performance
Investment Performance ‘ Net Interest § Dividend Growth $0.40 90.30 + $0.20 $0.10 $90.00 Iso 3731/01 od 5/31/08 3/310 ayS1/0S 3 3307 3/51/08 ee Div end id —— et Tnterest Spread]
Slide 8: Investment Strategy
MEA Investment Strategy Remains Hig @ More than 99% of MI assets are Agency MBS, AAA rated MBS, related receivables Other 0.1% Non-Agency MBS Rated AAA 5.1% and cash” @ Assets remain liquid and can be financed with multiple finding providers through repurchase agreements © Currently maintain repurch
Slide 9: Investment Strategy: Hybrid and ARM MBS
MPA Investment Strategy J and ARM MBS “” @ After initial fixed term, neater th Me coupons reset based on short-term interest rates Within 12 Months 29% @ Less price risk due to adjustability of coupon Portfolio Duration: 0.62 years : 9 @) ArofMa 2) Assuming
Slide 10: MFA Common Stock Offering
o¢ ¢ @ MFA Common Sto: May 28, 2008 46,000,000 common stock (including over-allotment) Offering Price of $6.95 MFA will use the proceeds to acquire additional high quality Agency MBS on an appropriately leveraged basis, consistent with MFA’s investment policy, and for working capital 10
Slide 11: Investment Highlight Summary
Investment Highlight Summary MEA @ Greater than 99% of MFA’s assets are Agency MBS, AAA rated MBS, related receivables and cash* @ Strategically repositioned portfolio to maintain appropriate leverage and liquidity in current environment @ High spread investments currently available @ MFA can genera
Slide 12: Slide 12
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