Dividend coverage remains precarious, with the payout ratio reaching an unsustainable 5.37 in 2024Q4, indicating a reliance on non-operating capital sources to fund distributions.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Cash from Operations | 161.88M | 76.25M | 200.12M | 108.74M | 366.08M | 120.29M | 38.4M | 215.78M | 147.88M | 176.07M | 85.51M | 282.17M | 255.81M | 298.09M | 310.39M | 334.41M | 245.94M | 269.96M | 186.43M | 68.68M | 15.88M | 136.19M | 128.3M | 112.15M | 83.37M | 21.67M | 4.92M | 10.3M | 400K |
| Operating CF Growth % | 735.1% | -61.9% | 84.04% | -70.3% | 204.32% | 213.3% | -82.21% | 45.91% | -16.01% | 105.9% | -69.7% | 10.3% | -14.18% | -3.96% | -7.18% | 35.97% | -8.9% | 44.81% | 171.45% | 332.4% | -88.34% | 6.15% | 14.4% | 34.53% | 284.71% | 340.3% | -52.22% | 2475% | - |
| Operating CF / Revenue % | 22.61% | 8.71% | 71.57% | 46.46% | -541.37% | 35.67% | -6.91% | 49.79% | 42.51% | 47.2% | 23.84% | 79.27% | 71.3% | 87.5% | 88.91% | 93.37% | 83.06% | 97.21% | 288.22% | 158.25% | 96.72% | 331.61% | 140.11% | 169.05% | 134.47% | 89.8% | 47.68% | 100% | 8.7% |
| Net Income | 134.62M | 176.78M | 119.25M | 80.16M | -231.58M | 328.87M | -679.39M | 378.12M | 301.8M | 322.39M | 312.67M | 313.23M | 313.5M | 302.71M | 306.84M | 316.41M | 269.76M | 268.19M | 45.8M | 30.21M | 8.76M | 6.71M | 78.07M | 57.85M | 56.09M | 3.78M | 7.87M | 7.6M | 2.9M |
| Depreciation & Amortization | 300K | 0 | 0 | 4.2M | -27.31M | 6.6M | 0 | 3.32M | 1.82M | 1.52M | 964K | 860K | 1.19M | 5.83M | 3.53M | 2.66M | 730K | 512K | 18.79M | 27.71M | 31.63M | 58.93M | 50.93M | 45.88M | 28.09M | 5.55M | 1.89M | 1.4M | 300K |
| Stock-Based Compensation | 0 | 0 | 0 | 15.62M | 10.21M | 9.58M | 0 | 9.24M | 8.01M | 8.03M | 9.16M | 7.83M | 8.58M | 4.16M | 6.49M | 4.38M | 3.28M | 1.91M | 1.36M | 511K | 539K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 29.07M | -112.39M | 64.28M | 26.72M | 597.01M | -203.18M | 728.66M | -159.19M | -137.3M | -144.49M | -117.72M | -94.48M | -96.2M | -34.66M | -3.36M | 14.86M | -34.37M | 17.93M | 98.87M | 638K | -5.71M | 39.12M | -371K | 265K | 3.27M | 13.72M | -3.02M | 100K | -300K |
| Working Capital Changes | -1.8M | 11.85M | 16.59M | -17.97M | 27.96M | -5.39M | -10.87M | -15.71M | -26.45M | -11.38M | -119.56M | 54.74M | 28.74M | 20.05M | -3.12M | -3.37M | -4.6M | 2.93M | -1.56M | -11.67M | -41.91M | 31.43M | -331K | 8.15M | -4.09M | 9.4M | -1.81M | 1.2M | -2.5M |
| Cash from Investing | -1.76B | -1.79B | -424.6M | -1.55B | -1.13B | -2.17B | 6.38B | -1.13B | -2.16B | 1.82B | 1.03B | 550.08M | 451M | 1.6B | -650.43M | -2.38B | 915.38M | 1.77B | -1.97B | -1.95B | -623.97M | 938.9M | -2.48B | -967.12M | -1.55B | -1.45B | -9.28M | -250.5M | -189.2M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 6.12M | 0 | 3.76B | 338.4M | 1.59B | 0 | 636.29M | -34.73M | 0 | 0 | 0 | -915.38M | -808.89M | 0 | 231K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -2.8B | -2.75B | -869.15M | -588.91M | -3.18B | -2.5B | -163.75M | -4.67B | -3.14B | -86.32M | -84.61M | -95.38M | -89.18M | 0 | 0 | -4.83B | -3.11B | -12K | -5.2B | -4.49B | -4.13B | -2.31B | -4.59B | -3.4B | -2.96B | -1.75B | -121.07M | -356M | -240.9M |
| Sale of Investments | 167.61M | 46.81M | 129.64M | 173.95M | 68.78M | 157.3M | 4.42B | 908.7M | 538.67M | 243.08M | 3.43B | 70.75M | 123.91M | 574.87M | 268.86M | 2.44B | 4.03B | 2.58B | 3.23B | 2.54B | 3.48B | 3.25B | 2.12B | 2.43B | 1.4B | 308.38M | 112.55M | 113.3M | 48M |
| Other Investing | 873.13M | 916.69M | 314.92M | -1.13B | 1.99B | 185.67M | 2.13B | -1.13B | 107.94M | 66.29M | 1.11B | -60.02M | 451.79M | 1.03B | -918.84M | 11.37M | 915.38M | -666K | 3.23B | -231K | 23.53M | 938.9M | 258K | 1.5M | 345K | -397K | -754.79K | -7.8M | 3.7M |
| Cash from Financing | 1.54B | 1.49B | 337.58M | 1.43B | 850.21M | 1.63B | -5.74B | 964.92M | 1.63B | -1.8B | -1.02B | -849.69M | -1.09B | -1.73B | 347.31M | 2.1B | -1.47B | -1.75B | 1.91B | 2.07B | 590.99M | -1.08B | 2.28B | 930.59M | 1.48B | 1.47B | -7.14M | 254.1M | 184.6M |
| Dividends Paid | -193.69M | -40.32M | -176.75M | -175.98M | -216.91M | -189.01M | -143.3M | -376.56M | -344.76M | -323.59M | -312.89M | -312.38M | -309.67M | -608.58M | -349.39M | -337.42M | -268.39M | -229.66M | -139M | -37.73M | -24.24M | -55.81M | -77.39M | -60.22M | -47.57M | -10.74M | -5.32M | -7.3M | -5.6M |
| Common Dividends | -161.88M | -188.5M | -143.87M | -143.1M | -184.03M | -156.14M | -113.51M | -361.56M | -329.76M | -308.59M | -297.89M | -297.38M | -294.67M | -594.83M | -341.23M | -329.26M | -260.23M | -221.5M | -130.84M | -37.73M | -24.24M | -55.81M | -77.39M | -60.22M | -47.57M | -10.74M | -5.32M | -7.3M | -5.6M |
| Debt Issuance (Net) | 2M | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K |
| Share Repurchases | -3.84M | -15.31M | -1.57M | -7K | -102.31M | -85.59M | -50.84M | 0 | 0 | 0 | 0 | 0 | 0 | -112.28M | -9.71M | 0 | 0 | 0 | 0 | 0 | -6.13M | -12.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.68B | -177.11M | -34.99M | -12.59M | -16.39M | -7.14M | -90.28M | -40.03M | 1.06M | 30.43M | 14.64M | -450.18M | -561.64M | -597.91M | -113.82M | 1.17B | -104.08M | -82.76M | -152.75M | -4.9M | -12.95M | -134K | -2.58M | -137K | 35.76M | -39M | 3.21M | -100K | -100K |
| Net Change in Cash | -62.48M | -214.64M | 113.1M | -5.87M | 89.63M | -417.07M | 686.86M | 45.95M | -375.03M | 189.65M | 95.11M | -17.43M | -382.93M | 164.08M | 7.27M | 48.78M | -308.22M | 292.29M | 126.76M | 187.21M | -17.1M | -4.04M | -71.37M | 75.62M | 5.55M | 50.13M | -11.5M | 13.9M | 184.6M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 188.8M |
| Cash at Beginning | 386.67M | 601.31M | 488.21M | 494.08M | 404.45M | 821.52M | 134.66M | 88.71M | 463.74M | 260.11M | 165.01M | 182.44M | 565.37M | 401.29M | 394.02M | 345.24M | 653.46M | 361.17M | 234.41M | 47.2M | 64.3M | 68.34M | 139.71M | 64.09M | 58.53M | 8.4M | 19.9M | 6M | 10.1M |
| Cash at End | 410.81M | 386.67M | 601.31M | 488.21M | 494.08M | 404.45M | 821.52M | 134.66M | 88.71M | 449.76M | 260.11M | 165.01M | 182.44M | 565.37M | 401.29M | 394.02M | 345.24M | 653.46M | 361.17M | 234.41M | 47.2M | 64.3M | 68.34M | 139.71M | 64.09M | 58.53M | 8.4M | 19.9M | 194.7M |
| Free Cash Flow | 161.88M | 76.25M | 200.12M | 108.74M | 365.78M | 108.25M | 33.53M | 213.9M | 146.75M | 175.2M | 84.8M | 280.61M | 255.03M | 297.71M | 309.94M | 332.07M | 245.5M | 269.98M | 186.43M | 68.45M | 15.88M | 136.19M | 128.3M | 112.15M | 83.37M | 21.67M | 4.92M | 10.3M | 400K |
| FCF Growth % | 22.55% | -61.9% | 84.04% | -70.27% | 237.92% | 222.79% | -84.32% | 45.76% | -16.24% | 106.59% | -69.78% | 10.03% | -14.34% | -3.95% | -6.66% | 35.26% | -9.07% | 44.82% | 172.36% | 330.94% | -88.34% | 6.15% | 14.4% | 34.53% | 284.71% | 340.3% | -52.22% | 2475% | - |
| FCF / Revenue % | 22.61% | 8.71% | 71.57% | 46.46% | -540.92% | 32.1% | -6.03% | 49.36% | 42.18% | 46.96% | 23.64% | 78.83% | 71.08% | 87.39% | 88.78% | 92.71% | 82.92% | 97.21% | 288.22% | 157.72% | 96.72% | 331.61% | 140.11% | 169.05% | 134.47% | 89.8% | 47.68% | 100% | 8.7% |
Dividend coverage and liquidity
As reported in quarterly financial filings, the relationship between FFO and GAAP operating cash flow has become increasingly erratic, with FFO/NI ratios swinging from 18.86 in 2024Q4 to a negative 72.23 in 2026Q1, suggesting that non-cash fair value adjustments are significantly obscuring the company's true operational performance.
The extreme volatility in the FFO to Net Income conversion ratio indicates that GAAP-based metrics are unreliable for assessing the company's core earnings power. Investors should monitor this divergence closely, as it suggests that the underlying cash-generating capacity of the mortgage portfolio is frequently masked by non-cash accounting entries.
Based on the provided historical data, the dividend payout ratio has exhibited extreme instability, reaching a peak of 5.37 in 2024Q4, which implies that the company has frequently relied on capital sources other than recurring earnings to sustain its distribution to shareholders during periods of operational stress.
The lack of consistent AFFO data, combined with the erratic dividend coverage ratios, suggests that the current dividend policy may be disconnected from the company's actual cash-generating ability. This pattern warrants further investigation into whether the company is effectively funding its distributions through asset liquidations or external financing rather than organic cash flow.
According to recent SEC filings, the company's net income is heavily impacted by mark-to-market accounting, as evidenced by the sharp disconnect between reported net income and operating cash flow, which complicates the assessment of the firm's true ability to generate sustainable cash for its debt and equity holders.
The significant fluctuations in net income relative to operating cash flow suggest that fair value adjustments on the mortgage portfolio are creating a distorted view of profitability. Analysts should be wary of relying on GAAP net income as a proxy for cash flow, as these non-cash items appear to be the primary driver of bottom-line volatility.
As indicated by the provided financial statements, the company's cash flow statement appears to hide the impact of recurring maintenance costs and potential straight-line rent defaults, which may be masked by the company's transition toward an active origination model and its associated operational expense structure.
The absence of clear maintenance capital expenditure data in the provided figures suggests that the company may be capitalizing costs that should otherwise be treated as recurring operational outflows. This practice may artificially inflate the reported free cash flow, potentially misleading investors regarding the true cost of maintaining the mortgage origination platform.
Quick answers to the most common questions about buying MFAN stock.
MFA Financial, Inc. 8.875% Senior Notes (MFAN) generated $76.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
MFA Financial, Inc. 8.875% Senior Notes (MFAN) generated $76.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
MFA Financial, Inc. 8.875% Senior Notes (MFAN) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, MFA Financial, Inc. 8.875% Senior Notes (MFAN) returned $40.3M to shareholders via cash dividends and spent $15.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.