MFA Financial, Inc. Announces Reinstatement and Declaration of Dividends on Series B Preferred Stock and Series C Preferred Stock

Rhea-AI Summary

MFA Financial, Inc. (NYSE: MFA) has reinstated dividends on its Series B and C Preferred Stocks. The Board declared a dividend of $0.93750 per share for the Series B, payable on July 31, 2020, to shareholders of record as of July 15, 2020. This dividend clears all accumulated unpaid dividends for Series B. The Series C dividend is $0.53264 per share and is the first from this series, also payable on July 31, 2020. These actions mark a recovery following previous suspensions due to the pandemic's financial impact.

Positive

• Reinstatement of dividends signifies recovery and financial stability.
• Series B dividend payout clears all accumulated unpaid dividends.

Negative

• Previous suspension of dividends indicates prior financial distress.

NEW YORK, July 1, 2020 /PRNewswire/ -- MFA Financial, Inc. (NYSE: MFA) (the "Company") announced today that its Board of Directors has reinstated the payment of dividends on its outstanding 7.50% Series B Cumulative Redeemable Preferred Stock (the "Series B Preferred Stock") and 6.50% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the "Series C Preferred Stock"). 

In accordance with the terms of the Series B Preferred Stock, the Board of Directors has declared a preferred stock dividend of $0.93750 per share.  This dividend is payable on July 31, 2020, to Series B Preferred stockholders of record as of July 15, 2020.  Upon payment of this dividend, the Company will have paid in full all accumulated but unpaid dividends on the Series B Preferred Stock, and the next quarterly dividend payable in respect of the Series B Preferred will, subject to approval by the Board of Directors and declaration by the Company, be for the quarter ending, and payable on, September 30, 2020.

In addition, in accordance with the terms of the Series C Preferred Stock, the Board of Directors has declared a preferred stock dividend of $0.53264 per share.  This dividend is payable on July 31, 2020, to Series C Preferred stockholders of record as of July 15, 2020.  The dividend with respect to the Series C Preferred Stock is the first dividend being paid by the Company in respect of the Series C Preferred Stock and is a "long first dividend" payable in respect of the period commencing on March 2, 2020, the date of original issue of the Series C Preferred Stock, and ending on, and including, June 30, 2020.  Upon payment of this dividend, the Company will have paid in full all accumulated but unpaid dividends on the Series C Preferred Stock, and the next quarterly dividend payable in respect of the Series C Preferred will, subject to approval by the Board of Directors and declaration by the Company, be for the quarter ending, and payable on, September 30, 2020.

As MFA previously disclosed, in March 2020, the Company had revoked the payment of the dividend on the Series B Preferred Stock for the quarter ended March 31, 2020.  Thereafter, in June 2020, the Company announced that it had suspended the payment of dividends on the Series B Preferred Stock and the Series C Preferred Stock for the quarter ended June 30, 2020.  The Company took these actions due to the turmoil in the financial markets resulting from the global COVID-19 virus pandemic and in order to preserve liquidity, as well as to comply with provisions in the now-terminated forbearance agreements that it had entered into with its repurchase agreement financing counterparties, which had restricted distributions that could be made to the Company's stockholders.

MFA Financial, Inc. is a real estate investment trust primarily engaged in the business of investing, on a leveraged basis, in residential mortgage assets, including residential mortgage-backed securities and residential whole loans.

CONTACT:	InvestorRelations@mfafinancial.com
	212-207-6488
	www.mfafinancial.com

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SOURCE MFA Financial, Inc.

FAQ

What is the amount of the dividend declared for MFA's Series B Preferred Stock?

The dividend for MFA's Series B Preferred Stock is $0.93750 per share.

When is the Series C Preferred Stock dividend payable?

The Series C Preferred Stock dividend is payable on July 31, 2020.

What are the record dates for the dividends on MFA's preferred stocks?

The record date for both Series B and C Preferred Stocks is July 15, 2020.

Why were dividends suspended prior to their reinstatement?

Dividends were suspended due to financial turmoil from the COVID-19 pandemic and to preserve liquidity.