REIT Invests $1bn in MBS with Stock Offering Proceeds

New York City-based mortgage real estate investment trust (REIT) MFA Financial (MFA) used the capital raised from its July common stock offering to purchase $840m in senior mortgage-backed securities (MBS) through its wholly-owned subsidiary, MFResidential Assets I and $200m of directly-owned legacy senior MBS. The more than $1bn investment is part of the REIT’s strategy to focus on MBS investment opportunities, said MFA chairman and CEO Stewart Zimmerman. “We are pleased with our progress in investing the proceeds of our July equity offering,” Zimmerman said. MFA president and chief financial officer William Gorin said the firm’s Q309 earnings are projected to be between $0.25 and $0.26. Write to Austin Kilgore.

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