# MFA Financial Book Value Falls 12.5%; Loss to Common Stockholders Reaches $122.4 Million By John Kim Canonical URL: https://www.tokenpost.com/news/business/49386 Published: 2026-11-05T15:41:26.000Z Updated: 2026-11-05T15:41:26.000Z Section: Business > Non-GAAP distributable earnings rose to $26.4 million, while CEO Craig Knutson said new investments are expected to produce mid- to high-teen returns on equity. MFA Financial's third-quarter results showed GAAP book value per common share fell 12.5% from June 30 to $11.12, while the internally managed real estate investment trust recorded a $122.4 million loss to common stockholders and participating securities. Economic book value declined 13.3% over the same period, to $11.44 per share. MFA invests in residential mortgage loans, mortgage-backed securities and other real estate assets. CEO Craig Knutson said during a Nov. 4 earnings call, “We expect returns on new investments today will produce mid- to high-teen ROEs.” The figure is management’s expectation for new investments. Loans MFA acquired in the third quarter had an average coupon of 7.8%, Knutson said. Distributable earnings, a non-GAAP measure, rose to $26.4 million, or $0.26 per basic common share, from $12.2 million, or $0.12 per share, in the second quarter. Before realized credit losses, third-quarter distributable earnings were $45.3 million, or $0.44 per share. Distributable earnings should be considered alongside GAAP net income and cash flows. The quarter included a loss of $1.19 per basic and diluted common share. CFO Michael Roper attributed the loss to about $153 million in net mark-to-market declines across fair-value assets, liabilities and hedges as interest rates rose and mortgage spreads widened. Roper also said about $1.3 billion in 1.4% pay-fixed swaps are due to mature from year-end 2026 through the first quarter of 2027. The swaps currently contribute about $0.08 per share per quarter to distributable earnings, he said. MFA’s [previously announced CEO succession plan]() calls for Knutson to retire effective June 30, 2027. Bryan Wulfsohn is scheduled to become president and CEO July 1, 2027, and join the board Jan. 1, 2027. Andrew Kail is also due to become senior vice president and chief investment officer Jan. 1. ## Links in this article - [previously announced CEO succession plan](https://www.tokenpost.com/news/people/28512)