Dallas, Texas 10/09/2013 (Financialstrend) – MFA Financial, Inc. (NYSE:MFA) has been in business since 1997. It operates in the “mortgage-backed securities” (MBS) space. It makes money by lending money at higher rates then it borrows. It also invests the money it raises into assets which in turn will generate revenue for the company. The firm payouts dividends from the profit it makes from the advising of loans.
MFA has followed other firms operating in the REIT space by cutting dividend payout plans. On September 26, the firm announced its quarter dividend payout plan for its 3Q.
It will pay a quarterly cash dividend of $0.22 per share of common stock on October 31, 2013, to all stockholders who are on company record as of October 11. The dividend payout will translate to a 21% dip compared to its previous 2Q payout.
As already indicated, MFA is just following in the footsteps of other major REIT players who have reworked their dividend plans post the “no taper for now” decision from Fed. With the interest regime continuing to be on the lower side, these firms have been forced to cut dividend payout in order to sustain activities till a better interest rate regime prevails.
This dividend cut down plan was approved post the appointment of new CEO for the firm. Mr William Gorin will take charge as CEO from January 1. The current president Mr Gorin will move into the Chairman’s role. EVP Craig Knutson will in turn take over as president from Mr Gorin. The role of CEO and Chairman is currently held by Stewart Zimmerman who will retire on December 31. The announced senior management postings will take effect on January 1, 2014.
This diversified REIT firm has a market cap of $2.72 billion with sales of $493 million over the past 12 months trailing period.