Armour Residential Reit, Inc. (ARR) 10-Q Quarterly Report October 2018

VERO BEACH, Florida -- October 24, 2018 -- ARMOUR Residential REIT, Inc. (NYSE: ARR, ARR PrA, and ARR PrB) (“ARMOUR” or the “Company”) today announced financial results for the quarter ended September 30, 2018.

Q3 2018 Highlights and Financial Information


◦	$47.7 million ($1.02 per Common share) net income under Generally Accepted Accounting Principles (“GAAP”) based on 42,435,624 weighted average diluted Common shares outstanding


◦	$31.2 million ($0.64 per Common share) Core Income including “Drop Income” (as defined below), which represents an annualized return of 10.3% based on stockholders’ equity at the beginning of the quarter


◦	$0.57 per share Common dividends for Q3 at the rate of $0.19 per month


◦	Core Income exceeded dividends paid for the ninth straight quarter


◦	3.5% average yield on assets and 1.6% average net interest margin


◦	6.1% annualized average principal repayment rate (“CPR”)


◦	1.6% total economic return, representing dividends plus change in stockholders' equity per Common share


◦	0.9% total shareholder return, representing dividends plus change in New York Stock Exchange price per Common share

At September 30, 2018


◦	$22.45 NYSE closing price per Common share


◦	$1.2 billion stockholders’ equity based on period-end stock outstanding of:

◦42,335,525 shares of Common Stock

◦2,180,572 shares of 8.250% Series A Cumulative Redeemable Preferred (“Preferred A”)

◦6,369,269 shares of 7.875% Series B Cumulative Redeemable Preferred (“Preferred B”)


◦	$23.49 stockholders’ equity per Common share, a decrease of (0.8)% from June 30, 2018


◦	$8.0 billion portfolio of securities, including $0.9 billion of Credit Risk and Non-Agency Securities


◦	$1.3 billion notional amount of (“to-be-announced”) TBA Agency Securities, includes $0.1 billion notional amount of forward settling TBA Agency Securities


◦	$7.1 billion notional amount of interest rate swaps


◦	5.97 to 1 “leverage” (debt to stockholders’ equity); 7.01 to 1 “implied leverage,” reflecting net TBA Agency Securities purchased forward and excluding debt related to forward settling sales


◦	$639.3 million of liquidity in cash and unpledged securities (52.9% of stockholders’ equity)

Updated Information


◦	Common dividends per share - $0.19 payable on October 29, 2018, and on November 27, 2018, as discussed below

◦Book value at October 23, 2018, was estimated to be $22.42 per Common share outstanding


◦	Additional updated information on the Company’s investment, financing and hedge positions can be found in ARMOUR Residential REIT, Inc.’s most recent “Company Update.” ARMOUR posts unaudited and unreviewed Company Updates on www.armourreit.com.

- MORE -

The following information was filed by Armour Residential Reit, Inc. (ARR) on Wednesday, October 24, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Armour Residential Reit, Inc.'s 10-Q Quarterly Report:

Financial - Shares Highlight
We do not reimburse the Manager or its affiliates for the salaries and other compensation of their personnel, except for the allocable share of the compensation of 1 our Chief Financial Officer based on the percentage of time spent on our affairs and 2 other corporate finance, tax, accounting, internal audit, legal, risk management, operations, compliance and other non-investment professional personnel of the Manager or its affiliates who spend all or a portion of their time managing our affairs based on the percentage of time devoted by such personnel to our affairs.

Revenue - Product Highlight
In April 2018, through an indirect wholly-owned subsidiary, we entered into the DB Repurchase Facility, which was upsized in September 2018, and provides for advances of up to $1.0 billion for the sale and repurchase of eligible first mortgage loans secured by commercial or multifamily properties located in the United States, United Kingdom and the European Union, and enables us to elect to receive advances in either U.S. dollars, British pounds, or Euros.
Financial - Dividend Highlight
The Series B Preferred Stock pay cumulative cash dividends: i from, and including, the original date of issuance of the Series B Preferred Stock to, but excluding, September 20, 2020, at an initial rate of 8.00% per annum of the $25.00 per share liquidation preference and ii from, and including, September 20, 2020, at the rate per annum equal to the greater of a 8.00% and b a floating rate equal to the 3-month LIBOR rate as calculated on each applicable date of determination plus 6.46% of the $25.00 liquidation preference.
Financial - Dividend Highlight
The Series C Preferred Stock pay cumulative cash dividends at the rate of 8.00% per annum of the $25.00 per share liquidation preference equivalent to $2.00 per annum per share from, and including July 29, 2016 the Series C Initial Dividend Date and are payable quarterly in equal amounts in arrears on the last day of each April, July, October and January, at the then applicable annual rate.
Financial - Income Highlight
If our cash available for distribution is less than our net taxable income, we could be required to sell assets or borrow funds to make cash distributions or we may make a portion of the required distribution in the form of a taxable stock distribution or distribution of debt securities.
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General and administrative expenses increased...Read more
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Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Armour Residential Reit, Inc. provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.3: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Exhibit 32.3: Section 1350 Certification

Ticker: ARR
CIK: 1428205
Form Type: 10-Q Quarterly Report
Accession Number: 0001428205-18-000263
Submitted to the SEC: Wed Oct 24 2018 4:29:15 PM EST
Accepted by the SEC: Wed Oct 24 2018
Period: Sunday, September 30, 2018
Industry: Real Estate Investment Trusts

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Armour Residential Reit, Inc. (ARR) SEC Filing 10-Q Quarterly report for the period ending Sunday, September 30, 2018

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