ARMOUR RESIDENTIAL REIT, INC. ANNOUNCES
SEPTEMBER 30, 2020 FINANCIAL POSITION AND Q3 RESULTS
VERO BEACH, Florida -- October 21, 2020 -- ARMOUR Residential REIT, Inc. (NYSE: ARR and ARR PRC) (“ARMOUR” or the “Company”) today announced the Company's September 30, 2020 financial position and Q3 results and provided further detail on the completed transition of its portfolio to focus exclusively on agency-guaranteed mortgage backed securities (“Agency MBS”).
September 30, 2020 Financial Position
◦ARMOUR's stockholders' equity totaled $892 million, including:
▪Common stock outstanding of 64,730,155 shares, and
▪7.00% Cumulative Redeemable Preferred C Stock ("Series C Preferred Stock") with liquidation preference totaling $133 million.
◦ARMOUR's book value per common share was $11.74 per share.
◦ARMOUR's liquidity, including cash and unencumbered securities, was $571 million.
◦ARMOUR's portfolio composition was 100% Agency MBS, including To Be Announced ("TBA") Securities.
◦ARMOUR's debt to equity ratio was 5.1 to 1 (based on repurchase agreements divided by stockholders’ equity). Leverage, including TBA Securities, was approximately 7.3 to 1.
Q3 2020 Highlights
◦ARMOUR Comprehensive Income of $61.9 million represents $0.91 per common share.
◦ARMOUR Core Income of $25.4 million represents $0.35 per common share.
◦ARMOUR paid common stock dividends of $0.10 per share per month.
The major drivers of the change in the Company's financial position during Q3 were:
|Stockholders' Equity – Beginning||$||851.2 |
Comprehensive Income (1)
|Gain on MBS including TBA Securities||34.2 |
|Gain on interest rate swaps||12.0 |
|Net Interest Income||22.8 |
Operating Expenses, net of Fee Waiver (2)
|Total Comprehensive Income||61.9 |
|Issuance of Common Stock||1.0 |
|Stockholders' Equity – Ending||$||892.2 |
(1) Includes both realized and unrealized gains and losses.
(2) See discussion on page 2.
US financial markets continued to stabilize in Q3 and ARMOUR continued the process of rebuilding its investment portfolio with the liquidation of its remaining CRT positions. The Company will concentrate its portfolio activity in Agency MBS for the foreseeable future.
The following information was filed by Armour Residential Reit, Inc. (ARR) on Wednesday, October 21, 2020 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.