Core Insights - ORG Wealth Partners, LLC initiated a new position in ARMOUR Residential REIT, acquiring 315,000 shares valued at $4.71 million during Q3 2025, representing 1.0% of the fund's total reportable assets of $470.31 million [1][2][3] Company Overview - ARMOUR Residential REIT primarily invests in residential mortgage-backed securities (MBS) issued or guaranteed by U.S. government agencies and government-sponsored entities, operating as a mortgage real estate investment trust (REIT) [5][6] - The company reported a trailing twelve months (TTM) revenue of $116.8 million and a net income of $52.54 million, with a dividend yield of 17.57% as of October 23, 2025 [4] Recent Performance - As of October 23, 2025, ARR shares were priced at $15.94, reflecting an 18.6% decline over the past year and underperforming the S&P 500 by 19.02 percentage points during the same period [3] Investment Strategy - The investment in ARMOUR Residential REIT by ORG Wealth Partners may indicate a strategy to diversify its portfolio, which is heavily weighted towards technology stocks, by adding a high dividend yield asset [9]

Group 1 - The article discusses the author's investment journey, starting in high school in 2011, focusing on REITs, preferred stocks, and high-yield bonds, indicating a long-standing interest in markets and the economy [1] - The author has recently adopted a strategy that combines long stock positions with covered calls and cash secured puts, emphasizing a fundamental long-term investment approach [1] - The author primarily covers REITs and financials on Seeking Alpha, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1]

Financial Data and Key Metrics Changes - ARMOUR's Q3 GAAP net income available to common stockholders was $156.3 million, or $1.49 per common share, with net interest income of $38.5 million [3] - Distributed earnings available to common stockholders was $75.3 million, or $0.72 per common share, reflecting a total economic return of 7.75% for the quarter [3][4] - Quarter-end book value increased to $17.49 per common share, up 3.5% from June 30th and 2.8% from August 8th [3] Business Line Data and Key Metrics Changes - ARMOUR raised approximately $99.5 million of capital by issuing about 6 million shares of common stock through an at-the-market offering program [4] - The company repurchased 700,000 shares of common stock through its repurchase program during Q3 [5] Market Data and Key Metrics Changes - The Federal Reserve resumed its easing cycle with a 25 basis point cut in September, leading to a decline in Treasury yields and tightening of agency MBS spreads by roughly 20 basis points [7][8] - Aggregate portfolio prepayment rates rose to 9.6 CPR in October, a 19% increase from the Q3 average of 8.1 CPR [11] Company Strategy and Development Direction - ARMOUR's strategy focuses on growing and deploying capital thoughtfully during spread dislocations while maintaining robust liquidity and dynamically adjusting hedges for disciplined risk management [15] - The company aims to pay an attractive and stable dividend over the medium term, with a current monthly dividend of $0.24 per share [5][6] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment has become more uncertain due to the federal government shutdown, but they expect continued easing bias from the Fed to redirect liquidity into agency MBS [8][9] - The company anticipates structural demand for agency mortgage-backed securities to strengthen, supported by regulatory clarity around banking reform [13] Other Important Information - ARMOUR's portfolio is entirely invested in agency mortgage-backed securities, agency commercial MBS, and U.S. Treasuries, with a net duration of 0.2 years and applied leverage of 8.1 times [10] - The company executed a $300 million overnight underwritten bought deal in August, contributing to an increase in book value [14] Q&A Session Summary Question: Current returns on incremental investments and hedge choices - Management expects hedged ROEs in the 16%-18% range, slightly lower than previous quarters due to tight mortgage spreads [18] Question: Outlook for swap spreads and mortgage spreads on an OIS basis - Swap spreads are expected to normalize, providing a tailwind for the portfolio as a more effective hedge for MBS [20][21] Question: GSE deregulation and its implementation - Management indicated that various levers could be pulled to reduce borrower rates, but balancing GSE attractiveness as an investment is also a priority [24][25] Question: Interest rate volatility and potential hedging strategies - Management discussed using swaptions and asset selection to manage volatility, with a focus on low optionality assets [31][32] Question: Economic net interest margin outlook - Future trends depend on the portfolio and Fed rate cuts, with a current focus on maintaining a strong portfolio [36][37] Question: MBS spreads and Fed rate cuts - Management believes that a pause in the easing cycle could lead to volatility, but actual cuts may unlock bank demand for MBS [41][43] Question: Stock buyback valuation - The stock buybacks occurred at around $14.40 per share, with management committed to being active on both sides of the equity account [45]

Financial Data and Key Metrics Changes - ARMOUR's Q3 GAAP net income available to common stockholders was $156.3 million, or $1.49 per common share, with net interest income at $38.5 million [3] - Distributed earnings available to common stockholders was $75.3 million, or $0.72 per common share, reflecting a total economic return of 7.75% for the quarter [3][4] - Quarter-end book value increased to $17.49 per common share, up 3.5% from June 30th and 2.8% from August 8th [3] Business Line Data and Key Metrics Changes - ARMOUR raised approximately $99.5 million of capital by issuing about 6 million shares through an at-the-market offering program [4] - The company repurchased 700,000 shares of common stock through its repurchase program during Q3 [5] Market Data and Key Metrics Changes - The Federal Reserve implemented a 25 basis point cut in September, with expectations for two additional cuts by year-end, creating a favorable environment for agency MBS [7][8] - Treasury yields declined, agency MBS spreads tightened by roughly 20 basis points, and volatility fell to its lowest level since 2022 [7] Company Strategy and Development Direction - ARMOUR's strategy focuses on growing and deploying capital thoughtfully during spread dislocations while maintaining robust liquidity and dynamically adjusting hedges for disciplined risk management [15] - The company aims to pay an attractive and stable dividend, with a current monthly dividend of $0.24 per share [5][6] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment has become more uncertain due to the federal government shutdown, but they expect continued structural demand for agency mortgage-backed securities [8][13] - The company anticipates that regulatory clarity around banking reform and a resumed easing cycle will serve as catalysts for high-quality liquid assets like mortgage-backed securities [13] Other Important Information - ARMOUR's portfolio is entirely invested in agency mortgage-backed securities, agency commercial MBS, and U.S. Treasuries, with a net duration of 0.2 years and applied leverage of 8.1 times [10] - The aggregate portfolio prepayment rates rose to 9.6 CPR in October, a 19% increase from the third-quarter average of 8.1 CPR [11] Q&A Session Summary Question: Current returns on incremental investments and hedge choices - Management expects hedged ROEs in the 16% to 18% range, slightly lower than previous quarters due to tight mortgage spreads [18] Question: Outlook for swap spreads and mortgage spreads on an OIS basis - Swap spreads are expected to normalize, providing a tailwind for the portfolio as a more effective hedge for MBS [20][21] Question: GSE deregulation and its impact on borrower rates - Management indicated that various levers could be pulled to reduce borrower rates, but there is a balance to maintain GSE attractiveness [24][25] Question: Interest rate volatility and its future evolution - Management believes that while short-term volatility may occur, medium-term volatility is expected to decline as the Fed continues normalization [32] Question: Economic net interest margin outlook - The future of the economic net interest margin will depend on the portfolio and the pace of Fed rate cuts [36][37] Question: MBS spreads and Fed rate cuts - Management noted that a pause in the easing cycle could lead to volatility, but actual cuts may unlock bank demand for MBS [42][43] Question: Stock valuation during capital raising and buyback transactions - The stock buybacks occurred at around $14.40 per share, and management is committed to being active on both sides of the equity account [45]

ARMOUR Residential REIT (NYSE:ARR) Q3 2025 Earnings Call October 23, 2025 08:00 AM ET Speaker2Good day, and welcome to the ARMOUR Residential REIT third quarter 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your qu ...

Financial Data and Key Metrics Changes - ARMOUR's Q3 GAAP net income available to common stockholders was $156.3 million or $1.49 per common share, with net interest income at $38.5 million and distributable earnings at $75.3 million or $0.72 per common share [4] - Total economic return for the quarter was 7.75%, with quarter-end book value at $17.49 per common share, reflecting a 3.5% increase from June 30 and a 2.8% increase from August 8 [4][5] - The most recent estimate of book value as of October 21 was $17.5 per common share, including the accrual of the October common dividend of $0.24 per share [5] Business Line Data and Key Metrics Changes - ARMOUR raised approximately $99.5 million by issuing about 6 million shares of common stock through an after-market offering program during Q3 [5] - The company paid monthly common stock dividends of $0.24 per share for a total of $0.72 for the quarter [5][6] Market Data and Key Metrics Changes - The Federal Reserve resumed its easing cycle with a 25 basis point cut in September, leading to a constructive environment for agency MBS as financing conditions improved [8] - Treasury yields declined, and agency MBS spreads tightened by roughly 20 basis points, with volatility falling to its lowest level since 2022 [8] Company Strategy and Development Direction - ARMOUR's strategy focuses on growing and deploying capital thoughtfully during spread dislocations while maintaining robust liquidity and dynamically adjusting hedges for disciplined risk management [20] - The company is positioned to benefit from potential GSE reforms, which could transform the current headwinds into tailwinds for MBS investors [11] Management's Comments on Operating Environment and Future Outlook - Management noted that macro and political visibility has become more clouded due to the federal government shutdown, which delayed key data releases and introduced uncertainty to growth forecasts [9] - Despite the uncertainty, the market expects an easing bias through year-end, likely redirecting liquidity into agency MBS [10] Other Important Information - ARMOUR's portfolio is entirely invested in Agency CMBS and U.S. Treasuries, with a net duration of 0.2 years and implied leverage of 8.1x [12] - The aggregate portfolio prepayment rates rose to 9.6 CPR in October, a 19% increase from the Q3 average of 8.1 CPR, with expectations of a similar uptick in November [14] Q&A Session Summary Question: Current returns on incremental investments and hedge choices - Management indicated expected ROEs in the 16% to 18% range, slightly lower than previous quarters due to tight mortgage spreads [23][24] Question: Outlook for swap spreads and mortgage spreads on an OAS basis - Management expects swap spreads to continue normalizing, which would be a tailwind for the portfolio [26] Question: Thoughts on GSE deregulation and its implementation - Management acknowledged various levers the administration could pull to reduce borrower rates, indicating a balance between making GSEs attractive and lowering mortgage rates [31] Question: Hedge ratio changes and confidence in easing activity - Management explained that the hedge ratio is adjusted based on duration targets across the curve, reflecting a balanced view with a bias towards Fed easing [33][35] Question: Impact of interest rate volatility on MBS - Management noted that while volatility has decreased, they expect it to continue declining in the medium term, which could affect the valuation of options [41][43]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ARMOUR RESIDENTIAL REIT, INC. (Exact name of registrant as specified in its charter) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2025 (Commission File Number) (I.R.S. Employer Identification No.) 3001 Ocean Driv ...

ARMOUR RESIDENTIAL REIT, INC. ANNOUNCES Q3 RESULTS AND SEPTEMBER 30, 2025 FINANCIAL POSITION VERO BEACH, Florida -- October 22, 2025 -- ARMOUR Residential REIT, Inc. (NYSE: ARR and ARR PRC) ("ARMOUR" or the "Company") today announced the Company's unaudited Q3 results and September 30, 2025 financial position. Company Update, October 20, 2025 - MORE - ◦ GAAP net income available to common stockholders of $156.3 million or $1.49 per common share. ◦ Net interest income of $38.5 million. ◦ Distributable Earnin ...

Core Viewpoint - ARMOUR Residential REIT, Inc. reported strong Q3 2025 results, highlighting significant net income and an increase in book value per common share, alongside strategic capital activities and a robust portfolio composition [1][6][22]. Q3 2025 Results - GAAP net income available to common stockholders was $156.3 million, or $1.49 per common share [6]. - Net interest income reached $38.5 million, with distributable earnings available to common stockholders at $75.3 million, translating to $0.72 per common share [6][17]. - Total economic return for Q3 2025 was 7.75%, with a book value per common share of $17.49, reflecting a 3.5% increase from the previous quarter [6][8]. September 30, 2025 Financial Position - Total stockholders' equity increased to $2.1288 billion, up from $1.3614 billion at the end of 2024 [7][11]. - The company's portfolio totaled $18.2 billion, primarily composed of 97.9% Agency mortgage-backed securities [6][9]. - Liquidity, including cash and unencumbered securities, was reported at $1.1 billion [6]. Capital Activities - In August, ARMOUR completed the sale of 18,500,000 shares of common stock for approximately $298.6 million [6]. - The company raised an additional $99.5 million by issuing 5,994,201 shares of common stock through an at-the-market offering program [6]. - A stock repurchase program resulted in the repurchase of 684,102 shares of common stock [6]. Dividends - ARMOUR paid monthly cash dividends of $0.24 per share for Q3 2025, with future dividends declared for October and November 2025 [22][23].

Core Insights - Dividend yields are a primary focus for many investors, particularly retirees who rely on dividend income to cover living expenses [1] Group 1 - Many investors prioritize dividend yields as a crucial aspect of their investment strategy [1] - Retirees and individuals dependent on dividend income are particularly affected by changes in dividend yields [1]