Stonegate Capital Partners Updates Coverage on Armour Residential REIT, Inc. (ARR) 2025 Q4

Core Insights - Armour Residential REIT, Inc. (NYSE: ARR) reported strong financial performance in Q4 2025, with interest income of $236.5 million, net income of $208.7 million, and diluted EPS of $1.86, reflecting year-over-year increases of 55.1%, $258.1 million, and $2.69 respectively [1][6] - The growth was primarily driven by improved average interest income on interest-earning assets and a decline in interest costs on average interest-bearing liabilities, indicating a sustainable performance outlook in the current macro environment [1][6] Financial Performance - In Q4 2025, ARR generated distributable earnings of $79.7 million, equating to $0.71 per share, while the book value per share increased by 6.5% sequentially to $18.63 [6] - The company paid dividends of $0.72 per share, resulting in a 16.4% annualized yield and a payout ratio of 101% relative to distributable earnings [6]