Armour Residential Reit, Inc. · NYSE:ARR
Armour Residential Reit — Corporate Update (April 2012)
11 slides from Armour Residential Reit's corporate update, Apr 11, 2012
Slide 1: Company Update
CV ARNOYR ARMOUR RESIDENTIAL REIT, Inc. Company Update April 10, 2012
Slide 2: Important Regulatory and Yield Estimate Risk Disclosures
PLEASE READ: Important Regulatory and Yield Estimate Risk Disclosures Certain statements made in this presentation regarding ARMOUR Residential REIT, Inc. (“ARMOUR” or the “Company”, and any other statements regarding ARMOUR’s future expectations, beliefs, goals or prospects constitute forward-looki
Slide 3: Capitalization, Dividend Policy, Transparency and Manager
ARMOUR Capitalizati lend Policy, Transparency and Manager * 177,635,830 shares of common stock outstanding (NYSE: “ARR”). Market Sa s italizati * Market capitalization of $ 1.22 billion. Capitalization + Additional paid-in capital estimate: $1.24 billion. * ARMOUR pays dividends monthly, announced f
Slide 4: ARMOUR Balance Sheet Targets
e Sheet Targets ARMOUR Bal. Duration ARMOUR invests in Agency mortgage securities (FNMA, FHLMC & GNMA). Net balance sheet weighted average duration target of 1.5 or less. * 2.76 gross asset duration. * 0.63 net balance sheet duration after the effect of derivatives. Hedge a minimum of 40% of fixed r
Slide 5: Strategy and Investment Methodology
ARMOUR Portfolio Strategy and Investment Methodology Management has a focused and disciplined approach to evaluating assets for inclusion in the ARMOUR portfolio. ARMOUR employs a ‘buy and hold’ strategy rather than a ‘trading’ strategy. > Low Duration Agency Securities + Target a portfolio of low d
Slide 6: Portfolio Composition
ARMOUR Portfolio Composition ARM & Hybrid Securities Rae hegene : Weighted Average neat Months to Reset Cone ule Net/Gross Coupon A¥*"#6® Months Securities to Reset 0-18 3.3% 4.15/4.65 12 19:36 10.2% 4.29/4.75 31 37-48 12.7% 3.49/3.96 a 49-60 8.5% 3.84/4.25 54 61-84 32.8% 351/395 70 85-120 32.6% 3.7
Slide 7: Constant Prepayment Rates (CPR)
ARMOUR Portfolio Constant Prepayment Rates (“CPR”) Monthly Portfolio April 2012 Constant Prepayment Rate Agency Asset Class CPR Prior Quarters ‘Current Months * 20 2 LEE PEI PLP SESS + H Oe aos nti" tnt ew nm ARMOUR expenses premium amortization monthly asit occurs. Constant Prepayment Rate (“CPR”)
Slide 8: Assets and Derivatives Duration Detail
ARMOUR Portfolio and Derivatives Duration Detail Weighted Agency Asset Class Curent Value average (millions) 2 Purchase Price [ARMs & Hybrids $ 25873 104.0% Fixed Rates Maturing in 120 Months or Less $405 102.7% Fixed Rates Maturing Beween 121.and180Months $ 2,521.2 104.5% Fixed Rates Maturing Bewee
Slide 9: Derivatives Detail
ARMOUR Derivatives Detail Weighted Average Notional _ a) Weighted Derivative Type mount "average Rate (Months) (millions) Interest Rate Swap 0-12 Months 8 $200 © 03 Interest Rate Swap 13-24 Months 2 $ 230.0 1.09 Interest Rate Swap 25-36 Months 35 $3050 1.59 Interest Rate Swap 37-48 Months 45 $ 23250
Slide 10: REPO Composition
ARMOUR REPO Composition Principal longest . es REPO ‘Average oe Een Times) Positions with — Maturityin MAN ‘ARMOUR Days 1 MemillLynch Pierce, Fenner Smith inc. «$74 71% B B 2 Mitsubishi UF Securities (USA), nc 3 BAS 6am 5 5 3 Deutsche Bank ecurtiesinc 5 690 5% a a 4.1. Morgen SeauritiesLIC 5 55B 5B
Slide 11: ARMOUR Residential REIT contact
ARMOUR RESIDENTIAL REIT www.armourreit.com ARMOUR Residential REIT, Inc. 3001 Ocean Drive Vero Beach, FL 32963 772-617-4340
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