Armour Residential Reit, Inc. · NYSE:ARR
Armour Residential Reit — Investor Presentation (May 2012)
17 slides from Armour Residential Reit's investor presentation, May 10, 2012
Slide 1: ARMOUR Residential REIT
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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-look
Slide 3: Capitalization, Dividend Policy, Governance and Manager Fee Structure
ARMOUR Capi Transparency and Manager Market + 179,408,490 shares of common stock outstanding (NYSE: “ARR”). Capitalization * Market capitalization of $ 1.26 billion. (as of 5/9/12) + Additional paid-in capital estimate: $1.25 billion. + ARMOUR pays dividends monthly. + Dividends are announced based
Slide 4: Balance Sheet Targets
ARMOUR Balance Sheet Targets Assets Hedging Liquidity ARMOUR invests in Agency mortgage securities. Net balance sheet weighted average duration target of 1.5 or less. + 2.53 gross asset duration. * 0.19 net balance sheet duration after the effect of derivatives. Hedge a minimum of 40% of fixed rate
Slide 5: Portfolio Strategy and Investment Methodology
ARMOUR Portfolio Strategy and Investment Methodology Management has a focused and disciplined approach to evaluating assets for inclusion in the ARMOUR portfolio. ARMOUR employs a ‘buy and hold’ strategy rather than a ‘trading’ strategy. > Low Duration Agency Securities + Target a portfolio of low d
Slide 6: Portfolio Composition
ARMOUR Portfolio Composition nM a yt secures Curent reranteset aiguacaverge (Heed ‘Months to Reset (rations) 'seanitar’, —-NeWSrossCoupon Avenger 0-18 S$ 843 3.3% 4.11/4.60 12 19-36 $ 3011 11.9% 4.20/4,.71 n ars $ 3022 12.2% 349/389 22 49-60 $ 233.2 9.2% 3.93/4.34 55 61-84 $ 7767 30.6% 3.47/3.91. 69
Slide 7: Portfolio Constant Prepayment Rates
ARMOUR Portfoli Constant Prepayment Rates (“CPR”) Monthly Portfolio May 2012 Constant Prepayment Rate ‘Agency Asset Class CPR Prior Quarters Current Months eo eee eer rere errr J SEH HH SH SK o# asin sWYerhn Stora. OND Peto CLS Throws Thugs Troughs ARMOUR expenses premiumamortization monthly as it o
Slide 8: Portfolio and Derivatives Duration Detail
ARMOUR Portfolio and Derivatives Duration Deta Weidted——welkied tinated eave oreo vate igued avon oe ne ee purchase rice Motte Carent Values ans is $ asm mos sx srpaas on FucdRotesMatuingleapMentsortess «$388 RT teen senses 2s Fed fatesMoturngeween2iondnOMenhs § 25261 ox sees 20 Fed fatesMotuingewee
Slide 9: Derivatives Detail
ARMOUR Derivatives Deta Weighted Average Notional DerivativeTypel" Remaining Term —RemainingTerm Amount, Weighted’ (Months) {mlionsy_A¥="28* Rate Interest Rate Swap 0-12 Months 8 s m0 03 Interest Rate Swap 12-24Months a $ 2900 1.09 InterestRateswap 25.36 Months $3050 159 Interest RateSwap 37-48 Mont
Slide 10: Repo Counterparties
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Slide 11: REIT Investment Management Team and Non-Executive Board Members
ARMOUR REIT Investment Management Team Non-Executive Board Members ARN RESIDENTIAL REIT 7:
Slide 12: REIT Investment Management Team
ARMOUR REIT Investment Management Team Scott J. Ulm is General Partner of ARMOUR Residential Management LLC and Co-Chief Executive Officer, Co-Vice Chairman, Chief Investment Officer and Head of Risk Management of ARMOUR since November 2009. Mr. Ulm has served as Co-Chief Executive Officer of ARMOUR
Slide 13: REIT Investment Management Team
ARMOUR REIT Investment Mai gement Team Mark R. Gruber, CFA is Head of Portfolio Management of ARMOUR Residential Management LLC ("ARRM”], the manager of ARMOUR Residential REIT, Inc. From April 2008 until joining ARRM, Mr. Gruber managed a $1.1 billion mortgage portfolio for Penn Mutual Life Insuran
Slide 14: Independent ARMOUR REIT Board Member Biographies
Independent ARMOUR REIT Board Member Biographies Stewart J. Paperin (Independent Director) has served as Executive Vice President of the Soros Foundation, a worldwide private philanthropic foundation, since 1996, where he oversees financial, administrative and economic development activities. From 1
Slide 15: Independent ARMOUR REIT Board Member Biographies
Independent ARMOUR REIT Board Member Biographies ‘Thomas K. Guba (Independent Director) has been the senior executive or head trader of various Wall Street mortgage and government departments inhis 35 years in the securities business. From 2002 through 2008, Mr. Guba was President and Principal ofth
Slide 16: REIT Board Member Biographies
ARMOUR REIT Board Member Biographies Danie. Staton (Director isthe Non-Executive Chairman of ARMOUR. Mr. Staton has more than 11 years of experience sourcing private equity and venture capital investments. Since 2003, he has been Managing Director ofthe private equity frm Staton Capital LLC, and has
Slide 17: ARMOUR Residential REIT contact details
ARMOUR RESIDENTIAL REIT www.armourreit.com ARMOUR Residential REIT, Inc. 3001 Ocean Drive Suite 201 Vero Beach, FL 32963 772-617-4340
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