Armour Residential Reit, Inc. · NYSE:ARR

Armour Residential Reit — Corporate Update (August 2013)

11 slides from Armour Residential Reit's corporate update, Aug 12, 2013

  1. Slide 1: ARMOUR Residential REIT, Inc. Company Update

    J ARNOYR ARMOUR RESIDENTIAL REIT, Inc. Company Update August 12, 2013

  2. 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

  3. Slide 3: Capitalization, Dividend Policy, Transparency and Manager

    ARMOUR Capitalization, Dividend Policy, Transparency and Manager + 370,816,058 shares of common stock outstanding (NYSE: “ARR”). Market + 2,180,572 shares of Series A Preferred Stock outstanding (NYSE: “ARR Prd”). + 5,650,000 shares of Series B Preferred Stock outstanding (NYSE: “ARR PrB”). + Market

  4. Slide 4: Balance Sheet

    ARMOUR Balance eet ets Assets ARMOUR invests in Agency mortgage securities. Net balance sheet weighted average duration target of 1.5 or less. * 5.95 gross asset duration. + -5.31 hedge duration. * 1.00 net balance sheet duration. Hedge a minimum of 40% of fixed rate assets and funding rate risk. *

  5. 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 strong bias toward a ‘buy and hold’ strategy rather than a ‘trading’ strategy. ARMOUR will strategically sell assets whe

  6. Slide 6: Composition

    ARMOUR Portfolio Composition ARM & Hybrid Securities an Paina Weighted average beeen Months to Reset luc 'ybridNet/Gross Coupon AVETage Months (millions) toReset 0-18 $158.2 21.3% 4.08/4.56 1" 19.36 $849 11.4% 410/447 28 37-48 $56 0.8% 3.84/4.34 47 49-60 $263 3.5% 3.74/4.19 55 61-84 $ 1518 20.5% 4.2

  7. Slide 7: Constant Prepayment Rates ("CPR")

    ARMOUR Portfolio Constant Prepayment Rates (“CPR”) Monthly Portfolio ‘August 2013 Constant Prepayment Rate Agency Asset Class CPR Prior Quarters Current Months os 8 - 2. a FPF SF SPS SP PSP SS IIS PLS SP . FFF FSO S SES OSS fs 2 PPP ELLIS s ARMOUR expenses premium amortization monthly as it occurs.

  8. Slide 8: Assets and Derivatives Duration Detail

    ARMOUR Portfolio and Derivatives Duration Detail carrentValue Weighted Weighted Weighted average Estimated Effective Agency Asset Class a Average ‘Average Current Duration Using (millions) ‘Net/Gross Coupon Purchase Price MarketPrice Current Values ‘ARMs & Hybrids $ m6 105.1% 108.9% 3.85/431 221 Fix

  9. Slide 9: Derivatives Detail

    ARMOUR Derivatives Detai Weighted AVEF2E® \ovional Amount Weighted Derivative Type RemainingTerm Remaining Term : ae (millions) Average Rate Imerest Rate Swap 0:12Months 6 s 2900 1083 Imerest Rate Swap 13-24 Months 2 s 5800-18 Inerest Rate Swap 25-36 Months, 30 S$ 2700116 Imerest Rate Swap 37-48 Mot

  10. Slide 10: REPO Composition

    ARMOUR REPO Composition co ge SSS oo Epo counter Pay) Sorrowed —Postons AMEE acy (eitons) with fe in Days ARMOUR = 1 Merill lynch, Perce, Fenner @Smithinc. $4483 7385, a @ 2... Morgan Securities LC 5 16 6m 2 n 3 Deutsche Bank Securities ne. S402 ams «6 96 1s MorganStanley 8 Co, LIC 5 104s as 2» 2 S

  11. Slide 11: 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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