Armour Residential Reit, Inc. · NYSE:ARR

Armour Residential Reit — Corporate Update (May 2012)

11 slides from Armour Residential Reit's corporate update, May 8, 2012

  1. Slide 1: ARMOUR Residential REIT Company Update

    GVARMQUR ARMOUR RESIDENTIAL REIT, Inc. Company Update May 8, 2012

  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’ future expectations, beliefs, goals or prospects constitute forward-lookin

  3. Slide 3: Dividend Policy, Transparency and Manager

    lend Policy, Transparency and Manager + 177,948,890 shares of common stock outstanding (NYSE: “ARR”). Canis + Market capitalization of $1.24 billion. ae) + Additional paid-in capital estimate: $1.24 billion. Market + ARMOUR pays dividends monthly. + Dividends are announced based on estimates of futu

  4. Slide 4: Balance Sheet Targets

    ARMOUR Balance Sheet Targets Assets Hedging Leverage ARMOUR invests in Agency mortgage securities. Net balance sheet weighted average duration target of 1.5 or less. + 2.62 gross asset duration. + 0.38 net balance sheet duration after the effect of derivatives. Hedge a minimum of 40% of fixed rate a

  5. 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

  6. Slide 6: Portfolio Composition

    ARMOUR Portfolio Compo: ARM & Hybrid Securities & ‘Weighted Average pees Sta Vive, Arena NOWMEGANEDRE eC ong non) sectes San one $842 3.3% 4.11/4,60, 2 19:36 $ 300.9 11.9% 4244.71 on vas Smo | ax Sass e 49-60 $233.1 9.2% 3.93/4.34 55 tree $m: am saat & ped Sass am suas by onl $253 amo amps 1 caret)

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

    ARMOUR Portfolio Constant Prepayment Rates (“CPR’ ‘Monthly Portfolio ‘May 2012 Constant Prepayment Rate ‘Agency Asset Class CPR Prior Quarters Current Months LPO PE PPPE SP SEE SMH MN MALS © am ainenn” iametas terres Donerher Poche ARMOUR expenses premium amortization monthly asit occurs. Constant P

  8. Slide 8: Portfolio duration and hedging

    ARMOUR Portfoli : weehed Welded cau ‘sims tei eS ear TS cSte: Gise Sar puciaa ice Me Pc ices so nee ass soon mew aca ow fuedhaeimauieiotmieniveriss $e km ttm os Icnseenateetceniahndisowents $2400 soem mah aaa bh Theahatsattegbweenitandamwonms $7000 atsoe tama) te Teorwoihedhnge $name souk nn as ectn

  9. Slide 9: Derivatives Detail

    ARMOUR Derivatives Detai Weighted Average Notional Devvave Type Remaining Term RemsiningTerm amount. Weiehed (Oonths)———(ilions) Y= InerestRate Sop O12 Months 6 $00 oss IneerestRate Swap 13-24Months a $7008 InerestRate Swap 25-36Months Mo $058 IneerestRate Swap 37-48Monthe a $2650 IneerestRate Swap

  10. Slide 10: REPO Composition

    ARMOUR REPO Composition Percentage Weed Laney Pinca ; "0 ergs 0 count Pay sorrowed a ‘Martyn {rtonsy Pout Manin Merlyn eee, FemerBSoithinc. $80 IK a 2 2 tah Sects (SA), Sms ase % 2 3 bers an Sener $ Ges bom 2 6 {Up Norn ecunties te $ omy See ” » 5 Wels Frgosenk Na $ e620 he rf > ‘RES Seasing $ ses 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 nu

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