Armour Residential Reit, Inc. · NYSE:ARR
Armour Residential Reit — Corporate Update (June 2016)
12 slides from Armour Residential Reit's corporate update, Jun 21, 2016
Slide 1: Company Update June 21st, 2016
ARMOUR RESIDENTIAL REIT, Inc. Company Update June 21st, 2016
Slide 2: Important Regulatory and Yield Estimate Risk Disclosures
PLEASE READ: Important Regulatory and Yield Estimate Risk Disclosures 2 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-lo
Slide 3: ARMOUR Monthly Metrics
ARMOUR Monthly Metrics 3 (1) Some of the data may be based on information preceding the date of the report (i.e., closing prices). (2) A portion of the dividend payable has been subtracted from the *estimated* book value based on accrual throughout the month. (3) Leverage does not include TBA dollar
Slide 4: Capitalization, Dividend Policy, Transparency and Manager
ARMOUR Capitalization, Dividend Policy, Transparency and Manager • Portfolio and liability details are updated monthly at www.armourreit.com. • Premium amortization is expensed monthly as it occurs. No yield smoothing.(2) • Hedge positions are marked-to-market daily (GAAP/Tax differences). • Non-Exe
Slide 5: Balance Sheet Metrics
ARMOUR Balance Sheet Metrics ARMOUR invests in mortgage securities. Current equity allocation is: • 41.0% of equity in Agency securities (unlevered securities and repo haircuts). • 19.3% of equity in Non-Agency securities (unlevered securities and repo haircuts). • 39.7% of equity in cash, receivabl
Slide 6: Portfolio Strategy and Investment Methodology
ARMOUR Portfolio Strategy and Investment Methodology 6 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 w
Slide 7: Agency & Non-Agency Portfolio
ARMOUR Agency & Non-Agency Portfolio 7 Information as of 6/17/2016. Portfolio value is based on independent third-party pricing. Information includes estimates of the effect of forward settling trades. Some totals may not foot due to rounding. ARMs & Hybrids 0.9% 93.4$ 104.7% 104.0% 2.51/3.10 0.99 A
Slide 8: Balance Sheet Hedge Metrics
ARMOUR Balance Sheet Hedge Metrics 8 (1) The duration contribution to the balance sheet is based on effective duration and market value. Information and pricing as of 6/17/16. Some totals may not foot due to rounding. Agency Assets 3.41 Non-Agency Assets 0.15 Interest Rate Swaps -2.67 Net Balance Sh
Slide 9: Hedge Portfolio
ARMOUR Hedge Portfolio 9 Information as of 6/17/2016. Some totals may not foot due to rounding. Current Pay Remaining Term Weighted Average Remaining Notional Amount (millions) Weighted Average Rate Interest Rate Swap 0-12 Months 0 -$ 0.00 Interest Rate Swap 13-24 Months 17 750.0$ 0.79 Interest Rate
Slide 10: Portfolio Constant Prepayment Rates (CPR)
ARMOUR Portfolio Constant Prepayment Rates (“CPR”) 10 ARMOUR expenses premium amortization monthly as it occurs. Constant Prepayment Rate (“CPR”) is the annualized equivalent of single monthly mortality (“SMM”). CPR attempts to predict the percentage of principal that will prepay over the next twelv
Slide 11: REPO Composition
ARMOUR REPO Composition 11 (1) ARMOUR has 41 lending counterparties. Information as of 6/17/2016. Some totals may not foot due to rounding. Weighted Average Repo Rate 0.80% Weighted Average Haircut 6.83% Debt to Shareholders' Equity Ratio 7.1 1 Mitsubishi UFJ Securities (USA), Inc. 668.2$ 8.4% 52 33
Slide 12: www.armourreit.com
12 www.armourreit.com ARMOUR Residential REIT, Inc. 3001 Ocean Drive Suite 201 Vero Beach, FL 32963 772-617-4340
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