Armour Residential Reit, Inc. · NYSE:ARR

Armour Residential Reit — Corporate Update (March 2012)

13 slides from Armour Residential Reit's corporate update, Mar 20, 2012

  1. Slide 1: ARMOUR Residential REIT Company Update

    CV ARNOYR ARMOUR RESIDENTIAL REIT, Inc. Company Update March 20, 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's future expectations, beliefs, goals or prospects constitute forward-look

  3. Slide 3: Capitalization and Dividend Policy

    ARMOUR Capitalization and Dividend Policy + Market Capitalization and Additional Pai = Closing price per share $6.65. -in Capital — 177,633,889 shares of common stock outstanding (NYSE: ARR”). — Market capitalization of $ 1.18 billion. — Additional paid-in capital?! estimate: $1.24 billion. * Divide

  4. Slide 4: Targets, Strategy, Governance and Fee Structure

    ARMOUR Targets, Strategy, Governance and Fee Structure Balance Sheet Targets Portfolio Strategy Transparency and Governance Fee Structure ASSETS ARMOUR invests in Agency mortgage securities. DURATION. Net balance sheet weighted average duration target of 1.5 or less. HEDGING Hedge a minimum of 40% o

  5. Slide 5: Balance Sheet

    ARMOUR Balance Sheet ights Agency Mortgage Portfolio (billions) Net REPO Borrowings (billions) Derivatives") (billions) Gross Asset Duration Net Balance Sheet Duration Liquidity Total (millions) True Cash Unlevered Securities Short term Agency P&I receivables!) $11.71 $11.05 $5.57 3.47 1.08 $577.8 $

  6. Slide 6: Investment Methodology

    ARMOUR 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. * Agency Securities — ARMOUR invests in Agency Securities. + Low Duration Assets — Ta

  7. Slide 7: Agency Asset Class Composition

    ARMOUR Agency Asset Class Compositio! Current , Percentage of | Weighted Average aRZOU Romolo pale Total Portfolio _Net/Gross Coupon (millions) ARMs & Hybrids $ 2,643.1 22.6% 3.72/4.16 Fixed Rates $ 9,062.1 18% 3.64/4.06 Total $11,705.1 100.0% 3.66/4.08 Current Percentage of Aestey Yee Nave Total Po

  8. Slide 8: ARM, Hybrid and Fixed Rate Security Composition

    ARMOUR ARM, Hybrid and Fixed Rate Security Composition ARM & Hybrid Securities lami GSE oui, MSI Months to Reset Mele Danae: Hiya ares Cer cee on Securities to Reset 0-418 2.0% 4.04/4.57 10 19-36 9.9% 4,37/4.83 30 3748 13.2% 3.57/4.04 4 49-60 8.6% 3.75/4.15 54 61-84 33.7% 3.52/3.96 70 85-120 32.6% 3

  9. Slide 9: Portfolio and Derivatives Duration Detail

    ARMOUR Portfolio and Derivatives Duration Detail curentvatue Weighted Weighted weighted average Sstimated Effective Agency Asset Class Taaeei Average Average Current Net Gross Co Duration Using Purchase Price Market Price ina Current Values ‘ARMs & Hybrids $2032 104.0% 105.1% 3.72/4.16 028 Fixed Rat

  10. Slide 10: Derivatives Detail

    ARMOUR Derivatives Detail Weighted Average Notional w ad ae Weighted Derivative Type’ RemainingTerm — RemainingTerm Amount Average Rate (Months) (millions) Interest Rate Swap 0-12 Months 9 $200 © 0.58 Interest Rate Swap 13-24 Months 2 $ 2900 1.09 Interest Rate Swap 25-36 Months 35 $ 3050 159 Interes

  11. Slide 11: Portfolio Constant Prepayment Rates (CPR)

    ARMOUR Portfolio Constant Prepayment Rates (“CPR”) Monthly Portfolio March 2012 Constant Prepayment Rate Agency Asset Class CPR 2 180 x0 4 169 “ a n19 10 29 * 5 ° 36 “"geegeeeeeeeeeaseaggsseezsass 7 HBL. a ey PERE aE fESEERE ‘iM & yrds JOYear Pass. —ASYeur Pass. 20vear Pass Pool Average ave go age g

  12. Slide 12: REPO Composition

    ARMOUR REPO Composition Principal [REPO Counter-Party®! Borrowed {riltions) 1 Merill Lynch, Pierce, Fenner & Smith Ine. $73 2 Mitsubishi UFI Securities (USAI, Inc. S76 3 Deutsche Bank Securities Inc Soma 4... Morgan Securities UC S$ 6us 5 Wells Fargo Bank, NA, Sens 6 ICBC Financial Services UC Sena

  13. Slide 13: ARMOUR Residential REIT contact details

    ARMOUR RESIDENTIAL REIT www.armourreit.com ARMOUR Residential REIT, Inc. 3001 Ocean Drive Vero Beach, FL 32963 772-617-4340

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