Armour Residential Reit, Inc. · NYSE:ARR
Armour Residential Reit — Corporate Update (December 2010)
12 slides from Armour Residential Reit's corporate update, Dec 10, 2010
Slide 1: Company Update, December 10, 2010
ARMOUR RESIDENTIAL REIT, Inc. Company Update December 10, 2010 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 ex
Slide 2: Dividend
ARMOUR REIT Dividend: & exzoLo Dividend antieunced — ARMOUR will pay a Q4 2010 “can Prtuaizes dividend oh ae pane to holders esorsoae PVH eng Meumen of record on with a ee ~ During the first three quarters of eee 2010, ARMOUR paid $1.16 in +; em BRy RAT BT dividends. Note: Returnon Equity itais dete
Slide 3: Investment Strategy Review
ARMOUR REIT. Investment Strategy Review Balance Sheet Highlights Portfolio Composition Portfolio & Liability Valuation and Duration Detail Portfolio Constant Prepayment Rates REPO Composition
Slide 4: Balance Sheet, Targets, Portfolio Strategy, Transparency and Governance
ARMOUR Re: Balance Sheet Targets Portfolio Strategy Transparency and Governance ets, Strategy, and Govern: By charter, ARMOUR only invests in Agency assets. Gross asset weighted average duration target of 2.5 of less. Net balance sheet weighted average duration target of 1.5 or less. Hedge asset and
Slide 5: Portfolio and Balance Sheet Highlights
ARMOUR REIT Portfolio and Balance Sheet Highlights * Agency mortgage portfolio valued at $832 million, * Gross asset duration estimate of 2.88. * Net balance sheet duration estimate of 1.53. * Net REPO borrowings of $773 million. * Swaps and Eurodollar futures to replicate swaps total $255 million.
Slide 6: Agency Asset Class Composition
ARMOUR REIT Agency Asset Class Co! Low Loan Balance 15 Year Pass- ARMs Povey feet ln ea anne 5 sraracs we § saan deteetl 1 vear& Seasoned Fas Throughs § isaase Low toon BlaceYeorPvsTnoghs $108 115750 Seasoned Pass- mad Throughs Tol ssigeease 18.4% AARRMOUR RESIDENTIAL REIT (1) The weighted average m
Slide 7: ARMOUR REIT ARM and Hybrid Composition
RMIOUR REIT ARM and Hybri 0-18MTR 85-120MTR ee 8.0% 19-36 MTR Months to Reset 018 19.36 37-60 37-60MTR 61-84 per) 34.0% 85.120 46.6% Total Mote: Percentages ae based on the total market value of both ARMs and hybrids, Current Value $47,478,864 $17,693,935 $ 195,317,674 $ 267,972,199 $45,997,700 $574
Slide 8: ARMOUR REIT Agency Type Composition
MOUR REIT Agency Type Composition Ginnie Mae 7.3% Freddie Mac 27.2% AARRMOUR RESIDENTIAL REIT Fannie Mae 65.5% Agency Type Fannie Mae Freddie Mac Ginnie Mae Total Current Value $ 545,157,971 $ 226,109,183 $60,732,000 $ 931,999,158
Slide 9: Portfolio and Liability Valuation and Duration Detail
ARMOUR REIT Portfolio and Liability Valuation and Duration Detail Weighted Average Weighted Average Weighted Average Asset Class outelt Purchase Price Current Market Price Coupon, ARMS 104.3% 104.3% 357 Hybrids 104.2% 104.7% 4.02 18 Year & Seasoned Pass-Throughs 105.2% 104.5% 43 Low Loan Balance 15
Slide 10: Portfolio Constant Prepayment Rates (CPR)
ARMOUR REIT Portfolio Constant Prepayment Rates (CPR) Monthly Portfolio December 2010 ConstantPrepayment Rate ‘Agency Asset Class CPR Lt? Pees a Tow Theups ‘ARMOUR expenses premium amortization as it occurs. + Constant Prepayment Rate (CPR) isthe annualized equivalent of single monthly mortality (SM
Slide 11: REPO Composition
ARMOUR REIT REPO Composition Percentage of REPO ; REPO Counter-Party Principal Borrowed Positions with eee ee Ge ARMOUR {MF Global ne S130,431,000 a 100 ‘Guggenheim Liquidity services, Uc $——_+105,130,000 8 102 Cantor Fitagerald& Co. Inc S 102,600,000 18 38 South street Securities Lc $ 101373408 129
Slide 12: ARMOUR
ARMOUR
ARMOUR Residential REIT — Corporate Update (December 2010) on 6ix