Armour Residential Reit, Inc. · NYSE:ARR
Armour Residential Reit — Corporate Update (April 2014)
13 slides from Armour Residential Reit's corporate update, Apr 17, 2014
Slide 1: Company Update April 17, 2014
ARMOUR RESIDENTIAL REIT, Inc. Company Update April 17, 2014
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: ARR Portfolio Commentary
ARR Portfolio Commentary 3 During the first quarter of 2014 and through mid-April of this year, ARMOUR Residential REIT completed the sale of its 25 year and 30 year Fannie Mae and Freddie Mac fixed rate pass-through securities in order to purchase 15 year and 20 year Fannie Mae and Freddie Mac pass
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. • Hedge positions are marked-to-market daily (GAAP/Tax differences). • Non-Execut
Slide 5: 2014 Monthly Dividend Schedule
ARMOUR 2014 Monthly Dividend Schedule 5 Month Dividend Holder of Record Date Payment Date January 2014 $0.05 January 15, 2014 January 30, 2014 February 2014 $0.05 February 14, 2014 February 27, 2014 March 2014 $0.05 March 17, 2014 March 28, 2014 April 2014 $0.05 April 15, 2014 April 29, 2014 May 201
Slide 6: Balance Sheet Targets
ARMOUR Balance Sheet Targets ARMOUR invests in Agency mortgage securities. Net balance sheet weighted average duration target of 1.5 or less. • 4.25 gross asset duration. • -3.11 hedge duration. • 1.15 net balance sheet duration. Hedge a minimum of 40% of assets and funding rate risk. • $15.3 billio
Slide 7: Portfolio Strategy and Investment Methodology
ARMOUR Portfolio Strategy and Investment Methodology 7 Diversify Broadly • Diversification limits idiosyncratic pool risk. • Over 1000 cusips. Highly Liquid Assets • Purchase those Agency securities that are highly liquid (easily traded and priced). • ARMOUR purchases “pass-through” securities.
Slide 8: Portfolio Composition
ARMOUR Portfolio Composition 8 Information as of 4/15/2014. Portfolio value is based on independent third-party pricing. Portfolio information includes all forward settling trades. Some totals may not foot due to rounding. 0-18 162.6$ 81.0% 3.80/4.26 9 19-36 30.8$ 15.3% 3.92/4.26 27 37-48 7.3$ 3.6%
Slide 9: Portfolio Constant Prepayment Rates (CPR)
ARMOUR Portfolio Constant Prepayment Rates (“CPR”) 9 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 twelve
Slide 10: Portfolio and Derivatives Duration Detail
ARMOUR Portfolio and Derivatives Duration Detail 10 Duration estimates are derived from third-party software. Actual realized yields, durations and net durations described herein will depend on a number of factors that cannot be predicted with certainty. If rates decline, the value of our derivative
Slide 11: Derivatives Detail
ARMOUR Derivatives Detail 11 Active swap/swaption counterparties include: Citibank, N.A., Credit Suisse International, Deutsche Bank AG, JP Morgan Chase, N.A., Nomura Global Financial Products Inc., UBS AG, and Wells Fargo Bank, N.A. Information as of 4/15/2014. Some totals may not foot due to round
Slide 12: REPO Composition
ARMOUR REPO Composition 12 (1) ARMOUR has signed MRAs with 37 counterparties. Information as of 4/15/2014. Some totals may not foot due to rounding. Weighted Average Repo Rate 0.37% Weighted Average Haircut 4.95% April Paydowns (131.3) Net REPO after Paydowns 15,139.6 Debt to Quarter End Shareholder
Slide 13: ARMOUR Residential REIT, Inc. contact details
13 www.armourreit.com ARMOUR Residential REIT, Inc. 3001 Ocean Drive Suite 201 Vero Beach, FL 32963 772-617-4340
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