Armour Residential Reit, Inc. · NYSE:ARR
Armour Residential Reit — Corporate Update (May 2017)
11 slides from Armour Residential Reit's corporate update, May 15, 2017
Slide 1: ARMOUR Residential REIT, Inc. Company Update 5/15/2017
ARMOUR RESIDENTIAL REIT, Inc. Company Update 5/15/2017
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: NIM Breakdown and ARMOUR Key Metrics
NIM Breakdown 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 ARMOUR Key Metrics 3 Market Date 2/28/2017 3/31/2017 4/30/2017 Common Stock Price $22.49 $22.71 $24.07 Estimated Book Value $25.02 $25.62 $26.25 Common Shares Outstanding(1) 36,7
Slide 4: Overview, Transparency and Governance, Dividend Policy, Capitalization
ARMOUR Overview Transparency and Governance 4 ARMOUR REIT Manager Common Stock Dividend Policy Capitalization Information as of 4/30/17. • Total Capitalization of $1,160.7 million composed of: ◦ Estimated book value of common stock of $964.9 million. ◦ Preferred stock par value of $195.8 million. •
Slide 5: Balance Sheet Metrics
ARMOUR Balance Sheet Metrics ARMOUR invests in mortgage securities. Current allocation of equity in repo is: • 52.4% in Agency securities. • 47.6% in Non-Agency securities. 0.80 net balance sheet duration. • 3.46 gross asset duration. • (2.67) hedge duration. $4.2 billion in hedges (interest rate sw
Slide 6: Portfolio Strategy and Investment Methodology
ARMOUR Portfolio Strategy and Investment Methodology 6 Non-Agency Structure Analysis • Seniority, subordination model. • Model completeness and accuracy. • Litigation and policy risks. Agency & Non-Agency Class Analysis • Prepayment history. • Prepayment expectations. • Premium/discount. • Liquidity
Slide 7: Agency & Non-Agency Portfolio
ARMOUR Agency & Non-Agency Portfolio 7 Information as of 4/30/17. 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. Total Agency Securities % ofPortfolio Current Value (milli
Slide 8: Hedge Portfolio
ARMOUR Hedge Portfolio 8 Information as of 4/30/17. Some totals may not foot due to rounding. Derivative Type Remaining Term Weighted Average Remaining Term (Months) Notional Amount (millions) Weighted Average Rate Interest Rate Swap 0-12 Months 3 $ 200.0 0.54 Interest Rate Swap 13-24 Months 13 50.0
Slide 9: REPO Composition
ARMOUR REPO Composition 9 (1) ARMOUR has 43 lending counterparties. Information as of 4/30/17. Some totals may not foot due to rounding. REPO Counter-Party (1) Principal Borrowed (millions) Percentage of REPO Positions with ARMOUR Weighted Average Original Term in Days Weighted Average Remaining Ter
Slide 10: Monthly Portfolio CPR
10 Monthly Portfolio CPR 14 13 12 11 10 9 8 7 6 5 Jan ua ry 20 16 Fe br ua ry 20 16 M arc h 2 01 6 Ap ril 20 16 M ay 20 16 Ju ne 20 16 Ju ly 20 16 Au gu st 20 16 Se pt em be r 2 01 6 Oc to be r 2 01 6 No ve mb er 20 16 De ce mb er 20 16 Jan ua ry 20 17 Fe br ua ry 20 17 M arc h 2 01 7 Ap ril 20 17 8
Slide 11: ARMOUR Residential REIT, Inc. contact details
www.armourreit.com ARMOUR Residential REIT, Inc. 3001 Ocean Drive Suite 201 Vero Beach, FL 32963 772-617-4340
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