Armour Residential Reit, Inc. · NYSE:ARR
Armour Residential Reit — Corporate Update (January 2011)
12 slides from Armour Residential Reit's corporate update, Jan 10, 2011
Slide 1: ARMOUR Residential REIT Company Update
ARMOUR RESIDENTIAL REIT, Inc. Company Update January 1, 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 expe
Slide 2: Dividend: ARMOUR will pay dividends monthly
ARMOUR REIT Dividend: 6 ARMOUR. will (pay: dividends: monthly starting in January 2011. “can Prtuaizes recordone — Payoe 8" Retumen Eauity + Q12011 Monthly Dividends Se SS Cr ~ ARMOUR will pay first quarter 2011 OA snyao wr DH SK monthly dividends of $0.12 per e120 Rava RTA BT month. F Note: Returno
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 $1.12 billion), — 337 separate CUSIPs, = Weighted average market value per CUSIP: $3.3 million. = Median market value per CUSIP: $1.5 million, * Gross asset duration estimate of 2.99. * Net balance sheet duratio
Slide 6: Agency Asset Class Composition
ARMOUR REIT Agency Asset Class Composition ‘Agency Asset Class. Current Value ‘ARMS (1) $94,710,928 Hybrids @) S 688,725,515 15 Year & Seasoned Pass-Throughs 6) 238,813,580 Low Loan Balance 15 Year Pass-Throughs (a) $01,657,796 Total $ 1,123,907,819 (1) The weighted average months to resets 6 (2) Th
Slide 7: Months to Reset
048 1935 3760 6184 5-120 Mote: Percentages ae based on the total market value of both ARMs and Hybrids, ‘Months to Reset Total Current Value $ 94,710,928 $ 29,811,737 $ 234,014,541 $ 332,250,255 $ 42,648,982 $.783,436,033, Weighted Average ‘Months to Reset 114 AARRMOUR RESIDENTIAL REIT
Slide 8: ARMOUR REIT Agency Type Composition
MOUR REIT Agency Type Composition Ginnie Mae 52% 22.4% ‘Agency Type Current Value Fannie Mae S 813,331,045 Freddie Mac S 251,465,571 Ginnie mae $59,141,203 Total $ 1,123,907,819 Fannie Mae TM WARMOUR RESIDENTIAL REIT.
Slide 9: Portfolio and Liability Valuation and Duration Detail
ARMOUR REIT Portfolio and Liability Valuation and Duration Detail Estimated Effective Weighted Average Weighted Average Weighted Average Peso Asset Ores Purchase Price Current Market Price Coupon Duration Using Current Values ARMs 104.5% 104.7% 320 oa Hybrids 104.2% 103.8% 3.92 2.07 415 Year & Seaso
Slide 10: Portfolio Constant Prepayment Rates (CPR)
ARMOUR REIT Portfolio Constant Prepayment Rates (CPR) Monthly Portfolio December 2010 7 er ee ee = + ARMOUR expenses premium amortization as it occurs. + Constant Prepayment Rate (CPR) isthe annualized equivalent of single monthly mortality (SMM). CPR attempts to predict the percentage of prindpa th
Slide 11: REPO Composition
ARMOUR REIT REPO Composition Percentage of REPO Weighted Average LongestMaturity EPO Counter-Party Principal Borrowed Positions with Soc ‘Maturity in Days in Days MF Global inc $ 173,508,000 16.2% 6 us ‘Guggenheim Seaurities, LLC S 167,651,000 15.8% 82 n SoUrh Street Securities UC $135,297.00 2.6% 2
Slide 12: www.armourreit.com
www.armourreit.com
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