Armour Residential Reit, Inc. · NYSE:ARR
Armour Residential Reit — Investor Presentation (November 2013)
11 slides from Armour Residential Reit's investor presentation, Nov 13, 2013
Slide 1: ARMOUR Residential REIT
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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-looki
Slide 3: ARMOUR Capitalization, Dividend Policy, Transparency and Manager
ARMOUR Capitalizati Market . Capitalization . Common Stock Dividend Policy < and Taxable REIT Income Transparency and Governance ARMOUR REIT . Manager and Fee Structure lend Policy, Transparency Manager 370,908,405 shares of common stock outstanding (NYSE: “ARR”). 2,180,572 shares of Series A Prefer
Slide 4: 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. . * 6.00 gross asset duration. Duration *: Adit hedge:duration: * 0.89 net balance sheet duration. Hedge a minimum of 40% of assets and funding rate risk. 5 +
Slide 5: Strategy and Investment Methodology
ARMOUR Portfolio Strategy and Investment Methodology Management has a focused and disciplined approach to evaluating assets for inclusion in the ARMOUR portfolio. ARMOUR employs a strong bias toward a ‘buy and hold’ strategy rather than a ‘trading’ strategy. ARMOUR will strategically sell assets whe
Slide 6: Composition
ARMOUR Portfolio Composition ARM & Hybrid Securities ae Sarai a Weightedaverage ee Months to Reset fae ARMS typ Net/Gross Coupon *¥°rag6 Months (millions) Securities to Reset 0418 $ 155.6 60.6% 3.95/4.44 "1 19:36 S$ 648 25.3% 4.02/4.37 a 37-48 $ 81 3.2% 3.83/4.34 45 49-60 & 2 86% 3.65/4.09 54 61-84
Slide 7: Constant Prepayment Rates (CPR)
ARMOUR Portfolio Constant Prepayment Rates (“CPR”, Monthly Portfolio November 2013 Constant Prepayment Rate ‘Agency Asset Class CPR Prior Quarters Current Months SESE ELLIS SLES ES EL LIE LI LSS SE Ey a ARMOUR expenses premium amortization monthly asit occurs. Constant Prepayment Rate (“CPR”) is the
Slide 8: Portfolio and Derivatives Duration Detail
ARMOUR Portfolio and Derivatives Duration Detail comentvalue Weithted Weighted Weighted Estimated Effective Agency Asset Class eae ‘Average Average Current. Average Duration Using Purchase Price MarketPrice Net/Gross Coupon Current Values. ARMs & Hybrids $1585 108.7% 105.0% 3.94/439 107 Fixed Rates
Slide 9: Derivatives Detail
ARMOUR Derivatives Detail Derivative Type Interest Rate Swap Interest Rate Swap Interest Rate Swap Interest Rate Swap Interest Rate Swap Interest Rate Swap Interest Rate Swap Interest Rate Swap Interest Rate Swap Interest Rate Swap Eurodollar Futures ‘Total or Weighted Average Interest Rate Swaption
Slide 10: REPO Composition
ARMOUR REPO Composition EPO Counter Party" borrowed Positions ETE turity (ions) with ein ines seour 1.1.P. Morgan Secures Lc 5 1os1 em x 1” 2Merillyneh Flere, Fenner&smitnnc $407 TH 2B 6 3 Morgan Stanley 80. LC S107 ase. x 2 4 Deutsche Bank Securities Ine. $ 10m. asx z ™ 5 Mitsuba Ul Securities (USA
Slide 11: 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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