Armour Residential Reit, Inc. · NYSE:ARR

Armour Residential Reit — Corporate Update (January 2019)

9 slides from Armour Residential Reit's corporate update, Jan 10, 2019

  1. Slide 1: Company Update 1/10/19

    ARMOUR RESIDENTIAL REIT, Inc. Company Update 1/10/19 ARMOUR seeks to create shareholder value through thoughtful investment and risk management that produces current yield and superior risk adjusted returns over the long term. Our focus on residential real estate finance supports home ownership for

  2. 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-

  3. Slide 3: ARMOUR Key Metrics

    ARMOUR Key Metrics 3 ARMOUR invests in and manages a leveraged portfolio of mortgage-related assets and U.S. government securities. Market Date 10/31/18 11/30/18 12/31/18 NIM Breakdown 3.5 Common Stock Price $21.78 $22.14 $20.50 Estimated Book Value $22.20 $21.86 $20.86 (2) 3.0 Estimated Book Value

  4. Slide 4: Overview: Capitalization, Dividend Policy, Shareholder Alignment

    ARMOUR Overview 4 1 Capitalization • Total capitalization of $1,125.4 million composed of: ◦ Estimated book value of common stock of $911.6 million. ◦ Preferred stock par value of $213.7 million. 2 Dividend Policy • ARMOUR pays dividends monthly. • Dividends are typically announced on a monthly basi

  5. Slide 5: Balance Sheet Metrics

    ARMOUR Balance Sheet Metrics 5 1 Equity Allocation • ARMOUR invests in mortgage-related assets and U.S. government securities. Allocation of equity in repo is: ◦ 69.6% in Agency securities. ◦ 30.4% in Credit Risk and Non-Agency securities. 2 Duration • (0.49) net balance sheet duration. 3 Hedging •

  6. Slide 6: Portfolio & Hedge Positioning

    ARMOUR Portfolio & Hedge Positioning 6 Estimated % of Current Value Weighted Average Weighted Average Weighted Average Effective Securities Portfolio (millions) Book Price Market Price Net/Gross Coupon Duration Agency ARMs & Hybrids 0.6% $50.0 104.8% 103.4% 3.62/4.28 0.91 Agency Multifamily Ballooni

  7. Slide 7: Repo Composition

    ARMOUR Repo Composition 7 Weighted Weighted Average Average Longest Principal Borrowed Percentage of Repo Original Term in Remaining Remaining Repo Counter-Party (millions) Positions with ARMOUR Days Term in Days Term in Days 1 BUCKLER Securities LLC (1) $3,503.8 49.8% 32 14 31 2 ING Financial Marke

  8. Slide 8: Portfolio Constant Prepayment Rates (CPR)

    ARMOUR Portfolio Constant Prepayment Rates ("CPR") 8 Trailing Twelve Month Portfolio CPR December 2018 Agency Asset CPR 10 ARMs & Hybrids 12.3 10 & 15 Year Pass-Throughs 5.6 20 Year Pass-Throughs 18.1 5 25 & 30 Year Pass-Throughs 5.4 Agency Multifamily 0.0 Agency IO 11.0 Portfolio Average 4.2 0 7 8

  9. Slide 9: ARMOUR Residential REIT, Inc. contact details

    ARMOUR Residential REIT, Inc. 3001 Ocean Drive Suite 201 Vero Beach, FL 32963 armourreit.com 772-617-4340

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