Armour Residential Reit, Inc. · NYSE:ARR

Armour Residential Reit — Investor Presentation (April 2011)

17 slides from Armour Residential Reit's investor presentation, Apr 19, 2011

  1. Slide 1: ARMOUR Residential REIT

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  2. 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’ future expectations, beliefs, goals or prospects constitute forward-looki

  3. Slide 3: ARMOUR REIT Capitalization

    ARMOUR REIT Capitaliza‘ * Market Cap — $357.09 million. = 49,260,077 shares of common stock outstanding (NYSE: “ARR”). * Book Value = Additional Paid-In Capital” estimate: $7.13 per share or $350.98 million. + As of April 18,2012, there were 48,260,077 shares outstanding — Current Book Value estimat

  4. Slide 4: Portfolio and Balance Sheet Highlights

    ARMOUR REIT Portfolio and Balance Sheet Highlights * Agency mortgage portfolio valued at $3.39 billion"), — 598 separate CUSIPs. — Weighted average market value per CUSIP: $5.7 million. Median market value per CUSIP: $2.3 million * Gross asset duration estimate of 3.32. * Net balance sheet duration

  5. Slide 5: Dividends: Q2 2011 Monthly Dividends

    * ARMOUR declares dividends based on estimates of future taxable REIT income. * Q2 2011 Monthly Dividends — ARMOUR will pay second quarter 2011, ‘Nar: Raton as tas detonating ees Dok wu tof monthly dividends of $0.12 per month. — ~ The shareholder record date is the 15th of each month, payable on th

  6. Slide 6: Investment Strategy Review

    ARMOUR REIT Investment Strategy Review Investment Methodology Review Portfolio Composition Portfolio & Liability Valuation and Duration Detail Portfolio Constant Prepayment Rates (CPR) REPO Composition ARMOUR [TAL RE

  7. Slide 7: Targets, Strategy, and Governance Review

    ARMOUR Residential REIT, I Targets, Strategy, and Governance Review + ARMOUR only investsin Agency assets. + Net balance sheet weighted average duration target of 1.5 or less. + Hedge asset and funding rate risk on approximately 40% of non-ARM assets. + Hold up to 40% of unlevered equity in cash bet

  8. Slide 8: Investment Methodology

    ARMOUR Investment Methodology Management has a very focused and disciplined approach to evaluating assets for inclusion in the ARMOUR portfolio. + Agency Only Securities = ARMOUR only invests in Agency Securities. + Low Duration Assets — Target a portfolio of low duration assets to reduce gross inte

  9. Slide 9: Agency Asset Class Composition

    ARMOUR REIT Agency Asset Class Composi ARMs 4.0% 15 Year & tl og ‘Agency Asset lass Curent vaive Throughs 36.0% ARMs (038 Month to Rese) (2) 3 s3sse676 Hybrids (12 Month and LongertoRese)@) «$1684 630288 10¥earPass-Throushs 8) $ 46952085 low toan Balance 15 YearPass-Throughs()$ 101,708952 15Year& Se

  10. Slide 10: ARM and Hybrid Composition by Months to Reset

    ARMOUR REIT ARM and Hybr 85-120MTR —0-18MTR 2.1% 6.7% 19-36 MIR 7.4% Months to Reset Current Value sareaeey 61-84MTR 339% oe $ 134.959,476 7 37-48 MTR 1936 S$ 109,471.822 30 | 18.4% 37.48 $ 370,776,387 45 q 4960 $ 638,068,008 55 \ ete4 $ 693,679,869 78 ‘ 95-120 S 42,634,101 m . X Total $2/019,499,66

  11. Slide 11: Agency Type Composition

    ARMOUR REIT Agency Type Composi ARM & Hybrid Composition Fixed Composition Ginnle Mae 00% Ginvie Mae 29% Freddie Mac 32.1% Fannie Mae 78% Fannie Mae 65.1% ‘AgencyType Current Value Peveentage of Total Fannie Mae $ 201,754,885 63.0% Freddie Mac 3 661,732,796 195% Ginnie Mae 3 422573856 ps Total § 3,3

  12. Slide 12: Portfolio and Liability Valuation and Duration Detail

    ARMOUR REIT Portfolio and Liability Valuation and Duration Detail Estimated Effective Weighted Average Weighted Average Weighted Average Se Purchase Price Current Market Price Coupon Daron eine Current Values ARMs 108.7% 105.2% 3.49 099 Hybrids 103.4% 103.7% 371 3.05, 410 Year Pass-Throughs 102.7% 1

  13. Slide 13: Eurodollar Futures and Interest Rate Swap Detail

    ARMOUR REIT EuroDollar Futures and Interest Rate Swap Deta Eurodollar Futures to Replicate Swaps 2Year 3Year 4Year sYear ‘Total or Weighted Average ‘Swap Counterparties Citibank, NA. JP Morgan Chase, NA. Nomura Global Finandal Products Inc. as AG Information as of 4/18/2011. @ARMOUR RESIDENTIAL REIT

  14. Slide 14: Portfolio Constant Prepayment Rates (CPR)

    ARMOUR REIT Portfolio Constant Prepayment Rates (CPR) Monthly Portfolio April2011 ConstantPrepayment Rate Agency Asset Class CPR . AN “ , a 7" a oo 2 PPP POP PPP PS SPP 7 iM ome Rete ine pire peme PILI OIA TIL AL SEL SF ice oe, + ARMOUR expenses premium amortization sit occurs. + Constant Prepayment

  15. Slide 15: Portfolio Constant Prepayment Rates (CPR)

    ARMOUR REIT Portfolio Constant Prepayment Rates (CPR) April 2011 Constant Prepayment Rates 2s Bo wt : 5 ARMs & Fixed Rates Hybrids s = + ARMOUR expenses premium amortizationasit 88 7 a4 7 + Constant Prepayment Rate CPR) isthe annualized si equivalent of single monthly mortality (SMM).CPR attempts to

  16. Slide 16: REPO Composition

    ARMOUR REIT REPO Composition Percentage of REPO ey 5 ro counter Pini sorowed "“Pedtenewin Wetted Auer nest Matrty ‘Maturity in Days inDays ARMOUR Nomura Securities intemational, nc. $ oa ry «6 Goldman, Sachs &Co $ am 38 56 Cantor Fitzgerald & Co. Ine 3 36% 19 3» IMF Global ine. 3 30% 2 uss Securitie

  17. Slide 17: ARMOUR Residential REIT contact details

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

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