Armour Residential Reit, Inc. · NYSE:ARR
Armour Residential Reit — Investor Presentation (January 2012)
18 slides from Armour Residential Reit's investor presentation, Jan 6, 2012
Slide 1: ARMOUR Residential REIT
GJARMQUR
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
Slide 3: Capitalization and Dividends
ARMOUR Capitalization and Di + Market Capitalization and Additional Paid-In Capital — Closing price per share $7.15. — 95,436,949 shares of common stock outstanding (NYSE: “ARR”)" — Market capitalization of $682.4 million, = Additional paid-in capital” estimate: * Dividend Policy and Taxable REIT In
Slide 4: Targets, Strategy and Governance
ARMOUR Targets, Strategy and Governance Balance Sheet Targets Portfolio Strategy Transparency and Governance ASSETS + ARMOUR invests in Agency mortgage securities. DURATION + Net balance sheet weighted average duration target of 1.5 or less. HEDGING * Hedge asset and funding rate risk on a minimum o
Slide 5: Balance Sheet Highlights
ARMOUR Balance Sheet Highlights Agency Mortgage Portfolio (billions) Net REPO Borrowings (billions) Derivatives" (billions) Gross Asset Duration Net Balance Sheet Duration Liquidity Total (millions) ‘True Cash Unlevered Securities Short term Agency P&I receivables”) $5.82 $5.40 $2.90 1.48 -0.31 $320
Slide 6: Investment Methodology
ARMOUR Investment Methodology Management has a focused and disciplined approach to evaluating assets for inclusion in the ARMOUR portfolio. ARMOUR employs a ‘buy and hold’ strategy rather than a ‘trading’ strategy. + Agency Securities — ARMOUR invests in Agency Securities. * Low Duration Assets — Ta
Slide 7: Agency Asset Class Composition
ARMOUR Agency Asset Class Composition ens - Percentage of Weighted Average ARMOURPorfolio Value Total Portolio _Net/Gross Cou (ilions) stint ARMs & Hybrids: $ 2,810.8 48.3% +3.73/4.17 Fixed Rates '$ 3,008.2 SL7% 3.91/4.30 Tots $5911 100% anja carrent Percentage of Agency Type Value : eile | Total Po
Slide 8: ARM, Hybrid and Fixed Rate Security Composition
ARMOUR ARM, Hybrid and Fixed Rate Security Composition fans GumetPecenbeot weignadaverge Wed ‘Months to Reset Go ‘ARM & Hybrid Net/Gross Coupon Average Months (millions) Securities toReset oa $ou7 ume aagara 0 1936 $ 262 Baw 451496 20 3748 $ 406.8 14.5% +3.60/4.06 42 49-60 $ 1869 6.6% 3.63/4.03 53 6
Slide 9: Portfolio and Derivatives Duration Detail
ARMOUR Portfolio and Derivatives Duration Deta Weighted Weighted Estimated efectve rent valve i 0 ‘gency Asset Class cieemoeh Average Average Current eines NESE pyration Using Purchase Price Market Price om current Values Anas &tybrids $ 2mos 080% 104% ayaa oss Fixed RatesMaturingin 20Monthsortess $
Slide 10: Derivatives Detail
ARMOUR Derivatives Detail Weighted Average Notional Weighted Derivative Type'"! Remaining Tem —RemainingTerm Amount, W08hNet (Matha) (nilionsy) Se Interest Rate Swap 0-12 Months 2 $ 20 ass InterestRate swap 13-24 Months 2B $ 100 103 InterestRateSwap 25-26 Months, 28 $ 200 a4 InterestRate Swap 37-48
Slide 11: Portfolio Constant Prepayment Rates (CPR)
ARMOUR Portfolio Constant Prepayment Rates (“CPR”) Monthly Portfolio December 2011 Constant Prepayment Rate ‘Agency Asset Class CPR weirs SovecPow Sverre 20¥aranePatoo ge ‘won Twewph cup ARMOUR expenses premiumamortization monthly as it occurs. ‘Constant Prepayment Rate (“CPR”) is the annualized equ
Slide 12: REPO Composition
ARMOUR REPO Composition Foro couter Party") Bomowed —pesions wth Matuityin Matutyin (rillions) \RMOUR Days Days: RES Secures ne $ mz 7% x» x» 2Mersil yeh, Pierce, Fenner &Smithinc. «$3673 SB 18 2 3 Deutsche BankSecurles ine. $ 350 6% ” » 4 ss Securties we $ 393 5mm % s 5 Miteubishl UFL Securities (U
Slide 13: Investment Management Team
ARMOUR REIT Investment Management Team Non-Executive Board Members ARN RESIDENTIAL REIT 7
Slide 14: REIT Investment Management Team
ARMOUR REIT Investment Management Team ‘Mark R. Gruber, CFA is Head of Portfolio Management of ARMOUR Residential Management LLC (‘ARRM"), the manager of ARMOUR Residential REIT, Inc. From April 2008 until Joining ARRM, Mr. Gruber managed a $1.1 billion mortgage portfolio for Penn Mutual Life Insura
Slide 15: Independent ARMOUR REIT Board Member Biographies
Independent ARMOUR REIT Board Member Biographies Stewart J. Paperin (Independent Director) Mr. Paperin has served as Executive Vice President of the Soros Foundation, a worldwide private philanthropic foundation, since 1996, where he oversees financial, administrative and economic development activi
Slide 16: Independent ARMOUR REIT Board Member Biographies
Independent ARMOUR REIT Board Member Biog ‘Thomas K. Guba (Independent Director) Mr. Guba has been the senior executive or head trader of various Wall Street mortgage and government departments in his thirty four years in the securities business. From 2002 through 2008, Mr. Guba was President and Pr
Slide 17: REIT Board Member Biographies
ARMOUR REIT Board Member Biographies Danie! C, Staton (Director s the Non-Executive Chairman of ARMOUR. Mr. Staton has over 10 years experience sourcing private equity and venture ‘capital investments. Since 2003, he has been Managing Director of private equity firm Staton Capital LLC. Between 1997
Slide 18: 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
ARMOUR Residential REIT — Investor Presentation (January 2012) on 6ix