Armour Residential Reit, Inc. · NYSE:ARR

Armour Residential Reit — Investor Presentation (July 2018)

9 slides from Armour Residential Reit's investor presentation, Jul 10, 2018

  1. Slide 1: ARMOUR Residential REIT Investor Presentation

    ARMOUR RESIDENTIAL REIT, Inc. Investor Presentation 07/10/2018 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 owne

  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 Overview

    ARMOUR Overview 3 1 Capitalization • Total capitalization of $1,205.3 million composed of: ◦ Estimated book value of common stock of $991.6 million. ▪ 41,928,133 common stock shares outstanding. ◦ Preferred stock par value of $213.7 million. ▪ 2,180,572 shares of Series A Preferred stock outstanding

  4. Slide 4: Balance Sheet Metrics

    ARMOUR Balance Sheet Metrics 4 1 Equity Allocation • ARMOUR invests in mortgage-related assets and U.S. government securities. Allocation of equity in repo is: ◦ 60.3% in Agency securities. ◦ 39.7% in Credit Risk and Non-Agency securities. 2 Duration • 0.20 net balance sheet duration. 3 Hedging • $6

  5. Slide 5: Portfolio Strategy and Investment Methodology

    ARMOUR Portfolio Strategy and Investment Methodology 5 1 Non-Agency Structure Analysis • Seniority, subordination model. • Model completeness and accuracy. • Litigation and policy risks. 2 Agency & Non-Agency Class Analysis • Prepayment history. • Prepayment expectations. • Premium/discount. • Liqui

  6. Slide 6: Portfolio & Hedge Positioning

    ARMOUR Portfolio & Hedge Positioning 6 % 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% $56.9 104.8% 103.4% 3.18/3.82 0.95 Agency Multifamily Ballooning in 120

  7. Slide 7: Repo Composition

    ARMOUR Repo Composition 7 Weighted Principal Percentage of Repo Weighted Average Longest Borrowed Positions with Average Original Remaining Remaining Repo Counter-Party (millions) ARMOUR Term in Days Term in Days Term in Days 1 BUCKLER Securities LLC(1) $3,067.0 49.0% 33 26 185 2 ABN AMRO Bank N.V.

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

    ARMOUR Portfolio Constant Prepayment Rates ("CPR") 8 Trailing Twelve Month Portfolio CPR June 2018 Agency Asset CPR 15 ARMs & Hybrids 13.9 10 10 & 15 Year Pass-Throughs 10.8 20 Year Pass-Throughs 4 25 & 30 Year Pass-Throughs 9.3 5 Agency Multifamily 0.0 Agency IO 15.4 Portfolio Average 7.4 0 7 7 7 7

  9. Slide 9: Residential REIT, Inc. 3001 Ocean Drive Suite Vero Beach, FL 32963 armourreit.com 772-617-4340

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

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