Armour Residential Reit, Inc. · NYSE:ARR

Armour Residential Reit — Investor Presentation (July 2011)

17 slides from Armour Residential Reit's investor presentation, Jul 11, 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: Capitalization as of July 2011

    ARMOUR Capitalization as of July 011 Market Capitalization and Additional Paid-In Capital — Closing price per share $7.67. 75,722,743 shares of common stock outstanding (NYSE: “ARR”). — Market capitalization of $580.8 million. Additional paid-in capital") estimate: $7.14 per share or $541.1 million.

  4. Slide 4: Portfolio and Balance Sheet

    ARMOUR Portfo and Balance Sheet Agency mortgage portfolio valued at $5.23 billion). — 728 separate CUSIPs. — Average market value per CUSIP: $7.2 million. Median market value per CUSIP: $2.9 million. Gross asset duration estimate of 3.10. Net balance sheet duration estimate of 1.15 (excluding uninve

  5. Slide 5: Dividends

    ARMOUR Dividend: * ARMOUR declares dividends based on estimates of future taxable REIT income. * Q3 2011 Monthly Dividends ~ ARMOUR is paying second quarter 2011 monthly dividends of $0.12 per month. ~ The shareholder record date is the 15th of each month, payable on the second to last business day

  6. Slide 6: Targets, Strategy and Governance Review

    ARMOUR Targets, Strategy and Governance Review Investment Methodology Portfolio Composition Portfolio and Liability Valuation and Duration Detail Eurodollar Futures and Interest Rate Swap Detail Portfolio Constant Prepayment Rates (“CPR”) REPO Composition ARMOUR [TAL RE

  7. Slide 7: Targets, Strategy and Governance Review

    ARMOUR — Targets, Si Balance Sheet [i Targets Portfolio é Strategy . Transparency and Governance tegy and Governance Review ASSETS + ARMOUR invests in Agency assets. DURATION + Net balance sheet weighted average duration target of 1.5 or less. HEDGING * Hedge asset and funding rate risk on approxima

  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. ARMOUR employs a ‘buy and hold’ strategy rather than a ‘trading’ strategy. + Agency Securities * Loan analysis ~ ARMOUR invests in Agency Securities. + Low

  9. Slide 9: Agency Asset Class Composition

    ARMOUR Agency Asset Class Composition ARMs 2.5% 15 Year & Seasoned Pass- Throughs 43.7% Hybrids 51.0% LowLoan Balance 15 Year Pass- 10 Year Pass- Throughs Throughs 1.9% 0.9% Information as of 7/8/2011. ‘current ‘Agency Asset lass ‘Value (evtions) ARMS ss nents Reset 3) $1220 Mybrids\uskonms aneionge

  10. Slide 10: Agency Type Composition

    ARMOUR Agency Type Compos ARM & Hybrid Composition Fixed Composition Current Value Percentage of Total Agency Type (millions) Portfolio Fannie Mae $ 35047 67.0% Freddie Mac S$ 11624 22.2% Ginnie Mae S$ sed 10.7% Total $ 5,230.2 100.0% Information as of 7/8/2012. @ARMOUR RESIDENTIAL REIT 7

  11. Slide 11: ARM and Hybrid Security Composition

    ARMOUR ARM and Hybrid Security Composi 85-120MTR 0-18 MTR. 3.7% 4.7% 19-36MTR 5.1% 37-48MTR 17.4% 49-60MTR 24.6% ‘Months to Reset ow 1938 3748 4960 e184 85-120 Total Note: Information sof 7/8/2011. Percentagesare based onthe total market value ofboth ARMsand hybrids. AARMOUR RESIDENTIAL REIT

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

    ARMOUR Portfolio and Liability Valuation and Duration Detail = Wie Geen Cees CSRS eer) Purchase Price Current Market Price Coupon abbas Care Vee snore sour sos a so ti ime datas 28 dat 12 Yoa Pose Trowths are ints 38 Se lowlsontaaneisYearPse throughs 053% x01 ro ae 15 Year 8 Semoned as Thvghe soe do

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

    ARMOUR Eurodollar Futures and Interest Rate Swap Detail Notional Eurodollar Futures to Weighted Replicate Swaps ia ‘averagenate Mati 2veer $0 10% 175 3Year $470 157% 270 Year S 640 205% 2.60 sear S$ mo | an% 475 TotalorWeighted Average § 1340 1.80% 339 Interest Rate swaps ction weighted ning Te eine

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

    ARMOUR Portfolio Constant Prepayment Rates (“CPR”) Monthly Portfolio July 2011 ConstantPrepayment Rate ‘Agency Asset Class CPR x 2 = & + ARMOUR expenses premium amortization monthly asit occurs. + Constant Prepayment Rate (“CPR”) isthe annualized equivalent of si percentage of principal that wll pre

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

    ARMOUR Portfolio Constant Prepayment Rates (“CPR”) July 2011 Constant Prepayment Rates 6 ARMs & Hybrids Fixed Rates wu - 139 nt a a 102 et o} + ARMOUR expenses premium amortization monthy 4 = F . | = + Constant Prepayment Rate (“CPR”) isthe annualized equivalent of single monthly mortay ("SMM"). CPR

  16. Slide 16: REPO Composition

    ARMOUR REPO Composition PO Courter Pay Sores Percentage Average Muy a (millions) ‘ofREPO = Maturity in Days assent $62 9% 0 2 aba Sects orp $ ar km 09 Nonuraseestesinematond.inc «$3598 7K Calman, ace co. S me me OS Cantor ager. ne $y 6m weal $ mo se 1. Morn Secsives tic $ mo smo ‘South Street Securi

  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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