Armour Residential Reit, Inc. · NYSE:ARR
Armour Residential Reit — JMP Securities Research Conference 2011
12 slides from Armour Residential Reit's conference presentation, May 9, 2011
Slide 1: ARMOUR Residential REIT, Inc. JMP Securities Research Conference
GJARMQUR ARMOUR RESIDENTIAL REIT, Inc. JMP Securities Research Conference May 9, 2011
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’s future expectations, beliefs, goals or prospects constitute forward-look
Slide 3: ARMOUR Residential REIT, Inc. — An Introduction
ARMOUR Residential REIT, Inc. — An Introducti: + ARMOUR Residential REIT, Inc. (“ARMOUR”) is an Agency mortgage Real Estate Investment Trust (REIT) that invests in Fannie Mae, Freddie Mac, and Ginnie Mae securities. — ARMOUR trades on the NYSE as “ARR.” + 49,260,077 common shares outstanding. * Addi
Slide 4: Dividends
ARMOUR Dividend: ARMOUR 2010/2011 Dividends + ARMOUR pays dividends monthly. — hee a fecersbte Payne HP Retumon * ARMOUR declares dividends based Equity on estimates of future taxable REIT eet uit, leas tt 2 229 65m 729m income. * Q2 2011 Monthly Dividends — ARMOUR will pay second quarter 2011 month
Slide 5: Targets, Strategy and Governance Review
ARMOUR -—Targets, Strategy and Governance Review Balance Sheet Targets Portfolio Strategy Transparency and Governance 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 approximately
Slide 6: 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 = ARIMOUR invests in Agency Securities. + Low Duration Asset
Slide 7: Agency Asset Class Composition
ARMOUR Agency Asset Class Composition Agency mortgage portfolio valued at $3.44 billion a. 606 separate cusips. Average market value per CUSIP is $5.7 million. Median market value per CUSIP is $2.4 million ARMs 39% Agency Asset Class ‘Current Value ARMS oat tome tare $ 133,493,787 Hybrids ap sont an
Slide 8: Portfolio Constant Prepayment Rates (CPR)
ARMOUR Portfolio Constant Prepayment Rates (“CP! Monthly Portfolio. May2011 ‘ConstantPrepayment Rate Agency Asset Class CPR "” vo y 4 = _ a , etree LEE SOOELP SPP PPPOE —_o- al Se ‘+ ARMOUR expenses premium amortization monthly as it occurs, + Constant Prepayment Rate (“CPR’)}is the annualized equiv
Slide 9: REPO Composition
ARMOUR REPO Composition Percentage of REPO weighed average Longest Maturity ‘REPO Counter Pary Borrowed Positions with pais ‘Maturity in Days in Days Gotaman, Sachs.co. S$ zassio0 co 2 Cantor Fageald & Co. Ine 5 mao s 2 NomuraSecuntiesitemtiond,ne $27,868,000, » 2 IMF Global Inc 5 2aLssto00 = 2 UssS
Slide 10: Hedging and Liquidity
ARMOUR Hedging and HEDGING Hedge Portfolio. Notional Amount Interest Rate Swaps. (0-42 Months s 13:24 Months S 20,000,000 25-36 Months $20,000,000 37-48 Months S 308,000,000 49.60 Months S 700,000,000 $_1,315,000,000 Eurodollar Futures to Replicate Swaps. 2veor $ 13,000,000 Year $ 47,000,000 ‘ear $
Slide 11: Portfolio and Liability Valuation and Duration Detail
ARMOUR Portfolio and Liability Valuation and Duration Detai Estimated Effective Weighted Average Weighted Average Weighted Average : ere) Merete Purchase Price Current Market Price ‘Coupon Duration Using Current Values ARMs 104.7% 105.3% 3.47 os Hybrids 103.4% 104.3% 3.08 257 20 Year Pass-Throughs 1
Slide 12: 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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