Armour Residential Reit, Inc. · NYSE:ARR
Armour Residential Reit — Investor Presentation (September 2013)
12 slides from Armour Residential Reit's investor presentation, Sep 10, 2013
Slide 1: ARMOUR Residential REIT
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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-looki
Slide 3: Capitalization, Dividend Policy, Transparency and Manager
ARMOUR Capitalizati lend Policy, Transparency and Manager * 370,825,521 shares of common stock outstanding (NYSE: “ARR”). Market + 2,180,572 shares of Series A Preferred Stock outstanding (NYSE: “ARR PrA”). Capitalization + 5,650,000 shares of Series B Preferred Stock outstanding (NYSE: “ARR PrB”).
Slide 4: Status Update
ARMOUR Portfolio Status Update ARMOUR has made several portfolio changes in order to maintain leverage and liquidity at appropriate levels. Changes made since the end of Q2 2013: * Sold a total of $5.65 billion of Agency MBS securities. * $1.06 billion of hybrid securities, or 18.7% of total sold. *
Slide 5: Balance Sheet Targets
ARMOUR Balance Sheet Targets Hedging Liquidity ARMOUR invests in Agency mortgage securities. Net balance sheet weighted average duration target of 1.5 or less. + 6.06 gross asset duration. + -5.10 hedge duration. * 1.05 net balance sheet durati Hedge a minimum of 40% of fixed rate assets and funding
Slide 6: Strategy and Investment Methodology
ARMOUR Portfolio Strategy and Investment Methodology Management has a focused and disciplined approach to evaluating assets for inclusion in the ARMOUR portfolio. ARMOUR employs a strong bias toward a ‘buy and hold’ strategy rather than a ‘trading’ strategy. ARMOUR will strategically sell assets whe
Slide 7: Composition
ARMOUR Portfolio Composition ARM & Hybrid Securities wie Weighted Average ee ths Months to Reset te Net/Gross Coupon “Verse Mon! (millions) to Reset 0.18 $1581 56.0% 4.08/4.55 10 19-36 $846 29.9% 4.10/4.46 ar 37-48 $56 2.0% 3.84/4.34 46 49-60 $261 9.2% 3.74/4.19 54 61-84 $ 30 1.0% 4,00/4.38 61 85-12
Slide 8: Constant Prepayment Rates (CPR)
ARMOUR Portfolio Constant Prepayment Rates (“CPR”, Monthly Portfolio September 2013 Constant Prepayment Rate ‘Agency Asset Class CPR Prior Quarters Current Months s oe os “PPP PPPS POS LPO SS PPL, ° FEELS POR a ARMOUR expenses premium amortization monthly asit occurs. Constant Prepayment Rate (“CPR”
Slide 9: Agency Assets and Derivatives Duration Detail
ARMOUR Portfolio and Derivatives Duration Detail Current Value ‘Agency Asset Class (oes ‘ARMs & Hybrids $225 Fixed Rates Maturing in 120 Months or Less $ 13 FixedRRates Maturing Between 121 and 180Months § = 748.1 Fixed Rates Maturing Between 181and240Months § —4,983.9 Fixed Rates Maturing Between 2
Slide 10: Derivatives Detail
ARMOUR Derivatives Detail Weighted Average Notional hitt totem GS Gem Coe (Months) (millions) Imeesnaesu@ _012Ments $m 19 imeestacsve suerte = SOD imeestacsve seen = 88D meesnacsve sraeente = SSO imeesnacsuy 5a0Nente «= 52S OOD imeestacsue 6-aNenthe 08 too imeesnacsvy suiNente = SOD imeestaesuy a3se
Slide 11: REPO Composition
ARMOUR REPO Composition ‘REPO Counter Party’ Borrowed Positions AVES sasturity (tions) win MAUI an bays anmourn 1..P. Morgan Securit sLLC S107. 78 5s 7” 2 Morgan Stanley & Co. LC S 1.708 a a 3 Deutsche BankSecuritisine. S185 69% 2 2 ‘Mars Lyne Perce, Fanner@Smithinc. §-—«20252 8.3% ” os 5 CRT Capita
Slide 12: ARMOUR Residential REIT contact details
ARMOUR RESIDENTIAL REIT www.armourreit.com ARMOUR Residential REIT, Inc. 3001 Ocean Drive Vero Beach, FL 32963 772-617-4340
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