OCTOBER 21, 2026
ARMOUR RESIDENTIAL REITQ3 2026 Investor Presentation
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CO RP O RA T E P RO FI LE
ARMOUR Residential REIT, Inc. (NYSE: ARR)ARMOUR Residential REIT, Inc. ("ARMOUR"; NYSE: ARR)
brings private capital into the mortgage markets to support home ownership for a broad and diverse spectrum of homeowners. We seek to create shareholder value through thoughtful investment and risk management of a leveraged and diversified portfolio of mortgage-backed securities issued or guaranteed by U.S Government-sponsored entities. We rely on the decades of experience of our management team for (i) MBS securities portfolio analysis and selection, (ii) access to equity capital and repurchase financing at potentially attractive rates and terms, and
(iii) hedging and liquidity strategies to moderate interest rate and MBS price risk. We prioritize maintaining common share dividends appropriate for the intermediate term rather than focusing on short-term market fluctuations.
ARMOUR is externally managed by ARMOUR Capital Management LP, an SEC registered investment advisor, which is under common control with BUCKLER Securities LLC, an SEC registered broker-dealer and a member of FICC and FINRA. BUCKLER Securities, LLC, is the largest provider of repurchase financing to ARMOUR. ARMOUR owns a 10.8% equity interest in
BUCKLER Securities LLC. 2
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Quarterly Highlights | ||||
Q3 2026 | Q2 2026 | Q1 2026 | Q4 2025 | |
Dividend/Share ($) | 0.72 | 0.72 | 0.72 | 0.72 |
Distributable Earnings(1)/Share ($) | 0.71 | 0.72 | 0.76 | 0.71 |
Book Value/Share ($) | 14.55 | 17.53 | 17.42 | 18.63 |
Total Economic Return(2) | (12.9)% | 4.8% | (2.6)% | 10.6% |
Portfolio Balance (in $ millions) | 21,270.7 | 21,787.2 | 21,071.5 | 20,015.8 |
Repo Principal Balance (in $ millions) | 19,379.1 | 19,441.5 | 18,463.8 | 17,941.8 |
Hedges Notional Balance (in $ millions) | 21,189.0 | 18,557.3 | 15,092.3 | 14,070.3 |
Implied Leverage(3) | 8.4 | 7.7 | 8.2 | 8.1 |
Average Implied Leverage (4) | 7.9 | 8.2 | 8.0 | 8.1 |
Net Effective Duration(5) | 0.38 | 0.01 | 0.55 | 0.35 |
Average 3-month CPR | 8.5 | 11.4 | 11.2 | 11.1 |
Liquidity(6) (in $ millions) | 1,019.3 | 1,222.2 | 1,119.2 | 1,173.8 |
Liquidity as % of Total Equity | 43.4% | 47.4% | 47.9% | 51.9% |
Common Equity (in $ millions) | 2,158.8 | 2,390.3 | 2,153.1 | 2,084.9 |
Total Equity (in $ millions) | 2,350.7 | 2,579.1 | 2,337.0 | 2,261.1 |
30yr Mortgage Rate & Par Coupon Yield
- 30Y FNCL Pui Cpn Yield
Agency MB 5 Spreads to U5T & Swaps
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- h1DS CC v s 5i'1Ca Trsy
3mx1gy & 1yx10y Swaption Implied Volatility
- USD N'VOL SOUR 3M10Y
Yield Curve Steepness: 3M/10Ys, 2Y/10Ys, SY/3OYs
@ARMOUR"
R E S ID E N T IAL R E I T
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Markets Overview
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Investment Portfolioas of 9/30/2026
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Portfolio SummaryARMOUR Portfolio Composition | % of Portfolio | Market Value (in $ millions) | Effective Duration | ARMOUR Key Data | |
Agency CMBS | 5.8 % | 1,230 | 6.41 | Common Stock Price ($) | 13.83 |
30 Year Fixed Rate Pools | 88.2 % | 18,762 | 5.52 | Debt-Equity (1) | 8.2 |
Conventionals | 85.5 % | 18,192 | 5.51 |
30yr 2.0s | 1.1 % | 228 | 7.23 |
30yr 2.5s | 1.0 % | 208 | 7.49 |
Implied Leverage (2) | 8.4 |
Liquidity (3) (in $ millions) | 1,019.3 |
Liquidity as Percentage of Total Capital | 43% |
30yr 3.0s 2.9 % 607 7.20
30yr 3.5s 3.6 % 766 6.66
Q3 2026 Market Cap (in millions) 2,052.630yr 4.0s | 4.1 % | 863 | 6.20 | ||
30yr 4.5s | 8.2 % | 1,740 | |||
30yr 5.0s | 20.1 % | 4,275 | 5.90 | November 2026 Common Dividend | 0.24 |
30yr 5.5s | 26.6 % | 5,659 | 5.22 | Common Ex-Dividend Date/Record Date | 11/16/2026 |
30yr 6.0s | 16.2 % | 3,451 | 4.42 | Pay Date | 11/27/2026 |
30yr 6.5s | 1.9 % | 397 | 3.66 | Current Dividend Yield | 20.8 % |
Ginnie Mae | 2.7 % | 570 | 5.63 | ||
30yr 4.5s | 1.1 % | 239 | 6.38 | ||
30yr 5.5s 1.6 % 331 5.09 | ARMOUR Portfolio CPR (4) | ||||
Dividend Information
Agency Portfolio | 94.0 % | 19,992 | |
UMBS 30yr 5.5 TBA | 1.8 % | 381 | 5.58 |
UMBS 30yr 6.0 TBA | 1.5 % | 323 | 4.70 |
UMBS 30yr 6.5 TBA | 0.5 % | 100 | 3.85 |
Net TBA Positions | 3.8 % | 805 | |
5yr US Treasury Longs | 2.2 % | 474 | 3.67 |
US Treasury Long Positions | 2.2 % | 474 | |
Total Portfolio | 100.0 % | 21,271 |
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J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O
2024
2025
2026
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Financing and Hedging SummaryARMOUR Repo Composition | Principal Borrowed (in $ millions) | % of Repo Positions with ARMOUR | Weighted Average Original Term (days) | Weighted Average Remaining Term (days) | Longest Maturity (days) |
BUCKLER Securities LLC (5) | 9,644 | 49.8 % | 32 | 9 | 29 |
All Other Counterparties | 9,735 | 50.2 % | 43 | 16 | 29 |
Total (6) | 19,379 | 100.0 % | 38 | 13 |
ARMOUR Hedge Type Notional (in $ millions)(7)
ARMOUR Interest Rate Swaps Maturity (months) | Notional Amount (in $ millions) | Weighted Average Remaining Term (months) | Weighted Average Rate |
0-12 | 1,729 | 6 | 1.65 |
13-24 | 3,193 | 18 | 3.63 |
25-36 | 2,625 | 31 | 3.6 |
37-48 | 1,302 | 41 | 0.71 |
49-60 | 2,750 | 54 | 1.98 |
61-72 | 700 | 68 | 1.39 |
73-84 | 1,165 | 78 | 3.78 |
85-96 | - | - | - |
97-108 | 1,025 | 100 | 3.75 |
109-120 | 1,240 | 114 | 3.94 |
>120 | 1,225 | 175 | 4.37 |
Total | 16,954 | 56 | 2.93 |
Interest Rate Swaps
$16,954
Treasury Futures
$4,235
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Condensed Financialsas of 9/30/2026
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Condensed Balance Sheets (unaudited)September 30, 2026 December 31, 2025
Assets | ||
Cash and cash equivalents | $ 99,666 | $ 63,270 |
Cash collateral posted to counterparties | 34,209 | 226,701 |
Agency Securities | 19,991,917 | 19,417,640 |
U.S. Treasury Securities | 473,975 | 598,109 |
Receivable for unsettled sales | 411,773 | - |
Derivatives, at fair value | 1,360,207 | 611,544 |
Accrued interest receivable | 93,224 | 86,153 |
Prepaid and other | 2,904 | 1,742 |
Total Assets | $ 22,467,875 | $ 21,005,159 |
Liabilities | ||
Repurchase agreements, net | 19,379,128 | 17,941,796 |
Cash collateral posted by counterparties | 649,513 | 419,427 |
Payable for unsettled purchases | - | 302,094 |
Derivatives, at fair value | 24,402 | 19,303 |
Accrued interest payable - repurchase agreements | 58,291 | 59,267 |
Accounts payable and accrued expenses | 5,879 | 2,219 |
Total Liabilities | $ 20,117,213 | $ 18,744,106 |
Stockholders' Equity | ||
Preferred stock | 7 | 7 |
Common stock | 148 | 112 |
Additional paid-in capital | 6,094,073 | 5,446,152 |
Cumulative distributions to stockholders | (2,961,618) (2,667,051) | |
Accumulated net loss | (781,948) (518,167) | |
Total Stockholders' Equity | $ 2,350,662 | $ 2,261,053 |
Total Liabilities and Stockholders' Equity | $ 22,467,875 | $ 21,005,159 |
$ in thousands
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Condensed Statements of Operations (unaudited)For the Three Months Ended September 30, For the Nine Months Ended September 30, | ||||
2026 | 2025 | 2026 | 2025 | |
$ in thousands, except per share amounts
Interest Income
Interest Income | $ | 274,342 $ | 210,182 $ | 787,413 $ | 563,949 |
Interest expense | (190,599) | (171,665) | (556,137) | (455,986) | |
Net Interest Income | $ | 83,743 $ | 38,517 $ | 231,276 $ | 107,963 |
Other Income (Loss)
Gain (Loss) on Agency Securities, trading, net | (1,165,185) | 177,108 | (1,390,404) | 401,910 |
Gain (Loss) on U.S. Treasury Securities, net | (18,227) | 6,197 | (39,329) | (9,596) |
Gain (Loss) on derivatives, net | 792,440 | (49,287) | 983,700 | (348,527) |
Total Other Income (Loss) | $ (390,972) | $ 134,018 | $ (446,033) | $ 43,787 |
Expenses
Management fees | 13,039 | 11,703 | 37,793 | 33,532 |
Compensation | 1,480 | 926 | 3,596 | 2,626 |
Other operating | 1,998 | 2,297 | 7,635 | 9,559 |
Total Expenses | $ 16,517 | $ 14,926 | $ 49,024 | $ 45,717 |
Less management fees waived | - | (1,650) | - | (4,950) |
Total Expenses after fees waived | 16,517 | 13,276 | 49,024 | 40,767 |
Net Income (Loss) | $ (323,746) | $ 159,259 | $ (263,781) | $ 110,983 |
Dividends on preferred stock | (3,326) | (3,003) | (9,765) | (9,006) |
Net Income (Loss) available (related) to Common shareholders | ||||
Net income (loss) available (related) to common stockholders | $ (327,072) | $ 156,256 | $ (273,546) | $ 101,977 |
Basic EPS | $ (2.26) | $ 1.50 | $ (2.09) | $ 1.16 |
Diluted EPS | $ (2.26) | $ 1.49 | $ (2.09) | $ 1.16 |
Dividends declared per common share | $ 0.72 | $ 0.72 | $ 2.16 | $ 2.16 |
Weighted avg shares basic | 144,564 | 104,318 | 131,176 | 87,886 |
Weighted avg shares diluted | 144,564 | 104,573 | 131,176 | 88,141 |
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Distributable Earnings Non-GAAP Reconciliation (1)Q3 2026 | Q2 2026 | |||
$ in millions except, share and per share | ||||
Net Interest Income | $ | 83.7 | $ | 76.8 |
TBA Drop and interest margin income | 3.4 | 1.2 | ||
Net interest income on interest rate swaps | 31.8 | 33.3 | ||
Net interest income on futures contracts | 3.2 | 2.4 | ||
Total Expenses | (16.5) | (17.2) | ||
Distributable Earnings | $ | 105.6 | $ | 96.5 |
Dividends on Preferred Stock | (3.3) | (3.3) | ||
Distributable Earnings available to common stockholders | $ | 102.3 | $ | 93.2 |
Distributable Earnings per common share | $ | 0.71 | $ | 0.72 |
Net Income (Loss) | $ | (323.7) | $ | 114.8 |
Items Excluded from Distributable Earnings: | ||||
Loss on MBS | 1,165.1 | 42.6 | ||
Loss on U.S. Treasury Securities | 18.2 | 10.4 | ||
(Gain) Loss on TBA Securities, less TBA Drop Income | 37.8 | (0.7) | ||
Gain on interest rate swaps | (483.3) | (77.5) | ||
(Gain) Loss on futures contracts | (308.5) | 6.9 | ||
Total items excluded | $ | 429.3 | $ | (18.3) |
Distributable Earnings | $ | 105.6 | $ | 96.5 |
Dividends on Preferred Stock | (3.3) | (3.3) | ||
Distributable Earnings available to common stockholders | $ | 102.3 | $ | 93.2 |
Distributable Earnings per common share | $ | 0.71 | $ | 0.72 |
Net Income (Loss) | $ | (323.7) | $ | 114.8 |
Dividends on Preferred Stock | (3.3) | (3.3) | ||
Net Income (Loss) available (related) to common stockholders | $ | (327.0) | $ | 111.5 |
Net Income (Loss) per common share | $ | (2.26) | $ | 0.86 |
Weighted average common shares outstanding | 144,563,620 | 130,018,574 | ||
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Footnotes SLIDES 3 and 11Distributable Earnings is a non-GAAP measure defined as net interest income plus TBA Drop Income adjusted for the net coupon effect of interest rate swaps and futures contracts minus net operating expenses (see page 11 for the reconciliation of the elements of Distributable Earnings and Distributable Earnings per common share to the Company's Net Interest Income, Net Income and Net Income per common share).
Total Economic Return is change in book value for the period plus common dividends paid for the quarter.
Implied Leverage is Total Repo plus TBA market value net of forward settling trades divided by Shareholders' Equity.
Average Implied Leverage is the average total Repo plus TBA market value net of forward settling trades divided by Shareholders' Equity for the quarter.
Net effective duration is model estimated effective duration of assets net of hedges.
Liquidity is cash plus unencumbered Agency and US Government securities. Excludes any forward settling trades.
Source: Bloomberg Finance LP.
Total Repo divided by Shareholders' Equity.
Implied Leverage is Total Repo plus TBA market value net of forward settling trades divided by Shareholders' Equity.
Liquidity is cash plus unencumbered Agency and US Government securities. Excludes any forward settling trades.
Includes October Prepayment Report.
BUCKLER Securities LLC is an SEC registered broker-dealer and a member of FICC and FINRA that is affiliated with ARMOUR.
Repo composition includes funding for US Treasury longs and margin collateral posted to ARMOUR.
ARMOUR's Treasury Futures have a weighted average duration of 10.52 years.
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DisclaimersCertain 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-looking statements" made within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions) should also be considered forward-looking statements.
Forward looking statements include but are not limited to statements regarding the projections and future plans for ARMOUR's business, growth and operational improvements. Because forward looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of ARMOUR's control. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements. Additional information concerning these factors and risks are contained in the Company's most recent annual and quarterly reports and other reports filed with the Securities and Exchange Commission. ARMOUR assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. This material is for information purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation for any securities or financial instruments.
The statements, information and estimates contained herein are based on information that the Company believes to be reliable as of today's date unless otherwise indicated. ARMOUR cannot guarantee future results, levels of activity, performance or achievements. Pricing and duration information are estimates provided by independent third-party providers based on models that require inputs and assumptions. Actual realized prices and durations will depend on a number of factors that cannot be predicted with certainty and may be materially different from estimates.
AMOUNTS MAY NOT FOOT DUE TO ROUNDING.
Estimates do not reflect any costs of operation of ARMOUR.
THE INFORMATION PRESENTED HEREIN IS UNAUDITED AND NOT REVIEWED BY OUR INDEPENDENT PUBLIC ACCOUNTANTS.