ARMOUR Residential REIT, Inc. Announces Q2 Results and June 30, 2025 Financial Position
ARMOUR Residential REIT (NYSE: ARR) reported Q2 2025 financial results, revealing a GAAP net loss of $78.6 million ($0.94 per share). Despite the loss, the company achieved Distributable Earnings of $64.9 million ($0.77 per share) and net interest income of $33.1 million.
Key metrics include a book value per share decline to $16.90 from $18.59 in Q1, representing a total economic return of -5.22%. The company maintained strong liquidity of $772.9 million and managed a $15.4 billion portfolio, predominantly composed of Agency MBS (94.1%). ARR successfully raised $104.6 million through stock offerings and maintained monthly dividends of $0.24 per share.
The company's leverage ratio stood at 7.72:1, with implied leverage at 8.29:1, while maintaining interest rate swap contracts totaling $10.3 billion.
ARMOUR Residential REIT (NYSE: ARR) ha comunicato i risultati finanziari del secondo trimestre 2025, registrando una perdita netta GAAP di 78,6 milioni di dollari (0,94 dollari per azione). Nonostante la perdita, la societ脿 ha ottenuto utili distribuibili per 64,9 milioni di dollari (0,77 dollari per azione) e un reddito netto da interessi di 33,1 milioni di dollari.
I principali indicatori mostrano un valore contabile per azione in calo a 16,90 dollari rispetto ai 18,59 dollari del primo trimestre, con un rendimento economico totale del -5,22%. L'azienda ha mantenuto una solida liquidit脿 di 772,9 milioni di dollari e gestito un portafoglio da 15,4 miliardi di dollari, composto principalmente da Agency MBS (94,1%). ARR ha raccolto con successo 104,6 milioni di dollari tramite offerte azionarie e ha mantenuto dividendi mensili di 0,24 dollari per azione.
Il rapporto di leva finanziaria si 猫 attestato a 7,72:1, con una leva implicita di 8,29:1, mentre sono stati mantenuti contratti di swap sui tassi di interesse per un totale di 10,3 miliardi di dollari.
ARMOUR Residential REIT (NYSE: ARR) inform贸 los resultados financieros del segundo trimestre de 2025, mostrando una p茅rdida neta GAAP de 78,6 millones de d贸lares (0,94 d贸lares por acci贸n). A pesar de la p茅rdida, la compa帽铆a logr贸 ganancias distribuibles por 64,9 millones de d贸lares (0,77 d贸lares por acci贸n) e ingresos netos por intereses de 33,1 millones de d贸lares.
Los indicadores clave incluyen una disminuci贸n del valor contable por acci贸n a 16,90 d贸lares desde 18,59 d贸lares en el primer trimestre, representando un rendimiento econ贸mico total de -5,22%. La empresa mantuvo una fuerte liquidez de 772,9 millones de d贸lares y gestion贸 un portafolio de 15,4 mil millones de d贸lares, compuesto mayormente por Agency MBS (94,1%). ARR recaud贸 con 茅xito 104,6 millones de d贸lares mediante ofertas de acciones y mantuvo dividendos mensuales de 0,24 d贸lares por acci贸n.
La relaci贸n de apalancamiento fue de 7,72:1, con un apalancamiento impl铆cito de 8,29:1, mientras manten铆a contratos de swap de tasas de inter茅s por un total de 10,3 mil millones de d贸lares.
ARMOUR Residential REIT (NYSE: ARR)電� 2025雲� 2攵勱赴 鞛 鞁れ爜鞚� 氚滍憸頃橂┌ GAAP 靾滌啇鞁� 7,860毵� 雼煬(欤茧嫻 0.94雼煬)毳� 旮半頄堨姷雼堧嫟. 靻愳嫟鞐愲弰 攵堦惮頃橁碃 須岇偓電� 攵勲鞍臧�電レ澊鞚� 6,490毵� 雼煬(欤茧嫻 0.77雼煬)鞕� 靾滌澊鞛愳垬鞚� 3,310毵� 雼煬毳� 雼劚頄堨姷雼堧嫟.
欤检殧 歆�響滊電� 1攵勱赴 18.59雼煬鞐愳劀 頃橂澖頃� 欤茧嫻 鞛ル秬臧�旃� 16.90雼煬臧� 鞛堨溂氅�, 齑� 瓴届牅鞝� 靾橃澋毳犾潃 -5.22%毳� 雮橅儉雰堨姷雼堧嫟. 須岇偓電� 7鞏� 7,290毵� 雼煬鞚� 臧曤牓頃� 鞙犽彊靹膘潉 鞙犾頄堦碃, 欤茧 Agency MBS(94.1%)搿� 甑劚霅� 154鞏� 雼煬 韽姼韽措Μ鞓�毳� 甏�毽枅鞀惦媹雼�. ARR鞚� 欤检嫕 瓿惦毳� 韱淀暣 1鞏� 460毵� 雼煬毳� 靹标车鞝侅溂搿� 臁半嫭頄堨溂氅�, 欤茧嫻 鞗� 氚半嫻旮� 0.24雼煬毳� 鞙犾頄堨姷雼堧嫟.
須岇偓鞚� 霠堧矂毽 牍勳湪鞚� 7.72:1鞚挫棃瓿�, 鞎旍嫓鞝� 霠堧矂毽電� 8.29:1鞚措┌, 齑� 103鞏� 雼煬 攴滊鞚� 旮堧Μ 鞀れ檻 瓿勳暯鞚� 鞙犾頃橁碃 鞛堨姷雼堧嫟.
ARMOUR Residential REIT (NYSE: ARR) a publi茅 ses r茅sultats financiers du deuxi猫me trimestre 2025, affichant une perte nette GAAP de 78,6 millions de dollars (0,94 dollar par action). Malgr茅 cette perte, la soci茅t茅 a r茅alis茅 un b茅n茅fice distribuable de 64,9 millions de dollars (0,77 dollar par action) et un revenu net d鈥檌nt茅r锚ts de 33,1 millions de dollars.
Les indicateurs cl茅s montrent une baisse de la valeur comptable par action 脿 16,90 dollars contre 18,59 dollars au premier trimestre, repr茅sentant un rendement 茅conomique total de -5,22 %. L鈥檈ntreprise a maintenu une forte liquidit茅 de 772,9 millions de dollars et g茅r茅 un portefeuille de 15,4 milliards de dollars, principalement compos茅 d鈥橝gency MBS (94,1 %). ARR a lev茅 avec succ猫s 104,6 millions de dollars via des 茅missions d鈥檃ctions et maintenu des dividendes mensuels de 0,24 dollar par action.
Le ratio d鈥檈ndettement s鈥檈st 茅tabli 脿 7,72:1, avec un effet de levier implicite de 8,29:1, tout en conservant des contrats de swap de taux d鈥檌nt茅r锚t totalisant 10,3 milliards de dollars.
ARMOUR Residential REIT (NYSE: ARR) ver枚ffentlichte die Finanzergebnisse f眉r das zweite Quartal 2025 und meldete einen GAAP-Nettogewinnverlust von 78,6 Millionen US-Dollar (0,94 US-Dollar pro Aktie). Trotz des Verlusts erzielte das Unternehmen aussch眉ttungsf盲hige Ertr盲ge von 64,9 Millionen US-Dollar (0,77 US-Dollar pro Aktie) sowie einen Nettozinsertrag von 33,1 Millionen US-Dollar.
Wichtige Kennzahlen umfassen einen R眉ckgang des Buchwerts je Aktie auf 16,90 US-Dollar von 18,59 US-Dollar im ersten Quartal, was eine Gesamtrendite von -5,22 % bedeutet. Das Unternehmen hielt eine starke Liquidit盲t von 772,9 Millionen US-Dollar und verwaltete ein Portfolio im Wert von 15,4 Milliarden US-Dollar, das 眉berwiegend aus Agency MBS (94,1 %) besteht. ARR konnte erfolgreich 104,6 Millionen US-Dollar durch Aktienemissionen beschaffen und behielt monatliche Dividenden von 0,24 US-Dollar pro Aktie bei.
Die Verschuldungsquote lag bei 7,72:1, die implizite Verschuldung bei 8,29:1, w盲hrend Zins-Swap-Vertr盲ge im Gesamtwert von 10,3 Milliarden US-Dollar gehalten wurden.
- Substantial Distributable Earnings of $64.9 million ($0.77 per share)
- Strong liquidity position of $772.9 million
- Successful capital raise of $104.6 million through stock offerings
- Maintained consistent monthly dividend of $0.24 per share
- Significant portfolio size of $15.4 billion with 94.1% in Agency MBS
- GAAP net loss of $78.6 million ($0.94 per share)
- Book value per share declined to $16.90 from $18.59 in Q1 2025
- Negative total economic return of -5.22% for Q2
- High leverage ratio of 7.72:1 with implied leverage of 8.29:1
- Loss on interest rate swaps of $77.6 million
Insights
ARMOUR reported Q2 net loss of $0.94/share despite distributable earnings of $0.77/share, with book value declining 9.1% to $16.90.
ARMOUR Residential REIT's Q2 2025 results reveal a complex financial picture with significant contrasts between GAAP metrics and non-GAAP performance measures. The company posted a GAAP net loss of
Book value per share decreased from
ARMOUR's portfolio composition remained heavily weighted toward Agency MBS at
The economic net interest spread鈥攁 key profitability metric for mortgage REITs鈥攚as
Notably, ARMOUR raised
The consistent
VERO BEACH, Florida, July 23, 2025 (GLOBE NEWSWIRE) -- ARMOUR Residential REIT, Inc. (NYSE: ARR and ARR PRC) (鈥淎RMOUR鈥� or the 鈥淐ompany鈥�) today announced the Company's unaudited Q2 results and June 30, 2025 financial position.
Q2 2025 Results
- GAAP net loss related to common stockholders of
$(78.6) million or$(0.94) per common share. - Net interest income of
$33.1 million . - Distributable Earnings available to common stockholders of
$64.9 million , which represents$0.77 per common share (see explanation of this non-GAAP measure on page 4). - Average interest income on interest earning assets of
4.90% and interest cost on average interest bearing liabilities of4.54% . - Economic interest income was
4.78% less economic interest expense of2.96% for an economic net interest spread of1.82% (see explanation of this non-GAAP measure on page 6). - Raised
$104.6 million of capital by issuing 6,303,710 shares of common stock through an at the market offering program. - Paid common stock dividends of
$0.24 per share per month, or$0.72 per share for Q2.
June 30, 2025 Financial Position
- Book value per common share of
$16.90 , compared to$18.59 at March 31, 2025. - Total economic return, which is change in book value for the period plus common dividends paid for the quarter, was (5.22)% for Q2 2025.
- Liquidity, including cash and unencumbered securities, of
$772.9 million . - Portfolio totaled
$15.4 billion , comprised of94.1% Agency mortgage-backed securities ("MBS"),3.9% U.S. Treasury Securities and2.0% of To Be Announced ("TBA") Securities. - Repurchase agreements, net totaled
$12.8 billion ;49.3% were with ARMOUR affiliate BUCKLER Securities LLC. - Debt to equity ratio of 7.72:1 (based on repurchase agreements divided by total stockholders鈥� equity). Implied leverage, including TBA Securities and forward settling sales and unsettled purchases was 8.29:1.
- Interest Rate swap contracts totaled
$10.3 billion of notional amount.
Company Update, July 21, 2025
- Common stock outstanding of 91,594,002 shares.
- Liquidity, including cash and unencumbered securities, exceeded
$724.0 million , this excludes MBS principal and interest receivable due in July 2025 which totaled$178.8 million . - Securities portfolio included approximately
$14.7 billion of Agency MBS (including TBA Securities). - Through July 16, 2025 we raised approximately
$59 million of capital by issuing 3,523,141 shares of common stock through an at the market offering program. - Debt to equity ratio (based on repurchase agreements divided by total stockholders' equity) was 7.97 to 1; Implied leverage, including TBA Securities and forward settling sales and unsettled purchases was 7.97 to 1.
Book value per common share consisted of:
| 听 | June 30, 2025 | 听 | December 31, 2024 | ||||
| Stockholders' Equity | (in millions except per share) | ||||||
| Common stock, at par value - 88,070,861 and 62,412,116 shares outstanding, respectively | $ | 0.1 | 听 | 听 | $ | 0.1 | 听 |
| Additional paid-in capital | 听 | 5,053.0 | 听 | 听 | 听 | 4,585.7 | 听 |
| Cumulative distributions to stockholders | 听 | (2,504.1 | ) | 听 | 听 | (2,383.5 | ) |
| Accumulated net loss | 听 | (889.1 | ) | 听 | 听 | (840.9 | ) |
| Total Stockholders' Equity | $ | 1,659.9 | 听 | 听 | $ | 1,361.4 | 听 |
| Less: liquidation preference - | 听 | (171.6 | ) | 听 | 听 | (171.2 | ) |
| Equity Attributable to Common Stockholders | $ | 1,488.3 | 听 | 听 | $ | 1,190.2 | 听 |
| Book value per common share | $ | 16.90 | 听 | 听 | $ | 19.07 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
The major drivers of the change in the Company's financial position were:
| 听 | Q2 2025 | 听 | Q1 2025 | ||||
| 听 | (in millions) | ||||||
| Total Stockholders' Equity 鈥� Beginning | $ | 1,703.8 | 听 | 听 | $ | 1,361.4 | 听 |
| Income (Loss) | 听 | 听 | 听 | ||||
| Investment in securities: | 听 | 听 | 听 | ||||
| Gain on MBS | $ | 16.5 | 听 | 听 | $ | 208.2 | 听 |
| Loss on U.S. Treasury Securities | 听 | (2.9 | ) | 听 | 听 | (12.9 | ) |
| Gain (Loss) on TBA Securities | 听 | (2.8 | ) | 听 | 听 | 9.2 | 听 |
| Loss on interest rate swaps | 听 | (77.6 | ) | 听 | 听 | (138.9 | ) |
| Loss on futures contracts | 听 | (27.6 | ) | 听 | 听 | (61.5 | ) |
| Net Interest Income | 听 | 33.1 | 听 | 听 | 听 | 36.3 | 听 |
| Total Expenses after fees waived听(1) | 听 | (14.3 | ) | 听 | 听 | (13.1 | ) |
| Net Income (Loss) | $ | (75.6 | ) | 听 | $ | 27.3 | 听 |
| Preferred stock dividends | 听 | (3.0 | ) | 听 | 听 | (3.0 | ) |
| Common stock dividends | 听 | (60.4 | ) | 听 | 听 | (54.1 | ) |
| Capital Activities | 听 | 听 | 听 | ||||
| Issuance of Preferred stock | 听 | 鈥� | 听 | 听 | 听 | 0.3 | 听 |
| Issuance of common stock | 听 | 105.1 | 听 | 听 | 听 | 371.9 | 听 |
| Common shares repurchased | 听 | (10.0 | ) | 听 | 听 | 鈥� | 听 |
| Total Stockholders' Equity 鈥� Ending | $ | 1,659.9 | 听 | 听 | $ | 1,703.8 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
__________________________________
(1)听听听听The Company鈥檚 external manager waived a portion of its contractual management fee at the rate of
Condensed Balance Sheet (unaudited)
| 听 | June 30, 2025 | 听 | December 31, 2024 | ||||
| 听 | (in millions) | ||||||
| Assets | 听 | 听 | 听 | ||||
| Cash and cash equivalents | $ | 141.2 | 听 | 听 | $ | 68.0 | 听 |
| Cash collateral posted to counterparties | 听 | 281.4 | 听 | 听 | 听 | 78.2 | 听 |
| Agency Securities, at fair value | 听 | 14,515.8 | 听 | 听 | 听 | 12,439.4 | 听 |
| U.S. Treasury Securities, at fair value听 | 听 | 602.3 | 听 | 听 | 听 | 鈥� | 听 |
| Derivatives, at fair value | 听 | 629.2 | 听 | 听 | 听 | 908.1 | 听 |
| Accrued interest receivable | 听 | 64.1 | 听 | 听 | 听 | 52.8 | 听 |
| Prepaid and other | 听 | 6.7 | 听 | 听 | 听 | 1.4 | 听 |
| Total Assets | $ | 16,240.7 | 听 | 听 | $ | 13,547.9 | 听 |
| 听 | 听 | 听 | 听 | ||||
| Liabilities | 听 | 听 | 听 | ||||
| Repurchase agreements, net | $ | 12,810.1 | 听 | 听 | $ | 10,713.8 | 听 |
| Obligations to return securities received as collateral, at fair value | 听 | 509.4 | 听 | 听 | 听 | 493.4 | 听 |
| Cash collateral posted by counterparties | 听 | 470.5 | 听 | 听 | 听 | 833.9 | 听 |
| Payable for unsettled purchases | 听 | 634.1 | 听 | 听 | 听 | 103.5 | 听 |
| Derivatives, at fair value | 听 | 106.9 | 听 | 听 | 听 | 1.3 | 听 |
| Accrued interest payable- repurchase agreements | 听 | 39.7 | 听 | 听 | 听 | 32.1 | 听 |
| Accrued interest payable- U.S. Treasury Securities sold short | 听 | 3.8 | 听 | 听 | 听 | 3.8 | 听 |
| Accounts payable and other accrued expenses | 听 | 6.3 | 听 | 听 | 听 | 4.7 | 听 |
| Total Liabilities | $ | 14,580.8 | 听 | 听 | $ | 12,186.5 | 听 |
| 听 | 听 | 听 | 听 | ||||
| Stockholders鈥� Equity | 听 | 听 | 听 | ||||
| $ | 鈥� | 听 | 听 | $ | 鈥� | 听 | |
| Common stock ( | 听 | 0.1 | 听 | 听 | 听 | 0.1 | 听 |
| Additional paid-in capital | 听 | 5,053.0 | 听 | 听 | 听 | 4,585.7 | 听 |
| Cumulative distributions to stockholders | 听 | (2,504.1 | ) | 听 | 听 | (2,383.5 | ) |
| Accumulated net loss | 听 | (889.1 | ) | 听 | 听 | (840.9 | ) |
| Total Stockholders鈥� Equity | 听 | 1,659.9 | 听 | 听 | 听 | 1,361.4 | 听 |
| Total Liabilities and Stockholders鈥� Equity | $ | 16,240.7 | 听 | 听 | $ | 13,547.9 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
Non-GAAP Financial Measures
Distributable Earnings
Distributable 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. Distributable Earnings is based on the historical cost basis of our Agency Securities, interest rate swaps and futures contracts. Distributable Earnings differs, potentially significantly, from net interest income and from net income (loss) (which includes realized gains and losses and market value adjustments).
For a portion of its Agency Securities the Company may enter into TBA forward contracts for the purchase or sale of Agency Securities at a predetermined price, face amount, issuer, coupon and stated maturity on an agreed-upon future date, but the particular Agency Securities to be delivered are not identified until shortly before the TBA settlement date. The Company accounts for TBA Agency Securities as derivative instruments if it is reasonably possible that it will not take or make physical delivery of the Agency Securities upon settlement of the contract. The Company may choose, prior to settlement, to move the settlement of these securities out to a later date by entering into an offsetting short or long position (referred to as a 鈥減air off鈥�), net settling the paired off positions for cash, and simultaneously purchasing or selling a similar TBA Agency Security for a later settlement date. This transaction is commonly referred to as a 鈥渄ollar roll.鈥� The Company accounts for TBA dollar roll transactions as a series of derivative transactions.
Forward settling TBA contracts typically trade at a discount, or 鈥淒rop,鈥� to the regular settled TBA contract to reflect the expected interest income on the underlying deliverable Agency Securities, net of an implied financing cost, which would have been earned by the buyer if the contract settled on the next regular settlement date. When the Company enters into TBA contracts to buy Agency Securities for forward settlement, it earns this 鈥淭BA Drop Income,鈥� because the TBA contract is essentially equivalent to a leveraged investment in the underlying Agency Securities. The amount of TBA Drop Income is calculated as the difference between the spot price of similar TBA contracts for regular settlement and the forward settlement price on the trade date. The Company generally accounts for TBA contracts as derivatives and TBA Drop Income is included as part of the periodic changes in fair value of the TBA contracts that the Company recognizes currently in the Other Income (Loss) section of its Consolidated Statement of Operations.
Distributable Earnings and Distributable Earnings per common share
The Company believes that Distributable Earnings and Distributable Earnings per common share may be useful to investors because our Board of Directors may consider Distributable Earnings and Distributable Earnings per common share as part of its deliberations when determining the level of dividends on our common stock. Distributable Earnings and Distributable Earnings per common share tend to be more stable over time and this practice is designed to increase the stability of our common stock dividend from month to month. However, because Distributable Earnings is an incomplete measure of the Company鈥檚 financial performance and involves significant differences from net interest income and net income (loss) computed in accordance with GAAP, Distributable Earnings should be considered as supplementary to, and not as a substitute for, the Company鈥檚 net interest income and net income (loss) computed in accordance with GAAP as a measure of certain aspects of the Company鈥檚 financial performance.
The below table shows the reconciliation of the elements of Distributable Earnings and Distributable Earnings per common share to the Company鈥檚 Net Interest Income, Net Income (Loss) and Net Income (Loss) per common share.
| 听 | Q2 2025 | 听 | Q1 2025 | ||||
| 听 | ($ in millions except, share and per share) | ||||||
| Net Interest Income | $ | 33.1 | 听 | 听 | $ | 36.3 | 听 |
| TBA Drop and interest margin income | 听 | 1.3 | 听 | 听 | 听 | 1.5 | 听 |
| Net interest income on interest rate swaps | 听 | 46.3 | 听 | 听 | 听 | 41.5 | 听 |
| Net interest income on futures contracts | 听 | 1.5 | 听 | 听 | 听 | 1.4 | 听 |
| Total Expenses after fees waived | 听 | (14.3 | ) | 听 | 听 | (13.1 | ) |
| Distributable Earnings | $ | 67.9 | 听 | 听 | $ | 67.6 | 听 |
| Dividends on Preferred Stock | 听 | (3.0 | ) | 听 | 听 | (3.0 | ) |
| Distributable Earnings available to common stockholders | $ | 64.9 | 听 | 听 | $ | 64.6 | 听 |
| Distributable Earnings per common share | $ | 0.77 | 听 | 听 | $ | 0.86 | 听 |
| 听 | 听 | 听 | 听 | ||||
| Net Income (Loss) | $ | (75.6 | ) | 听 | $ | 27.3 | 听 |
| Items Excluded from Distributable Earnings: | 听 | 听 | 听 | ||||
| Gain on MBS | 听 | (16.5 | ) | 听 | 听 | (208.2 | ) |
| Loss on U.S. Treasury Securities | 听 | 2.9 | 听 | 听 | 听 | 12.9 | 听 |
| (Gain) Loss on TBA Securities, less TBA Drop Income (loss) | 听 | 4.1 | 听 | 听 | 听 | (7.7 | ) |
| Loss on futures contracts | 听 | 29.1 | 听 | 听 | 听 | 62.9 | 听 |
| Loss on interest rate swaps | 听 | 123.9 | 听 | 听 | 听 | 180.4 | 听 |
| Total items excluded | $ | 143.5 | 听 | 听 | $ | 40.3 | 听 |
| Distributable Earnings | $ | 67.9 | 听 | 听 | $ | 67.6 | 听 |
| Dividends on Preferred Stock | 听 | (3.0 | ) | 听 | 听 | (3.0 | ) |
| Distributable Earnings available to common stockholders | $ | 64.9 | 听 | 听 | $ | 64.6 | 听 |
| Distributable Earnings per common share | $ | 0.77 | 听 | 听 | $ | 0.86 | 听 |
| 听 | 听 | 听 | 听 | ||||
| Net Income (Loss) | $ | (75.6 | ) | 听 | $ | 27.3 | 听 |
| Dividends on Preferred Stock | 听 | (3.0 | ) | 听 | 听 | (3.0 | ) |
| Net Income (Loss) available (related) to common stockholders | $ | (78.6 | ) | 听 | $ | 24.3 | 听 |
| Net Income (Loss) per common share | $ | (0.94 | ) | 听 | $ | 0.32 | 听 |
| Weighted average common shares outstanding | 听 | 83,802,551 | 听 | 听 | 听 | 75,379,886 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
Economic Interest Income, Economic Interest Expense, Economic Net Interest Income/Net Interest Spread and Economic Net Yield on Interest Earning Assets
The Company believes that these non GAAP measures, which include the effects of TBA drop income and net interest income (expense) on interest rate swaps and futures contracts, may be useful to investors because they reflect items that we consider in the management of the Company鈥檚 investment portfolio and related funding. The Company believes that the inclusion in economic net interest income of interest rate swaps and futures contracts, which are recognized under GAAP in gain/loss on derivative instruments, is meaningful as interest rate swaps are the primary instrument the Company uses to economically hedge against fluctuations in the Company鈥檚 borrowing costs and their inclusion is more indicative of the Company鈥檚 total cost of funds than interest expense alone. It does not include all interest earning assets and interest bearing liabilities, such as cash collateral posted by counterparties. Accordingly, it is not a substitute for net interest income or net income (loss) determined in accordance with GAAP and should be considered as supplementary to such GAAP measures as a measure of certain aspects of the Company鈥檚 financial performance.
| 听 | Q2 2025 | 听 | 听 | Q1 2025 | ||||||||||||||||
| 听 | (in millions) | 听 | 听 | 听 | 听 | (in millions) | 听 | 听 | ||||||||||||
| 听 | Income (Expense) | 听 | Average Balance | 听 | Average Rate | 听 | 听 | Income (Expense) | 听 | Average Balance | 听 | Average Rate | ||||||||
| Interest Bearing Assets: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Agency Securities, Net of Amortization | $ | 176.5 | 听 | 听 | $ | 14,090.3 | 听 | 5.01 | % | 听 | 听 | $ | 172.4 | 听 | 听 | $ | 13,766.1 | 听 | 5.01 | % |
| Cash Equivalents & Treasury Securities | 听 | 4.4 | 听 | 听 | 听 | 676.8 | 听 | 2.60 | % | 听 | 听 | 听 | 0.4 | 听 | 听 | 听 | 73.4 | 听 | 2.48 | % |
| Total Interest Income/Average Interest Earning Assets | 听 | 180.9 | 听 | 听 | 听 | 14,767.1 | 听 | 4.90 | % | 听 | 听 | 听 | 172.8 | 听 | 听 | 听 | 13,839.5 | 听 | 5.00 | % |
| TBA drop income (loss)/Implied Average TBA Securities | 听 | 1.3 | 听 | 听 | 听 | 466.7 | 听 | 1.10 | % | 听 | 听 | 听 | 1.5 | 听 | 听 | 听 | 596.7 | 听 | 1.01 | % |
| Economic interest income | $ | 182.2 | 听 | 听 | $ | 15,233.8 | 听 | 4.78 | % | 听 | 听 | $ | 174.3 | 听 | 听 | $ | 14,436.2 | 听 | 4.83 | % |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Interest Bearing Liabilities: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Repurchase Agreements | $ | (142.3 | ) | 听 | $ | 12,520.4 | 听 | (4.55 | )% | 听 | 听 | $ | (131.1 | ) | 听 | $ | 11,601.9 | 听 | (4.52 | )% |
| Treasury Securities Sold Short | 听 | (5.5 | ) | 听 | 听 | 507.3 | 听 | (4.31 | )% | 听 | 听 | 听 | (5.4 | ) | 听 | 听 | 502.3 | 听 | (4.32 | )% |
| Total Interest Expense/Average Interest Bearing Liabilities | 听 | (147.8 | ) | 听 | 听 | 13,027.7 | 听 | (4.54 | )% | 听 | 听 | 听 | (136.5 | ) | 听 | 听 | 12,104.2 | 听 | (4.51 | )% |
| Implied Average TBA Funding Positions | 听 | 鈥� | 听 | 听 | 听 | 476.6 | 听 | 鈥� | % | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | 606.7 | 听 | 鈥� | % |
| Net interest income (expense) on interest rate swaps | 听 | 46.3 | 听 | 听 | 听 | 鈥� | 听 | 1.42 | % | 听 | 听 | 听 | 41.5 | 听 | 听 | 听 | 鈥� | 听 | 1.37 | % |
| Net interest income (expense) on futures contracts | 听 | 1.5 | 听 | 听 | 听 | 鈥� | 听 | 0.05 | % | 听 | 听 | 听 | 1.4 | 听 | 听 | 听 | 鈥� | 听 | 0.04 | % |
| Economic interest expense | $ | (100.0 | ) | 听 | $ | 13,504.3 | 听 | (2.96 | )% | 听 | 听 | $ | (93.6 | ) | 听 | $ | 12,710.9 | 听 | (2.95 | )% |
| Economic net interest income/net interest spread | $ | 82.2 | 听 | 听 | 听 | 听 | 1.82 | % | 听 | 听 | $ | 80.7 | 听 | 听 | 听 | 听 | 1.88 | % | ||
| Economic net yield on interest earning assets | 听 | 听 | 听 | 听 | 2.16 | % | 听 | 听 | 听 | 听 | 听 | 听 | 2.24 | % | ||||||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||
Conference Call
As previously announced, the Company will provide an online, real-time webcast of its conference call with equity analysts covering Q2 2025 operating results on Thursday, July听24, 2025, at 8:00 a.m. (Eastern Time). The live broadcast will be available online and can be accessed at . To monitor the live webcast, please visit the website at least 15 minutes prior to the start of the call to register, download, and install any necessary audio software. An online replay of the event will be available on the Company鈥檚 website at www.armourreit.com and continue for one year.
Dividends
ARMOUR paid monthly cash dividends of
ARMOUR paid monthly cash dividends of
ARMOUR Residential REIT, Inc.
ARMOUR invests primarily in fixed rate residential, adjustable rate and hybrid adjustable rate residential mortgage-backed securities issued or guaranteed by U.S. Government-sponsored enterprises or guaranteed by the Government National Mortgage Association. ARMOUR is externally managed and advised by ARMOUR Capital Management LP, an investment advisor registered with the Securities and Exchange Commission (鈥淪EC鈥�).
Safe Harbor
This press release includes 鈥渇orward-looking statements鈥� within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as 鈥渆xpect,鈥� 鈥渆stimate,鈥� 鈥減roject,鈥� 鈥渂udget,鈥� 鈥渇orecast,鈥� 鈥渁nticipate,鈥� 鈥渋ntend,鈥� 鈥減lan,鈥� 鈥渕ay,鈥� 鈥渨ill,鈥� 鈥渃ould,鈥� 鈥渟hould,鈥� 鈥渂elieves,鈥� 鈥減redicts,鈥� 鈥減otential,鈥� 鈥渃ontinue,鈥� and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Additional information concerning these and other risk factors are contained in the Company鈥檚 most recent filings with the SEC. All subsequent written and oral forward-looking statements concerning the Company are expressly qualified in their entirety by the cautionary statements above. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
Additional Information
Investors, security holders and other interested persons may find ARMOUR's most recent Company Update and additional information regarding the Company at the SEC鈥檚 internet site at www.sec.gov, or the Company website at www.armourreit.com or by directing requests to: ARMOUR Residential REIT, Inc., 3001 Ocean Drive, Suite 201, Vero Beach, Florida 32963, Attention: Investor Relations.
Contact
Gordon Harper, Chief Financial Officer, ARR, (772) 617-4340,听
FAQ
What were ARMOUR Residential REIT's (ARR) Q2 2025 earnings results?
How much did ARR's book value per share change in Q2 2025?
What is ARMOUR Residential REIT's current dividend policy?
What is the composition of ARR's investment portfolio?
How much capital did ARR raise in Q2 2025?
