ARMOUR Residential REIT, Inc. Provides Preliminary Financial Estimates
12 October 2022 - 9:30PM
ARMOUR Residential REIT, Inc. (NYSE: ARR and ARR-PRC) (“ARMOUR” or
the “Company”) today announced preliminary estimated financial
information as of September 30, 2022 and for the three-month period
then ended.
ARMOUR’s Q3 2022 Preliminary
Estimates
- Book value per
common share at September 30, 2022 was between $5.79 and $5.83
compared to $7.25 per common share at June 30, 2022.
- Securities
portfolio included approximately $7.4 billion of agency
mortgage-backed securities ("Agency MBS") (net of short
to-be-announced ("TBA") securities positions) and U.S. Treasury
securities.
- Debt to equity
ratio (based on repurchase agreements divided by total
stockholders' equity) was approximately 8.8 to 1. Leverage, net of
short TBA securities positions, was approximately 7.7 to 1 at
September 30, 2022. For comparison, debt to equity ratio was 6.9 to
1 (based on repurchase agreements divided by total stockholders’
equity) and leverage, including net long TBA securities positions,
was 7.6 to 1 at June 30, 2022.
- Liquidity
position consisted of cash and unencumbered Agency MBS of
approximately $469 million, as of September 30, 2022.
- Monthly cash
dividends totaled $0.30 per common share for the third quarter.
Estimated distributable earnings (a non-GAAP measure) for the
quarter exceeded that amount per share. Our final report of
distributable earnings for the third quarter 2022, when available,
will include a reconciliation of distributable earnings to the most
directly comparable GAAP measure.
- Per share
amounts at September 30, 2022 are based on approximately
132,590,000 common shares issued and outstanding on that date.
During the quarter ended September 30, 2022, the Company issued
approximately 22,733,043 common shares for average net proceeds of
$7.36 per share under its "at the market" offering program and
repurchased approximately 780,000 common shares at an average net
cost of $4.96 under its stock repurchase program.
The Company’s financial reporting closing
procedures for the three-month period ended September 30, 2022 are
still in process and, as a result, the Company’s preliminary
estimates of the financial information above is based on
information currently available to management, including a number
of assumptions. Also, these estimates are not comprehensive
statements of the Company’s financial position and results as of
and for the quarter ended September 30, 2022. The Company’s actual
financial position and results as of and for the quarter ended
September 30, 2022 may differ materially from these estimates.
Accordingly, investors should not place undue reliance on this
preliminary information. These estimates are the responsibility of
the Company’s management, and the Company undertakes no obligation
to update this information prior to the filing of the Company’s
next Form 10-Q. These estimates are unaudited and have not been
reviewed by the Company’s independent public accountants.
Certain Tax Matters
ARMOUR has elected to be taxed as a real estate
investment trust (“REIT”) for U.S. Federal income tax purposes. In
order to maintain this tax status, ARMOUR is required to timely
distribute substantially all of its ordinary REIT taxable income.
Dividends paid in excess of current tax earnings and profits for
the year will generally not be taxable to common stockholders.
Actual dividends are determined at the discretion of the Company’s
board of directors, which may consider additional factors including
the Company’s results of operations, cash flows, financial
condition and capital requirements as well as current market
conditions, expected opportunities and other relevant factors.
About 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 (“SEC”).
Additional Information and Where to Find
It
Investors, security holders and other interested
persons may find additional information regarding the Company at
the SEC’s 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.
Investor Contact:
James R. MountainChief Financial OfficerARMOUR
Residential REIT, Inc.(772) 617-4340
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