ARMOUR Residential REIT Inc (NYSE:ARR)
$ 20.56 -0.03 (-0.15%) Market Cap: 1.00 Bil Enterprise Value: 876.07 Mil PE Ratio: 0 PB Ratio: 0.86 GF Score: 41/100
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Q2 2024 ARMOUR Residential REIT Inc Earnings Call Transcript

Jul 25, 2024 / 12:00PM GMT
Release Date Price: $20.18 (-2.42%)

Key Points

Positve
  • ARMOUR Residential REIT Inc (ARR) reported distributable earnings available to common stockholders of $52.5 million or $1.08 per common share.
  • ARMOUR Capital Management waived $1.65 million in management fees for Q2, offsetting operating expenses.
  • The company paid monthly common stock dividends of $0.24 per share, totaling $0.72 for the quarter.
  • ARMOUR's portfolio strategy includes a well-diversified mix of mortgage-backed securities (MBS) with a focus on higher coupon MBS for better returns.
  • The company expects lower rates and normalization of the yield curve to provide strong tailwinds to the MBS market, benefiting ARMOUR Residential REIT Inc (ARR).
Negative
  • ARMOUR Residential REIT Inc (ARR) reported a GAAP net loss available to common stockholders of $51.3 million or $1.05 per common share.
  • The company's economic return for the second quarter was negative 4.8%, driven by wider MBS nominal spreads and higher SOFR swap rates.
  • ARMOUR's book value per common share decreased slightly from $20.30 at quarter-end to $20.37 as of July 22.
  • The repo markets showed some funding pressures towards the end of June, with rates remaining slightly above running averages into July.
  • The company remains cautious about the potential for aggressive Fed rate cuts and the impact on mortgage spreads, indicating a non-linear path to tighter spreads.
Operator

Good morning and welcome to the ARMOUR Residential REITs second quarter 2024 earnings call. (operator Instructions) Please note this event is being recorded.

I would now like to turn the conference over to Scott Ulm. Please go ahead.

Scott Ulm
ARMOUR Residential REIT Inc - Co-Chief Executive Officer, Co-Vice Chairman of the Board and Head of Risk Management

Thank you and good morning, and welcome to the ARMOUR Residential REIT second quarter 2024 conference call.

This morning, I'm joined by our CFO, Gordon Harper, as well as our co-CIOs, Sergey Losyev and Desmond Macauley.

I'll now turn the call over to Gordon to run through the financial results. Gordon?

Gordon Harper
ARMOUR Residential REIT Inc - Chief Financial Officer, Controller, Company Secretary

Thank you, Scott. By now, everyone has access to ARMOUR's earnings release, which can be found in ARMOUR's website, www.armourreit.com.

This conference call

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