Form 8-K - Current report

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_____________

FORM 8-K

______________

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) June 14, 2024

ARMOUR Residential REIT, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Maryland			001-34766			26-1908763
(State or Other Jurisdiction of Incorporation)			(Commission File Number)			(I.R.S. Employer Identification No.)

3001 Ocean Drive, Suite 201
Vero Beach,			Florida						32963
(Address of Principal Executive Offices)									(Zip Code)

[phone]

(Registrant’s Telephone Number, Including Area Code)

n/a

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading symbols

Name of Exchange on which registered

Preferred Stock, 7.00% Series C Cumulative Redeemable

ARR-PRC

New York Stock Exchange

Common Stock, $0.001 par value

ARR

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).        

Emerging growth company ☐

If an emerging growth company, indicate by a check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

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Item 7.01.    Regulation FD Disclosure.

On June 14, 2024, ARMOUR Residential REIT, Inc. (“ARMOUR”) produced for distribution a presentation, which contains updates on ARMOUR's financial position, business and operations. Attached as Exhibit 99.1 to this report is the presentation produced by ARMOUR.

The presentation attached to this report as Exhibit 99.1 is furnished pursuant to this Item 7.01 and shall not be deemed filed in this or any other filing of ARMOUR under the Securities Exchange Act of 1934, as amended, unless expressly incorporated by specific reference in any such filing.

Item 9.01.    Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.			Description
99.1			Presentation dated June 14, 2024
104			Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: June 14, 2024

ARMOUR RESIDENTIAL REIT, INC.

By: /s/ Gordon M. Harper

Name: Gordon M. Harper

Title: Chief Financial Officer

ARMOUR RESIDENTIAL REIT, INC.

Monthly Update			JUNE 2024

ARMOUR Residential REIT, Inc. (“ARMOUR”; NYSE ticker ARR) brings private capital into the mortgage markets to support home ownership for a broad and diverse spectrum of Americans. 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 on 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, who is also the majority owner of BUCKLER Securities LLC, a FINRA registered broker-dealer that is the largest provider of ARMOUR’s repurchase financing.

ARMOUR Key Data as of 05/31/2024
Common Stock Price			$	19.34
June 2024 Common Dividend			$	0.24
Common Ex-Dividend Date			06/14/2024
Record Date			06/17/2024
Pay Date			06/27/2024
Debt-Equity (1)			6.8
Implied Leverage (2)			7.4
Total Liquidity (3) (in millions)			$	593.2

ARMOUR Portfolio			% of Portfolio			Current Value (millions)			Effective Duration Using Current Values
30 Year Fixed Rate Pools			84.8		%	$8,528			4.34
Conventionals			77.2		%	$7,767			4.44
30y 3.5s			7.6		%	$762			6.32
30y 4.0s			9.9		%	$999			5.82
30y 4.5s			9.6		%	$962			5.30
30y 5.0s			12.7		%	$1,274			4.82
30y 5.5s			12.1		%	$1,215			4.04
30y 6.0s			19.2		%	$1,929			3.21
30y 6.5s			6.2		%	$627			2.46
Ginnie Mae			7.6		%	$762			3.23
30y 5.5s			7.6		%	$762			3.23
Agency Portfolio			84.8		%	$8,528
Long TBAs			15.2		%	$1,530			5.96
FN 30y 2.5 TBAs			8.0		%	$806			7.27
FN 30y 3.0 TBAs			4.2		%	$420			6.96
G2 30y 6.5 TBAs			3.0		%	$304			1.13
Net TBA Positions			15.2		%	$1,530
Total Portfolio			100.0		%	$10,058

    

All data as of 05/31/24 except CPR which is as of 06/04/24.

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ARMOUR Repo			Principal Borrowed (millions)			% of Repo Positions with ARMOUR			Weighted Average Original Term (days)			Weighted Average Remaining Term (days)			Longest Maturity (days)
BUCKLER Securities LLC (4)			$5,113			58.5		%	55			24			62
All Other Counterparties			$3,633			41.5		%	59			21			63
Total (5)			$8,746			100.0		%	57			23

ARMOUR Interest Rate Swaps Maturity (months)			Notional Amount (millions)			Weighted Average Remaining Term (months)			Weighted Average Rate
0-12			$227			7			0.14
13-24			$1,053			20			3.95
25-36			$1,079			33			0.67
37-48			$50			37			0.25
49-60			$0			—			—
61-72			$1,252			67			0.58
73-84			$2,150			80			0.93
85-96			$400			93			1.48
97-108			$300			100			1.28
109-120			$1,375			116			4.00
Total			$7,886			69			1.79

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-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.

Estimates do not reflect any costs of operation of ARMOUR.

THE INFORMATION PRESENTED HEREIN IS UNAUDITED AND NOT REVIEWED BY OUR INDEPENDENT PUBLIC ACCOUNTANTS.

Footnotes

1.Total Repo divided by Shareholder’s Equity.

2.Total Repo plus TBA market value minus forward settling net sales and purchases divided by Shareholder’s Equity.

3.Total Liquidity is cash plus unencumbered Agency and US Government securities. Excludes any forward settling sales.

4.BUCKLER Securities LLC is a FINRA registered broker-dealer affiliated with ARMOUR REIT.

5.ARMOUR Repo breakdown does not include reverse repo for Treasury Short positions.

All data as of 05/31/24 except CPR which is as of 06/04/24.

Cover Document	Jun. 14, 2024
Document Information [Line Items]
Document Type	8-K
Document Period End Date	Jun. 14, 2024
Entity Registrant Name	ARMOUR Residential REIT, Inc.
Entity Incorporation, State or Country Code	MD
Entity File Number	001-34766
Entity Tax Identification Number	26-1908763
Entity Address, Address Line One	3001 Ocean Drive, Suite 201
Entity Address, City or Town	Vero Beach,
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	32963
City Area Code	772
Local Phone Number	617-4340
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001428205
Amendment Flag	false
Series C Preferred Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Preferred Stock, 7.00% Series C Cumulative Redeemable
Trading Symbol	ARR-PRC
Security Exchange Name	NYSE
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	ARR
Security Exchange Name	NYSE

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