ARMOUR Residential REIT, Inc. reported a net loss of $54.9 million for the first quarter of 2026, a significant decline from the net income of $27.3 million recorded in the same period of the previous year. The company's interest income increased to $249.2 million, up from $172.9 million in the prior year, while interest expenses also rose to $178.5 million from $136.5 million. This resulted in a net interest income of $70.7 million, compared to $36.3 million in the first quarter of 2025. The loss was primarily attributed to unrealized losses on trading securities and increased interest expenses due to a larger average balance of repurchase agreements.
In terms of operational changes, ARMOUR's total assets increased to $21.5 billion as of March 31, 2026, up from $21.0 billion at the end of 2025. The company’s investments in securities, which include Agency Securities and U.S. Treasury Securities, rose to $20.5 billion, reflecting a strategic focus on expanding its portfolio. The company also reported a total stockholders' equity of $2.34 billion, an increase from $2.26 billion at the end of the previous fiscal year.
ARMOUR's management has made significant adjustments to its capital structure, including the issuance of 11,820 common shares under its 2023 Common Stock ATM Sales Agreement, generating proceeds of approximately $215.4 million. Additionally, the company repurchased 125 common shares at a cost of $2.0 million during the quarter. The management agreement with ARMOUR Capital Management LP was extended through March 31, 2033, indicating a commitment to its current management structure.
The company’s liquidity position remains strong, with total liquidity of $1.12 billion, which includes $66.5 million in cash and cash equivalents. ARMOUR continues to manage its leverage effectively, with a debt-to-equity ratio of 7.90:1 as of March 31, 2026. The company has also maintained its dividend payments, declaring a cash dividend of $0.24 per common share for the quarter, consistent with the previous year.
Looking ahead, ARMOUR anticipates continued volatility in the mortgage market, influenced by geopolitical events and changes in interest rates. The management team is focused on risk management strategies to navigate these challenges while maintaining its REIT status and ensuring adequate liquidity to meet operational needs and shareholder distributions.
About Armour Residential REIT, Inc.
ARMOUR Residential REIT, Inc. is a Maryland-based real estate investment trust specializing in investing in U.S. government-sponsored entity (GSE) mortgage-backed securities (MBS). The company manages a leveraged, diversified portfolio of primarily fixed-rate Agency Securities to generate income through net interest spreads. It employs hedging strategies to mitigate interest rate risks and funds its investments mainly via repurchase agreements. ARMOUR targets investors seeking exposure to residential mortgage markets with a focus on sustainable governance and risk management.
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