ARMOUR Residential REIT, Inc. reported a net loss of $14.4 million for the fiscal year ending December 31, 2024, compared to a net loss of $67.9 million in the previous year. The company's total revenue for 2024 was $26.8 million in net interest income, a slight decrease from $27.1 million in 2023. The decline in net interest income was attributed to higher costs associated with repurchase financing, which offset the benefits of a larger average securities portfolio. Total other income for the year was $12.5 million, a significant recovery from a loss of $51.5 million in 2023, primarily driven by gains on derivatives.
In terms of operational changes, ARMOUR's management agreement with ARMOUR Capital Management LP (ACM) was extended through December 31, 2029. The management fees incurred under this agreement totaled $39.7 million for 2024, reflecting an increase from $38.2 million in 2023. ACM waived $6.6 million in management fees for both 2024 and 2023, indicating a commitment to support the company during challenging financial periods. The company also reported a significant increase in its investment in mortgage-backed securities (MBS), which rose to $12.4 billion at the end of 2024, up from $11.2 billion in 2023.
ARMOUR's total stockholders' equity increased to $1.36 billion as of December 31, 2024, compared to $1.27 billion a year earlier. The company maintained a leverage ratio of 7.87:1, indicating a stable borrowing strategy relative to its equity base. The number of common shares outstanding rose to 62.4 million following a reverse stock split effective September 29, 2023. The company also reported a total of $150.99 million in dividends paid to common stockholders during 2024, with a portion of these dividends classified as non-taxable return of capital.
Looking ahead, ARMOUR remains focused on managing interest rate risks and optimizing its portfolio of MBS. The company plans to continue its strategy of leveraging private capital to support home ownership while maintaining a commitment to sustainable practices. The management team expressed confidence in navigating the current economic landscape, particularly in light of the Federal Reserve's recent interest rate adjustments, which have seen a reduction in the target range for the Federal Funds Rate. The company aims to sustain its dividend payments while ensuring compliance with REIT tax requirements, which necessitate distributing at least 90% of taxable income to stockholders.
Overall, ARMOUR Residential REIT, Inc. is positioned to adapt to market conditions while pursuing growth opportunities in the mortgage sector, with a focus on maintaining financial stability and shareholder value.
About Armour Residential REIT, Inc.
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